Your Guide to State, Local, Federal, Estate + International Taxation

Form 1099-NEC: How Retro!

Here’s a blast from the past for those of us who were creating Forms 1099 in the early 1980’s. Form 1099-NEC is back! This form is not exactly the same as the last one used in 1982; the current form will be a primped up, more informative Form 1099 (read that as more boxes to …

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Work opportunity tax credit updates

Recently, the IRS instructed their auditors to allow employers to take the work opportunity tax credit (WOTC) in the year in which they receive the required certification. As opposed to the year in which the employer paid or incurred certified employee’s qualified wages. The recent IRS decision provides some administrative relief for taxpayers and tax …

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Arizona Department of Revenue to begin accepting e-filed corporate and partnership returns starting in 2020

The Arizona Department of Revenue reported that it received 183,000 corporate tax returns in 2018. Arizona corporate returns, not including supporting schedules, are 5 pages. That means a minimum of 915,000 pages were received. Not to mention the individual returns that were paper filed, prior year returns taxpayer correspondence, etc. That’s a lot of paper …

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Final “Clawback” regulations issued by the Treasury

The Tax Cuts and Jobs Act doubled the estate and gift tax exemption amount to $10 million* per person. This means that in 2019 a total of $11.4 million and in 2020 $11,580,000 can be transferred on death or by gift, free of federal estate and gift tax. For a married couple, the total amount …

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Tips for holiday gift card shopping

It’s that time of year! Lots of shopping and when no great gift comes to mind, you may, like me, default to gifting a gift card to that favorite person. The Federal Trade Commission (FTC) offers great tips on making your gift card giving more joyous! Inspect gift cards before you buy. All the protective …

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New contribution limit and phase-out ranges for 401(k) plans

For 2020, the 401(k)-contribution limit is being increased to $19,500 from $19,000 and the catch-up limit is being increased to $6,500 from $6,000. In addition, the limitation regarding SIMPLE retirement accounts is increasing to $13,500 for 2020. In order to determine eligibility to made deductible contributions to traditional IRAs or to contribute to Roth IRAs …

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Inflation adjustments for 2020

With a new decade approaching, the IRS announced its annual adjustments for many tax provisions to adjust for inflation. The tax items that will apply to tax year 2020 that will be of most interest to taxpayers include the following: The standard deduction for married filing joint increases to $24,800 for tax year 2020. For …

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Donating to charity? Here are resources to help!

Charitable giving can be a great deduction on a taxpayer’s return that reduces the amount of taxable income if the taxpayer is itemizing deductions. Luckily, there are several resources available for taxpayers looking to get the most from their donations. Tax Exempt Organization Search For a donation to be deductible on a tax return, it …

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Was your money safe during Cyber Monday sales?

Did you participate in the Cyber Monday sales? You might want to make sure your information is safe from online thieves. Due to the high volume of online shoppers during this time of year, criminals take advantage and try to steal identities, and even worse, tax and financial data that can be used to file …

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Estate and Gift exemptions increase to $11.58 million in 2020

The IRS announced in Revenue Procedure 2019-44 that the 2020 gift tax annual exclusion will remain at $15,000 and the unified estate tax and lifetime gift exclusion amount will rise to $11,580,000 per person or $23,160,000 per couple in 2020. In 2020 any person can gift up to $15,000 to another person using the annual …

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