By Editorial Staff for Accounting Today The average American will pay $497,804 in total taxes over a lifetime, but the exact amount can be much higher in certain parts of the country. QuickBooks consultants Dancing Numbers recently compared all 50 states and the District of Columbia to determine which states pay the most in taxes, as…
By Jeff Stimpson for Accounting Today Talk of probationary workers, layoffs and cutbacks may be new, but one annual constant continues this season: tax scams. The Internal Revenue Service says that from email schemes to misleading tax credits, many of the most popular frauds are robust during the year but peak during filing season. “Scammers…
Standard deduction amount increase. For 2024, the standard deduction amount has been increased for all filers. The amounts are: Single or married filing separately — $14,600. Head of household — $21,900. Married filing jointly or qualifying surviving spouse — $29,200. Child Tax Credit enhancements. Taxpayers eligible for the Child Tax Credit should not wait to file their…
The Neighborhood Community Development Fund announced business grant opportunities. The awards range from $500-$10,000. The deadline to apply for all grants is this Friday, January 31. Don’t let the deadline scare you! The applications only take 20-60 minutes to complete, and some are open quarterly, so you can apply later if necessary. $500 Giving Joy Grant…
By Michael Cohn for Accounting Today The Internal Revenue Service released guidance on the income and employment tax treatment of contributions and benefits offered under state paid family and medical leave programs, along with the reporting requirements. Rev. Rul. 2025-4 includes guidance for the District of Columbia and states that have mandatory paid family and…
By Thomson Reuters Tax & Accounting What’s changing? Rise in standard deductions For married couples filing jointly, the standard deduction increases to $30,000, up $800 from tax year 2024. For heads of households, it is $22,500 for tax year 2025, up $600 from tax year 2024. For single taxpayers and married individuals filing separately for…
By Michael Cohn The Internal Revenue Service extended its transition relief for the new Form 1099-K information reporting threshold, setting it at $5,000 for 2024 and $2,500 in 2025 before reaching the statutory level of $600 in 2026 and thereafter. The threshold applies to payment apps and online marketplaces such as Venmo, PayPal, eBay, Etsy,…
If you invest in renewable energy for your home such as solar, wind, geothermal, fuel cells or battery storage technology, you may qualify for an annual residential clean energy tax credit. How it works The Residential Clean Energy Credit equals 30% of the costs of new, qualified clean energy property for your home installed anytime…
Taxpayers should watch out for gift card scams especially during the holiday season. The IRS never asks for or accepts gift cards as payment for a tax bill. Common holiday scams Scammers may try to trick taxpayers into falling for the gift card scam. With this scam, criminals may impersonate government or collections officials and…
Employers who hire people from certain groups can reduce the tax they owe when they claim the Work Opportunity Tax Credit on their federal tax return. To claim the credit, an employer must first get certification an individual is eligible. This credit is extended through the end of 2025. It encourages employers to hire workers…
