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

* More proof that refundable credits are bad tax policy – “IRS had a hard time reconciling CTC payments” from Michael Cohn at ACCOUNTING TODAY (highlight is mine) -  

“The Internal Revenue Service had to scramble to reconcile the monthly advance payments of the Child Tax Credit it distributed in 2021 with the amount of credits later reported by recipients.

 
Many of them never filed a tax return, and there was an estimated $1 billion in erroneous advance payments sent, according to a new report.”
 
* And Michael reports that, while there has been progress on the processing of original tax returns “IRS falls behind on amended returns” –
 
“The Internal Revenue Service improved its performance during this year's tax season, catching up on much of its backlog, but is still behind on dealing with all the amended returns and correspondence it received this year, according to a new report.”
 
* The IRS has released draft 2023 Form 1040 and Form 1040-SR.  Click here for this and other draft forms and schedules.
 
The only difference I see between the 2023 and 2022 forms is the placement and formatting of the Filing Status section.  Instead of on top of the forms this section is now below the section for names, numbers and address. 
 
This is a good change – making the flow of the forms more rational. 
 
Lines 1a through 1i, listing truly, in my historical experience, obscure sources of income remain on the 2023 versions, and the change in the Filing Status formatting makes Page 1 of the 1040 almost an actual full 8½ ax 11 page, although Page 2 remains abbreviated. 
 
* The NJ Division of Taxation has created a page to include all deductions related to college tuition.  Click here.
 
For Tax Year 2022 and forward, The New Jersey College Affordability Act allows for three Income Tax deductions for those who file tax returns showing gross income of $200,000 or less. Deductions include contributions to an NJBEST 529 savings plan, payments made for an NJCLASS student loan, and tuition costs for New Jersey colleges and universities. For more information, see our website.
 
* Check out my latest attempt at a free online newsletter.  Lots of interesting stuff – some of it tax related.  Please share with your family, friends, etc.
 
* Returning to ACCOUNTING TODAY before ending, Michelle Kaske and Jordan Fitzgerald tell us “New Jersey tries to woo Florida-bound seniors with tax break” –
 
“. . . lawmakers announced a program Wednesday, aptly branded StayNJ, under which residents over age 65 and making less than $500,000, will see property-tax breaks. The levies will either be cut in half or capped at $6,500. The new program will take full effect in 2026, bridged by an extra $250 tax credit provided over the next several years for senior homeowners and renters through the state's existing Anchor program.”  
 
Why would anyone want to move from NJ to Florida?  Yes, NJ has high taxes, but Florida has a fascist state government.
 
THE LAST WORD –
 
Sadly, the Christian charity, love and acceptance that existed and I was taught when growing up as a Methodist has been replaced today by Christian hate and repression.
 
TTFN