Frequently Asked Questions

Federal and state laws can change every year and we want to ensure you have the latest information so you can make an informed decision. 

 

All taxpayers now eligible for Identity Protection PINS:

https://www.irs.gov/newsroom/all-taxpayers-now-eligible-for-identity-protection-pins

 

                      Security Summit warns of new IRS impersonation email scam; reminds taxpayers the IRS                           does not send unsolicited emails.

Read More

 

What is changing for payroll calculations in 2022?

The Social Security wage base limit increased from $142,800 to $147,000 for 2022 and will increase to $160,200 for 2023. The rates are unchanged at 6.2% for employer contributions and 6.2% for employee contributions. Medicare rates are unchanged at 1.45% for both employer and employee contributions with no limit on taxable wages. Wages over $200,000 ($250,000 for those filing jointly) are subject to an additional Medicare tax of 0.9%

 

Publication 15, Circular E Employer’s Tax Guide, including withholding tables, is available at https://www.irs.gov/publications/p15 

 

State of Iowa withholding tables were updated in 2022 and can be found at

https://tax.iowa.gov/withholding-tax-information

 

How long do I need to keep copies of receipts and financial records?

The following is from the Internal Revenue Service website:

  • 1. Keep records for 3 years if situations (4), (5), and (6) below do not apply to you.

  • 2. Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.

  • 3. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

  • 4. Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return.

  • 5. Keep records indefinitely if you do not file a return.

  • 6. Keep records indefinitely if you file a fraudulent return.

  • 7. Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

Click here for additional information 


 

What is the mileage reimbursement rate for 2022 and 2023? 

Note: Charitable mileage rate is .39 for Iowa

Are employers required to file W-2’s with the State of Iowa for 2022? 

Businesses that issued W-2s or 1099s the contain Iowa withholding must electronically file those documents with the Iowa Department of Revenue using GovConnectIowa.com

 

Note: The VSP forms are no longer required starting in 2022 

 

Do I have to keep track of deductions?  

In general, the same deductions apply. The new federal standard deduction makes the benefit from those deductions lower or nonexistent. In 2022, the standard deduction for a single taxpayer and married individuals filing separately is $12,950, $19,400 for a head of household, $25,900 for married filing jointly.  For 2023, the standard deduction for a single taxpayer and married individuals filing separately is $13,850, $20,800 for a head of household, $27,700 for married filing jointly.  The maximum amount that can be deducted for state and local income taxes, which includes all state income taxes, property taxes and personal property tax, is now capped at $10,000 per year. If this cap is reached, mortgage interest and contributions of $2,000 for a single taxpayer or $15,900 for married individuals filing jointly provide no benefit as you would use the standard deduction on the federal return. Amounts in excess of that amount help to reduce federal taxable income.

Keep in mind that Iowa did not follow federal law and the benefit will be different on the state taxation level for 2022.  In 2023 Iowa will not have it’s on itemized deductions. For 2022, Iowa’s standard deduction is $2,210 for an individual and $5,450 for married filing a joint return or head of household. 

What is the Section 179 limit for 2022 and 2023? 

2022

Special first year depreciation under Section 179, for qualified property, is allowed up to $1,080,000. This amount begins to phase out when purchases exceed $2,700,000.

 

In addition to Section 179, bonus depreciation of 100% of cost is allowed for qualified property in 2022. 

 

2023

Special first year depreciation under Section 179, for qualified property, is allowed up to $1,080,000. This amount begins to phase out when purchases exceed $2,700,000.

 

In addition to Section 179, bonus depreciation of 80% of cost is allowed for qualified property in 2023. 


 

Are meals and entertainment deductible?

For 2022, most business meals will be 100% deductible if purchased from a restaurant. Entertainment expenses are no longer deductible. For 2023, you will be able to deduct only 50% of the cost of all business meals.

 

 

What can I gift to individuals without tax consequences? 

In 2022, you can gift up to $16,000 (increased to $17,000 for 2023) per individual without have to file a gift tax return. If you gift more than $16,000 in one year you are required to file a Federal 709 Gift Tax Return. The lifetime estate/gift exemption is $12,060,000 for 2022 and $12,920,00 for 2023, meaning you can gift up to that amount before incurring any tax liability.  

Note:  The current exclusions are set to sunset in 2026.  If Congress does not make any changes the exemption will go to $6,800,000 (adjusted for inflation) in 2026.



Where can I find payroll forms? 

2022 W-4- https://www.irs.gov/pub/irs-pdf/fw4.pdf

FAQ on 2020 W-4- https://www.irs.gov/newsroom/faqs-on-the-2020-form-w-4

2020 W-4- https://www.irs.gov/pub/irs-prior/fw4--2020.pdf

I-9 Forms- https://www.uscis.gov/i-9

Iowa 2022 W-4 https://tax.iowa.gov/sites/default/files/2021-12/2022IAW-4%2844019%29.pdf

W-9 Form- https://www.irs.gov/pub/irs-pdf/fw9.pdf

What is eSignature and how do you use it? 

eSignature is a way for you to electronically sign your documents rather than physically signing them. You can learn more about the eSignature process at the link below. 

Click here to learn how to use eSignature


 

Traditional and Roth IRA Contribution Limits

 


 

HSA Contribution Limits

 

 

Smart Vault

In today’s world there are more and more cybercrimes and identity thefts than ever before. To help ensure that your personal information is protected we are now offering access to a secure online portal that you can safely share information through. 

  • Submit and obtain copies of your records and tax returns in a secure way.

  • Be prepared by understanding latest tax law updates.

  • Preview upcoming events offered.

  • A secure and safe way to share documents. 

In order to gain access to this valuable tool we simply need your email address. 

Once we have received the email address you would like to use to access the portal you will receive and email from the firm with a link to set up a Smart Vault account. Once you click on the link you will be prompted to set up a password for your account. 

Once your account is set up you can access your records at any time by signing into Smartvault.com

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