Latest news with #federalincometax
Yahoo
06-08-2025
- Business
- Yahoo
AICPA urges guidance on small business research costs
The American Institute of CPAs (AICPA) has requested immediate guidance from the US Department of the Treasury and the Internal Revenue Service (IRS) on the recently enacted section 174A. The section addresses the treatment of domestic research and experimental (R&E) expenditures, commonly referred to as domestic research costs, for small business taxpayers. AICPA is advocating for Treasury and the IRS to allow eligible small business taxpayers to deduct domestic research costs directly on their 2024 federal income tax returns. It is expected to eliminate the need to capitalise these costs, which could otherwise lead to administrative burdens and compliance risks for taxpayers. According to the accounting industry body, many eligible taxpayers have not yet filed their 2024 income tax returns and face uncertainty regarding the deduction of these costs. Without immediate guidance, taxpayers may be forced to amend their returns later, increasing their compliance burdens. To address this, AICPA recommends that Treasury and the IRS issue guidance allowing taxpayers to deduct 2024 domestic research costs on their originally filed returns. It would require a statement or reference indicating an election under Section 70302(f)(1)(A). Additionally, taxpayers may amend their 2022 and 2023 returns to deduct domestic research costs paid or incurred in those years. If the election impacts a year with a reported net operating loss (NOL), taxpayers should be permitted to adjust the NOL in the carryforward year(s) instead of amending the original NOL year return. This is expected to streamline the process and reduce unnecessary administrative tasks. AICPA Tax Policy & Advocacy senior manager Reema Patel said: 'Providing the guidance cited in the AICPA's comment letter allows immediate tax relief to eligible taxpayers and resolves uncertainty for those who may have already deducted 2024 domestic research costs. 'This guidance benefits sound tax administration for impacted taxpayers, practitioners, and the IRS and we urge Treasury to act immediately to provide taxpayers with certainty and allow them to meet their tax obligations with minimal confusion.' In July 2025, AICPA announced its support for a bill introduced by Senator John Fetterman. The Survivor Assistance for Fear-free and Easy Tax Filing Act of 2025 (SAFE Act), identified as S. 2129, aims to provide a critical tax filing option for individuals who have experienced spousal abuse or abandonment. "AICPA urges guidance on small business research costs " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
31-07-2025
- Business
- Globe and Mail
Global Partners LP Announces Availability of 2024 Schedule K-3
Global Partners LP (NYSE: GLP) (the 'Partnership') today announced that its 2024 Schedule K-3 reflecting items of international tax relevance is available online. Unitholders requiring this information may access their Schedule K-3 at A limited number of unitholders (primarily foreign unitholders, unitholders computing a foreign tax credit on their tax return and certain corporate and/or partnership unitholders) may need the detailed information disclosed on Schedule K-3 for their specific reporting requirements. To the extent Schedule K-3 is applicable to your federal income tax return filing needs, the Partnership encourages you to review the information contained on this form and refer to the appropriate federal laws and guidance or consult with your tax advisor. The Partnership is not planning to mail copies of the Schedule K-3 to investors. To receive an electronic copy of your Schedule K-3 via email, unitholders may call Tax Package Support toll free at (866) 867-4075 weekdays between 8 a.m. and 5 p.m. CT. About Global Partners LP Building on a legacy that began more than 90 years ago, Global Partners has evolved into a Fortune 500 company and industry-leading integrated owner, supplier, and operator of liquid energy terminals, fueling locations, and guest-focused retail experiences. Global operates or maintains dedicated storage at 54 liquid energy terminals—with connectivity to strategic rail, pipeline, and marine assets—spanning from Maine to Florida and into the U.S. Gulf States. Through this extensive network, the company distributes gasoline, distillates, residual oil, and renewable fuels to wholesalers, retailers, and commercial customers. In addition, Global owns, operates and/or supplies approximately 1,700 retail locations across the Northeast states, the Mid-Atlantic, and Texas, providing the fuels people need to keep them on the go at their unique guest-focused convenience destinations. Recognized as one of Fortune's Most Admired Companies, Global Partners is embracing progress and diversifying to meet the needs of the energy transition. Global Partners, a master limited partnership, trades on the New York Stock Exchange under the ticker symbol 'GLP.' For additional information, visit
Yahoo
27-07-2025
- Business
- Yahoo
I Asked ChatGPT If Trump's Tax Bill Will Affect Social Security Checks: Here's What It Said
Social media has been buzzing with claims that President Donald Trump's new tax bill eliminates federal income taxes on Social Security benefits entirely. Sounds too good to be true, right? Find Out: Read Next: Well, I asked ChatGPT to break down what's actually in Trump's 'One Big Beautiful Bill' in regard to Social Security so we can see where we all stand. Spoiler alert: It's not quite the game-changer some people think it is. What ChatGPT Said the Law Actually Does According to our artificial intelligence fact-checker, Trump's new bill does not eliminate federal income taxes on Social Security benefits despite what you might have seen on your uncle's Facebook post. Instead, here's what it really does: Creates a temporary enhanced standard deduction: Seniors ages 65 and older can claim an additional $6,000 standard deduction on their federal income taxes from 2025 through 2028. But there's a catch — it phases out for individuals with modified adjusted gross income above $75,000 (or $150,000 for couples filing jointly). About 88% of seniors benefit: ChatGPT estimates that nearly 9 in 10 Social Security recipients will owe no federal income tax — not because their benefits suddenly became untaxed, but because their deductions now fully offset their taxable income. It's temporary, not permanent: This isn't a permanent suspension of Social Security taxes. It's a temporary and income-limited deduction — basically a workaround that avoids Senate budget rules. Be Aware: What It Definitely Doesn't Do ChatGPT was clear about the limitations: It doesn't repeal the taxation of Social Security benefits — Lower-income retirees already paid little or no tax anyway. Doesn't affect those under age 65, regardless of whether they receive benefits. Doesn't prevent future taxability after the deduction expires in 2028. How This Actually Affects Your Check Here's where it gets interesting. If you're 65 or older, earn below those income thresholds and it's between 2025-2028, your taxable income gets reduced — meaning less or no tax withheld from your Social Security. But your actual Social Security monthly payment doesn't increase. You're simply paying less federal income tax on the money you already receive. Think of it as keeping more of what you already get rather than getting more in the first place. After 2028? Unless Congress renews the deduction, taxes on benefits are likely to return to exactly where they were before. The Hidden Cost Nobody's Talking About This is where ChatGPT delivered some sobering news about the long-term consequences. Since taxes on Social Security benefits help fund the Social Security Trust Fund and Medicare, this deduction actually speeds up insolvency — by an estimated six to 12 months earlier than previously projected. The trust fund is now expected to run dry by 2033, down from earlier projections, partly because of this deduction. Without trust fund dollars, payroll taxes alone could still fund roughly three-quarters of benefits. But Wait, There's More (And It's Not Good) While the new tax deduction sounds like a win for seniors, there are some serious tradeoffs to consider. The Temporary Problem The extra $6,000 standard deduction for seniors 65 and older expires after 2028 unless Congress renews it. That means seniors could see their tax bills rise again in 2029, especially if they've adjusted their finances assuming this was permanent. It's a potential 'tax cliff' waiting to happen in just four years. Age Discrimination in the Tax Code If you're under 65 but receiving Social Security — say, for disability or early retirement — you get zero benefit from this deduction. Critics argue this creates age-based inequality even among Social Security recipients. For example: A 62-year-old on Social Security Disability Insurance gets no tax break, while a 66-year-old with higher income might save thousands. The Reality Check on Benefits The bill doesn't boost benefit payments at all. Your monthly check stays exactly the same — it only affects how much gets taxed. If you already don't owe taxes (about half of recipients), you get no additional help whatsoever. For many low-income seniors, this legislation literally does nothing. The Insolvency Acceleration This is the big one. Taxes on Social Security benefits help fund the trust fund, so reducing that revenue makes the system run out of money faster. The projection is now around 2033, possibly sooner. That could lead to future benefit cuts unless lawmakers make changes. Today's small tax break could result in tomorrow's big benefit reductions. Slightly High Earners Still Pay The deduction phases out at $75,000 for individual income or $150,000 for joint income. Seniors with savings, investments or pensions may not qualify — and may feel misled by messaging about 'no tax on Social Security.' It's not actually a full repeal of Social Security taxation. Many upper-middle-class retirees still pay tax on their benefits. The Reform Distraction Some critics argue this is a 'band-aid' policy that avoids the hard but necessary choices needed to fix Social Security long term. By offering a short-term tax break, it may reduce the urgency to create lasting solutions — like strengthening funding or adjusting payouts fairly. The Bottom Line According to AI ChatGPT's analysis suggests this legislation is more complex than the headlines suggest. Most critics view the deduction as a temporary, politically motivated measure that doesn't solve long-term funding challenges, complicates the tax system and offers uneven benefits to seniors. The AI warns that the real cost will likely be paid later — through higher taxes, fewer benefits or both. If you're 65 or older and have income under the limits, you'll probably pay less federal tax on your Social Security from 2025-2028. Your monthly Social Security check stays the same, but tax withholding may decrease or disappear entirely. Just remember: This is a temporary tax break, not a permanent repeal. After 2028, expect taxes on your benefits to return unless Congress acts again. Meanwhile, the Social Security trust fund will be depleted sooner, increasing pressure for reforms like raising the retirement age, cutting benefits or raising taxes. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 6 Big Shakeups Coming to Social Security in 2025 The New Retirement Problem Boomers Are Facing This article originally appeared on I Asked ChatGPT If Trump's Tax Bill Will Affect Social Security Checks: Here's What It Said
Yahoo
11-07-2025
- Business
- Yahoo
Who will — and won't — benefit from the bigger SALT deduction
For the next five years, there will be a much more generous state and local tax deduction available to federal income tax filers, thanks to the recently enacted mega tax-and-spending-cuts law. The new law lifts what had been a $10,000 cap to $40,000 for tax year 2025 and then adjusts it upward by 1% a year for 2026, 2027, 2028 and 2029. The SALT deduction, as it is known, enables federal income tax filers to deduct either their state and local income taxes or their state and local general sales taxes. On top of that, they are also allowed to deduct their property taxes, assuming their income or sales taxes don't put them over the cap. But the increased cap may only help a minority of federal income filers. Here's a breakdown of who will benefit, who will not — as well as those who won't benefit from the change, but are still better off. Itemizers: The SALT break may only be taken by those who itemize deductions on their federal returns. Prior to 2017, there was no cap on the SALT deduction, but the 2017 Tax Cuts and Jobs Act capped it at $10,000 for everyone, while at the same time greatly expanding the standard deduction. Typically, the only reason to itemize your deductions is if, combined, they exceed your standard deduction. The net effect of those two changes together is that far fewer filers chose to itemize, in favor of taking the standard deduction. 'Before 2017, 80% of my clients would itemize. Now 80% take the standard deduction,' said Tom O'Saben, director of tax content and government relations at the National Association of Tax Professionals. As a result of the latest change, O'Saben expects some of his clients to resume itemizing, but not nearly as many as did before 2017. That's because the new law further expands the standard deduction for 2025 to $15,750 for single filers, up from the $15,000 previously scheduled for this year; $23,625, up from $22,500, for heads of household; and $31,500 for married couples filing jointly, up from $30,000. And those amounts will be adjusted for inflation in subsequent years. Filers living in high-tax areas: Filers from high-tax states — such as California, New York and Illinois — or high-tax cities are likely to benefit most from the SALT cap increase, assuming their income makes them eligible to claim as much as $40,000 (see next item). That's especially the case for homeowners in these areas, because they are more likely to itemize thanks to the combination of their state and local tax deduction plus their mortgage interest deduction. But even some filers in states that don't impose an income tax but do levy high sales or property taxes could benefit as well, O'Saben noted. Filers making less than $500,000: The new SALT provision limits who may deduct the full $40,000 to tax filers with modified adjusted gross incomes of $500,000 or less. (MAGI in this instance is defined as your US-based income plus any earned income you made in Puerto Rico, Guam, the Northern Mariana Islands and foreign countries for which you'd ordinarily get a tax credit or exemption.) Filers with MAGIs over $500,000 but less than $600,000: This group will be allowed to take more than a $10,000 deduction but less than the $40,000 cap. Their deduction will be reduced by 30% of the amount their income exceeds $500,000. So for example, if your MAGI is $550,000, you will be allowed to deduct $25,000 ($40,000-30% of $50,000). Those with MAGIs of at least $600,000: The SALT deduction will be limited to $10,000 for anyone whose MAGI is $600,000 or more. Filers who don't itemize: Anyone whose itemized deductions — including the state and local taxes they pay — do not exceed the standard deduction won't benefit from the higher SALT cap, but they will still benefit from the higher standard deduction and the fact that taking it will reduce their tax bill more than if they itemized. Partners and shareholders in pass-through entities: Partners and shareholders in businesses that are structured as 'pass-through entities' (e.g. LLCs or S-Corps) typically pay the businesses' taxes on their individual returns. If they do, the rules that dictate who may deduct up to $40,000 in state and local taxes would apply to them. But many don't have to worry about the SALT cap at all. That's because in the wake of the 2017 tax law, which imposed the $10,000 cap, many states developed a workaround for pass-through entities that allowed (or in some cases mandated) the entities to pay the state taxes, and get an unlimited deduction for them at the entity level. That then lowers the federal taxable income for the partners and shareholders. Those workarounds had the effect of letting the partners or shareholders avoid the SALT cap altogether. 'Typically the pass-through entity doesn't pay taxes at all. But in some states passthroughs can elect to be taxed instead,' said Brian Newman, the federal tax services practice leader at CohnReznick Advisory LLC. While this has complicated pass-through entity taxation, Newman noted, 'it's been a huge benefit for partners and shareholders.' Earlier versions of the tax-and-spending-cuts package would have curtailed the benefits of the state workarounds for specified trades and businesses. But the final Senate version, which is what ultimately became law, did not, Newman said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNN
11-07-2025
- Business
- CNN
Who will — and won't — benefit from the bigger SALT deduction
For the next five years, there will be a much more generous state and local tax deduction available to federal income tax filers, thanks to the recently enacted mega tax-and-spending-cuts law. The new law lifts what had been a $10,000 cap to $40,000 for tax year 2025 and then adjusts it upward by 1% a year for 2026, 2027, 2028 and 2029. The SALT deduction, as it is known, enables federal income tax filers to deduct either their state and local income taxes or their state and local general sales taxes. On top of that, they are also allowed to deduct their property taxes, assuming their income or sales taxes don't put them over the cap. But the increased cap may only help a minority of federal income filers. Here's a breakdown of who will benefit, who will not — as well as those who won't benefit from the change, but are still better off. Itemizers: The SALT break may only be taken by those who itemize deductions on their federal returns. Prior to 2017, there was no cap on the SALT deduction, but the 2017 Tax Cuts and Jobs Act capped it at $10,000 for everyone, while at the same time greatly expanding the standard deduction. Typically, the only reason to itemize your deductions is if, combined, they exceed your standard deduction. The net effect of those two changes together is that far fewer filers chose to itemize, in favor of taking the standard deduction. 'Before 2017, 80% of my clients would itemize. Now 80% take the standard deduction,' said Tom O'Saben, director of tax content and government relations at the National Association of Tax Professionals. As a result of the latest change, O'Saben expects some of his clients to resume itemizing, but not nearly as many as did before 2017. That's because the new law further expands the standard deduction for 2025 to $15,750 for single filers, up from the $15,000 previously scheduled for this year; $23,625, up from $22,500, for heads of household; and $31,500 for married couples filing jointly, up from $30,000. And those amounts will be adjusted for inflation in subsequent years. Filers living in high-tax areas: Filers from high-tax states — such as California, New York and Illinois — or high-tax cities are likely to benefit most from the SALT cap increase, assuming their income makes them eligible to claim as much as $40,000 (see next item). That's especially the case for homeowners in these areas, because they are more likely to itemize thanks to the combination of their state and local tax deduction plus their mortgage interest deduction. But even some filers in states that don't impose an income tax but do levy high sales or property taxes could benefit as well, O'Saben noted. Filers making less than $500,000: The new SALT provision limits who may deduct the full $40,000 to tax filers with modified adjusted gross incomes of $500,000 or less. (MAGI in this instance is defined as your US-based income plus any earned income you made in Puerto Rico, Guam, the Northern Mariana Islands and foreign countries for which you'd ordinarily get a tax credit or exemption.) Filers with MAGIs over $500,000 but less than $600,000: This group will be allowed to take more than a $10,000 deduction but less than the $40,000 cap. Their deduction will be reduced by 30% of the amount their income exceeds $500,000. So for example, if your MAGI is $550,000, you will be allowed to deduct $25,000 ($40,000-30% of $50,000). Those with MAGIs of at least $600,000: The SALT deduction will be limited to $10,000 for anyone whose MAGI is $600,000 or more. Filers who don't itemize: Anyone whose itemized deductions — including the state and local taxes they pay — do not exceed the standard deduction won't benefit from the higher SALT cap, but they will still benefit from the higher standard deduction and the fact that taking it will reduce their tax bill more than if they itemized. Partners and shareholders in pass-through entities: Partners and shareholders in businesses that are structured as 'pass-through entities' (e.g. LLCs or S-Corps) typically pay the businesses' taxes on their individual returns. If they do, the rules that dictate who may deduct up to $40,000 in state and local taxes would apply to them. But many don't have to worry about the SALT cap at all. That's because in the wake of the 2017 tax law, which imposed the $10,000 cap, many states developed a workaround for pass-through entities that allowed (or in some cases mandated) the entities to pay the state taxes, and get an unlimited deduction for them at the entity level. That then lowers the federal taxable income for the partners and shareholders. Those workarounds had the effect of letting the partners or shareholders avoid the SALT cap altogether. 'Typically the pass-through entity doesn't pay taxes at all. But in some states passthroughs can elect to be taxed instead,' said Brian Newman, the federal tax services practice leader at CohnReznick Advisory LLC. While this has complicated pass-through entity taxation, Newman noted, 'it's been a huge benefit for partners and shareholders.' Earlier versions of the tax-and-spending-cuts package would have curtailed the benefits of the state workarounds for specified trades and businesses. But the final Senate version, which is what ultimately became law, did not, Newman said.
