Dependent credits beyond the child tax credit

Taxpayers who have dependents that do not qualify for the child tax credit can still claim a credit for other dependents. Other dependents can mean adult children, relatives or children who are too old to qualify for the child tax credit. This is a nonrefundable credit so it can help to reduce your tax liability, …

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Interest rates on unpaid taxes are going up

Interest rates on unpaid taxes are increasing. The rate will go up to 5% for underpaid taxes beginning July 1, 2022 per the Internal Revenue Service. The interest rates are determined on a quarterly basis. The IRS interest rate was a mere 3% on March 31, 2022 then rose to 4% for the second quarter. Don’t …

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How to prevent expense fraud

When it comes to protecting your organization’s financial resources preventing expense fraud is critical. Expense fraud not only reduces revenue but also leads workers to believe they can get away with theft and possibly more profitable fraudulent activities. Don’t miss: Net investment in capital assets calculation requirement Steps to avoid expense fraud Expense fraud isn’t …

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How to mail tax payments

The IRS is no stranger to sending out notices assessing penalties and interest to taxpayers, even if these notices aren’t always correct. Unfortunately, the burden of proof is on the taxpayer to call the IRS out on their errors. In the few months since the April 18 tax deadline, we have seen what seems like …

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Strategies to maximize HSA benefits

There is no disputing the cost of health care is high and there have not been any signs those costs will decrease. In 1960 health care spending represented  5% of the total U.S. GDP.  In 2020 spending on health care was near 20% of the total U.S. GPD. In 2003 the Medicare Prescription Drug, Improvement …

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Plan ahead for unused and refundable Arizona research tax credits

Arizona passed a new law last year (ARS § 43-1074.01) adjusting the 15 consecutive taxable years carryforward of unused R+D credits. Beginning from and after December 31, 2021, unused Arizona research tax credits may now be carried forward to the next ten consecutive taxable years – a reduction of five years. Taxpayers will need to …

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Take a closer look at Arizona’s small business income tax

Some people have reached out after the previous blog on Arizona’s new alternative tax, called the Arizona Small Business Income Tax (SBI). So I thought I would do a follow up with some questions and answers: Don’t miss: Why do I want a cost segregation study? Small Business Income Tax (SBI) FAQs Question: How do …

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Why do I want a cost segregation study?

Utilizing your real estate is a great way to accelerate tax depreciation expense to offset taxable income, and the method used to determine the tax deductions from the real estate is called a Cost Segregation Study. So what is it and why do you want one? Don’t miss: Get state tax proactive – SALT credits, …

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Get state tax proactive – SALT credits, incentives and property taxes

We’re mid-year, making now a great time to look at state tax items and take proactive steps to comply with and take full advantage of your state tax environment. Yesterday, we talked about reviewing income, net worth and gross receipts tax returns and indirect tax payments. Today, we’ll look at reviewing SALT credits, incentives and …

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