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IRS to Pensioners: Don’t Skip Your RMDs or Risk a Hefty Tax Bite The IRS has issued a no-nonsense reminder to pensioners: if you’re 73 or older, it’s time to take your Required Minimum Distributions (RMDs). Failure to do so could land you with a tax penalty that might make you wince—a hefty up-to-25% bite …
When it comes to tax planning, knowing the difference between tax credits and tax deductions can make a big difference in how much a business or individual pays in taxes. Both are designed to reduce your tax burden but they work differently. Tax credits give you a dollar for dollar reduction in the amount of …
Businesses across the country have been anxiously awaiting updates on their Employee Retention Credit (ERC) claims, and it appears the IRS is finally moving forward with processing these older claims. However, despite this progress, many companies are still not receiving their funds. Some valid claims are being denied, and others face demands for further verification—even …
CPA Nerds often get questions from educators wondering if they can deduct classroom expenses on their taxes. The good news is that eligible teachers and school employees can deduct certain out-of-pocket classroom costs, offering some relief on their tax returns. Here’s the latest tax law updates and what you need to know for 2024. Who …
Understanding which services are exempt from sales tax can help you manage your tax liability and avoid unnecessary tax payments. CPA Nerds will break down the specific services exempt from Michigan’s sales tax and how you can ensure compliance with state tax regulations. Let’s look into the critical exemptions and the types of services that …
At CPA Nerds, we want to keep you in the loop about the latest updates from the IRS on the Employee Retention Credit (ERC). After reviewing the claims they’ve been processing, the IRS recently added some new red flags pointing to potential ERC claims issues. Businesses need to be aware of these warning signs to …
Understanding how your retirement income will be taxed, particularly at the state level, is a huge consideration when planning. For residents of Michigan or those planning to retire there, it’s essential to know how the state handles the taxation of retirement income. Let CPA Nerds guide you through Michigan’s tax laws and help you make …
Tips for Michigan Backup Witholding When a contractor refuses to provide a tax ID number, businesses are indeed allowed and required to implement backup withholding as per IRS regulations. Backup withholding ensures that taxes are collected on income that would otherwise not be reported. Here is a detailed explanation of the steps businesses should take …
Employee benefit plans are vital for providing workers with retirement, health, and other benefits. Ensuring these plans are managed correctly and transparently is crucial for the well-being of participants and beneficiaries. This article delves into the significance of employee benefit plan audits, the requirements and responsibilities associated with Form 5500, and the essential role of …
Following the devastating storms, flooding, and tornadoes that struck Michigan in August 2023, the Internal Revenue Service (IRS) swiftly enacted crucial tax relief measures for affected individuals and businesses. The IRS provided information on Michigan storm tax relief provisions, including extended filing deadlines, exceptions, and penalty abatements, to alleviate the financial burdens Michigan storm victims …
