CCH NEWS FEED
CCH news feed posts
San Francisco Tax Preparation / CPA: Social Security Wage Cap and Benefit Amounts Increase for 2022
For 2022, the Social Security wage cap will be $147,000, and Social Security and Supplemental Security Income (SSI) benefits will increase by 5.9 percent. These changes reflect cost-of-living adjustments to account for inflation. Wage Cap for Social Security TaxThe Federal Insurance Contributions Act (FICA) tax on wages is 7.65 percent each for the employee and […]
San Francisco Tax Preparation / CPA: Second Circuit Affirms SALT Cap Constitutionality
The Court of Appeals for the Second Circuit affirmed the district court’s judgment that the cap on the federal income tax deduction for money paid in state and local taxes (SALT) is constitutional. Four states brought a claim against the government alleging that the $10,000 cap on the federal income tax deduction for money paid […]
San Francisco Tax Preparation / CPA: IRS Highlights Work Opportunity Tax Credit to Help Employers Hire Workers
The IRS has reminded employers to check the Work Opportunity Tax Credit available for hiring long-term unemployment recipients and other groups of workers facing significant barriers to employment. Cash contributions made either to supporting organizations or to establish or maintain a donor advised fund do not qualify. Also, cash contributions carried forward from prior years […]
San Francisco Tax Preparation / CPA: IRS Highlights Deductions for Cash Donations by Non-Itemizers
The IRS highlighted how expanded tax benefits help both individuals and businesses give to charity before the end of this year. The law now permits these taxpayers to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to certain qualifying charitable organizations. These taxpayers, including married individuals filing separate […]
San Francisco Tax Preparation / CPA: COBRA Extension Guidance Clarified
The IRS issued a notice clarifying the application of certain extensions granted under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) for the election of COBRA coverage and payment of COBRA premiums due to the COVID-19 emergency. The IRS also addressed the interaction of COBRA continuation coverage under the Emergency Relief Notices with the […]
San Francisco Tax Preparation / CPA: Areas Eligible for Extension of Replacement Period for Livestock Sold Because of Drought
The IRS identified drought-stricken areas where tax relief is available to taxpayers that sold or exchanged livestock because of drought. The relief extends the deadlines for taxpayers to replace the livestock and avoid reporting gain on the sales. These extensions apply until the drought-stricken area has a drought-free year. When Sales of Livestock are Involuntary […]
San Francisco Tax Preparation / CPA: Ex-Spouse Health Insurance Premiums Deductible as Alimony
An individual was allowed to deduct the amount of premiums paid to provide health insurance coverage for his ex-spouse as alimony. The taxpayer had agreed to pay his then spouse’s health insurance premiums, incident to a separation agreement pending divorce, through a cafeteria plan provided by the taxpayer’s employer. Subsequently, the taxpayer had excluded the […]
San Francisco Tax Preparation / CPA: IRS Highlights Tax Withholding Estimator
The IRS has reminded taxpayers that the last quarter of 2021 is a good time to check withholding. The IRS’s convenient Tax Withholding Estimator (https://www.irs.gov/individuals/tax-withholding-estimator), will help taxpayers determine if they have too much withheld and how to make an adjustment to put more cash into their own pocket now. About 70 percent of taxpayers over […]
San Francisco Tax Preparation / CPA: IRS Reminds Taxpayers to Protect Personal and Financial Information Online
The IRS has reminded taxpayers about the continued importance of protecting personal and financial information online during National Cybersecurity Month. Further, the Service has urged parents, families, and others to be cautious of the pitfalls caused by sharing devices at home, shopping online and navigating various social media platforms. The Service has provided the following suggestions for […]
San Francisco Tax Preparation / CPA: LLC Tax-Exempt Determination Letter Requirements Released
The IRS released standards that a limited liability company (LLC) must satisfy to receive a determination letter recognizing it as tax-exempt under Code Secs. 501(a)(1) and 501(c)(3). This does not affect the status of organizations currently recognized under Code Sec. 501(c)(3). Required ProvisionsThe IRS would issue said letter only if an LLC’s articles of organization and its operating agreement […]
