Category: Tax News

Get up to date on all tax news from the IRS. The IRS is constantly updating us with law changes and new rules. Sometimes, it’s too much to keep up with. We’ll decipher the confusing lingo while you focus on staying current  on what’s really important.

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Archive for the ‘Tax News’ Category

Hawaii Announces Some Details on Wildfire Tax Relief Plan

Posted by admin on September 7, 2023
Last modified: September 8, 2023

Wildfire Victims May be Eligible for Hawaii Tax Relief

Taxpayers affected by the wildfire disasters in Hawaii counties may now receive various forms of Hawaii tax relief, according to an announcement from the state’s Department of Taxation (DOT). The DOT has released details about how those affected can take advantage of this tax relief, which this article will go through in detail.

Hawaii DOT will give special consideration on a case-by-case basis to those taxpayers adversely affected. This includes extensions for tax filing and paying various taxes, such as general excise (sales tax), transient accommodations, net income, tobacco, and liquor; waivers of penalties and interest; or any other form of assistance due to interruptions in mail delivery.

For those submitting their taxes via paper, write “2023 Wildfire Relief” on the top center of the return. Meanwhile, when filing electronically through Hawaii Tax Online, one must send a message selecting “I have a 2023 Wildfire Relief Question” in order to receive relief.

Those needing assistance due to the wildfire disaster should be sure to include a concise explanation when filing for tax relief. This statement should articulate what kind of help is requested and how the devastation has impacted their ability to meet tax obligations.

Individuals, businesses, and others can be considered “adversely affected taxpayers” when they cannot file tax returns or make payments due to the wildfire disaster.

The governor has declared certain areas to be disaster zones. Consequently, any funds from a property or casualty insurance policy resulting from the damage or loss of inventory utilized in a business within such an area are excused from General Excise Tax (GET).

For those affected by the Hawaii wildfires, there are specific tax relief regulations regarding Payment and Filing Relief and Extensions, Collections Relief and Extensions, and Taxability and Deduction.

Hawaii Tax Relief

Details on Payment Relief, Filing Relief, and Filing Extensions

Tax Filing Deadlines Extended for All Taxpayers?

Whether tax deadlines are extended for every taxpayer cannot be answered in the affirmative. Instead, the Department of Taxation (“Department”) has established that requests for tax filing extensions and waivers of late payment penalties and interest can be assessed on a case-by-case basis.

How do I request a waiver of penalties and interest from the Tax Relief?

Are you facing financial hardship due to the Hawaii wildfire disaster? Requesting a waiver of penalties and interest could be the solution. When filing by paper, add “2023 Wildfire Relief” to the top center of your return. Additionally, include with your tax filing a statement that explains why you have been adversely affected by the event.

When electronically filing, please be sure to get in touch with a free dedicated tax professional to help you explain how the wildfire disaster is negatively impacting you to the DOT of Hawaii.

I could not file on time due to a lack of electricity or internet due to the wildfires. Is that a good cause for a tax filing extension request?

Absolutely. Due to the devastating wildfires, tax filing can be delayed as a lack of electricity and internet made it impossible. Showing that you were affected by the fires would make you eligible to request a waiver or extension on penalties or interest.

Will this tax relief stay available? How soon will the DOT stop accepting requests for tax relief?

For what duration is relief available? As long as the Director determines necessary to counteract the effect of the wildfires, the Department will carry on considering requests for aid.

Do I still need to pay estimated taxes?

Should I submit estimated taxes? The answer is a resounding Yes. Even with the aftermath of the 2023 Hawaii wildfires, you may request extra time to make the necessary payments. To learn how to go about it, get in touch with our free, dedicated tax professional.

Is there any relief for taxpayers impacted by the Maui and Hawaii wildfires already under an installment payment agreement with the DOT?

Taxpayers will be obligated to resume installment payments following their payment plan. For further details, please get in touch with a dedicated PriorTax Tax Professional for free support from start to finish.

Taxpayers must restart their installment payments in order to comply with their current plan. Please reach out to your assigned collector for more info. If you do not have a contact detail, such as an email or a number, please call a relevant office and ask them to contact your collector.

Is tax relief available for a taxpayer with a property lien impacted by the Hawaii wildfires?

Those property owners affected by the wildfires in Hawaii may be wondering how they can access relief from their property lien dues. At present, the Department will not be providing a release of these liens. However, they could qualify for other forms of assistance, such as waiving interest during this difficult period. Get in touch with a free, dedicated Tax Professional to support your tax relief.

Details on Taxability and Deduction

Damages and Losses from Hawaii Wildfire Enable to Deduct from Tax Returns?

Which damages and losses can I declare on my taxes? We recommend that taxpayers speak with a dedicated tax professional or the IRS to determine suitable tax deductions. Concerning Hawaii income tax, the DOT aligns with section 165 of the Internal Revenue Code, addressed in Publication 547 from the Internal Revenue Service. Please refer to Tax Announcement 2023-03, under section II, to further investigate casualty loss claims.

Is the tax relief taxable?

Regarding taxation, one question lingers: Are tax relief payments taxable? It varies depending on the source of the funds and the purpose for which they are used. To elaborate further, please look at Tax Announcement 2023-03 and section IV to learn more about disaster relief payments.

Are donations to Hawaii Wildfire tax deductible?

The answer is yes. You may deduct donations from your taxes, but only under certain conditions. All donations and gifts from registered and qualified non-profit organizations will be eligible for tax deductions. However, contributions made to individuals or unregistered groups do not qualify. It is necessary to provide proof of the donation to receive the deduction on your taxes.

IRS Announces Tax Relief for Hawaii Wildfire Victims

Posted by admin on August 31, 2023
Last modified: August 31, 2023

The Internal Revenue Service (IRS) has issued a declaration of tax relief to those affected by the wildfires that began on August 8, 2023, in parts of Hawaii. Individuals and businesses affected have until February 15, 2024, to file returns and make required payments. Consideration is given to victims of the wildfire destruction in these areas of Hawaii.

In response to the damage caused by the Hawaii wildfire, FEMA has declared a disaster in Maui and Hawaii counties. As a result of this declaration, those who live or operate businesses in the affected areas are eligible for federal tax relief.

In response to a declared disaster, it has been made possible for those affected to postpone their filing and tax payment deadlines. An example is when deadlines falling between August 8, 2023, and February 15, 2024, can be extended with special permission from the IRS.

The Internal Revenue Service (IRS) has issued a grace period extending to February 15, 2024, for all affected individuals and businesses who need more time to file tax returns between January 1, 2021 and April 18, 2023. This stipulation includes 2022 individual income tax returns, with an original due date of October.

Hawaii Wildfire

The February 15, 2024, deadline also applies to:

  • Quarterly estimated tax payments, which are normally due on September 15, 2023, and January 16, 2024.
  • Excise tax returns and quarterly payroll which are normally due on October 31, 2023, and January 31, 2024.

Businesses whose 2022 tax extension dates have elapsed or will soon elapse by September 15 (i.e., calendar-year partnerships and S corporations) and October 16 (calendar-year corporations) are eligible for the February 15, 2024 deadline for filing taxes.

On or after August 8, 2023, and before September 7, 2023, any late payroll or excise tax payments will receive abatement as long as the deposit is made by the said date.

When a taxpayer is subject to a late tax filing or late payment penalty notice from the IRS that had an original or extended due date during the postponement period, they should contact the number on the notification for the IRS to waive any charges.

Taxpayers affected by a covered disaster area can receive filing and payment relief from the IRS, provided they reside or have business in those areas. Those located outside of such regions should contact a dedicated PriorTax Tax Professional to benefit from this tax relief.

Who are Affected Taxpayers from Hawaii Wildfire?

Individuals and businesses affected by the covered disaster area, including tax-exempt organizations, are eligible for postponement of time to file tax returns, pay taxes, and perform other time-sensitive acts. This also extends to those who do not physically reside within the area but whose records necessary to meet a deadline lie within it. Thus, they, too, are entitled to some form of relief.

All those providing and receiving help during times of tragedy have the right to compensation for any damages incurred as a result of the disaster. That is why anyone affiliated with an official government or charitable organization assisting people affected by a disaster area is eligible for relief.

Taxpayers affected by the August 8, 2023 date will receive some relief from the Internal Revenue Service (IRS), as they can now file all relevant tax documents until February 15, 2024. This includes individual and corporate income tax returns, partnership and S Corporation returns, estate/gift/generation-skipping transfer taxes, annual information for tax-exempt organizations, and employment/excise taxes with either an original or extended due date up through February 15 of this year.

Taxpayers with estimated tax payments due between August 8, 2023, and February 15, 2024, now have an extension until February 15, 2024, to make those payments without facing any penalties for late payment. Those estimates must be paid before the end of that period to avoid penalty charges.

Declaring Casualty Losses from Hawaii Wildfire

For individuals impacted by a federally declared disaster, the option to declare casualty losses on their federal tax return for either the year of the occurrence or the previous year is available. Taxpayers who have selected this option and are reporting these losses on their 2022 returns have extended time until October 15, 2024, to make that choice.

Hawaii Wildfires have caused some taxpayers to seek out the disaster loss on their tax return. Make sure to state “Hawaii Wildfire” and the FEMA disaster declaration number, DR-4724-HI, at the top of your form. A PriorTax Tax Professional can assist individuals through this process from start to finish.

Other Possible Tax Reliefs

Taxpayers affected by disasters may find financial aid within their retirement plans or IRAs. For example, they could qualify for a special disaster distribution to spread the income over three years and avoid the extra 10% early distribution tax.

Those who pay taxes could qualify for a hardship withdrawal in certain instances. Every plan or IRA has separate rules and guidelines that must be adhered to by its participants.

The IRS may provide additional disaster relief in the future.

Taxpayers dealing with the repercussions of a disaster that the IRS has contacted in regard to a collection or examination should make their situation clear to the agency so that they can be given appropriate consideration.

Unfiled 2019 Tax Refund to Claim Thousands in Tax Return

Posted by admin on July 9, 2023
Last modified: July 9, 2023

For unfiled 2019 tax refund: July 17, 2023 is the deadline.

The clock is ticking for 1.5 million Americans who have yet to file their tax returns from the year of 2019, missing out on potential refunds worth $1.5 billion. Those who still need to file must act fast, as July 17 marks the last chance to claim a tax refund, which could be in the thousands. Don’t leave money on the table.

In June, government officials issued their ultimate notification to approximately 1.5 million individuals throughout America who must submit a return for 2019 prior to July 17, 2023, in order to receive their respective refund.

Taxpayers have a three-year window within which to file and claim their tax returns; failure to do so results in the money being turned over to the U.S. Treasury. In line with this, July 17, 2023, must be marked as the deadline to ensure that all necessary requirements for properly addressing and dispatching a tax refund are met.

Eligibility for the Earned Income Tax Credit

Are you one of the low- and moderate-income earners who could be eligible to receive up to $6,557 from your 2019 income? The Earned Income Tax Credit (EITC) may provide you with an extra refund. So make sure to check your qualifications and see what bonus refund amount you are entitled to.

Those who are potentially eligible for EITC in 2019 had incomes below the following thresholds:

$15,570 if filing individually or $21,370 if filing jointly, for people without qualifying children

$41,094 if filing individually or $46,884 if filing jointly, for those with one qualifying child

$46,703 if filing individually or $52,493 if filing jointly, for people with two qualifying children

$50,162 if filing individually or $55,952 if filing jointly, for those with three or more qualifying children

The clock is ticking for those eligible for a tax refund in 2019, according to Danny Werfel, the IRS Commissioner. Taxpayers who still need to file their return from last year need to do so before July 17 or risk forfeiting any potential tax refunds. In light of the circumstances surrounding the current pandemic, the IRS urges anyone who may have overlooked filing their taxes to act fast and make sure they get what might potentially be a substantial amount back.

Danny Werfel, IRS Commissioner, has urged those who have neglected to file during turbulent times of COVID-19 to take hasty action before their last opportunity to acquire a considerable refund passes by. “People who may have overlooked filing during the pandemic should act quickly,” he said.

prior tax

According to IRS reports, unclaimed refunds from taxes typically amount to around $893. Those with lower or moderate income could potentially be eligible for up to $6,500 in Earned Income Tax Credit benefits, provided their income is suitable.

Concerning any outstanding balances, the IRS return may be put towards resolving financial obligations, including unpaid child support or student loans. It can also be used to cover taxes owed to the federal government or a state tax agency.

Need help with filing your tax forms for last year as well? PriorTax is here to provide assistance with experienced, free Dedicated Tax Professionals who are available by phone and online to file your prior year taxes.

Need to file a 2019 tax refund? 

It is estimated that by averaging all of these unclaimed refunds, the median reimbursement for taxes paid in 2019 would amount to $893.

With the July 17, 2023 deadline for 2019 refunds quickly approaching, it is important that taxpayers take the necessary steps now to ensure they have all the info they need to file before time runs out. The IRS reminds people that there are still ways to collect the data required to put together this tax return despite the fact that a few years have passed since 2019.

In order for you to receive your 2019 tax refund, the initial step is filing taxes for that year. Gather necessary documents from pertinent companies or organizations such as employers, banks, and any entities which gave you money in 2019. Additionally, the IRS website can request a tax transcript which can assist with what is needed for filing 2019 taxes.

For those who are missing vital documents like Forms W-2, 1098, 1099 or 5498 from 2019, 2020 or 2021, obtaining copies of the documents are possible. 

Here are some options:

Get your transcript online at IRS.gov provides a convenient solution for those needing forms from their employer or other payers. This free wage and income transcript can be easily ordered with the help of the online tool. Arguably, this is one of the most efficient options available to taxpayers.

People who need to access their wage and income information can submit Form 4506-T to the IRS. This form is known as a “transcript of the tax return” and reveals data from returns sent to the Internal Revenue Service, including Tax Form W-2, Tax Form 1099, Tax Form 1098, Tax Form 5498, and other contribution details.

Although the transcript may contain helpful information for filing a return, it is recommended to find other alternatives first due to the time-consuming nature of written requests. Processing can take several weeks, so planning ahead is essential.

More than $1.5 billion combined is owed in 2019 refunds.

Across the country, many taxpayers are owed overdue refunds from their states. In particular, people in California, Texas, Florida, New York, and Pennsylvania have thousands of unclaimed dollars waiting for them. But unless these individuals submit their tax returns to claim what is due to them, the IRS will keep the funds as part of the U.S. Treasury’s coffers.

Given the extenuating and unexpected circumstances of the COVID-19 pandemic, individuals have an extended period to submit their tax returns for the year 2019 and acquire any refunds they may be owed. The time limit has been moved to July 17, 2023 – a three-year window.

According to an estimate from the Internal Revenue Service (IRS), there is nearly $1.5 billion in unclaimed refunds. An exclusive state-wise appraisal gives a median potential refund for each state and approximates how many persons could be qualified for these payments. Nevertheless, actual amounts of refunds will rely upon a family’s personal tax situation.

With only days left to claim it, up to 1.5 million U.S. taxpayers may be eligible for refunds from 2019 taxes! You could receive hundreds or maybe thousands of dollars from tax returns, but time is quickly running out – you must file your 2019 tax return by July 17 in order to get your money back. Don’t miss out on this incredible chance! 

Reach out to your free Dedicated Tax Professional Now at PriorTax.com.

PriorTax.com strives to help taxpayers catch up on their tax filings and get current with the IRS. You can also catch up on your late taxes with PriorTax! Their 9.9/10 top rated tax application guides you with simple questions, and once done, our dedicated tax pros review your tax return and prepare it for filing. PriorTax is currently e-filing 2020, 2021, and 2022 tax returns.

Small Business Tax Filing Tips for 2023

Posted by admin on February 10, 2023
Last modified: February 13, 2023

Small business tax deductions can reduce business income, which lowers the amount of tax owed. One advantage that the self-employed and small businesses have are various tax deductions and credits. Using PriorTax for your small business would also qualify as a tax deduction. For example, if you own a business property, you can claim the associated mortgage interest as a business expense and tax deduction. Sole proprietorships, LLCs, and partnerships can not deduct charitable contributions as a business expense. Still, the small business owner may be able to claim the deduction on the business owner’s personal tax return. Our dedicated tax professionals will know how to record these expenses in your books so they can be accurately reflected on your tax return as a business expense. In a nutshell, small business owners can maximize their tax refund by decreasing their business income and increasing their business deductions. Lowering your net business income will reduce the amount of income taxes due, thus improving your chances of getting a tax refund. It is vital to keep your business income as low as possible so that you can take advantage of all possible deductions.

small business tax

As a small business owner, it is vital to ensure you take every measure available to reduce your small business taxation. While much of your capital may be taken away each year, here are 10 deductions you should be aware of as you look back at your previous tax year and plan for the future. Keeping these tips in mind can help keep more money in the bank while still maintaining compliance with small business tax regulations.

To maximize your tax refund as a small business owner, you should familiarize yourself with the various tax deductions available to your business. Business owners who are employed and self-employed can qualify to use these deductions and credits to lower their taxable income. Here are our top 10 pieces of advice for maximizing your small business tax refund.

1. Record all service fees from legal, consulting, and professional services for small business taxes

Entrepreneurs need to ensure their legal and professional costs are properly documented. Although consulting with experts on tax issues and regulations is an essential part of running a successful business, the fees paid to these professionals can generally be deducted in the same year incurred. Furthermore, business owners may also be able to claim expenses incurred from purchasing books related to driving their company or practicing law.

2 Take advantage of upstarting costs and expenses when filing small business tax returns.

When launching a new business, one should use the deductions available for start-up costs and other expenditures. In the initial years of operations, many start-up costs can be written off when filing taxes. Furthermore, items such as office equipment and supplies, shipping fees, and utility bills may also be deducted from taxable income.

3. Keep track of new equipment or software purchases.

Keep tabs on the acquisitions of new tools or programs. Several small businesses are eligible for a deduction on the cost of certain assets in the same year it is bought. Meanwhile, software usually has to be subtracted gradually over an extended period.

4. Use your car for business purposes.

When running a business, it pays to consider using your car as a means of saving money. Whether you are utilizing your own vehicle or one owned by the enterprise, various costs associated with it can be deducted from taxes. This includes expenses such as the standard mileage rate, parking fees, tolls, and specific amounts of depreciation.

5. Deduct advertising expenses effectively from filing your small business tax.

One should pay attention to the potential deductions for marketing or advertising expenses. This could include spending on business cards, electronic and paper advertisements, and trade show participation costs. All of these can be claimed under current business expenses.

6. Include membership and educational expenses.

When it comes to business expenses, remember to factor in membership fees and educational costs. This includes the cost of joining a professional association related to your business or even fees associated with attending seminars such as CLEs (Continuing Legal Education).

7. Don’t forget to make interest payments be part of tax filing.

Maximize the value of your interest. When buying items for business purposes, it is beneficial to use credit as this allows you to deduct the interest from your taxes. All expenses must be documented thoroughly in order to ensure eligibility for said deductions.

8. Keep receipts for entertainment expenses.

Make sure you hang onto your receipts when it comes to entertainment expenses. By taking meticulous records of coffee runs, dining out, and any other company-related outings, you can deduct such costs from your taxes.

9. See if charitable contributions and donations can be included.

Donating to charity can be beneficial in more ways than one. Unless the business is a corporation, most charitable contributions to suitable institutions are tax deductible. It is essential that individuals keep proof of their donations, such as receipts, canceled checks, or written acknowledgment from the organization. This will ensure they have records of their generous contributions.

10. Save your tax documents for at least 5 years.

Organizing your record is critical when it comes to tax records, and it’s important to hang on to them for at least 5 years. Not only will good record-keeping save you time, but it could also save you money. Maintain copies of your tax returns, receipts from expenses, mileage logs, licenses, and incorporation papers to verify deductions.

Highlights of Tax Changes for 2023

Posted by admin on February 2, 2023
Last modified: February 13, 2023

This tax season brings several tax changes for 2023 to the standard deductions and tax breaks available. Most notably, many of the pandemic-era credits have expired. However, in a turn of events, the Inflation Reduction Act offers two eco-friendly incentives for taxpayers. Additionally, previous homeowner deductions are now gone, and remote workers may face double taxation – both of which should be kept in mind before filing federal returns by the deadline.

Instead of stressing over all the alterations in taxation, those filing taxes should concentrate on how the tax changes for 2023 will apply to their returns and entrust PriorTax Tax Professionals with any other details. This way, they can avoid feeling overwhelmed by the changes.

As it is challenging to stay current with all updates in tax regulations, taxpayers familiarize themselves with their particular set of laws. When preparing for 2022 taxes, review your 2021 return to see which data and documents you need. Additionally, consider any occurrences from 2022 that may have a bearing on your taxes.

tax changes for 2023

These are the Highlight to Tax Changes for 2023 that Could Affect You

Tax credits specific to the pandemic will not be available in 2022.

During the economic crisis caused by COVID-19, certain modifications were made to the tax code as a response. Unfortunately, these temporary measures will soon come to an end; most of them will no longer be applicable in the upcoming fiscal year.

For 2022, the IRS did not issue any new Economic Impact Payments. 

Therefore, taxpayers can avoid having to deal with notifications from the IRS confirming their stimulus check amount when filing taxes, nor can they take advantage of a Recovery Rebate Credit.

Key Pandemic Era Tax credits return back to Pre-Pandemic 2019 levels.

The impacts of the Coronavirus pandemic on 2020 tax credits will be reversed in 2021, as CTC, EITC, and the Child and Dependent Care Credit all return to their pre-pandemic levels.

For tax changes for 2023, there is a steep decline in terms of Child Tax Credit (CTC), and it will go back to $2,000 per child dependent. Another noteworthy alteration of CTC is that it’s no longer refundable. Consequently, this implies that taxpayers won’t acquire their full credit even when it surpasses their own tax obligation.

Though they were temporarily increased last year, single filers with no children are now entitled to only $500 from their Earned Income Tax Credit (EITC), a decrease from its previous maximum of $1,500.

For the 2022 tax year, the Child and Dependent Care Credit will decrease substantially from its 2021 value of $8,000 to a maximum of $2,100. This credit takes into account expenses for child care and day camps incurred out-of-pocket.

Charitable deductions must be itemized.

When taxpayers file their 2022 tax returns, any donations to charities must be listed on the Schedule A form in order to qualify for a deduction. This is a significant tax changes for 2023 from the two previous years when an above-the-line deduction was available for those who donated.

This year, single filers and married couples filing jointly have the opportunity to take advantage of a generous deduction on charitable donations. In addition, the 2021 revision to the CARES Act has allowed an increase up to $300 for single tax filers and those married joint tax filing separately, as well as $600 for joint filers. This marks a substantial growth from 2020, where only single filers and those filing jointly could deduct up to $300, with married filing separately taxpayers able to deduct up to $150.

Are you aware of the tax breaks offered by the Inflation Reduction Act?

Since its signing into law in August 2020, it has provided a handful of beneficial options that can be taken advantage of when filing taxes in 2022.

The Residential Clean Energy Credit has been improved. 

Homeowners can now benefit from a 30% reduction of the costs for solar panel installation, in addition to solar heating products and other related items – an increase from its original 26%. Additionally, there is no limit on how much money can be used for credit or income restriction.

The act’s passage also provided a great incentive to those who own second and vacation homes. By removing the principal residence restriction, homeowners installing solar products on these alternative residences are qualified to receive the tax credit.

Eligibility for electric vehicle (EV) Tax Credit

The Qualified and Eligible Plug-in Electric Drive Motor Vehicle Credit, with a maximum of $7,500 depending on the battery capacity, is accessible to consumers who bought an EV. Those who purchased their car between August 17, 2022 and December 31, 2022 must display that the vehicle was finally assembled in North America to be eligible for this credit; however, those who purchased before August 17 do not need to meet these requirements. The Qualified Eligible Plug-in Electric Drive Motor Vehicle Credit, with a maximum of $7,500 depending on the battery capacity, is accessible to consumers who bought an EV. Those who purchased their car between August 17, 2022 and December 31, 2022 must display that the vehicle was finally assembled in North America to be eligible for this credit; however, those who purchased before August 17 do not need to meet these requirements.

The EV credits in 2022 have already been finalized. Taxpayers must double-check to ensure the purchased vehicle meets all requirements and that the correct credit amount was taken. When bought at a dealership, they cannot claim this credit on their tax return.

Mortgage insurance premium deduction expired.

For homeowners who could deduct their private or mortgaged insurance premium on their taxes, the Tax Relief and Health Care Act of 2006 — which annually extended the deduction — was not renewed for 2022. This means that individuals with a loan balance higher than 80% of the value of their home will no longer be able to itemize this payment. Typically, lenders require borrowers to pay into a mortgaged insurance policy when they put less than 20% down when purchasing a house as an extra protection against default.

Remote workers could face double taxation.

Employers who have decided to maintain part-time or hybrid schedules for their workers into 2022 should be aware of potential double taxation. In addition, depending on the state where the employer is located and where the employee is working remotely, there may be associated tax implications.

In recent years, some states have enacted temporary provisions to prevent double taxation of incomes generated in two separate states; however, these protections come to an end with 2021’s tax year. Therefore, it is important to ensure you are informed about any extra taxes that could arise as a result of continuing work remotely in 2022.

Tax day

As opposed to the customary April 15 tax deadline, individuals have until Tuesday, April 18, to file their federal returns in 2017. The reason for the shift from normal is due to the proximity of a Saturday, April 15, and a local holiday in D.C., which the IRS will observe. In addition, those struck by severe storms in California, Georgia, and Alabama can take advantage of an extended filing period; they have until May 15 to submit their paperwork.

Crypto Tax Filing in 2023

Posted by admin on January 26, 2023
Last modified: February 13, 2023

How to Prepare and Report your Crypto Gains and Losses when filing Crypto Tax

Want to know the best way to compute crypto tax for profits and losses? It all depends on what country you reside in. In America, digital currencies are classified as a form of property, with both short-term and long-term capital gains regulations that apply. For those in the United States, understanding your tax liability when it comes to crypto can be a complex process. Crypto is treated as property for taxation purposes, which means gains and losses must be calculated according to long-term and short-term capital gain rules.

When filing taxes, it is fundamental to accurately calculate crypto gains or losses. Two elements play a major role in this: the holding period and realized profits or losses. It is, therefore, essential to understand these two components when computing your crypto tax.

When it comes to taxation, what are the rules regarding cryptocurrency?

In the United States, the taxation of crypto is similar to that of other forms of property. Therefore, both short-term and long-term capital gains regulations are applicable. Regarding taxes on crypto earnings, the rate is equal to that imposed on profits made from investments in stocks.

When determining one’s crypto taxes, both gains and losses must be taken into account. To help with this process, a specialized tax calculator can be utilized. Our tax calculator is perfect for this purpose.

Again, when filing taxes, it’s important to consider your crypto gains or losses carefully. This requires a thorough understanding of two primary components: realized gains/losses and the holding period. Calculating these accurately will ensure that you have precise figures when completing your tax return.

Factors to consider when calculating your crypto tax?

crypto tax

When it comes to filing crypto taxes, there are two key components that must be taken into account. Specifically, the calculation of crypto tax requires an awareness of how cryptocurrency is taxed as either short- or long-term capital gains.

When engaging in crypto trading or sales within the U.S., the rate of tax is determined by two key factors

– your realized gains (or losses) and 

– length of time you held a certain cryptocurrency prior to trading or selling it (the holding period).

Beginning one day after a purchase or transaction of cryptocurrency, and completing when you trade or sell it, constitutes what is known as a ‘holding period.’ Additionally, making purchases with crypto sets in motion a taxable event.

Crypto Tax Filing Example

In this case, after buying $10,000 worth of ETH, it was exchanged for $20,000 in BTC a month later. This created a taxable gain of $10,000. The taxable gain is $20,000 − $10,000 = $10,000. After just two months, this amount had increased by another $30,000 when the value of your BTC rose to $50,000. From that point, it could be used to purchase GameStop (GME) stocks with a total taxable short-term capital gain for the year being recorded as $30,000. Here the taxable gain is $50,000 − $20,000 = $30,000.

Best ways to calculate crypto tax with PriorTax and our Tax Professionals

Figuring out your crypto taxes can seem daunting at first, but here at PriorTax, we make it easy! We provide an account you can use to calculate your crypto gains and taxes. Alternatively, you can leave all those calculations to our experienced team of professionals. Either way, you can file your crypto taxes with us.

Maintaining accurate records is essential for those who own cryptocurrency. A crypto tax calculator can help calculate realized gains or losses and their respective tax implications to make the job easier. In addition, such calculators can provide a great deal of insight into how much one’s finances are affected by trading cryptocurrency.

When to Expect Your Tax Refund in 2023

Posted by admin on January 18, 2023
Last modified: February 13, 2023

When will you get your 2023 tax refund? Here’s our annual chart with our best estimates. Keep in mind that the answer is never exact, but we can make some educated guesses based on a few factors.

Now is also an excellent time to begin applying your year-end tax filing strategies that can lower your tax bill with tax credits or increase your refund with tax deductions. So whether you’re planning for next year or want to lower your bill this year, these strategies can help you out.

Have you had any significant changes in your life this year, like a new job, getting married or divorced, having a baby, retiring, buying a house, or changing investments? These types of things can have a significant impact on your taxes. So it’s a good idea to reach out to PriorTax Tax Professional sooner rather than later. Our dedicated tax professionals can make sure you are taking full advantage of all the tax deductions and tax credits you’re entitled to for maximum tax refund.

Are you wondering whether the 2023 tax filing season is going to be normal? While it’s impossible to say for certain, it’s likely to be closer to normal than it has been since 2019. That was the last tax filing season before COVID-19 caused widespread office closures, even at the IRS. As a result, the 2020 tax filing deadline was delayed by several months.

Don’t worry, the vast majority of taxpayers won’t have any issues come tax season. Just to be clear, the weeks leading up to April 18 2023 is when Americans file their taxes for the income they received during the 2022 calendar year. Alternatively, you can file for an extension, giving you an extra six months to sort everything out.

2023 tax refund

April 18, 2023 is the Tax Deadline!

What is the reason for the 2023 tax deadline being on April 18 instead of the 15th? The standard deadline of April 15 falls on a Saturday, so when this happens, the tax filing deadline to the next business day. However, in 2023 this Monday happens to be Emancipation Day.

The tax filing deadline to file your federal income tax return (Form 1040) is Tuesday, a state holiday Patriot’s Day in Maine and Massachusetts. Most states usually follow the same calendar for state income tax returns. Depending on when you file your taxes, you may receive your tax refund payment within 2-3 weeks.

When to File Your Tax Returns and Expect your 2023 Tax Refund?

It’s that time of year again the tax filing season is around the corner. It is time to think about maximizing your tax refund!

For most people, tax season starts in late January or early February. However, this year may be different due to recent changes in tax law. So it’s important to stay up-to-date on any new developments.

Generally speaking, early filers who are due a refund can expect to see their money sometime in mid-to late February. However, those who claim certain credits like Earned Income Tax Credit or Child Tax Credit may have to wait a bit longer for their refunds – about one month.

Last year was impacted significantly by Covid-19, which caused both deadlines and procedures to change.

According to our projections, this is when you can expect to receive your income tax refund based on when you file your return. Keep in mind that this timeline is an estimate and may change depending on future events.

You can check on the tax filing status of your tax refund using the “Where’s My Refund” tracker from the IRS website or with your assigned PriorTax Tax Professionals. Just enter some basic information about yourself, and we’ll update you on where things stand.

It’s always a good idea to get your tax return in as soon as possible – and Efiling is the quickest, easiest way to do it. In general, you can expect to receive your refund via direct deposit within 2 weeks – although, during the busiest times of tax season (late March), it may take a bit longer. So gather up all your documents such as W2s, 1099s, mortgage, and student loan interest statements, etc.

There are a few important factors that can affect when you might get your 2023 tax refund, these include:

  • How early you file
  • Whether you’re claiming certain credits (especially EITC and CTC)
  • Whether your return is e-filed or sent by mail
  • Whether you have existing debts to the federal government

The IRS will delay processing by 2-3 weeks for income tax returns that claim the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC), so they can verify that taxpayers qualify for the credits.

Keep in mind that this is just an estimate of when you can expect your refund – it’s not exact, since every taxpayer has different returns and situations. Also note that the first column is when the IRS accepts your return, which can be 2-3 days after you submit it electronically. Mailing in a tax return can result in extra delay at the beginning of the process since the IRS will need to manually enter it into their system. But don’t worry – we’ll keep this page updated in case the IRS changes tax season this year.

tax refund in 2023

Property Tax 2022

Posted by admin on December 27, 2022
Last modified: February 13, 2023

Welcome to the exciting world of property taxes! In this article, we’ll be discussing how assessors calculate your annual property tax liability.

Are you thinking about buying a new home? If so, then there are a lot of things to take into account. One of the most important factors for many people is the community they’ll be living in. But another important consideration is how your property taxes will contribute to supporting your local area through things like schools and infrastructure. In the United States, all 50 states have laws requiring most property owners to pay real estate taxes. These taxes can vary from state to state.

When you’re searching for a new home, it’s important to keep property taxes in mind. They can add a significant amount to your overall homeownership costs. Here’s some basic information on property taxes, including a state-by-state breakdown, to help you get started.

What Are Property Taxes?

There are a few things to know about paying your real estate taxes. They’re based on the assessed value of your home, and rates can vary by state. But generally speaking, this is a tax that homeowners pay to their county or local government. So, when budgeting for your annual expenses, be sure to factor in your real estate taxes.

As a homeowner in the United States, you are likely responsible for paying property taxes on a monthly basis, along with your mortgage payments. Once you pay off your loan, you may receive a bill for the tax from local government periodically throughout the year. The money collected through property taxes goes towards supporting the community, including infrastructure improvements, public services and local public schooling.

property tax

What Are Property Taxes Based On?

The value of your home is important for many things, including your property taxes. It’s important to know that the assessed value for property taxes may not always match the actual value of your home. This can affect how much you owe in taxes. Property tax amounts can vary depending on the state and county you live in, as well as the overall value of your home. This includes both the land and any structures on it.


The first thing you need to know is that all calculations are based on a unit called a mill, which is equal to one-thousandth of a dollar. With that in mind, let’s take a look at the three values that are used to find your annual property tax liability:

  • the state tax rate
  • the assessment ratio (the portion of the property value subject to tax),
  • and the property value.

States Ranked By Property Tax

State Property Taxes ranked from the lowest to highest

*$217,500 is the median home value in the U.S. as of 2019, the year of the most recent available data.

RankStateReal Estate Tax RateAnnual Property TaxAverage Home Price
1Hawaii0.28%$606 $615,300 
2Alabama0.41%$895 $142,700 
3Colorado0.51%$1,113 $343,300 
4Louisiana0.55%$1,187 $163,100 
5D.C0.56%$1,221 $601,500 
6Delaware0.57%$1,240 $251,100 
6South Carolina0.57%$1,238 $162,300 
8West Virginia0.58%$1,269 $119,600 
9Nevada0.60%$1,310 $267,900 
10Wyoming0.61%$1,319 $220,500 
11Arkansas0.62%$1,358 $127,800 
12Utah0.63%$1,362 $279,100 
13Arizona0.66%$1,446 $225,500 
14Idaho0.69%$1,492 $212,300 
15Tennessee0.71%$1,548 $167,200 
16California0.76%$1,644 $505,000 
17New Mexico0.80%$1,740 $171,400 
18Mississippi0.81%$1,751 $119,000 
19Virginia0.82%$1,779 $273,100 
20North Carolina0.84%$1,833 $172,500 
20Montana0.84%$1,818 $230,600 
22Indiana0.85%$1,853 $141,700 
23Kentucky0.86%$1,866 $141,000 
24Florida0.89%$1,934 $215,300 
25Oklahoma0.90%$1,952 $136,800 
26Georgia0.92%$2,006 $176,000 
27Oregon0.97%$2,116 $312,200 
27Missouri0.97%$2,111 $157,200 
29Washington0.98%$2,134 $339,000 
29North Dakota0.98%$2,138 $193,900 
31Maryland1.09%$2,370 $314,800 
32Minnesota1.12%$2,429 $223,900 
33Alaska1.19%$2,599 $270,400 
34Massachusetts1.23%$2,667 $381,600 
35South Dakota1.31%$2,857 $167,100 
36Maine1.36%$2,953 $190,400 
37Kansas1.41%$3,060 $151,900 
38Michigan1.54%$3,343 $154,900 
39Ohio1.56%$3,390 $145,700 
40Iowa1.57%$3,407 $147,800 
41Pennsylvania1.58%$3,442 $180,200 
42Rhode Island1.63%$3,548 $261,900 
43New York1.72%$3,749 $313,700 
44Nebraska1.73%$3,754 $155,800 
45Texas1.80%$3,907 $172,500 
46Wisconsin1.85%$4,027 $180,600 
47Vermont1.90%$4,135 $227,700 
48Connecticut2.14%$4,658 $275,400 
49New Hampshire2.18%$4,738 $261,700 
50Illinois2.27%$4,942 $194,500 
51New Jersey2.49%$5,419 $335,600 
property tax by state
Source: WalletHub

State Property Tax Exemptions

As a homeowner in the United States, you are generally required to pay property taxes. However, there are some exceptions where certain properties may be exempt from this tax. This is different from a tax deduction, which only lowers the amount of taxes that an individual or group owes. Property tax exemptions can include qualifying individuals such as senior citizens, STAR participants, those with disabilities and veterans. Certain eligible government entities, nonprofit organizations and religious groups may also fall under an exemption.

2023 Tax Brackets and Tax Code

Posted by admin on December 9, 2022
Last modified: February 13, 2023

The 2023 tax year will see some changes to the limits and thresholds on some well-known tax provisions as a result of inflation adjustments announced by the IRS. These include increases to the income thresholds for the 2023 tax brackets, which could mean that many people may pay less in taxes in 2024.

As we head into another tax season, it’s important to be aware of the major changes made to the 2023 tax brackets and tax code. One of the most significant changes is how inflation is considered when determining your tax bracket. This change is known as “bracket creep,” and it can have a major impact on your taxes. In order to prevent bracket creep, the government makes annual adjustments to the tax code. This year, those adjustments will impact taxpayers’ incomes in 2023. Knowing about the changes now can help you plan ahead and ensure you’re prepared come tax time.

2023 Tax Brackets and Tax Rates

There are seven different tax brackets that the government imposes on citizens in the United States. The marginal rates for these brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These rates will not change in 2022. However, the income thresholds that dictate which bracket a person falls into will be significantly adjusted for 2023.

The new tax brackets for 2023 have been released, and there are some changes that taxpayers need to be aware of. For example, the maximum income for a married couple filing jointly to remain in the 12% bracket has increased from $83,550 in 2022 to $89,450 in 2023. Toggle between the tabs in the chart below to explore how income thresholds will change across all filing statuses in 2023.

2023 Standard Tax Deduction

The IRS offers a deduction for 2023 taxpayers who do not itemize their taxes. This is known as the “standard deduction.” For the 2023 tax year, the amount of the deduction will increase by $900 for single filers and those married filing separately, $1,800 for married couples, and $1,400 for heads of household. In addition, the additional deduction for those over 65 or blind (up from $1,400 in 2022) and $1,850 higher for those also unmarried and not a surviving spouse (up from $1,750 in 2022).

2023 tax brackets

2023 Capital Gains Tax

Different types of taxes are assessed on different types of income. For example, a person’s earnings from their job are taxed as wage income, while the profits generated from selling an asset, such as a stock or cryptocurrency, are taxed as a “capital gain.”

Short-term gains (capital gains on assets held for less than one year) will be taxed in 2023 at the same tax rate as your other ordinary income. However, long-term gains (capital gains on your assets held for more than one year) get special tax rates: 0%, 15%, or 20%.

When Are Taxes Due for 2022 Tax Return

Posted by admin on November 14, 2022
Last modified: November 14, 2022

Do you want to know the date for when are taxes due in 2022?

Well, we have the answer for you! According to the IRS, taxes are due on Tuesday, April 18, 2023. So be sure to mark that date in your calendar!

As the end of the every fiscal year approaches, many Americans begin to feel the pressure of taxes. For some, April 15 is a day of dread as they scramble to pull together all the necessary paperwork and documentation. Others look forward to receiving their refund check from the government.

No matter which camp you fall into, it is important to be aware of the latest changes to the taxation system. This year, for example, due to Emancipation Day being recognized as a holiday in Washington, D.C., taxes will be due on Tuesday, April 17.

The IRS typically starts accepting returns in late January, giving taxpayers nearly three months to get their affairs in order. However, victims of federally declared disasters may have an extended filing deadline.

It’s important to be aware of the various tax deadlines that apply to you, such as the federal deadline, your individual state deadline, and the late filing deadline. Here, we’ve listed the major ones for the tax year 2022 (taxes filed in 2023).

When is the federal tax filing deadline and taxes due for 2022 Tax Return?

The deadline for federal tax returns and payments is April 18, 2023.

What are some other important dates for 2023 filing taxes?

The IRS has set the following deadlines for the upcoming tax seasons:

  • January 2023 – IRS begins accepting returns
  • February 21, 2023 – Fourth quarter estimated payments due for the tax year 2022
  • February 1, 2023 – Employers must mail W-2 forms
  • April 18, 2023 – Tax Day/federal returns and payments due, final day for 401k contributions, the final day to file an extension

What is the 2023 tax filing deadline for my state?

The due date for filing and paying state taxes varies by state. You can check your state’s Department of Revenue for the most up-to-date information.

As an independent contractor, consultant, or self-employed individual, it’s important to be aware of the various deadlines for filing your taxes. For example, the last quarterly estimate deadline for work completed during Q4 of 2022 is February 18, 2023. However, if this is your first time reporting an estimate, you may have some additional questions. In that case, check out more information about quarterly estimate taxes here.

when are taxes due 2022
when are taxes due 2022

We know it takes a lot of work to manage your calendar. That’s why PriorTax reminds you when quarterly estimates are due. Get started today!

When is the deadline to file a federal tax return extension in 2023?  

The tax filing deadline to file a 2022 federal tax return extension is fast approaching! You must file a tax extension by April 18, 2023, to avoid penalties. Keep in mind that a 2023 tax extension only gives you more time to submit your tax return, not to pay your taxes. So make sure you have all your ducks in a row before the April 18 tax deadline!

Will the IRS extend the 2023 tax filing deadline for 2022 returns?

As we approach the end of the tax year, many people are wondering whether the IRS deadline for filing returns might be extended. Unfortunately, it’s not likely. The IRS typically only extends deadlines in the case of unexpected events, like natural disasters. The deadline is on track to be April 18, 2023.

When do I have to file an amended tax return for the 2022 tax year?

It’s important to know the deadline for filing an amended return, three years from the original due date. For example, the deadline for a return filed in 2023 would be April 18, 2026. After that, you would only need to file an amended tax return only if changes needed to be made, and you can’t amend a return until the IRS has accepted it.

How do I file online my 2023 taxes before the tax filing deadline?

Filing your taxes doesn’t have to be a chore. Let PriorTax take care of everything for you. We’ll tailor the filing process to your specific needs and make sure everything is done before the deadline. Plus, our support team is always here to help you out should you need it. So get started today and make tax season a breeze.