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IRS interest rates remain the same for the second quarter of 2024

In IRS Revenue Ruling 2024-6, the Internal Revenue Service announced on February 3, 2024, that interest rates will remain the same for the calendar quarter beginning  April 1, 2024. For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. Here’s a complete list of the new rates: 8% for overpayments […]

Applicable Federal Rates (AFR) for March 2024

The IRS in Revenue Ruling 2024-04 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 Rates (AFR) for February 2024

The IRS in Revenue Ruling 2024-03 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 […]

Annual Gift Tax Exclusion Increases for 2024

Beginning on January 1, 2024, an individual may make gifts in an amount up to $18,000, in total, on an annual basis to any recipient without making a taxable gift, and married couples who elect to gift-split may annually gift a combined $36,000 per recipient without making a taxable gift. Please bear in mind the annual […]

New Retirement Limits in 2024

On November 1, 2023, the IRS announced the 2024 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.   2023    2024 Increase 401k $22,500 $23,000 $500 Catch-Up $7,500 $7,500 $0 Traditional IRA $6,500 $7,000 $500 Roth […]

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 remain the same for the first quarter of 2024

The Internal Revenue Service announced on November 17, 2023, that interest rates will remain the same for the calendar quarter beginning January 1, 2024. 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 […]

IRS announces mileage rates for 2024

On December 14, 2023, the IRS issued in Notice IR 2023-239 the 2024 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning on Jan. 1, 2024, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) […]

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 […]

What teachers can deduct for classroom expenses for 2023

The tax return deduction for educators remains at $300 for 2023 tax returns. The IRS is telling educators that they can deduct up to $300 of out-of-pocket classroom expenses ($600 if married filing jointly and both spouses are educators). Any kindergarten through grade 12 teacher, instructor, principal, or aide at a public or private school […]