Learning Center for Tax and Financial Insights

The Internal Revenue Service is encouraging taxpayers to take simple steps before the end of the year to make filing their 2023 federal tax return easier. With a little advance preparation, taxpayers can approach the upcoming tax season with confidence.

The IRS has announced the new standard mileage rates to be used for automobile tax deductions in 2024, which are set to take effect on January 1st. Watch this video for a quick overview of the new rates.

In a historic turn of events, the New York Mets are set to pay an extraordinary luxury tax of almost $101 million, marking a record in Major League Baseball. The Mets, owned by Steve Cohen, concluded the 2023 season with a tax payroll of $374.7 million, eclipsing the previous high set by the 2015 Los Angeles Dodgers. Despite a significant summer selloff, shedding players like Max Scherzer and Justin Verlander, the Mets' tax bill soared to $100,781,932 after a lackluster fourth-place finish in the NL East.It is important to note that this so-called tax is imposed by Major League Baseball on teams whose owners opt to exceed a pre-determined payroll threshold. It is not a federal tax imposed by the IRS. As defined on theleague's website, "Each year, clubs that exceed a predetermined payroll threshold are subject to a Competitive Balance Tax — commonly referred to as a 'luxury tax.'”"Those who carry payrolls above that threshold are taxed on each dollar above the threshold, with the tax rate increasing based on the number of consecutive years a club has exceeded the threshold."Per an Associated Press report, a tax credit of $2,126,471 mitigated the Mets' final bill under a provision in the latest collective bargaining agreement. However, the club’s two-year tax total stands at a staggering $131.6 million. Other notable teams facing tax penalties include the San Diego Padres ($39.7 million), the New York Yankees ($32.4 million), the Los Angeles Dodgers ($19.4 million), the Philadelphia Phillies ($6.98 million), the Toronto Blue Jays ($5.5 million), the Atlanta Braves ($3.2 million), and the 2023 World Series champion Texas Rangers ($1.8 million).The Yankees and Mets were the sole franchises to surpass the $293 million threshold, implemented in the 2022 labor contract, known as the Cohen Tax, designed to curb Steve Cohen's spending. According to the AP, this year's collective tax reached a whopping $209.8 million, more than double the prior record of $78.5 million for 2022. Total spending on luxury tax payrolls soared to an unprecedented $5.79 billion, a 12.2% increase from the previous year. As the Yankees' cumulative tax payments since 2003 near $390 million, it solidifies their status as the highest-taxed team in MLB history.

Article Highlights: Benefits Eligible Taxpayers Rules for Students, Dependents of Others and Individuals Under the Age of 18 Due Date for Contributions Low- and moderate-income workers can take steps to save for retirement and earn a special tax credit. The saver’s credit, also called the retirement savings credit, helps offset part of the first $2,000 workers voluntarily contribute to traditional or Roth individual retirement arrangements (IRAs), SIMPLE IRAs, SEPs, 401(k) plans, 403(b) plans for employees of public schools and certain tax-exempt organizations, 457 plans for state or local government employees, and the Thrift Savings Plan for federal employees. The saver’s credit is available in addition to any other tax savings that apply as a result of contributing to retirement plans. Self-employed individuals may also enjoy the benefit of the credit. Credits are determined from the tables shown below and are based upon both filing status and income (AGI). Each year the tables are adjusted for inflation and the tables for 2023 and 2024 are illustrated below. 2023 PHASE-OUTS Modified Adjusted Gross Income* Joint Return Head of Household Others Applicable Percentage Over Not Over Over Not Over Over Not Over $ 0 $43,500 $ 0 $30,750 $ 0 $21,750 50 $43,500 $47,500 $32,625 $33,000 $21,750 $23,750 20 $47,500 $73,000 $35,625 $51,000 $23,750 $36,500 10 $73,000 $54,750 $36,500 0 2024 PHASE-OUTS Modified Adjusted Gross Income* Joint Return Head of Household Others Applicable Percentage Over Not Over Over Not Over Over Not Over $ 0 $46,000 $ 0 $30,750 $ 0 $23,000 50 $46,000 $50,000 $34,500 $33,000 $23,000 $25,000 20 $50,000 $76,500 $37,500 $51,000 $25,000 $38,250 10 $76,500 $57,375 $38,250 0

As the calendar turns to a new year, many of us reflect on the past and set intentions for the future. Why not extend this reflection to our finances? This article will guide you through essential financial resolutions to set the tone for your best money year yet.1. Create a Budget That Works:Start by reviewing your spending habits from the past year. Identify areas where you can cut back and allocate more funds towards savings or debt repayment. Establish a realistic budget that aligns with your financial goals.2. Emergency Fund Boost:Ensure your financial safety net is robust. Aim to increase your emergency fund to cover at least three to six months of living expenses. This provides a cushion in unexpected situations.3. Debt Reduction Strategy:If you have outstanding debts, develop a strategic plan to pay them down. Consider the snowball or avalanche method, focusing on high-interest debts first. Set monthly milestones to track progress.4. Maximize Retirement Contributions:

The Corporate Transparency Act (CTA), passed as part of the National Defense Authorization Act for Fiscal Year 2021, introduces new reporting requirements for businesses in the United States, specifically focusing on beneficial ownership. This reporting begins in 2024, and it is something all businesses should be aware of.