Tips to help make sure donations go to legitimate charities

When disaster strikes, Americans can always be counted on to help. That help comes in countless ways, but often the easiest way to help is by donating money to charities. Sadly, criminals are just as likely to answer the call after a disaster or emergency as the millions of people who open their wallets. Scammers […]

Maximum educator expense deduction is $300 in 2023

As the new school year begins, the Internal Revenue Service reminds teachers and other educators that they’ll be able to deduct up to $300 of out-of-pocket classroom expenses for 2023 when they file their federal income tax return next year. This is the same limit that applied in 2022, the first year this provision became […]

Beware of Employee Retention Credit scams

Beware of Employee Retention Credit scams The IRS continues to see third parties aggressively promoting Employee Retention Credit (ERC) schemes. In News Release IR-2023-105, the IRS renewed an alert for businesses and tax exempt groups to watch out for warning signs of aggressive Employee Retention Credit marketing. These promoters may lie about eligibility requirements. In addition, taxpayers using […]

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 […]