The IRS generally considers whether you’re married, separated but not legally separated, or divorced at the end of the year. Marriage status is important in filing taxes; it not only determines filing requirements but also standard deductions, eligibility for certain credits and taxes as well. In fact, you may have to deal with multiple government […]
At the end of December, the IRS announced standard mileage rates for 2025. Below are the deductions, if you are using an automobile for approved purposes: Self-employed and business: 70 cents/mile (up from 67 cents in 2024) Charities: 14 cents/mile (unchanged from 2024) Medical: 21 cents/mile (unchanged from 2024) Moving (military only): 21 cents/mile (unchanged from 2024) It […]
In a December 2024 release, the IRS said it was continuing to improve taxpayer services to help people prepare for tax season with more digital tools and options available. Even though you’re working with a tax pro, there are things you can do in advance to help yourself. The IRS’s Get Ready page on IRS.gov offers practical […]
Your max contributions to 401(k) plans for 2025 increase to $23,500, up from $23,000 for 2024, according to the IRS. The tax agency also issued technical guidance regarding cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2025. The limit on annual contributions to an IRA remains $7,000. The […]
The following is not a comprehensive list of all changes, but a summary of key adjustments that will affect a wide range of taxpayers: Standard deductions. For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction rises to $15,000 for 2025, an increase of $400 from 2024. For married couples filing […]
What tax deductions, programs and housing allowances are available and unavailable to you, homeowner? Let’s delve into several that the IRS wants you to consider: Deductible house-related expenses — your mortgage may bundle other costs involved in owning a home. Here are some to deduct: State and local real estate taxes, which are subject to […]
It is somewhat unusual to highlight 2026 taxes in 2024, but we are in an unusual situation: Many of the provisions in 2017’s Tax Cuts and Jobs Act will expire at the end of 2025 unless Congress acts to extend them. Taxpayers need to be aware of how they will be affected so they can […]
In Rev. Proc. 2024-25, the IRS made changes for health savings accounts for 2025. The maximum annual HSA contribution is: $4,300 for an eligible individual with self-only coverage. $8,550 for family coverage. HSAs are used in conjunction with a High Deductible Health Plan. The 2025 maximum annual out-of-pocket amount for HDHP self-only coverage is $8,300. […]
Digital assets have become an increasingly popular method of payment and an asset for investment or trading. Because many transactions involving digital assets fall outside the scope of information reporting rules, on August 25, 2023, the government issued proposed regulations for them. The new rules are intended to make it easier for taxpayers to track […]
The Internal Revenue Service recently revised its frequently asked questions (FAQs) with almost 50 new or updated ones regarding Forms 1099-K, Payment Card and Third Party Network Transactions, published in fact sheet FS-2024-03. These updates supersede the FAQs published in a March 2023 fact sheet. The revised FAQs include substantial changes for both individual taxpayers and companies […]