CCH NEWS FEED

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San Francisco Tax Preparation / CPA: 2020 Foreign Housing Expense Limitations Released

Filed in CCH NEWS FEED by on July 10, 2020

The IRS has provided the adjustments to the limitation on foreign housing expenses for specific locations for tax year 2020. Generally, a qualified individual whose entire tax year is within the applicable period is limited to maximum housing expenses of $32,280 for 2020. Similarly, the computation of the base housing amount is also tied to […]

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San Francisco Tax Preparation / CPA: IRS Releases 2020 Inflation-Adjusted Tax Tables, Other Amounts

Filed in CCH NEWS FEED by on July 10, 2020

The IRS has released the annual inflation adjustments for 2020 for over 60 tax provisions, including the income tax rate tables. The IRS issues these cost-of-living adjustments (COLAs) each year to reflect inflation. The adjustments apply to tax years beginning in 2020, and are generally used on returns that will be filed in 2021. Some […]

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San Francisco Tax Preparation / CPA: Proposed Regulations Issued Updating Definition of Qualifying Relative for Child-Related Tax Benefits

Filed in CCH NEWS FEED by on July 10, 2020

The IRS has issued proposed regulations clarifying the definition of a qualifying relative for various tax benefits for tax years 2018 through 2025 in which the dependent exemption amount is zero. During these years, the exemption amount will be inflation adjusted as provided in annual IRS guidance in determining whether an individual is a qualifying […]

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San Francisco Tax Preparation / CPA: 2020 Standard Mileage Rates Released

Filed in CCH NEWS FEED by on July 10, 2020

The IRS has released the optional standard mileage rates for 2020. Most taxpayers may use these rates to compute deductible costs of operating vehicles for business, medical, and charitable purposes. 2020 Standard Mileage RatesTaxpayers may use the standard mileage rates, instead of their actual expenses, to calculate certain deductions. The standard mileage rates for 2020 […]

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San Francisco Tax Preparation / CPA: 2020 Inflation Adjustments for Pension Plans, Retirement Accounts

Filed in CCH NEWS FEED by on July 10, 2020

The IRS has released the 2020 cost-of-living adjustments (COLAs) for pension plan dollar limitations, and other retirement-related provisions. Highlights of 2020 Changes The contribution limit for employees who take part in 401(k) plans, 403(b) plans, most 457 plans, and the federal government’s Thrift Savings Plan, has increased to $19,500. Employees age 50 and over who […]

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San Francisco Tax Preparation / CPA: Proposed Regs Address Eliminated Qualified Transportation Fringe Deduction

Filed in CCH NEWS FEED by on July 10, 2020

Proposed regulations provide guidance regarding the elimination of the deduction for expenses related to qualified transportation fringe benefits (QTFs) provided to an employee. The Tax Cuts and Jobs Act (P.L. 115-97) eliminated the deduction, effective for amounts paid or incurred after December 31, 2017. In general, the proposed regulations refine guidance previously provided in Notice 2018-99, […]

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San Francisco Tax Preparation / CPA: Closed School Student Loan Relief Extended

Filed in CCH NEWS FEED by on July 10, 2020

The IRS has established a safe harbor that extends relief to certain taxpayers who took out federal or private student loans to finance attendance at certain nonprofit or for-profit schools. Under the relief: affected taxpayers do not have to recognize gross income resulting from the discharge of the loan; affected taxpayers should not report the […]

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San Francisco Tax Preparation / CPA: IRS Updates Guidance on Computing Deductions for Operating a Vehicle

Filed in CCH NEWS FEED by on July 10, 2020

The IRS has released guidance that updates Rev. Proc. 2010-51, I.R.B. 2010-51, 883 to reflect changes made to Code Secs. 67 and 217 by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97). Rev. Proc. 2010-51 provides rules for using the standard mileage rates when calculating the deductible expenses of operating a vehicle for […]

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San Francisco Tax Preparation / CPA: IRS Proposes Treating Payments for Direct Primary Care Arrangements and Health Care Sharing Ministry Memberships as Medical Care Payments

Filed in CCH NEWS FEED by on July 10, 2020

Proposed regulations would define expenditures for direct primary care arrangements and health care sharing ministry memberships as amounts paid for medical care. Thus, amounts paid for those arrangements may be deductible medical expenses. The proposed regulations also clarify that amounts paid for certain arrangements and programs, such as health maintenance organizations (HMO) and certain government-sponsored […]

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San Francisco Tax Preparation / CPA: Interim Guidance on 2020 Withholding from Retirement and Annuity Distributions

Filed in CCH NEWS FEED by on July 10, 2020

The IRS has issued interim guidance for the 2020 calendar year on income tax withholding from periodic payments for pensions, annuities, and certain other deferred income under Code Sec. 3405(a). Under the guidance: information requested for periodic payments on the 2020 Form W-4P, Withholding Certificate for Pension or Annuity Payments, will generally continue to parallel the […]

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