Wednesday October 19, 2022 – Yesterday the IRS announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes.

The tax year 2023 adjustments described below generally apply to tax returns filed in 2024.
The tax items for tax year 2023 of greatest interest to most taxpayers include the following dollar amounts:
• The standard deduction for married couples filing jointly for tax year 2023 rises to $27,700 up $1,800 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $13,850 for 2023, up $900, and for heads of households, the standard deduction will be $20,800 for tax year 2023, up $1,400 from the amount for tax year 2022.

• Marginal Rates: For tax year 2023, the top tax rate remains 37% for individual single taxpayers with incomes greater than $578,125 ($693,750 for married couples filing jointly).
The other rates are:
35% for incomes over $231,250 ($462,500 for married couples filing jointly);
32% for incomes over $182,100 ($364,200 for married couples filing jointly);
24% for incomes over $95,375 ($190,750 for married couples filing jointly);
22% for incomes over $44,725 ($89,450 for married couples filing jointly);
12% for incomes over $11,000 ($22,000 for married couples filing jointly).
The lowest rate is 10% for incomes of single individuals with incomes of $11,000 or less ($22,000 for married couples filing jointly).

Attorney Steven A. Leahy reviews the latest changes on Today’s Tax Talk.

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023

https://www.cnn.com/2022/10/19/success/inflation-adjustment-2023-taxes/index.html

https://inflationdata.com/Inflation/Inflation_Rate/CurrentInflation.asp?reloaded=true

https://www.irs.gov/newsroom/inflation-adjusted-tax-items-by-tax-year

Tuesday October 18, 2022 – We have previously reported on the Internal Revenue Service (IRS) switching terms from Virtual Currency to Digital Assets. Today, the IRS clarified how to report Digital Assets on their 1040 income tax forms – setting up additional regulations very soon.

Further, the IRS defined Digital Assets to include:

• Virtual currencies such as Bitcoin and Ether
• Stablecoins such as Tether and USD Coin (USDC)
• Non-fungible tokens (NFTs)
You may owe taxes on the following transactions:
• Sale of a digital asset
• Exchange of digital assets for property, goods or services
• Exchange or trade of one digital asset for another
• Receipt of a digital asset as payment for goods or services
• Receipt of a new digital asset as a result of mining and staking activities
• Receipt of a digital asset as a result of an air drop
• Use of digital assets to pay for goods or services
• Any other disposition of a financial interest in a digital asset
• Receipt or transfer of a digital asset for free (without providing any consideration) that does not qualify as bona fide gift

Attorney Steven A. Leahy looks at the new rules on Today’s Tax Talk.

https://www.bloomberg.com/news/articles/2022-10-18/crypto-investors-get-some-answers-in-us-tax-form-instructions

https://www.irs.gov/businesses/small-businesses-self-employed/digital-assets

Monday October 17, 2022 – The tax return deadline has arrived. This year, because October 15th was a Saturday, the deadline wa pushed to today, October 17, 2022.

Did you know the extension only extends thd date to file your return – and NOT the date to pay your taxes. That date is always the date the returns were due before an extension. Typically, that date is Apri 15th. But, as we have seen, the IRS can change that date for an emergecny. For example – those in Florida have been granted addtional time, on top of the extension, to complete ther returns.

https://www.usatoday.com/story/money/personalfinance/2022/10/16/tax-deadline-extension-october-2022/10495745002/

https://www.marca.com/en/lifestyle/us-news/personal-finance/2022/10/03/633ae40fe2704eebb58b45de

Thursday October 13, 2022 – I am a Chess fan – some say geek. I play lots of chess puzzles, watch chess games and follow the chess world. My favorite commentator is Antonio Radić, better known as Agadmator – I’m not even sure how to pronounce his name.

Today, I was watching a match from the India – a lower ranked young girl, Vaishali, Rameshbabu (2451) was up against a grand master – Sethuraman, S.P. (2645).

She played magnificently. There is a lesson in there somewhere.

Attorney Steven A. Leahy searches for that lesson.