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Social Security Changes for 2024
Social Security and Supplemental Security Income (SSI) benefits for more than 71 million Americans will increase 3.2 percent in 2024, the Social Security Administration announced today. On average, Social Security retirement benefits will increase by more than $50 per month starting in January. More than 66 million Social Security beneficiaries will see the 3.2 percent […]
Interest rates increase for the fourth quarter of 2023
The Internal Revenue Service announced on August 25, 2023 that interest rates will increase for the calendar quarter beginning Oct.1, 2023. For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. Here is a complete list of the new rates: 8% for overpayments (payments made in excess of the amount […]
Applicable Federal Rate (AFR) for November 2023
The IRS in Revenue Ruling 2023-20 has issued the various prescribed rates for federal income tax purposes. What Is the Applicable Federal Rate (AFR)? The applicable federal rate (AFR) is the minimum interest rate that the Internal Revenue Service (IRS) allows for private loans. Each month the IRS publishes a set of interest rates that the […]
Applicable Federal Rate (AFR) for October 2023
The IRS in Revenue Ruling 2023-18 has issued the various prescribed rates for federal income tax purposes. What Is the Applicable Federal Rate (AFR)? The applicable federal rate (AFR) is the minimum interest rate that the Internal Revenue Service (IRS) allows for private loans. Each month the IRS publishes a set of interest rates that the […]
Interest rates remain the same for the third quarter of 2023
The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2023. For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily. Here is a complete list of the new rates: 7% for overpayments (payments made in excess of the amount […]
IRS announces mileage rates for 2023
On December 29, 2022, the IRS issued in Notice IR 2022-234 the 2023 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, 2023, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) […]
New Retirement Limits in 2023
On October 21, 2022, the IRS announced the 2023 retirement contribution limits to reflect the change in the headline consumer price index for regular and Catch-up contributions. Catch-up contributions are for those aged 50 or older. 2022 2023 Increase 401k $20,500 $22,500 $2,000 Catch-Up $6,500 $7,500 $1,000 Traditional IRA $6,000 $6,500 $500 Roth IRA $6,000 […]
Social Security Changes for 2023
The Social Security Administration (SSA) announced that there will be an 8.7% increase in benefits in 2023. If you do not already have a SSA account, you can create one on the SSA website at “SSA.gov”. For those still working, the SSA also announced that the maximum amount of earnings subject to the Social Security […]
Taxation of Student Loan Relief
When any type of loan is forgiven, the amount forgiven is called cancellation of debt (COD) and is taxable, unless specifically exempt. As part of the American Rescue Plan of 2021, Congress enacted Section 108(f)(5) of the Internal Revenue Code to expand the types of student loan forgiveness that would not be treated as taxable […]
Inflation Reduction Act
President Biden signed into law The Inflation Reduction Act on August 16, 2022. The key provisions are: Clean energy tax credits for homeowners – current tax credits for solar and wind power are extended to 2032; eligible homeowners could qualify for a 30% tax credit. Rebates for electric cars – Existing tax credits for the […]