Tax Alerts

IRS Issues Child and Dependent Care Credit Reminder

The IRS has reminded taxpayers that those who pay expenses for the care of a qualifying person while working or looking for work may qualify for the Child and Dependent Care Credit. The credit has been expanded for tax year 2021. Taxpayers with an adjusted gross income of more than $438,000 are not eligible for this credit. IRS Commissioner Chuck Rettig encouraged qualifying families and others to carefully review the criteria to make sure they receive the maximum amount they’re entitled to. Taxpayers can get a credit worth 50 percent of their qualifying childcare expenses depending on their income. For tax year 2021, the maximum eligible expense for this credit is $8,000 for one qualifying person and $16,000 for two or more. For the purposes of this credit, the IRS defines a qualifying person as:

  • A taxpayer’s dependent who is 12 or younger when the care is provided. There is no age limit if the taxpayer’s dependent is incapacitated.
  • A taxpayer’s spouse who is physically or mentally unable to care for themselves and lived with the taxpayer for more than half the year.
  • Someone who is physically or mentally unable to take care of themselves and lived with the taxpayer for six months and is either the taxpayer’s dependent or would have been the taxpayer’s dependent except for one of the following:
    • The qualifying person received a gross income of $4,300 or more.
    • The qualifying person filed a joint return.
    • The taxpayer or spouse, if filing jointly, could be claimed as a dependent on someone else’s return.

Lastly, taxpayers can use the Interactive Tax Assistant or see the Frequently Asked Questions on IRS.gov to determine if they can claim this credit. The IRS has been highlighting this credit in several ways including IRS social media and outreach channels

IRS Updates Premium Tax Credit Table, Required Contribution Percentage, Rev. Proc. 2022-34

The IRS has updated the applicable percentage table used to calculate an individual’s premium tax credit and required contribution percentage […]

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IRS Updates Premium Tax Credit Table, Required Contribution Percentage, Rev. Proc. 2022-34

Reproduction/Substitute Information Returns Requirements Issued, Rev. Proc. 2022-30

The IRS has provided the specifications for the private printing of red-ink substitutes for the 2022 revisions of information returns, […]

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Reproduction/Substitute Information Returns Requirements Issued, Rev. Proc. 2022-30

IRS Advises Tax Professionals on Signs of Identity Theft, IR-2022-144

The IRS and Security Summit partners have urged tax professionals to be vigilant and look out for the signs of […]

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IRS Advises Tax Professionals on Signs of Identity Theft, IR-2022-144

IRS Issues Statement on CP-14 Notices

The IRS was aware that some payments made for 2021 tax returns were incorrectly applied to joint taxpayer accounts. These […]

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IRS Issues Statement on CP-14 Notices

IRS and Treasury Release Initial Information on Electric Vehicle Tax Credit Under Inflation Reduction Act

The Treasury Department and the IRS have published initial information on changes to the tax credit for electric vehicles strengthened […]

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IRS and Treasury Release Initial Information on Electric Vehicle Tax Credit Under Inflation Reduction Act

Educators Reminded About 2022 Educator Expense Deduction Rise, IR-2022-148

The IRS reminded educators that they will be able to deduct up to $300 of out-of-pocket classroom expenses when they […]

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Educators Reminded About 2022 Educator Expense Deduction Rise, IR-2022-148

IRS Announces New Sign-In Process for Form 990-N Filers

The IRS has announced that beginning August 2022, smaller charities that are eligible and choose to file Form 990-N, Electronic […]

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IRS Announces New Sign-In Process for Form 990-N Filers

FL - Taxpayer lacked standing to challenge department's former practice

The taxpayer did not have standing to contest a notice of proposed assessment that assessed Florida sales and use tax, […]

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FL - Taxpayer lacked standing to challenge department's former practice

IRS Encourages Tax Professionals to Inform Clients About IP PIN Opt-In Program, IR-2022-140

The IRS, and the Security Summit Partners have encouraged tax professionals to inform their clients about the IRS Identity Protection […]

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IRS Encourages Tax Professionals to Inform Clients About IP PIN Opt-In Program, IR-2022-140

IRS Releases Five Year Strategic Plan to Enhance Service to Taxpayers, IR-2022-142

The IRS has released its five-year strategic plan that outlined its goals to improve taxpayer service and tax administration. The plan would […]

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IRS Releases Five Year Strategic Plan to Enhance Service to Taxpayers, IR-2022-142