The IRS has indicated that it will issue information letters to recipients of advance payments of the child tax credit starting in December 2021, and it will issue information letters to recipients of the third round of economic impact payments at the end of January 2022. It is vital that taxpayers know the amounts of such advance payments that they received, since these amounts must be reconcil...
The 2022 federal lifetime unified estate and gift tax exclusion is $12,060,000, up from $11,700,000 in 2021. In addition, the annual federal gift tax exclusion in 2022 is $16,000 per person per year, up from $15,000 in 2021 and earlier years. The 2022 New York estate tax exclusion is $6,110,000, up from $5,930,000 in 2021. (There is no gift tax in New York State.) If you have not already e...
The Treasury Department has issued final regulations that include an update of the tables used to compute required minimum distributions (RMDs) from retirement accounts beginning in the 2022 tax year. The new tables provide slightly longer life expectancies and lower required distributions than the old tables. The new tables are not applicable and should not be used for computing RMDs for the ...
As discussed in our posts on November 18, 2021, October 12, 2021, September 21, 2021 and September 16, 2021, certain taxpayers who were affected by the remnants of Hurricane Ida were given more time (until January 3, 2022) to file their 2020 extended income tax returns. The IRS has announced an additional postponement of this due date for affected taxpayers to file federal returns. The new d...
See our June 15, 2022 post for the mid-year increase effective on July 1, 2022. The IRS has released the 2022 standard mileage rate. For business travel, it is 58.5 cents per mile (up from 56 cents in 2021). For medical-related travel, it is 18 cents per mile (up from 16 cents in 2021). The rate for charitable use of an automobile is not subject to adjustment, and it remains 14 cents per m...
New York State has indicated that optional estimated tax payments made through the new estimated tax application for the New York Pass-Through Entity Tax (PTET) during the period of December 15, 2021 and December 31, 2021 cannot be scheduled in advance. Instead, taxpayers must enter a payment date that is the same day on which they log into their online services account to initiate the optiona...
We have discussed the New York pass-through entity tax (PTET) in several earlier posts listed below. IRS Notice 2020-75 indicates that an entity’s federal deduction for the pass-through entity tax is allowed for the entity in the taxable year in which the payment of the pass-through entity tax is paid. The notice does not provide an exception for accrual basis taxpayers, so it appears that no ...
Due to Emancipation Day, which is a holiday in Washington D.C. and will be observed on Friday, April 15, 2022, the due date for filing 2021 federal personal income tax returns will be Monday, April 18, 2022. New York State has announced that it will conform to the April 18, 2022 due date for 2021 New York personal income tax returns. Are you enrolled in our Individual Tax Year-End Workshop? If...
As discussed in our post on November 18, 2021, the employee retention credit ended early due to the enactment of the Infrastructure Investment and Jobs Act. The IRS recently issued Notice 2021-65 which provides relief for certain employers who were affected by the early termination of the employee retention credit. Generally, the notice waives underpayment penalties for employers who properly re...
As discussed in our posts on November 11, 2021, September 30, 2021, September 9, 2021, August 26, 2021 and June 3, 2021, the New York State pass-through entity tax (PTET) is effective for the 2021 tax year. New York State has announced that the estimated tax payment system is now open and available for entities to make optional estimated tax payments for the 2021 tax year. Estimated taxes are no...
