Charitable Contributions of Non-Cash Items

DETERMINING THE VALUE The first step in claiming a non-cash donation on your tax return is to calculate the fair market value (FMV) of the item or items that you donated. FMV is the price that the items would sell for on the open market. As most non-cash contributions are of used items, the FMV […]

Backup withholding payment deadlines are coming soon

Businesses or other payers required to take backup withholding funds from payments should make sure they have a few upcoming filing deadlines on their calendar. Backup withholding can apply to most kinds of payments reported on Forms 1099 and W-2G. There are, however, situations when a payer must withhold 24% of the payment to ensure the IRS […]

Taxpayers should continue to report all digital asset income

What is a digital asset? A digital asset is a digital representation of value which is recorded on a cryptographically secured, distributed ledger. Common digital assets include: Convertible virtual currency and cryptocurrency Stablecoins Non-fungible tokens (NFTs) Everyone must answer the question Everyone who files Form 1040, Form 1040-SR or Form 1040-NR must check one box, […]

Employers: Jan. 31 deadline for Form W-2, other wage statements

Tax Associates reminds employers and other businesses to file tax year 2022 Form W-2 and other wage statements by Jan. 31. The deadline also applies to Forms 1099-NEC, Nonemployee Compensation filed with the IRS to report non-employee compensation to independent contractors. Contact us for more information and support to ensure your companies success.

Final 2022 quarterly estimated tax payment due Jan. 17

Many taxpayers make quarterly estimated tax payments during the year to stay current on their taxes, but many who should overlook this step. The Internal Revenue Service today urged those who paid too little tax in 2022 to make a fourth quarter payment on or before Jan. 17 to avoid an unexpected potential tax bill or penalty […]

Retired and over the age of 72, do this to avoid penalties

The Internal Revenue Service today reminded those who were born in 1950 or earlier that funds in their retirement plans and individual retirement arrangements face important upcoming deadlines for required minimum distributions to avoid penalties. Required minimum distributions, or RMDs, are minimum amounts that many retirement plan and IRA account owners must generally withdraw annually […]

Employers warned :Beware of third parties promoting improper ERC

The Internal Revenue Service today warned employers to be wary of third parties who are advising them to claim the Employee Retention Credit (ERC) when they may not qualify. Some third parties are taking improper positions related to taxpayer eligibility for and computation of the credit. These third parties often charge large upfront fees or […]

An IRS online account is simple, safe, and secure

An IRS online account makes it easy for people to quickly get the tax planning info they need. With the same ease that taxpayers have when banking online or placing an online shopping order, they can log in and get the latest on their payment history, balance, and more. Taxpayers can view information about their account including: […]

Know what’s deductible after buying that first home, sweet home

Making the dream of owning a home a reality is a big step for many people. Whether a fixer-upper or dream home, homeownership is a milestone that can come with a learning curve. First-time homeowners should make themselves familiar with authorized deductions, programs that can assist with home ownership and the use of housing allowances […]

Sept. 15 is the deadline for third quarter estimated tax payments

The Internal Revenue Service reminds taxpayers who pay estimated taxes that the deadline to submit their third quarter payment is September 15, 2022. Taxpayers not subject to withholding, such as those who are self-employed, investors or retirees, may need to make quarterly estimated tax payments. Taxpayers with other income not subject to withholding, including interest, dividends, […]