Susan K Smith Accounting

02/05/2023

08/11/2022

One-Time Bonus for People Qualifying for Rent or Property Tax Assistance

Older Pennsylvanians and Pennsylvanians with disabilities who qualify for a rebate on rent or property taxes paid in 2021 will receive a one-time bonus equal to 70% of their original rebate amount. The total amount a claimant will receive could be as much as $1,657.50, up from the previous maximum of $975.

Eligible claimants of the Property Tax/Rent Rebate Program who have already filed an application for a rebate on property taxes or rent paid in 2021 do not need to take any further action. Those who have not yet filed an application are encouraged to do so.

Bonus rebates will start being mailed and sent via direct deposit in early September. The processing of rebates and bonus rebates will continue through the end of the year as additional applications are received.

02/17/2022

https://www.schwab.com/resource-center/insights/content/taxes-things-to-know-now

With Tax Day right around the corner, here are eight things to keep in mind as you prepare to file your 2021 taxes.

01/01/2022

IRS issues standard mileage rates for 2022

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IR-2021-251, December 17, 2021

WASHINGTON — The Internal Revenue Service today issued the 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2022, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021,
18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the rate for 2021 and
14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2021.
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Moving Expenses for Members of the Armed Forces.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Taxpayers can use the standard mileage rate but must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.

Notice 22-03 PDF, contains the optional 2022 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan. In addition, the notice provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2022 for which employers may use the fleet-average valuation rule in or the vehicle cents-per-mile valuation rule.

01/01/2022

IRS announces changes to retirement plans for 2022
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IRS Tax Tip 2021-170, November 17, 2021

Next year taxpayers can put an extra $1,000 into their 401(k) plans. The IRS recently announced that the 2022 contribution limit for 401(k) plans will increase to $20,500. The agency also announced cost‑of‑living adjustments that may affect pension plan and other retirement-related savings next year.

Highlights of changes for 2022
The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $20,500. Limits on contributions to traditional and Roth IRAs remains unchanged at $6,000.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If neither the taxpayer nor their spouse is covered by a retirement plan at work, their full contribution to a traditional IRA is deductible. If the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced or phased out until it is eliminated. The amount of the deduction depends on the taxpayer's filing status and their income.

Traditional IRA income phase-out ranges for 2022 are:
$68,000 to $78,000 - Single taxpayers covered by a workplace retirement plan
$109,000 to $129,000 - Married couples filing jointly. This applies when the spouse making the IRA contribution is covered by a workplace retirement plan.
$204,000 to $214,000 - A taxpayer not covered by a workplace retirement plan married to someone who's covered.
$0 to $10,000 – Married filing a separate return. This applies to taxpayers covered by a workplace retirement plan
Roth IRA contributions income phase-out ranges for 2022 are:
$129,000 to $144,000 - Single taxpayers and heads of household
$204,000 to $214,000- Married, filing jointly
$0 to $10,000 - Married, filing separately
Saver's Credit income phase-out ranges for 2022 are:
$41,000 to $68,000 – Married, filing jointly.
$30,750 to $51,000 – Head of household.
$20,500 to $34,000 – Singles and married individuals filing separately.
The amount individuals can contribute to SIMPLE retirement accounts also increases to $14,000 in 2022.

More information:
Notice 2021-61 PDF
Roth IRAs
Traditional IRAs
Traditional and Roth IRAs — A comparison chart
Publication 590-A, Contributions to Individual Retirement Arrangements
COLA Increases for Dollar Limitations on Benefits and Contributions
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10/31/2021

10/26/2021

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10/23/2021

No job to big or to small! Are you being audited by the Commonwealth of PA and need help preparing! I can help you prepare! Contact me to help you with those special projects.