Group de Soto, Santos Soto, CPA

RMD GUIDE

2024 RMD Reference Guide What's new with required minimum distributions? We cover the basics here.

2025 HSA MAXIMUM CONTRIBUTION AMOUNT

HSA inflation-adjusted maximum contribution amounts for 2025 announced After steep increases for 2024, the HSA maximum contribution amounts allowed by the IRS still increase for 2025, but not by as much, as the rate of inflation slowed.

IRS targets high income filers

IRS renews focus on targeting high-income nonfilers IRS Commissioner Danny Werfel said Thursday that the effort will begin with compliance letters going out to high-income taxpayers in 125,000 cases where third-party information indicated federal tax returns have not been filed since 2017.

2024 IRS Direct filing project will include Florida filers

IRS advances innovative Direct File project for 2024 tax season; free IRS-run pilot option projected to be available for eligible taxpayers in 13 states | Internal Revenue Service IR-2023-192, Oct. 17, 2023 — As part of larger transformation efforts underway, the Internal Revenue Service announced today key details about the Direct File pilot for the 2024 filing season with several states planning to join the innovative effort.

Health insurance for millions could be under threat:

How the 2024 presidential election may threaten health coverage for millions Obamacare sign-ups are surging. Experts warn it may not last.

1099-K updates

Form 1099-K frequently asked questions revised Almost 50 new or updated frequently asked questions for the IRS’s Form 1099-K, Payment Card and Third Party Network Transactions, published Tuesday, include guidance on common situations, along with more clarity for the payment card industry about which organizations should send Forms 1099-K.

Employee or independent contractor? DOL issues new guidance

Employee or independent contractor? DOL issues new guidance A final U.S. Department of Labor rule provides an economic reality test and targets “misclassifying employees as independent contractors,” which could have tax and other implications for workers and employers alike.

If you claimed ERC money under questionable application the IRS is giving you a break. Repay only 80% See below

ERC voluntary disclosure program requiring 80% claim payback launched The IRS announced the launch of a program that will allow businesses to repay money from questionable employee retention credit claims and avoid penalties and interest.

2024 MILEAGE RATES

Business standard mileage rate increases for 2024 The optional standard mileage rate for business use of a vehicle increased slightly from 2023. The new rate is effective Jan. 1.

BEWARE OF QR CODES!

QR codes may be a gateway to identity theft, FTC warns The digital codes have become popular. But thieves are also using them to steal your personal data, the Federal Trade Commission warned.

WOW Benefial owner reporting penalties, $500 per day per owner

Beneficial ownership information reporting: Right around the corner Clients should start developing procedures and policies to comply with the new reporting requirement and begin to gather the data that will be necessary.

End-of-year financial and tax considerations

End-of-year financial and tax considerations With 2023 coming to a close, the time is now for clients to take stock of opportunities to reduce their taxable income and plan for their financial future.

Lower Form 1099-K threshold delayed again

Lower Form 1099-K threshold delayed again The IRS said Tuesday that it will once again delay of the application of the Form 1099-K $600 reporting threshold. And, for 2024, it is setting the threshold at $5,000.

Used Ev’s get up to $4000 tax credit

Used Clean Vehicle Credit | Internal Revenue Service If you buy a qualified used electric vehicle from a dealer for $25,000 or less, you may be eligible for a clean vehicle tax credit of up to $4,000.

Health savings accounts, with a triple tax advantage,

Health savings accounts, with a triple tax advantage, are ‘perfect,’ advisor says — but only if used the right way Health savings accounts offer unique tax benefits. But most people are using them like a piggy bank.

Choosing a Goal Age to Collect Social Security

Seven Factors to Consider Before Choosing a Goal Age to Collect Social Security There’s more to this decision than simply when you want to retire.

Health savings accounts, with a triple tax advantage, are ‘perfect,’ advisor says — but only if used the right way

Health savings accounts, with a triple tax advantage, are ‘perfect,’ advisor says — but only if used the right way Health savings accounts offer unique tax benefits. But most people are using them like a piggy bank.

Three Keys to Keeping More of Your Money in Retirement

Three Keys to Keeping More of Your Money in Retirement How well you do your tax planning will determine how much of your retirement income you get to keep and how much goes to Uncle Sam.

529 plans and education funding

529 plans and education funding Advisers can help clients decide whether a Sec. 529 plan supports their family’s educational plans and, if so, the type, funding amounts, and options.

These behavioral traits lead to greater retirement savings, research finds. Yet only 10% of workers have them

These behavioral traits lead to greater retirement savings, research finds. Yet only 10% of workers have them Retirement savers who have a combination of certain behavioral traits may be best able to turn their financial intentions into reality, research finds.

IRS announces annual inflation adjustments for tax year 2024

IRS announces annual inflation adjustments for tax year 2024 The adjustments cover over 60 tax provisions and generally apply to tax returns that will be filed in 2025.

Social Security wage base, COLA set for 2024

Social Security wage base, COLA set for 2024 The Social Security Administration announced an increased maximum amount of wages subject to Social Security tax in 2024 to $168,600 and a 3.2% cost-of-living adjustment for Social Security benefits for 2024.

Clean-vehicle buyers can transfer tax credits to reduce purchase price

Clean-vehicle buyers can transfer tax credits to reduce purchase price Proposed regulations provide guidance for how transfers of the up to $7,500 Sec. 30D new clean vehicle, and up to $4,000 Sec. 25E used clean vehicle credit will work for buyers and dealers, starting Jan. 1, 2024.

If your company is created or registered to do business in the United States on or after January 1, 2024, must report beneficial ownership information


Any company that fails to file a required beneficial ownership report or amendment by its filing deadline is subject to a fine of $500 per day, up to a maximum of $10,000. Willful failures or intentionally filing inaccurate information is a felony, punishable by up to two years in prison

www.fincen.gov

Deferring Taxes Until Retirement? You May Want to Rethink That

Deferring Taxes Until Retirement? You May Want to Rethink That If tax rates go up in the future (such as when provisions in the TCJA sunset), that could lead to a bigger tax hit, depending on the types of accounts you have.

Due date extension due to hurricane Idalia

https://www.irs.gov/newsroom/irs-announces-tax-relief-for-those-impacted-by-idalia-in-florida #:~:text=WASHINGTON%20%E2%80%94%20The%20Internal%20Revenue%20Service,returns%20and%20make%20tax%20payments

Beware of the ERC scams

IRS suspends applications

https://www.irs.gov/newsroom/to-protect-taxpayers-from-scams-irs-orders-immediate-stop-to-new-employee-retention-credit-processing-amid-surge-of-questionable-claims-concerns-from-tax-pros

Open a ROTH IRA for your child

You're never too young to save for retirement. Why a custodial Roth IRA may make sense. Saving for retirement seems like a daunting task, but you can set your kid up for success with a youth Roth IRA. Here's what it is and how it works.