2023 IRS Inflation Adjustments for Individual Taxpayers
The IRS has issued a few notices to adjust for inflation for 2023 in Notice 2022-38. The 2023 Standard Deduction is increased to $27,700 for MFJ (up from $25,900) $20,800 for HOH (up from $19,400) $13,850 for Single filiers and MFS (up from $12,950) The refundable...
Mandatory Capitalization of R&D Expenditures in 2022
The Tax Cuts and Jobs Act of 2017 (TCJA) requires capitalization of all research and development (R&D) expenditures incurred in tax years beginning after Dec. 31, 2021. Historical Treatment of R&D Expenditures Since 1954, the U.S. tax code gave...
Inflation Reduction Act of 2022 and Individual Taxpayers
President Joe Biden signed the Inflation Reduction Act (IRA) of 2022 into law on August 16, 2022. The budget reconciliation act narrowly passed the senate with a 51-50 with the vice president, Kamala Harris, casting a tiebreaking vote. A majority of the bill deals...
California’s Middle Class Tax Refund – Will you qualify?
To combat rising inflation, California Governor Newsom signed Assembly Bill 192 Better for Families Tax Refund. A total of $9.5 billion will benefit 23 million Californians, and it will not be taxable on your California income tax return. How do I qualify? To qualify...
Emergency Preparedness for Natural Disasters
In 2021 and 2022, Americans experienced a number of natural disasters, including wildfires in California, New Mexico, and Colorado; the deadly Hurricane Ida impacting Louisiana, New Jersey, and New York; and severe storms throughout Washington and Tennessee. Natural...
Cannabis Tax Relief for California Operators
In the highly regulated cannabis industry much needed tax relief has been passed in California. Cultivation Tax Eliminated On June 30, 2022 California enacted Assembly Bill 195 (AB 195) which eliminates the weight-based cannabis cultivation tax. Effective July...
IRS announces Mileage Rate Increase starting July 2022
Due to rising gasoline prices, the IRS has announced an increase of 4 cents for the standard mileage rate for the last 6 months of 2022. The 2022 mileage rates are: 1/1/22-6/30/22 is 58.5 cents a mile 7/1/22-12/31/22 is 62.5 cents a mile The medical and moving mileage...
CalSavers’ Mandate – June 30 deadline approaching
An important deadline is on the horizon for California business owners. By June 30, 2022 employers with an average of five or more employees in California for 2021 are required to have a retirement plan in place for workers — either through a private-market option,...
New Guidance on the Employee Retention Credit
With the 2021 tax filing season underway, it is important for taxapyers to review their tax saving opportunities, especially as they relate to the Employee Retention Tax Credit (ERC). Overview of the Employee Retention Credit Since enacted in March 2020 as...
Your Earned Self-Employment Income May Qualify for Tax Credits
Passed under the Families First Coronavirus Response Act (FFCRA), eligible self-employed individuals may claim a tax credit for sick or family leave taken between April 1, 2020 and March 31, 2021 or if taken between April 1, 2021 through September 30, 2021. Form 7202...