I am waiting for the IRS to announce the 2024 inflation-adjusted numbers. It seems they are a bit late doing so this year.
* The big news from the IRS last week was the announcement that the “Agency finalizing Direct File pilot scope, details as work continues this fall; EITC, Child Tax Credit among projected provisions covered” -
“Arizona, California, Massachusetts, and New York have decided to work with the IRS to integrate their state taxes into the Direct File pilot for filing season 2024. Taxpayers in nine other states without an income tax – Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming -- may also be eligible to participate in the pilot.”
And -
“People in those 13 states may be eligible to participate in the 2024 Direct File pilot, a new service that will provide taxpayers with the choice to electronically file their federal tax return directly with the IRS for free.
Taxpayer eligibility to participate in the pilot will be limited by the state in which the taxpayer resides and will be limited to taxpayers with certain types of income, credits and deductions – taxpayers with relatively simple returns. The IRS today announced it anticipates specific income types, such as wages on a Form W-2, and important tax credits, like the Earned Income Tax Credit and the Child Tax Credit, will be covered by the Direct File pilot.”
Click here for an IRS Fact Sheet on the pilot program.
It appears I would not have been able to use this system for my clients if I had not retired, as 90% were from New Jersey.
* Also from the IRS, this installment’s disaster relief notice – “For California storm victims, IRS postpones tax-filing and tax-payment deadline to Nov. 16” -
“The Internal Revenue Service today further postponed tax deadlines for most California taxpayers to Nov. 16, 2023. In the wake of last winter's natural disasters, the normal spring due dates had previously been postponed to Oct. 16.
As a result, most individuals and businesses in California will now have until Nov. 16 to file their 2022 returns and pay any tax due. Fifty-five of California's 58 counties—all except Lassen, Modoc and Shasta counties—qualify. IRS relief is based on three different FEMA disaster declarations covering severe winter storms, flooding, landslides, and mudslides over a period of several months.”
* Over at KIPLINGER.COM Kelley R. Taylor explains the “Tax Benefits of Hiring Your Kids Plus IRS Rules to Follow” -
“Tax Benefits of Hiring Your Child
· If you follow IRS rules, hiring your child to work for your business can lower your taxable income as you can deduct their salaries from your business income.
· If your child is under 18, and depending on the type of business you have (more on that below) you won’t have to take Social Security and Medicare taxes from their pay.
· Your child won’t have to pay taxes if their income for a given tax year is less than the standard deduction amount for that year (e.g., $13,850 for 2023).
· Because your child will have earned income, you can contribute to an IRA on their behalf subject to applicable IRA contribution limits.”
* Back to the IRS – “Beware of fake charities; check before donating”.
* The TAX FOUNDATION has released it’s “2024 State Business Tax Climate Index” -
“The Tax Foundation’s State Business Tax Climate Index enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare. While there are many ways to show how much is collected in taxes by state governments, the Index is designed to show how well states structure their tax systems and provides a road map for improvement.”
Wyoming is #1 – the best tax state.
What is #50 – the worst tax state? No surprise here – New Jersey. Like Oliver Twist, NJ is consistently last on the list -
“New Jersey, for example, is hampered by some of the highest property tax burdens in the country, has the highest-rate corporate income taxes in the country, and has one of the highest-rate individual income taxes. Additionally, the state has a particularly aggressive treatment of international income, levies an inheritance tax, and maintains some of the nation’s worst-structured individual income taxes.”
TTFN
No comments:
Post a Comment