WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

* The latest “issue” of NATP’s TAXPRO Weekly member email newsletter provided information from the IRS detailed update on backlogged returns.  It reported -

 

“As of May 20, 2022, the IRS had 9.8 million unprocessed individual returns, which include returns received before 2022, and new tax year 2021 returns. Of these, 2 million returns require error correction or other special handling, and 7.8 million are paper returns waiting to be reviewed and processed.”

 

And –

 

“As of May 21, 2022, the IRS had 2.1 million unprocessed Forms 1040-X and are processing these returns in the order received. The current time frame can be more than 20 weeks.”

 

So, you just need to be patient.  And please DO NOT contact your tax pro to ask about a late federal refund – there is absolutely nothing he, or you, can do to expedite the processing of your return or the issuing of your refund!

 

* TaxGirl Kelly Phillips Erb reports “Some States Are Offering Sales Tax Holidays for Shoppers in 2022” at her BLOOMBERG.COM blog.

 

* Speaking of tax holidays, Kay Bell tells us “As fuel prices continue rising, some states enact gas tax holidays” at DON’T MESS WITH TAXES.

 

* FIN POWERED FEMALE Victoria explains “How Your Minor Child Can Contribute to a Roth IRA”.

 

This is something I have been recommending to parents and grandparents for many years now.

 

* One of the multitude of acronyms that taxpayers, and taxpros, have to deal with is MAGI.  No gift from this MAGI – which stands for “Modified Adjusted Gross Income”.  Many tax deductions and benefits are limited based on your MAGI. 

 

Jim Blankenship explains “Determining Your MAGI” related to IRA contributions at FINANCIAL DUCKS IN A ROW.

 

* The TAX FOUNDATION identifies “State and Local Tax Burdens, Calendar Year 2022”.

 

New York has the highest state and local tax burden.  New Jersey is #6.    

 

TTFN