Our Blog

Mallory Vincent, MBA •

With the holiday season approaching, tis the season for spreading kindness and being charitable. During the coronavirus pandemic, even more people and animals are in need, but many not-for-profits are struggling. By making a donation and giving a gift to charity, you are helping out others and spreading holiday cheer. This act of kindness could also be a great tax write-off, and in 2021 everyone will be eligible to receive a charity tax deduction on their tax return. Read on to learn some tips on how to make your donation count as a tax benefit on your 2021 tax return.
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Today, the IRS released Revenue Procedure 2021-45 which details annual inflation adjustments for various tax thresholds. Below are some key changes for tax year 2022:

Late last Friday the House passed the Infrastructure Investment and Jobs Act, the Senate had passed the bill back in August. While there are few immediate tax provisions in this bill, it opens up the way for the reconciliation bill, the Build Back Better Act, which has significant tax impacts.
 
Tax impacts related to the Infrastructure Investment and Jobs Act:

Yesterday, the IRS released Notice 2021-61 which provides cost of living adjustments for retirement plans for 2022. 
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401(k), 403(b), most 457 plans, and Thrift Savings Plan contribution limits have increased $1,000 to $20,500. The annual catch-up limitation for employees over age remains unchanged from 2021, at $6,500.

Alyssa Hodges, CPA •

The tax deadline has come and gone for most taxpayers with a few exceptions for unusual events like federally declared disasters. If you missed the tax deadline you need to get caught up, but it’s probably not the end of the world.

​Yesterday, the Social Security Administration issued a press release with updates for 2022 including updating their fact sheet.

​The updates include:
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​With the many tax-centered incentives and other COVID-19-related credits comes an increased threat of scammers attempting to steal your money or personal information. As we head into the fall season, M+R would like to remind clients to remain vigilant.
 
Most of the more prevalent IRS scams fall into one of three categories including:

Back in July we posted an update about several New Hampshire Tax updates and changes, most stemming from the passing of NH’s biennial budget. Last week the Governor signed Senate Bill 101 which will impact the NH Business Profits Tax (BPT).

Last week the IRS updated the frequently asked questions (FAQs) on the paid sick and family leave tax credits under the American Rescue Plan Act of 2021.The new updates now include information regarding COVID-19 immunizations.
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Mallory Vincent, MBA •

Have you maximized your potential tax benefits under the child and dependent care credit? The American Rescue Plan Act made several changes to the child and dependent care credit for the 2021 tax year including making this credit refundable for people who live in the United States for more than half the year. This means that you could get the full credit amount for 2021 and even generate a tax refund if you pay childcare expense for your children under age 13. This credit also covers expenses for the care of other people, including a spouse who was physically or mentally incapable of self-care and lived with you for more than have the year. Another example is someone who was physically or mentally incapable of self-care, lived with you for more than half the year, and either (1) was your dependent, or (2) could have been your dependent except that he or she received gross income of $4,300 or more, he or she filed a joint tax return, or you (or your spouse, if filing jointly) could have been claimed as a dependent on another person’s tax return.