As students and teachers get ready to head back to the classroom for a new school year, the IRS wants to remind teachers and educators that they can deduct up to $300 in out-of-pocket classroom expenses for 2024 when they file their tax returns in 2025.  This is the same limit as 2023, continuing the adjustment for inflation that started in 2022 (when the limit was increased from $250).  The post Tax Reminder: $300 Educator Expense Deduction for 2024 appeared first on Klatzkin ..read more

The State of New Jersey’s Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) property tax relief program will officially open for 2024 in August.  Beginning August 19, the state’s Treasury Department will start sending notification letters to 1.5 million New Jersey taxpayers... The post NJ ANCHOR Program Opens for 2024 appeared first on Klatzkin ..read more

IRS compliance teams are stepping up work on analyzing and processing Employee Retention Credit (ERC) claims and have issued five new warning signs of incorrect claims that are being commonly seen.  These five new problem areas are in addition to the seven warning signs previously released. The post Manufacturing Fraud Claims appeared first on Klatzkin ..read more

IRS compliance teams are stepping up work on analyzing and processing Employee Retention Credit (ERC) claims and have issued five new warning signs of incorrect claims that are being commonly seen.  These five new problem areas are in addition to the seven warning signs previously released. The post IRS Shares Five More Warning Signs of Incorrect ERC Claims appeared first on Klatzkin ..read more

When the Tax Cuts and Jobs Act was passed in 2017, it called for several changes that limited and streamlined taxes for both businesses and individuals. It created the Section 199a deduction for pass-through companies, allowed for temporary 100% bonus depreciation, updated expensing rules for Section 179D, and called for a new employer tax credit for paid family and medical leave. The post Act Now Before the Estate Tax Exemption Sunsets appeared first on Klatzkin ..read more

The Federal Trade Commission (FTC) has issued a final rule that bans noncompete clauses in employment contracts across the United States. The rule affects approximately 18% of U.S. workers—totaling 30 million individuals—who are currently bound by noncompetes. This measure is designed to boost job mobility and wage growth by removing barriers that restrict employees from transitioning between competing roles. The decision has triggered considerable debate and is currently facing legal challenges. Critics argue the ban could harm business competitiveness and stifle innovation. Furthermore, the ..read more

In May 2024, the IRS announced that interest rates will remain the same for the third quarter of 2024, which begins July 1, 2024.  The rates remain unchanged from the first and second quarters of 2024 and the fourth quarter of 2023 and are as follows: For individuals, 8% per year for overpayments (payments made more than the amount owed) and underpayments (taxes owed but not fully paid), compounded daily. 7% for overpayments for corporations. 5.5% for the portion of a corporate overpayment exceeding $10,000. 8% for corporate underpayments. 10% for large corporate underpayments. The inte ..read more

In mid-April 2024, the IRS released a draft of the new information return that will be used for reporting digital asset transactions and furnished by brokers.  The 2025 Form 1099-DA is expected to be included on federal tax returns when taxpayers answer “yes” to the digital asset question that concerns receiving, selling, exchanging, or disposing of digital assets or financial interest in a digital asset during the relevant tax year.  Examples of digital assets include cryptocurrencies, stablecoins, and non-fungible tokens. According to the form, taxpayers may be required to recogniz ..read more

The IRS has announced that the nearly 940,000 taxpayers who have unclaimed tax refunds for the tax year 2020 have until May 17, 2024, to submit their returns.  It is estimated that more than $1 billion in refunds is as yet unclaimed, with an average median refund of $932. Generally, taxpayers have a three-year window in which to claim refunds, which usually falls around the April filing deadline.  In 2021, however, the tax deadline was extended until May 17 due to the COVID-19 pandemic, thus providing an advantage this year.  Since the filing deadline was extended in 2021, the t ..read more

Each year, the IRS releases its “Dirty Dozen,” a list of tax scams that taxpayers should be wary of.  The list highlights common scams that put people at risk of losing money, personal information, data, and more.  Here are the 12 scams that you should be aware of in 2024: Text message and email scams. Criminals attempt to steal personal information by posing as legitimate IRS or state tax agency professionals through “phishing” and “smishing” scams by trying to trick you into clicking on suspicious links.  They may offer fake refunds or try to scare you into giving up your info ..read more