The past two tax-filing seasons were fraught with aggravations, delays, last-minute changes and huge backlogs at the IRS. But by comparison, this year’s tax-filing season has been going relatively smoothly, tax preparers say.
“After a few years of pandemic-related updates, mid-tax season IRS guidance, last-minute tax law changes and more, the ‘quiet’ is a welcome change to many,” the National Association of Tax Preparers said in a statement
Indeed, the most recent filing season statistics from the IRS indicate more returns are being processed and more refunds are being issued than at the same point last year.
For example, the IRS reports that as of the week ending March 3 it had sent out 11% more refunds than it had during the same week a year ago. Even though the IRS has processed more refunds at t
Earlier this month, the Internal Revenue Service (IRS) abruptly advised millions of taxpayers to hold off on filing their 2022 tax return. The reason? A number of states had issued one-time tax rebates, refunds, and other special payments last year, but the IRS was not sure if some or any of these payments were taxable at the federal level.
Now the agency has clarified the situation by issuing updated guidance on the matter, stating that “taxpayers in many states will not need to report these payments on their 2022 tax returns.”
This will no doubt come as a relief to millions of taxpayers, especially those who had filed their returns before the IRS said to hold off. At the same time, the IRS guidance contains some caveats. If you received one of these state-level payments in 2022, here’s what to know:
Estimated tax payments can be confusing, but they don’t have to be. Understanding the basics of estimated taxes and what you need to pay is key to making sure you stay in compliance with the IRS. Keeping up with estimated taxes throughout the year will help you avoid paying too much (or too little) come tax day. In this article, we’ll discuss when estimated taxes are due as well as how much you’re required to pay.
What are estimated tax payments?
Estimated tax payments are periodic payments made to the government by individuals or businesses during the year, in order to pay their expected tax liability. These payments are typically made quarterly in four equal installments and are estimated based on an individual’s or business’s expected income not subject to federal tax withholding minus deductions for the current year. The purpose of estimated tax payments is to ensure that the tax owed is paid in a timely manner, rather than as a lump sum at the end of the year, avoiding underpayment penalties.
2023 IRS Mileage Reimbursement Rate
For 2023 the IRS mileage reimbursement rates for businesses, individuals, and other organizations are as follows:
- 65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022.
- 22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with the increased midyear rate set for the second half of 2022. 1
- 4 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022
Between the Great Resignation and the layoffs of the pandemic, there are a lot of people looking for new jobs these days. And that’s presenting a ripe opportunity for scam artists.
The Internal Revenue Service (IRS), on Monday, issued a warning to Americans about bad actors who use fake job offers to steal money and personal information, a continuation of a heart-of-the-pandemic scam. By gathering that information, the scam artists are able to file fraudulent unemployment claims in their name, which not only costs the government, but also could significantly impact the victim’s tax bill and eligibility for future benefits.
“They promise you a job, but what they want is your money and your personal information,” says the FBI.
If you haven’t finished your taxes yet, don’t panic.
You’re much more likely to make mistakes if you’re under stress and feeling rushed. Take a deep breath and set aside some time to tackle your taxes with a clear mind.
We’ve put together five last-minute tax tips to help you avoid common mistakes, save money, and set yourself up for greater financial success.
1. Know the facts
In the U.S., personal tax returns are due April 18, 2022. Unlike in 2020 and 2021, the IRS is sticking to its deadline this year.
But there are still pandemic-related complexities to consider. Work with your tax advisor to review any stimulus payments or Advance Child Tax Credits you received to ensure you received the appropriate amounts.
Remember what it felt like when your teacher marked something as “incorrect” on your homework, but then the correction itself turned out to be incorrect? Well, millions of American taxpayers may feel like they’re in that very situation right now.
The Internal Revenue Service (IRS) has issued some 5 million “math error notices” that neglected to inform people of their full legal rights, according to an update from the Taxpayer Advocate Service this week. The letters, sent as a result of corrections the IRS made to people’s tax returns, made no mention of a key detail: that taxpayers only have 60 days to dispute the error in question.
Have you faced financial hardship or do you know someone who has? Hardships come in many forms, from unexpected health problems to a lost source of income. Whenever someone faces a sudden hardship, they may be unable to fully pay their taxes.
Despite any financial troubles you might currently have, you need to file your taxes to avoid penalties from the IRS. However, that doesn’t mean the agency isn’t willing to work out a reasonable solution for those facing dire money problems. Find out how the IRS debt forgiveness program works and if it is right for your current situation.
How much can you save for retirement in 2020? The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2020: 401(k) contribution limits are up; traditional IRA contribution limits stay the same; almost all the other numbers are up.
The amount you can contribute to your 401(k) or similar workplace retirement plan goes up from $19,000 in 2019 to $19,500 in 2020. The 401(k) catch-up contribution limit—if you’re 50 or older in 2020—will be $6,500 for workplace plans, up from $6,000. But the amount you can contribute to an Individual Retirement Account stays the same for 2020: $6,000, with a $1,000 catch-up limit if you’re 50 or older.
Finding out that you are going to be audited by the IRS can be a little bit scary. However, with the right preparation, anyone can get through it. Here’s what you need to know to survive your IRS audit.
Don’t Ignore The Notice
Once you receive your IRS audit notice, you will usually have 30 days to respond to it; the precise time period will be specified in the notice. You should never ignore any correspondence from the IRS, claiming to not have received the letter won’t hold water in a courtroom. You can’t simply feign ignorance on the basis of not having received the letter.