Adjust tax withholding now to pay the proper amount of tax
The Internal Revenue Service today urged taxpayers to check their tax withholding while there’s time left in 2022 to benefit from any necessary changes. An adjustment made now will help people avoid a big surprise, such as a big refund or a balance due, at tax time in...
Parents can boost their back-to-school budget by claiming tax credits and refunds
Summer is slipping away and another school year is starting. As kids head back to the classroom, parents are ticking items off the school supply list. If they want to boost their back-to-school budgets, parents and guardians should make sure they aren’t missing out on...
New school year reminder to educators; maximum educator expense deduction rises to $300 in 2022
WASHINGTON — 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 2022 when they file their federal income tax return next year. This is the...
IRS announces interest rate increases for the fourth quarter of 2022; 6% rate applies to most taxpayers starting Oct. 1
WASHINGTON — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning October 1, 2022. For individuals, the rate for overpayments and underpayments will be 6% per year, compounded daily, up from 5% for the...
What businesses need to know about reporting nonemployee compensation and backup withholding to the IRS
When a business hires an independent contractor, the employer is generally not responsible for withholding income taxes, Social Security, or Medicare taxes from their compensation. However, by law, business taxpayers who pay nonemployee compensation of $600 or more...
IRS increases mileage rate for remainder of 2022
The Internal Revenue Service today announced an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain...
For those who pay estimated taxes, second quarter June 15 deadline approaches
The Internal Revenue Service reminds taxpayers who pay estimated taxes that the deadline to pay their second quarter tax liability is June 15. Taxes are pay-as-you-go This means taxpayers need to pay most of the tax they expect to owe during the year, as income is...
Taxpayers should check their federal withholding to decide if they need to give their employer a new W-4
The IRS encourages all taxpayers to review their federal withholding at least once a year to make sure they're not having too little or too much tax withheld. Taxpayers whose employers withhold federal income tax from their paycheck can use the IRS Tax Withholding...
IRS reminds taxpayers who haven’t filed yet to choose their tax preparer wisely
Taxpayers who have not yet filed their 2021 tax return may file electronically when they are ready rather than wait until the October 17, 2022, extension deadline. If they are considering hiring a tax preparer, it’s important to choose wisely. Taxpayers are...
Wedding planning checklist: cake, rings, flowers … tax forms?
The summer wedding season is fast approaching. Wedding planning is often overwhelming but figuring out how marriage will affect a couple’s tax situation doesn’t have to be. Here are a few things couples should think about as they prepare for the big day. Name and...