IRS Archives - DR News - News, Retirement, Finance

Social Security Payments Could Lead to Higher IRS Bills for Millions of Americans as Tax Season Approaches

Sarasota, Florida – As tax season approaches, many seniors on Social Security may find themselves owing thousands of dollars to the IRS. Although Social Security payments received a 3.2 percent cost of living adjustment this year, this increase could inadvertently push many seniors into a higher tax bracket, resulting in a larger amount of money being withheld from their payments. In fact, it is estimated that nationally, about 40 percent of Social Security recipients are …

Unauthorized ACA Plan Switching Leads to Major Challenges and IRS Bills for Consumers

Charlotte, North Carolina – Some consumers in North Carolina enrolled in Affordable Care Act plans are finding themselves involuntarily switched to different plans, causing disruptions in healthcare services and potential financial implications. Unauthorized enrollment and plan-switching have become significant issues for the ACA, raising concerns among brokers who cite the ease with which agents can access policyholder accounts in the federal marketplace. Brokers highlight the alarming trend of clients being switched to new agents, potentially …

Health Savings Accounts: What You Need to Know About IRS Rules for 2024

Austin, Texas – Health savings accounts (HSAs) offer a practical way to finance healthcare expenses while also planning for the future, all while maximizing tax deductions. However, not all health insurance plans permit the use of an HSA. In certain cases, high-deductible health insurance plans available on HealthCare.gov may fall short of the criteria required to open an HSA due to excessively high out-of-pocket cost limits. To qualify for an HSA, individuals must adhere to …

The IRS’s Bold Move That Could Shake the Foundations of Small Businesses!

Recently, the Internal Revenue Service (IRS) has shifted its focus towards a particular type of business structure known as “pass-through” entities. This move ensures that high-income earners are held accountable for their tax obligations. As retirees, understanding these changes is crucial as they could impact your financial landscape. This article delves into the IRS’s new initiative and what it entails for the wealthy, small business owners, and retirees. Understanding Pass-Through Entities A pass-through entity is …

Tax Season 2024: IRS Processes Over 44 Million Returns and $93 Billion Refunded

Detroit, Michigan – As tax season progresses, the Internal Revenue Service (IRS) has already processed over 44 million tax returns and issued nearly $93 billion in refunds. For Social Security recipients, filing a tax return this year, even if not required, could be beneficial. Factors such as age, marital status, and income outside of Social Security benefits play a significant role in determining whether an individual needs to submit a tax return to the IRS. …

Is IRS Notice 2024-55 About to Shake Up Your Retirement Finances?

The Internal Revenue Service (IRS) recently unveiled Notice 2024-55, which could significantly impact your retirement finances. This Notice provides temporary relief to taxpayers, helping them determine the credibility of a foreign tax under sections 901 and 903. The Notice applies for tax years from December 28, 2021, to December 31, 2024. The Game-Changer: Changes to Foreign Tax Credit Regulations The Treasury Department introduced proposed regulations on November 12, 2020, significantly altering the existing rules under …

Shocking Revelation: High-Income Savers Must Pay Taxes NOW on Retirement Contributions

Tags: retirement savers, catch-up contributions, taxes, Congress, Secure Act 2.0, retirement accounts, Roth basis, after-tax money, tax deduction, retirement planning, contribution limits, 401(k), retirement plans, Vanguard report, legislative errors, operational challenges, retirement community, retirement savings, Roth accounts, required minimum distributions, IRS, U.S. Treasury, American Retirement Association, Retirement savers with high incomes might soon face the prospect of paying taxes immediately on catch-up contributions rather than later. Congress passed Secure Act 2.0 last December, stipulating that …

Nontaxable Income Insights: Discover What You Don’t Need to Report to the IRS

The IRS can be a source of frustration for many hardworking individuals in handling taxable income. While wages, tips, and commissions are commonly taxed by the federal government, there are various forms of income that are exempt from taxation. Understanding what income is taxable can be a complex process that requires careful consideration of rules and regulations. To navigate through the complexity of taxable income, consulting with a trusted tax professional or financial adviser can …

Tax Season 2024: IRS Processes Over 34.5 Million Returns, Are Your Social Security Benefits Taxable?

Austin, Texas – As tax season enters its fourth week, the IRS has processed over 34.5 million tax returns. For individuals receiving Social Security benefits, there may be exemptions from filing taxes this year; however, there are potential benefits to filing. Factors such as age, marital status, and additional income outside of Social Security benefits can influence the need to file a tax return. Even if not mandatory, filing could lead to receiving refundable tax …

Understanding FATCA: Top 3 Crucial Facts Every Retiree Needs To Know

Navigate your retirement years smoothly by understanding the key aspects of the Foreign Account Tax Compliance Act (FATCA). Discover its global reach, reporting obligations, and impact on retirement accounts.