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Navigating the IRS: $1 Billion in Penalty Taxes Waived as 2024 Tax Season Takes Off on Jan. 29
- January 17, 2024
- Posted by: Mahfuj Ruzel
- Categories: Finance & accounting, Tax Credit, Tax News, Tax Preparation
No CommentsIn a significant move, the IRS has announced the waiver of $1 billion in penalty taxes, signaling a favorable start to the 2024 tax season scheduled to commence on January 29. This decision, explored in detail in a recent Fox Business article, brings relief to taxpayers facing penalties and introduces a more lenient approach for the upcoming tax year.
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IRS Provides Initial Guidance to Employers Setting Up Emergency Savings Accounts for Their Employees
- January 15, 2024
- Posted by: Mahfuj Ruzel
- Categories: Finance & accounting, Tax Credit, Tax News, Tax Preparation
The Internal Revenue Service (IRS) has issued initial guidance to help employers with implementation of pension-linked emergency savings accounts (PLESAs). Authorized under the SECURE 2.0 Act of 2022, PLESAs are individual accounts in defined contribution plans and are designed to permit and encourage employees to save for financial emergencies. Employers can offer PLESAs in plan years beginning after Dec. 31, 2023. This means that, in some cases, eligible employees could have begun contributing to a PLESA as early as Jan. 1, 2024. Subject to certain restrictions, matching contributions are made with respect to PLESA contributions at the same rate as contributions to the linked defined contribution plan.
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Who Qualifies for the EV Tax Credit in 2023 and Beyond?
- January 13, 2024
- Posted by: Mahfuj Ruzel
- Categories: Finance & accounting, Tax Credit, Tax News, Tax Preparation
The EV tax credit is a federal incentive that offers up to $7,500 for buying a new, qualified plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after. The credit is nonrefundable, which means it can only reduce your tax liability and not give you a refund. The credit amount depends on the battery capacity, the date of delivery, and the critical mineral and battery component requirements of the vehicle. The credit is also subject to income limits and phase-out rules based on your modified adjusted gross income (AGI) and the manufacturer’s sales volume. To claim the credit, you need to file Form 8936 with your tax return and attach the information provided by the seller at the time of sale
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EV Tax Credit: How to Claim Up to $7,500 for Buying a New Clean Vehicle in 2023 or After
- January 12, 2024
- Posted by: Mahfuj Ruzel
- Categories: Finance & accounting, Tax Credit, Tax News, Tax Preparation
The IRS offers a clean vehicle tax credit of up to $7,500 for buying a new, qualified plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after. The credit amount depends on the battery capacity, the date of delivery, and the critical mineral and battery component requirements of the vehicle. The credit is also subject to income limits and phase-out rules. To claim the credit, you need to file Form 8936 with your tax return and attach the information provided by the seller at the time of sale.
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How to Maximize Your Tax Refund: 10 Savvy Tips on Filing Status, Credits, Deductions, and More
- January 12, 2024
- Posted by: Mahfuj Ruzel
- Categories: Finance & accounting, Tax Credit, Tax News, Tax Preparation
To optimize your tax situation, select the most beneficial filing status, such as comparing joint versus separate if you’re married. If eligible, utilize the earned income tax credit, which can reduce your tax liability and potentially result in a refund. Parents should consider the child tax credit, which can significantly decrease your tax bill if you meet the income and dependency criteria. Evaluate whether itemizing deductions or using the standard deduction is more advantageous for you. Contributing to a traditional IRA can help save for retirement while reducing taxable income. Lastly, maximize contributions to a health savings account if you have a high-deductible health plan, as these contributions are tax-deductible.
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