IRS Reminds Taxpayers of 2020 Social Security Tax Obligation
The IRS reminded employers and self-employed taxpayers that chose to defer paying part of their 2020 Social Security tax obligation that a payment is due on January 3, 2022. As part of the COVID relief, employers and self-employed people could choose to put off paying the employer’s share of their eligible Social Security tax liability, normally 6.2% of wages. Half of that deferral is now due on January 3, 2022, and the other half on January 3, 2023.
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IRS Issues Letters to Recipients of the Advance Child Tax Credit and the Third Stimulus
Beginning in December, the IRS will begin issuing Letter 6419 to recipients of the Advance Child Tax Credit. This letter will include the total amount of the advance payments taxpayers received between July and December of 2021.
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Required Minimum Distributions for 2021
What is new for Required Minimum Distributions (RMDs) in 2021? I am glad you asked. However, before we get to that, there might be a handful of diligent readers of this blog that are now asking themselves, “Hey, Blogger, what is an RMD?” Again, I am glad you asked. An RMD is an amount that must be withdrawn from a retirement account when you reach a certain age. It’s not much more complicated than that, but there are some additional things to consider which we will address later.
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IRS RELEASES 2022 MILEAGE RATES
Beginning January 1, 2022, the standard mileage rates for use of car, van, pickups or panel trucks are as follows:
- 58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021; and
- 18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the rate for 2021; and
- 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2021
IRS Announces 401(k) Limit Increases to $20,500
The IRS has recently announced that the amount individuals can contribute to their 401(k) plans in 2022 has increased to $20,500, up from $19,500 for 2021 and 2020. Also, the IRS issued [in Notice 2021-61] guidance on all of the cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2022.
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