In July 2024, the IRS released several warnings on widespread scams and misleading claims on the Self Employment tax credit. The IRS is taking a proactive communication approach and raising awareness of scams, fraud and other misleading information on social media and by different promoters. Clean Energy Tax Credit – In the IR-2024-182, the
We are in the summer of 2024 and more and more Americans are willing to go into debt to finance their vacation. Note that the interest expense on personal debt is not deductible (in contrast with mortgage interest for your home). This post pandemic world never ceases to amaze me. Cost of living (home, rent,
As the Social Security Board of Trustees (Federal government) estimates that from 2035, the payments of scheduled benefits might be reduced to around 75% (unless there is a reform to increase the fund assets), more and more States are requiring small businesses to join State programs offering retirement options to their employees, if not already
If you are covered by an Health Savings Account HSA eligible plan, then, you can make pre-tax contributions to a medical savings account for future health related expenses. The growth of these funds are tax free and if used for its medical purpose, the withdrawal is not taxable. However, if not used for the right
One of the best advice is to contribute to your private retirement as the contribution is a tax deduction (lower taxable income in your w2) and then, it will be taxed at the distribution time in the case of traditional retirement plans. This is extremely relevant as social security payments are expected to be partial
As you might be aware, taxpayers are leaving States with double digit State income taxes like California, Hawaii, New Jersey, New York and the District of Columbia for more tax friendly States like Texas and Florida in 2023 as described in the Tax Foundation article. Based on Wirepoints data, if we go back to 2020
In the IRS IR-2024-174, the IRS announced that is mailing out a limited time settlement offer for taxpayers that participated in Syndicated Conservation Easement. How does the Syndicated Conservation Easement work? This is an overvalued conservation easement that is claimed as charitable contributions that promoters will target to high income taxpayers. The target will invest
In the mid year report to Congress (IR-2024-173), National Taxpayer Advocate Erin M. Collins revealed the misleading metrics that the IRS uses to report call service. The IRS accounts for a goal of achieving a Level of Service (LoS) of at least 85%, which was exceeded in 2024 (88%). "... The Treasury Department and the
In the mid year report to Congress, National Taxpayer Advocate Erin M. Collins stated that there are significant delays for victims of identify theft, which subsequent delays on their refunds. As reported in the IR-2024-173, the average time to resolve the identify theft when up from 19 months in 2023 to 22 months in April
In mid June 2024, Victor Garrido attended an IRS conference "Working Together" where the IRS made presentations on several topics. One of the latest pain points shared by the agency was the elevated number of scams and fraud activities conducted through: phone calls to taxpayers, especially elder citizens that might have dementia, Alzheimer, or other
