With over a hundred changes made by the Tax Cuts and Jobs Act, your taxes could look a bit different come April. You may have not owed taxes in years prior, but that could change due to the new limits placed on tax deductions and tax deductions that were eliminated due to the new tax reform. With these changes, it’s important to make sure you check your withholding’s and check to see if the deductions you took the previous year are still there.
One of the biggest changes made by the Tax Cuts and Jobs Act was that the tax rates were decreased which meant more money was showing up on your paycheck. On average, tax rates were reduced from about 1% to 3% for most taxpayers. The IRS did adjust the withholding tables that employers use to produce the correct amount of tax withholding. Make sure that your current withholdings are correct and that your employer has the correct information.
Additional Readings
A recent article from the Washington Post cites data from 2019, where 1.3% of taxpayers earning one million to five million dollars were audited. Further, only 0.2% of those earning $25,000 to $50,000 were audited. You must understand this is not a personal attack when you receive an audit letter. The IRS has a computer...
In June 2023, the IRS began sending millions of CP14 notices to taxpayers countrywide. Those who receive these statements typically have many questions about what they mean and how to handle them. The Polston Tax Resolution & Accounting professionals are here with the answers you need. What Is an IRS CP14 Notice? An IRS CP14...
In 2022, Americans owe a whopping $120 billion in back taxes, according to the IRS. Now some people owe a year’s worth of taxes and can quickly get back on track. At the same time, others owe years and years’ worth of taxes and face severe consequences for their unpaid taxes. Have you been worried...
Receiving a letter from the IRS or the state can be intimidating, especially if you’re unsure what the notice is for or what to do next. Fortunately, many notices are nothing to worry about and are purely informative. Below, we take a look at everything you need to do — and what not to do...
The Employee Retention Tax Credit (ERC or ERTC) is a tax credit that the United States government introduced as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. The ERC was meant to help businesses across the country that were feeling the negative impacts of the COVID-19 pandemic. Eligible companies are still able...