Harless Tax Blog

Harless Tax Blog

Palm Beaches Chamber of Commerce Announcement

Monday, March 23, 2020

The U.S. Small Business Administration South Florida District Office will host virtual office hours to answer questions about the SBA Economic Injury Disaster Loan Program.

In addition to the virtual office hours, the District Office will also be hosting webinars twice daily to help small businesses navigate the disaster loan application. Details about the webinars coming soon!

In the meantime, feel free to contact the staff during the hours listed below.

Virtual Office Hours:
Monday, March 23 - Friday, April 04
11:00 a.m. – 1:00 p.m.
3:00 p.m. – 5:00 p.m

  • Limited to 250 callers at one time.
  • Participants may call at anytime and are welcome to enter and exit at will.
  • Callers will be muted upon entry and will be taken in the order they are received.

How to Participate:
Join Skype Meeting Here
Join by phone
(202) 765-1264; Conference ID - 162817288
Trouble Joining? Try Skype Web App Here

New Coronavirus Info for Small and Medium-size Business

Monday, March 23, 2020

WASHINGTON — Today the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020.

The Act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee's own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.

Read Remainder of Article at IRS.gov >

TAX NOTIFICATION: Retirement Planning Revamped Under The SECURE Act

Thursday, March 12, 2020

Happy New Year!! In the tax world, it wouldn’t be a New Year without tax legislation impacting your planning. Welcome to 2020 and with it, new significant tax legislation that may have a meaningful impact on your retirement planning.

What’s important to know?

NAME: The Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE” Act) was signed into law on December 20, 2019.

EFFECTIVE: The SECURE Act is effective January 1, 2020.

CHANGES: The Most Notable Changes to Retirement Planning under The SECURE Act:

  • Elimination of the “Stretch” IRA. Elimination of the ability to “stretch” certain inherited retirement accounts over a designated beneficiary’s life expectancy.
  • Raises RMD Age. Raises the age at which required minimum distributions (RMDs) must begin from the year the taxpayer attains age 70 ½ to 72.

NEW LAW: Under the SECURE Act:

  • “10-Year Rule”. An IRA must be distributed by December 31 of the 10th year following the year in which the retirement account owner dies. Designated
  • Exceptions to the 10-Year Rule if the IRA designated beneficiary is:
    1. a surviving spouse
    2. a disabled or chronically ill person
    3. the child of the decedent who is younger than 18 years of age until the child attains 18 and then the 10-year rule applies (exception does not apply to grandchildren)
    4. an individual who is not more than 10 years younger than the decedent
    5. IRAs that have already been inherited should be grandfathered, and thus free from the SECURE Act new requirements

    NO CHANGE TO “5-YEAR” RULE.

    • No designated beneficiary (i.e., if the beneficiary is a charity or certain trusts that do not qualify as a designated beneficiary) = “5-Year” Rule.
    • Law Still in Effect After the SECURE Act – An inherited IRA with no designated beneficiary is ineligible for stretch treatment (both lifetime and now 10-year rule). Such inherited IRA is subject to an accelerated withdrawal period of 5 years.

    Read article here.

Failed to Pay Your Taxes? The IRS May Pay You a Visit

Wednesday, February 19, 2020

There’s a new incentive to file a tax return this year: an Internal Revenue Service agent may be making a house call if you don’t.

The IRS is increasing efforts to reach high-income individuals who have failed to file at least one or more tax returns in recent years as a last-ditch attempt to encourage compliance, the agency said on Wednesday. This would be the final step before the agency would pursue more severe procedures, including civil or criminal action against that individual, the IRS said.

The agency will send several dozens agents to make at least 800 face-to-face visits in February and March of this year, Hank Kea, who directs the IRS field collections operations, said Thursday. The IRS will be identifying other non-compliant individuals throughout the year and adding cases as they find them, he said.

“Enforcement truly is our last resort,” Kea said. “Don’t delay filing or worse yet avoid filing all together.”

The IRS is concentrating efforts on individuals who received at least $100,000 in income during a year and didn’t file tax returns. The agency knows the incomes of many taxpayers from third-party reporting from employers or financial institutions, even if they don’t file a return.

The agency will focus on the most egregious cases first, Kea said, such as individuals contacted by the agency multiple times via mail with no response.

“The IRS is committed to fairness in the tax system, and we want to remind people across all income categories that they need to file their taxes,” Paul Mamo, the IRS’s director of collection operations, said in a statement. “We want to ensure taxpayers know their options to get right with their taxes and avoid bigger issues later.”

Not a Scam

The goal of these visits is to educate taxpayers about their filing requirements and try to bring them into compliance without taking stronger enforcement actions against the individual, Mamo said.

The agency will have several precautions in place to assure taxpayers that a home visit isn’t a scam. The IRS employee will provide two forms of official credentials, including a serial number and a photo ID. IRS employees will also not make threats nor demand an unusual form of payment, such as a gift card.

All taxpayers met in person will also have also been contacted multiple times by the IRS, so they should know they have a tax issue, the agency said. However, the timing of most visits will be unannounced.

The increased efforts to reach non-compliant people comes as the agency has come under criticism from its watchdog, the Treasury Inspector General for Tax Administration, and outside groups that say the agency isn’t effectively auditing corporations and high-income individuals with complicated returns. IRS Commissioner Chuck Rettig has said he is focusing on improving enforcement – in both criminal and civil cases – and has asked Congress for more money to staff these efforts.

In the past decade, the number of income tax returns increased by about 9%, but the IRS’s funding and number of employees both declined by more than 20%, according to a January report from the Taxpayer Advocate Service, an independent government office.

The report also found that some taxpayers who are audited or face adverse action from the IRS often cannot reach the agency to resolve the situation. The IRS received 15 million calls on its automated telephone lines in fiscal year 2019. Employees were able to answer only about 31% of those calls, and taxpayers who got through waited on hold for an average of 38 minutes, the Taxpayer Advocate said.

Some tax professionals worry that fewer employees at the agency mean that more taxpayers will try to cheat on their returns. Individuals face a 0.45% chance of being audited, while businesses are audited at a rate of 1.6%, some of the lowest audit figures on record, according to the IRS’s annual report, released in January.

Individual income taxes are the largest group of uncollected taxes before audits, representing about $314 billion, according to agency statistics on the tax gap.

Article from www.bloomberg.com

Here’s what people should know about taking early withdrawals from retirement plans

Thursday, April 11, 2019

Source from irs.gov | IRS Tax Tip 2019-36 | Taxpayers may need to take money out of their individual retirement account or retirement plan early. However, this can trigger an additional tax on top of other income tax they may owe. Here are a few key things for taxpayers to know:

  • Early withdrawals. An early withdrawal normally is taking cash out of a retirement plan before the taxpayer is 59½ years old.
  • Additional tax. The IRS charges a 10 percent penalty on early withdrawals from most qualified retirement plans. There are some exceptions to this rule.
  • Nontaxable withdrawals. The additional tax does not apply to nontaxable withdrawals. These include withdrawals of contributions that taxpayers paid tax on before they put them into the retirement plan.
  • Rollovers are a nontaxable withdrawal. A rollover happens when taxpayers take cash or other assets from one retirement plan and put the money in another plan within 60 days. A rollover can also happen when they direct their plan administrator to make the payment directly to another retirement plan or to an IRA.
  • Form 5329. Taxpayers who took an early withdrawal last year may have to file Form 5329 with their federal tax return.
  • Use IRS e-file. Early withdrawal rules can be complex. IRS e-file is the easiest and most accurate way to file a tax return. The tax software will pick the right tax forms, do the math, and help find tax benefits.

Learn More About CPA South Florida

 

IRS keeps closing Taxpayer Assistance Centers

Friday, August 17, 2018

Source from accountantsworld.com
The Internal Revenue Service is continuing to close Taxpayer Assistance Centers around the country, despite recommendations to the contrary from the National Taxpayer Advocate and the Senate Appropriations Committee.

National Taxpayer Advocate Nina Olson wrote a blog post last week pointing out that the IRS has closed nine of its walk-in centers since her report to Congress last December, in which she criticized the closure of such facilities, where taxpayers can talk face-to-face with IRS employees about their tax concerns. In December, she noted, the IRS operated 371 Taxpayer Assistance Centers, but today there are only 362.

That’s going against not only her recommendation that the IRS keep the TACs open, but also Congress’s, especially in the wake of the passage last December of the Tax Cuts and Jobs Act, which is generating plenty of need for assistance for taxpayers as well as tax professionals. Olson pointed out that in March, when Congress passed an appropriations bill for the IRS and other parts of the federal government, the Senate Committee on Appropriations actually directed the IRS to produce a study about the impact of closing a Taxpayer Assistance Center and the adverse impact it has on taxpayers’ ability to interact with the IRS. The IRS is supposed to report on the steps it’s taking to prevent any closure of the TAC walk-in locations along with the status of possible alternatives, such as virtual customer service sites. The IRS is also supposed to convene a public forum in any affected community at least six months prior to a planned closure and notify the appropriations committees in both the House and the Senate.

However, that’s not been happening at all. Many of the closures appear to be occurring in rural communities, the Senate committee noted, leaving taxpayers with few options other than seeking out the assistance of paid tax professionals.

“It is clear the issue of TAC closures and declining services to taxpayers is of grave concern to the Committee, as it is to me,” Olson wrote. “I am astonished that the IRS has continued to close TACs in the face of this direction from the Senate Committee on Appropriations before even submitting the requested reports. I have long expressed my concerns about the impact of closing TACs, specifically on rural taxpayers who may not have another face-to-face option nearby to interact with the IRS. I eagerly await the release of the required reports so I (as well as the appropriations committees and other interested stakeholders) can review the findings of the IRS. To date, my office has not been consulted by the IRS regarding these reports.”

The IRS issued a statement Monday in response to Olson’s concerns. “The IRS uses its limited resources to provide the best possible service to America's taxpayers,” it said. “The IRS is complying with congressional requirements regarding the closure of any taxpayer assistance centers. Helping taxpayers with face-to-face service either in-person at assistance centers or virtually through secure networks will remain an integral part of the IRS’ customer service strategy.”

The agency has been dealing with a series of budget cuts at the hands of Congress in recent years and has been focusing this year on implementation of the Tax Cuts and Jobs Act that Republicans pushed through Congress last December. The agency also doesn’t yet have a full-time chief. David Kautter, the Assistant Secretary of the Treasury for Tax Policy, has been filling the role of acting commissioner of the IRS since the departure in November 2017 of Commissioner John Koskinen. The full Senate has not yet confirmed the Trump administration’s nominee, Chuck Rettig, although the Senate Finance Committee did vote to advance his nomination last month. Rettig is a Beverly Hills tax attorney whose clients can well afford the services of a high-priced practitioner. But for the average taxpayer the door is often closed when they try to visit an IRS office for help and discover the Taxpayer Assistance Center isn’t around anymore to assist them.


Accounting Services | Jupiter

Spouses Need To Think Carefully About When To Take Social Security Benefits

Tuesday, August 14, 2018

Source from fa-mag.com
When a spouse starts receiving his Social Security benefits can determine the lifetime income his or her surviving partner will get, according to Diane Pearson, a wealth advisor and shareholder at Legend Financial Advisors in Pittsburgh.

Social Security makes up an average of 40 percent of people’s retirement income and “is more valuable than most people think,” said Pearson during a webinar Wednesday sponsored by Legend Financial entitled “Social Security Planning: What You Need To Know To Maximize Retirement Income.”

A benefit of $2,000 a month for a 30-year retirement with a 2.1 percent cost of living adjustment (COLA) is $1.122 million, Pearson said. But how much a beneficiary will receive can vary.

One of the first questions everyone asks about Social Security is: Will it be there in the future? Pearson said yes. The $2.9 trillion Social Security Trust Fund is enough money to pay 100 percent of the benefits due to retirees through 2034, at which point benefits will be reduced to 77 percent of what is due unless changes are made.

To solve the problem, the retirement age could be raised, the amount of income on which Social Security taxes are paid could be raised, the COLA could be reduced or the benefits as a whole could be reduced.

A spouse is entitled, for the most part, to an amount equal to half of the higher earner’s benefits. Once the spouse dies, the survivor is entitled to 100 percent of the deceased person’s benefit. So it pays to maximize the higher earner’s benefit, which usually means he or she should wait as long as possible, up to age 70, to begin taking the benefit, Pearson said.

If both the husband and wife were receiving benefits before one passes away, the survivor will have to budget for the loss of one check, Pearson added.

When a person applies for benefits can mean thousands of dollars in added income over a long retirement.


Accounting Services | Jupiter

Classic Lesson From The Tax Court

Tuesday, August 07, 2018

Source from accountantsworld.com
Timing is at least as important in tax as it is in comedy. Although less common than it used to be before the age of direct deposit and mobile banking apps, the question sometimes arises about when must a taxpayer report as gross income a check received on December 31st but not cashed until January. The flip side is when may a taxpayer take a deduction for a check sent out on December 31st but not cashed until January.

Taxpayers tend to want to push off reporting income into a later year and tend to want to pull back deductions into the current year. Specifically taxpayers who receive a check on the last day of the year would like to say they don’t have income until they cash the check in January. But at the same time, taxpayers who write a check for a deductible expense on the last day of the year want to deduct that expense in that year and not the next.

Taxpayers cannot have it both ways. The good news is that the IRS has long allowed checks mailed on December 31st to be deductible in the year mailed, even when not cashed until January, so long as the taxpayer has truly parted control over the delivery of the check. See Treas.Reg. 1.170A-1(b).

The bad news is that taxpayers are also generally required to report checks received on December 31st as income. The rationale for that, however, is not entirely clear, as one sees in the classic case of Kahler v. Commissioner, 18 T.C. 31 (1952).

The facts in Kahler are simple. Mr. Kahler (1912-1990) earned both salary and commissions each year from the Sumner Seed Co. Normally, his employer paid him in January for the commissions earned the previous year. In 1946, however, Mr. Kahler received a check for about $4,300, reflecting about $5,400 of commissions earned (the net amount reflected withholding and another small adjustment).

Mr. Kahler did not report the $5,400 as income on his 1946 return. However, he also disclosed the facts and requested an audit to determine whether he should have reported that income. The IRS said “yep, you should have” and Mr. Kahler was off to Tax Court.

Mr. Kahler’s main argument in Tax Court centered on the inability to deposit the check in 1946. He argued that the inability to cash the check in the tax year it was received meant that the check could not count as income.

The Tax Court majority rejected that argument, reasoning that checks were really the equivalent of cash “as a practical matter, in everyday personal and commercial usage” because “the parties almost without exception think and deal in terms of payment except in...the unusual circumstance not involved here...” The majority thus took that position that the amount of gross commissions reflected in the check was the proper amount to include in income.

Judge Murdock had a slightly different rationale for concluding that the check was income in 1946. Judge Murdock pointed out that even if Mr. Kahler could not cash the check in 1946 at a bank, he “might have cashed it at some place other than at a bank or hem might have used it to discharge some obligation, within the year 1946.”

If one follows the majority’s rationale, then checks are includable in income at their face value (or for the face value of the gross income they represent). But if one follows Murdock’s concurrence, then while all checks are still includable in the year received, the amount that must be reported as gross income might be less than the face value if the checks actually have a fair market value of less than their face amount. They would instead be includable at their fair market value. To use Murdock’s example, if I receive a check for $1,000 and owe a debt of $900, my creditor might accept the check in satisfaction of the debt. In that case, I would have $900 of income, not $1,000 (and my creditor would get a basis of $900 in the check). Or I might sell the check for $900 and assuming that sale is to an unrelated buyer, that would set the market value.

Murdock’s rationale makes sense, of course, because a check, after all, is not cash. It is the right to receive the amount stated on the face of the check. A right to receive something is a piece of property. No, not property like my lawn mower. That’s tangible. It’s property like a lawn-mowing contract. An intangible right to something that, if necessary, can be enforced in the courts by an action at law. The old English word for “property” is “Chose” and so this kind of intangible property right is called a “Chose in Action.”

Courts have settled on the majority rationale, however, at least for checks and other potential cash equivalents: they are includable at their face value, not their fair market value. If their fair market value is so uncertain or so low relative to their face value, then they are simply not income. For checks, this rarely happens. However, for other types of “property-that-we-will-treat-as-cash” taxpayers may be able to prove that the fair market value is so small or uncertain that the item should not count as income that year. That is most obvious when one looks at the cases on promissory notes.

Promissory notes are just a promise to pay. Like a check they are a chose in action. Unlike a check, they are not used with such regularity as to be viewed by parties as in and of themselves a payment. Nonetheless, they might be cash equivalents. The Fifth Circuit explained why in Cowden v. Commissioner, 289 F.2d 20 (5th Cir. 1961): “We are convinced that if a promise to pay of a solvent obligor is unconditional and assignable, not subject to set-offs, and is of a kind that is frequently transferred to lenders or investors at a discount not substantially greater than the generally prevailing premium for the use of money, such promise is the equivalent of cash and taxable in like manner as cash would have been taxable had it been received by the taxpayer rather than the obligation.”

You can quickly run the reverse statements and find support for them in the law. Thus, if the taxpayer shows that the promise to pay is from an insolvent obligor then it is not income. Williams v. Commissioner, 28 T.C. 1000 (1957). If the promise to pay is subject to some significant restriction, it is not income in the year received. Bright v. United States, 926 F.2d 383, 386-87 (5th Cir.1991).

The difference between the majority rationale and Murdock’s rationale is the difference between cash and property. Sometimes a promissory note looks like cash. But sometimes it just looks like property. You can see that tension in Jones v. Commissioner, 68 T.C. 837 (1977), where the taxpayer sold property and took a promissory note in exchange. The face value of the note was about $133,000.00 but the taxpayer showed that the fair market value of the note was only about $76,000. On those facts the Tax Court said “no income.” But the 9th Circuit reversed. It instead held that §1001 controlled the outcome because when you sell property, that section tells you that your amount realized is the total cash PLUS the fair market value of property received. Since the promissory note was indeed “property” (a chose in action), taxpayers had to count its fair market value as part of determining the tax consequences of the sale of their property.

Despite the uncertain extension of the cash equivalency doctrine to promissory notes, the importance of Kahler remains this: checks are viewed as cash. Especially in this age of mobile banking applications, the receipt of a check on the last day of your tax period means it is income in the year received at its face amount.


Accounting Services | Jupiter

IRS issues guidance on small business accounting

Monday, August 06, 2018

Source from irs.gov
WASHINGTON – The Internal Revenue Service issued guidance today on new tax law changes that allow small business taxpayers with average annual gross receipts of $25 million or less in the prior three-year period to use the cash method of accounting.

The Revenue Procedure outlines the process that eligible small business taxpayers may use to obtain automatic consent to change accounting methods that are now permitted under the Tax Cuts and Jobs Act, or TCJA.

The TCJA, enacted in December 2017, expands the number of small business taxpayers eligible to use the cash method of accounting and exempts these small businesses from certain accounting rules for inventories, cost capitalization and long-term contracts. As a result, more small business taxpayers will be allowed to change to cash method accounting starting after Dec. 31, 2017.


Accounting Services | Jupiter

GOP Tax Reform and its effects on the taxation of foreign students and other non-resident aliens

Monday, July 30, 2018

Source from blog.sprintax.com
At the end of 2017, the U.S. Congress passed the largest tax reform act in history. The act itself contains nearly 500 pages. Even the most experienced American tax accountants are needing to keep up with the constantly changes instructions to advise to clients. My suggestion for clients is: When you read articles about the U.S. tax reform, pay special attention to their sources, and confirm the content with your U.S. accountants/taxation attorneys, so that you can avoid economic loss caused by wrong information. This article will mainly include the effect of the new tax reform act as we know it today to U.S. tax residents and Non-residents. If you have additional questions, please contact me through wechat: harlessmin or mhuang@harlessandassociates.com. Thanks!

  1. Personal exemption will be waived in full
    Effective date: 01/01/2018
    U.S. residents: In 2017, before the tax reform, U.S. resident’s income is lowered by personal exemptions of $4,050 and one for each qualifying family members, including dependent relatives. After the tax reform, regardless of your income, the personal exemption is eliminated for 2018 and 2019. In 2018, the standard deduction and personal exemptions were combined into one large standard exemption for U.S. citizens.

    Non-residents: All non-residents doing properties investment, stock, having business in America, as well as all other people who need to file form 1040 NR, including international students/scholars, will not be entitled to $4,050 exemption. However, you can still choose to work together with a professional accountant to make the best plan for your income in the U.S. based on U.S.-China tax treaty and the U.S. tax code.

  2. Standard Deductions increased significantly
    Effective date: 01/01/2018
    U.S. residents: Starting from 2018, the standard deduction for single will be increased to $12,000. It will be $24,000 for married couples. Please consult accountants about standard deduction for head of household or other filing status.

    Non-residents: Except for non-residents from few countries with U.S. tax treaty, all non-residents from other countries WILL NOT be entitled to standard deductions, including Chinese citizens.

  3. 529 plan will no longer be non-taxable
    Effective date: 01/01/2018
    U.S. residents: 529 plan was a mainstream tuition deposit plan with tax benefits in the U.S.. It will no longer be non-taxable starting from 2018. I suggest clients who are parents with this deposit plan investing money in other projects with higher and more stable earnings in time.

    Non-residents: Not applicable.

  4. SALT (State and Local Taxes) will be limited
    Effective date: 01/01/2018-12/31/2025
    U.S. residents: Before the tax reform, the property tax and all other types of state and local income taxes for home-based properties can be exempted in the federal tax return with no limitation. Now, the federal tax reduction is limited to up to $10,000 per year.

    Non-residents: It is only limited to all types of state and local income tax up to $10,000.

  5. Other Miscellaneous itemized deductions will be canceled
    Effective date: 01/01/2018-12/31/2025
    U.S. residents: Unreimbursed employee expenses (2106 form), investment expense, tax preparation fees, bank deposit box fee cannot be used to deduct income.

    Non-residents: The same as U.S. residents.

  6. Moving expenses incurred by work are not allowed
    Effective date: 01/01/2018-12/31/2025
    U.S. residents: Moving expenses incurred by work are no longer deductible from income, except for members of the U.S. Army Forces.

    Non-residents: Not Applicable.

  7. Expenses for personal casualty loss and theft-canceled
    Effective date: 01/01/2018-12/31/2025
    U.S. residents: Personal casualty loss was deductible from income before the tax reform. No deduction allowed now, except for the clients affected by natural disaster areas.

    Non-residents: The same as U.S. residents.

  8. Estate tax and gift tax
    Effective date: 01/01/2018-12/31/2025
    U.S. residents: The lifetime estate tax exemption is $11,180,000 for single, and times two for married couples. In 2018, the gift tax exemption amount among U.S. residents is $15,000. Consult us or your U.S. accountant if your estate exceeds the life time exemption amounts. The gift between husband and wife is exempted from tax with no limitation.

    Non-residents: The exemption for estate tax is $60,000 for single. It has no limitation for foreign citizens giving anyone oversee assets as gifts, and it is exempt from U.S. tax, except for giving U.S. assets as gifts. At the same time, if the gift receiver is a U.S. resident, the U.S. resident client will need to contact their U.S. accountants. In 2018, the exemption for gifts between U.S. resident and foreign couple is limited to $152,000. If the amount is exceeded, please consult accountants for details.

    An Example of foreign citizen estate tax: With the rate of Chinese citizens holding assets of U.S. property and stock increasing, it is becoming more and more important to plan U.S. estate tax in advance. I had a Spanish client owning two apartments in his name only in the Miami and New York area. Each was valued at around $1,800,000. If he died by accident or passed away naturally (he was 87 at that time), what would the cost be for his only grandson in Spanish and how can the inheritance tax be reduced to avoid it:

    Cost: Since these are U.S. assets, the first $60,000 value is tax-exempt when the child inherits them. The amount (less the first $60,000), which is over $3 million, will be taxed for estate tax purposes at least 40% (federal), not including state estate tax rate.

    How to avoid it: Please consult us for ways to avoid details. Our mission is to help clients make plans to avoid the risk of estate tax while receiving benefits from the U.S. investments.

  9. Summarization of 2018 income tax rate
    Effective date: 01/01/2018-12/31/2025
    The highest income tax rate will be lowered from 39.5% to 37%. The following rate includes the different situations for clients with different income:

    This form is the tax rate form for net income excluding all exemptions. The right way to read it is to find your marital status on the time of your filing, and look from the top to bottom, finding your tax rate using your annual net income. There will be other articles in the future. Thanks!


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