The special per diem rates that a taxpayer may use in substantiating travel and business expenses under the per diem substantiation method (set out in Rev. Proc. 2019-48) will be higher starting Oct. 1, as provided by the IRS in Notice 2024-68. Generally, under the per diem substantiation method, if an employer or other payer pays a per diem allowance in lieu of reimbursing an employee's actual expenses for lodging, meals, and incidental expenses, the amount deemed substantiated for each calendar day is the lesser of the allowance amount for that day or the amount... (More)

If you don’t know what Net Investment Income Tax (NIIT) is, you’re not alone. This relatively new tax began a little over a decade ago but the number of taxpayers subject to the tax has increased. For instance, data show that 3.1 million taxpayers were subject to NIIT in its first year. Just eight years later, that number more than doubled. So what is NIIT and who must pay it? Read on to avoid surprises on your next tax bill and to find out how you might lower your net investment income. (More)

Social Security remains a critical component of most Americans’ financial and retirement plans. Despite its longevity and familiarity, many individuals are unaware of all its relevant provisions and the related benefits and drawbacks. In the following article, the author answers 20 common questions about Social Security so that advisors are ready to advise taxpayers. 1. How many different categories of Social Security payments may be received by an individual? There are 13 categories of benefits, as follows: (More)

To reduce unnecessary costs, businesses strive to minimize their tax liabilities. Employment taxes, particularly the employer’s share of Social Security and Medicare taxes under FICA, may represent a significant portion of a company’s tax burden. On the other side of the ledger sit employees, eager to maximize their compensation. This sets up a zero-sum game of opposing economic interests. The tax code occasionally disrupts this paradigm by allowing businesses to convert a portion of an employee’s compensation into non-taxable wages. These tax-advantaged benefits largely consist of the standard benefits found in new employee welcome packets, including employer-sponsored comprehensive health coverage, transportation benefits, and Health Savings Accounts.(More)