taxpayer relief act - Linkenheimer LLP CPAs & Advisors

Tax Relief for American Families and Workers Act of 2024

The House of Representatives recently passed House Bill 7024, known as the Tax Relief for American Families and Workers Act of 2024, with significant bipartisan support. This landmark legislation aims to realign America’s tax code to bolster economic growth, support working-class families, and provide certainty for American businesses in a climate of economic recovery and innovation.

Key provisions of H.R. 7024 include an expansion of the child tax credit, significant support for American innovation through expanded Research & Development (R&D) expensing, and enhanced measures to improve the competitive stance of U.S. businesses internationally. Specifically, the bill proposes to:

Increase access to housing by providing more flexibility on bond financing requirements and increasing state tax credit allocations.
Eliminate the penalty in the child tax credit for families with more than one child, alongside increasing the refund amount and indexing these amounts to inflation starting in 2024.
Offer “time-limited and limited in scope” disaster tax relief for communities affected by recent calamities, including hurricanes and wildfires.
Ends ERC program early on January 31, 2024, adds penalties for certain COVID-ERC promoters and extends statue of limitations to 6 years.
Increases maximum amount for section 179 expensing with a slight raise in expensing limit allowance […]

By Linkenheimer LLP|2024-02-06T18:04:34+00:00February 5th, 2024|disaster, tax credit, taxpayer relief act|0 Comments

CARES ACT Changes Retirement Plan and Charitable Contribution Rules

As we all try to keep ourselves, our loved ones, and our communities safe from the coronavirus (COVID-19) pandemic, you may be wondering about some of the recent tax changes that were part of a tax law passed on March 27.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act contains a variety of relief, notably the “economic impact payments” that will be made to people under a certain income threshold. But the law also makes some changes to retirement plan rules and provides a new tax break for some people who contribute to charity.

Waiver of 10% early distribution penalty

IRAs and employer sponsored retirement plans are established to be long-term retirement planning accounts. As such, the IRS imposes a penalty tax of an additional 10% if funds are distributed before reaching age 59½. (However, there are some exceptions to this rule.)

Under the CARES Act, the additional 10% tax on early distributions from IRAs and defined contribution plans (such as 401(k) plans) is waived for distributions made between January 1 and December 31, 2020 by a person who (or whose family) is infected with COVID-19 or is economically harmed by it. Penalty-free […]

By Linkenheimer LLP|2020-09-03T20:03:09+00:00April 7th, 2020|deduction, individuals, ira, New Tax Laws, relief, retirement, roth ira, tax deductions, tax planning, taxpayer relief act|0 Comments

Tax Time: What You Need to Know

Every year the tax codes change and last year was no different. The real questions, as we close in on April 15th, are: What are the significant changes that will have an effect on how I prepare my returns for 2012; and, what planning should I be doing now for the current calendar year.

The biggest news, which we’re hoping our clients have heard about at this point, is the passage of the American Taxpayer Relief Act at the beginning of this year. In addition to changing how the Alternative Minimum Tax is calculated on 2012 taxes, it retained the status quo for a number of temporary tax breaks, extending some retroactively and others into the 2013 tax year. Marginal tax brackets also rose a bit, so even if you made a couple thousand dollars more last year, you’ll probably owe the same percentage as you did last year.

Deductions for 2012
The standard deduction for those who don’t itemize rose by $150 for single filers and $300 for joint filers — to $5,950 if you’re filing solo and $11,900 if you’re filing with your spouse. And the amount you get to deduct for both you and your dependents […]

By Linkenheimer LLP|2020-09-03T20:05:52+00:00March 27th, 2013|adoption credit, alternative minimum tax, american, amt, CPA, deduction, Linkenheimer, Santa Rosa, tax, tax codes, tax time, taxpayer relief act|1 Comment

Highlights of the New Tax Deal

39.6% Tax Rate for Incomes Above $400,000 ($450,000 for Families)
All Other Bush-Era Tax Rates Extended
20% Maximum Capital Gains/ Dividend Tax Rate
Maximum 40% Estate/ Gift Tax Rate
Permanent AMT Patch
Five-Year Extension of Enhanced Education Credit
One-Year Extension of Many Business Extenders
Over 30 Extenders Retroactive to Start of 2012

By Linkenheimer LLP|2013-01-09T22:18:00+00:00January 9th, 2013|american, amt patch, business extenders, education credit, extension, Highlights of the New Tax Deal, tax rate, taxpayer relief act|0 Comments