According to the IRS, gambling winnings are fully taxable, and you must report the income on your tax return. Gambling income includes, but isn't limited to, winnings from lotteries, raffles, horse races, online betting, and casinos. It also includes cash winnings and the fair market value of prizes, such as cars and trips…

The current 2017 tax reform laws that include tax rates and bracket changes, higher standard deductions, repeal of personal exemptions, and the reduction in Schedule A itemized deductions are due to expire after 2025 unless new laws are enacted…

The Inflation Reduction Act of 2022 provides significant increases in the energy-efficient home improvement credit beginning in 2023 through 2032. This credit now covers additional expenses and may be worth up to $1,200 each year, which replaces the former $500 lifetime limit, even if you claimed it in the past…

The 2017 Tax Cuts and Jobs Act (TCJA) decreased taxpayers’ ability to itemize many deductions, including making charitable contributions. This change has had a significant effect on charitable organizations, with the Urban-Brookings Tax Policy Center estimating that the cumulative loss to charitable organizations was $240 billion from 2017-2021.

During tax years 2020 and 2021, non-itemizing taxpayers were allowed to deduct up to $600 for those married, filing jointly, and $300 for single filers. However, in 2022, taxpayers could only deduct charitable contributions if they itemized and filed a Schedule A (Form 1040).

There are various strategies to consider, and Kakenmaster & Associates can advise you as to what strategy or combination of strategies might work best for your unique tax picture.

New legislation in the American Rescue Plan Act of 2021 changed the reporting requirements for third-party payment settlement networks (such as PayPal, Venmo, Amazon, etc.) to issue Form 1099-Ks…