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

FL - Taxpayer did not qualify as private trust

The Florida Department of Revenue (department) determined that a taxpayer was not a private trust excluded from the definition of […]

Read More
FL - Taxpayer did not qualify as private trust

FL - Governor proposes tax cuts in state of the state address

In his State of the State Address, Florida Gov. Ron DeSantis proposed $1.1 billion in tax cuts, the continuation of […]

Read More
FL - Governor proposes tax cuts in state of the state address

FinCEN Commences Beneficial Ownership Reporting Under Bipartisan Corporate Transparency Act

The Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), has begun accepting beneficial ownership information report under the bipartisan Corporate Transparency Act, enacted in 2021. This effort requires companies doing […]

Read More
FinCEN Commences Beneficial Ownership Reporting Under Bipartisan Corporate Transparency Act

Employee Benefit Plan Filing Extension Procedures Updated

Starting in 2024, Form 5558 is no longer used to request an extension of time to file Form 5330, Return of Excise […]

Read More
Employee Benefit Plan Filing Extension Procedures Updated

More Than 1,000 Projects Registered Through IRS ECO Tool, IR-2024-14

The Internal Revenue Service said that more than 1,000 projects have been registered through the agency’s Energy Credits Online tool. The tool was created to help taxpayers who are taking […]

Read More
More Than 1,000 Projects Registered Through IRS ECO Tool, IR-2024-14

IRS Encourages Taxpayers to Get Ready for 2024 Filing Season, IR-2024-1

The IRS has encouraged taxpayers to utilize tips, tools and other resources available on the IRS website to Get Ready for 2024 filing season. The agency is set to announce the start […]

Read More
IRS Encourages Taxpayers to Get Ready for 2024 Filing Season, IR-2024-1

Transitional Guidance on Reporting of Information on Receipt of Digital Assets Announced, Announcement 2024-4, IR-2024-12

The IRS has provided transitional guidance under Code Sec. 6050I with respect to reporting transactions involving receipt of digital assets. The Service has further clarified that at this time, digital assets are not required […]

Read More
Transitional Guidance on Reporting of Information on Receipt of Digital Assets Announced, Announcement 2024-4, IR-2024-12

IRS Updates List of Qualified Census Tracts for Qualified Mortgage Bonds and Mortgage Credit Certificates, Rev. Proc. 2024-08

The IRS has provided issuers of qualified mortgage bonds and issuers of mortgage credit certificates with an updated list of qualified census tracts for each state, the District of Columbia and Puerto Rico. […]

Read More
IRS Updates List of Qualified Census Tracts for Qualified Mortgage Bonds and Mortgage Credit Certificates, Rev. Proc. 2024-08

IRS Announces Leadership Restructuring, IR-2023-237

The IRS Commissioner, Danny Werfel, has announced plans for new leadership structure to align with transformation goals. The updated chart, the first in two […]

Read More
IRS Announces Leadership Restructuring, IR-2023-237

IRS: Taxpayers and Tax Professionals Should Protect Themselves from Scams, IR-2023-223, IR-2023-224, IR-2023-226, IR-2023-227, IR-2023-229

As the National Tax Security Awareness Week concludes, the IRS emphasized on the ongoing need for taxpayers and tax professionals to stay […]

Read More
IRS: Taxpayers and Tax Professionals Should Protect Themselves from Scams, IR-2023-223, IR-2023-224, IR-2023-226, IR-2023-227, IR-2023-229