Federal tax information for 2025

2025-02-06T17:56:26+00:00

We have compiled some charts with important  federal tax information for 2025 Source: IRS Disclaimer: This post is for general information only and should not be taken as legal or financial advice 2025 Tax Brackets: Tax rate Single Married filing joint Married filing separate Head of Household 10% $0 to $11,600 $0 to $23,200 $0 to $11,600 $0 to $16,550 12% $11,601 to $47,150 $23,201 to $94,300 $11,601 to $47,150 $16,501 to$63,100 22% $47,151 to $100,525 $94,301 to$201,050 $47,151 to$100,525 $63,101 to$100,500 24% $100,526 to $191,950 $201,051 to$383,900 $100,526 to$191,950 $100,501 to$191,950 32% $191,951 to $243,725 $383,901 to$487,450 $191,951 to$243,725 $191,951 [...]

Federal tax information for 20252025-02-06T17:56:26+00:00

Required Minimum Distribution Changes for 2025

2025-01-22T20:39:30+00:00

Hello everyone, The IRS has published some new rules if you  turned 73 in 2024. Below is an excerpt from a recent IRS publication. You may click on the hyperlink at the bottom of the page to read the full transcript. Required minimum distributions (RMDs) are the minimum amounts you must withdraw from your retirement accounts each year. You generally must start taking withdrawals from your traditional IRA, SEP IRA, SIMPLE IRA, and retirement plan accounts when you reach age 73. Participants in a workplace retirement plan (for example, 401(k) or profit-sharing plan) can delay taking their RMDs until the year [...]

Required Minimum Distribution Changes for 20252025-01-22T20:39:30+00:00

Deducting Rental Property Tax Losses

2025-01-21T15:02:03+00:00

Deducting your rental property tax losses against your other income is tricky, as you likely know. You have to get the tax law to treat you—say, a computer engineer—as a tax-code–defined real estate professional. Let’s say you get there. Does that status allow immediate use of suspended passive losses? Unfortunately, the answer is no. Here’s why. Understanding Passive Loss Rules The tax code limits passive loss deductions to passive income, with any excess carried forward to future years. You release the carried-forward losses when you · have offsetting passive income from the same or other passive activities, or · completely dispose [...]

Deducting Rental Property Tax Losses2025-01-21T15:02:03+00:00

What’s New for GA Residents on State Income Tax

2025-01-14T20:14:26+00:00

WHAT’S NEW Source: GA DOR – 2024 GA Individual Income Tax – page 9 2024 Income Tax Changes: Effective January 1, 2024, the income tax rate is 5.39%. Additionally, personal exemptions have been repealed except for the $4,000 dependent exemption. Finally, Georgia standard deductions have increased to $24,000 for Married filing jointly returns and $12,000 for Single, Head of household, and Married filing separately returns. The Department encourages taxpayers to review their estimated tax payments and wage withholdings for 2024. Georgia Resident Itemizer Tax Credit: Full-year and part-year residents who itemize their deductions shall be entitled to a credit up to [...]

What’s New for GA Residents on State Income Tax2025-01-14T20:14:26+00:00

In the market for a new car?

2024-12-18T17:01:59+00:00

If you are in the market for a new car, the federal government would like you to purchase an electric vehicle (EV) or plug-in hybrid EV (PHEV). As a result of the Inflation Reduction Act, there are four ways you can benefit from a federal EV tax credit: Purchase an EV and claim the clean vehicle credit. Purchase a used EV that qualifies for the previously owned clean vehicle credit. Purchase an EV for business use and claim the commercial clean vehicle credit. Lease an EV and benefit from a discount from the dealer. Leasing an EV is the most popular [...]

In the market for a new car?2024-12-18T17:01:59+00:00

Important Tax Deadline December 16th

2024-12-10T22:59:31+00:00

Greetings, Lynn Spencer here, CEO of Killingsworth Spencer CPAs. Monday, December 16th is the deadline to pay Georgia P-T-E 4th quarter estimates. To calculate the amount of tax owed, guestimate your net income for 2024 and multiply that result by 5.49%; then subtract the amount of GA PTE taxes you may have paid in the previous three quarters of 2024. We recommend that you pay PTE taxes online at gtc.dor.ga.gov. PTE is considered an estimated Corporate Income Tax. The tax period is Dec. 31st, 2024. For a more detailed explanation of PTE, see our March 2024 Blogpost here.   Clients of Killingsworth [...]

Important Tax Deadline December 16th2024-12-10T22:59:31+00:00

Don’t forget about Gifting as a planing tool

2024-11-08T17:17:23+00:00

Tis the season for giving, including end of year gifts to family, charity, and friends. In fact, your mailbox may be getting full from charities requesting funding. Hello again, Judy Bernhard, CPA, and Resident Tax Manager at Killingsworth Spencer CPAs. The first question to ask yourself is what is the purpose of the gift and how much do you want to give away? If your intent is to unload some cash to family or friends, the Annual Exclusion (AE) Gift is $18,000 per person in 2024 and is unlimited as to the number of gifts per Donor. No gift tax return [...]

Don’t forget about Gifting as a planing tool2024-11-08T17:17:23+00:00

Summary of IRS inflation adjustments for 2025 Income Taxes

2024-11-04T18:03:36+00:00

The IRS has issued its annual statement of tax changes for 2025. Greetings from Gus Martinez, CPA and Tax Manager at Killingsworth Spencer CPAs. Below are the major tax inflation adjustments that affect most business owners and higher income taxpayers. 2025 Federal Income Tax Brackets   Rate For Single Filers For Married Filing Joint For Heads of Households 10% $0 to $11,925 $0 to $23,850 $0 to $17,000 12% $11,925 to $48,475 $23,850 to $96,950 $17,000 to $64,850 22% $48,475 to $103,350 $96,950 to $206,700 $64,850 to $103,350 24% $103,350 to $197,300 $206,700 to $394,600 $103,350 to $197,300 32% $197,300 to $250,525 [...]

Summary of IRS inflation adjustments for 2025 Income Taxes2024-11-04T18:03:36+00:00

GA Film Tax Credits – 2024 Update

2024-10-24T15:29:09+00:00

Up until a few years ago, it was possible to get taxes prepared (even at the October 15th tax deadline) and buy Film Credits from a Broker to reduce state income taxes for the previous year. Nowadays, a GA resident wanting to buy tax credits must plan well in advance. Greetings from Rebekah Littleton, MAcc and Senior Tax Accountant at Killingsworth Spencer CPAs. The way a Film Tax Credit works in GA is that a movie studio or TV production company can save up to 20% if principal filming and production are done within the state, and an additional 10% (maximum [...]

GA Film Tax Credits – 2024 Update2024-10-24T15:29:09+00:00

The Future Tax

2024-10-22T19:30:05+00:00

January 1, 2026, is an important date to remember. On that day the tax saving mechanisms from TCJA in 2017 revert to pre-2018 levels, including the federal estate tax lifetime exemption, unless Congress takes action. Currently, the lifetime exemption for federal estate tax is $13.61 million per person. The new lifetime exemption amount is projected to be reduced to $7M beginning on January 1, 2026. Granted, this is not something most Americans will need to concern themselves with, but if you a own a business, significant investable assets, or valuable real estate….. Hello again, Judy Bernhard, CPA and Resident Tax Manager [...]

The Future Tax2024-10-22T19:30:05+00:00
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