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Filing a final federal tax return for someone who has died [税金]

After someone with a filing requirement passes away, their surviving spouse or representative should file the deceased person's final tax return. On the final tax return, the surviving spouse or representative should note that the person has died. The IRS doesn't need a copy of the death certificate or other proof of death.

Usually, the representative filing the final tax return is named in the person's will or appointed by a court. Sometimes when there isn't a surviving spouse or appointed representative, a personal representative will file the final return and attach Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer.

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Taxpayers should know that an extension to file is not an extension to pay taxes [税金]

Taxpayers who aren't able to file by the April 18, 2023, deadline can request an extension before that deadline, but they should know that an extension to file is not an extension to pay taxes.

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If they owe taxes, they should pay them before the due date to avoid potential penalties and interest on the amount owed.

Taxpayers who request a six-month extension to file their taxes have until October 16, 2023, to file their 2022 federal income tax return.

How to request a free extension to file for a return with no tax due

Individual taxpayers, regardless of income, can use IRS Free File at IRS.gov/freefile to request an automatic six-month tax-filing extension. Alternatively, taxpayers can file Form 4868, Application for Automatic Extension of Time to File.

How to request an extension when making a payment for a return with taxes due

Taxpayers can choose to submit an electronic payment and select Form 4868 or extension as the payment type. The IRS will count it as an extension automatically, and taxpayers won't need to file Form 4868.

Victims in FEMA disaster areas may have an automatic extension

The IRS may offer an automatic extension to areas designated by the Federal Emergency Management Agency. To check whether an area is included, see Tax Relief in Disaster Situations. Taxpayers in the affected areas do not need to file any extension paperwork, and they do not need to call the IRS to qualify for the extended time.

U.S. citizens and resident aliens abroad and military members in combat zones may have more time to pay

Taxpayers living overseas, including members of the military and eligible support personnel serving in combat zones may also have extra time to file their tax returns and pay any taxes due.

(Source of quote)
IRS Tax Tip 2023-30, March 8, 2023


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Things to consider when filing a 2022 tax return. [税金]

Things to consider before filing

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Taxpayers should wait to file until they receive all their proper tax documents, or they risk making a mistake that could cause delays.

They should also review their documents carefully. If any of the information is inaccurate or missing, taxpayers should contact the payer right away for a correction or to ensure the issuer has their current mailing or email address.

Organized tax records make preparing a complete and accurate tax return easier and may help taxpayers find overlooked deductions or credits.

Taxpayers with an Individual Taxpayer Identification Number or ITIN may need to renew it if it's expired and is needed on a U.S. federal tax return. If they don't renew an expiring or expired ITIN, the IRS can still accept their return, but it may delay processing or credits owed.

Changes to credits and deductions for tax year 2022

Unlike 2020 and 2021, there were no new stimulus payments for 2022, so taxpayers should not expect to get an additional payment in their 2023 tax refund.

Some tax credits return to 2019 levels

This means that taxpayers will likely receive a significantly smaller refund compared with the previous tax year.

Changes include amounts for the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC) and the Child and Dependent Care Credit will revert to pre-COVID levels.

•For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $560 for the 2022 tax year.
•Those who got $3,600 per dependent in 2021 for the CTC will, if eligible, get $2,000 per dependent for the 2022 tax year.
•The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.

Finally, taxpayers that don't itemize and take the standard deduction cannot deduct their charitable contributions this year.

(Source of quote)
IR-2023-32, Feb. 22, 2023



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Key points to keep in mind when filing 2022 tax returns [税金]

To help taxpayers navigate the beginning of the tax filing season, the Internal Revenue Service offered a checklist of reminders for people as they prepare to file their 2022 tax returns.

From gathering paperwork to filing a tax return, these easy steps will make tax preparation smoother in 2023:

1.Gather tax paperwork and records for accuracy to avoid missing a deduction or credit.

Taxpayers should have all their important and necessary documents before preparing their return. This helps people file a complete and accurate tax return. Errors and omissions slow down tax processing, including refund times.

Some information taxpayers need before they begin includes:
•Social Security numbers for everyone listed on the tax return,
•Bank account and routing numbers,
•Various tax forms such as W-2s, 1099s, 1098s and other income documents or records of digital asset transactions,
•Form 1095-A, Health Insurance Marketplace statement,
•Any IRS letters citing an amount received for a certain tax deduction or credit.

2.Remember to report all types of income on the tax return.

This is important to avoid receiving a notice or a bill from the IRS.

Don’t forget to include income from:
•Goods created and sold on online platforms,
•Investment income,
•Part-time or seasonal work,
•Self-employment or other business activities,
•Services provided through mobile apps.

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(Source of quote)
IR-2023-17




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About the exchange rate used for 2022 tax returns(2022年の税金申告に使用する換算レートについて) [税金]

Thank you for visiting my blog during the last year. I look forward to your continued patronage this year.

Federal Reserve Bank (FRB) announced the exchange rate on January 9, with the exchange rate converted from Japanese yen to U.S. dollar at 131.46 yen per U.S. dollar.

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In addition to FRB, exchange rates announced by organizations listed at the following sites are also available:

Foreign Currency and Currency Exchange Rates


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あけましておめでとうございます。
旧年中は格別のお引き立てを賜わり厚くお礼申し上げます。
本年もどうぞよろしくお願いいたします。

さて、Federal Reserve Bank (FRB)より1月9日に発表がありました外国為替レート(Foreign Exchange Rates)をご案内させて頂きます。

連邦税、州税申告書類で使用する換算レートは、1米国㌦=131.46円となります。

FRB以外にも以下のサイトにて案内されている組織により発表された換算レートも使用可能です。

Foreign Currency and Currency Exchange Rates






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2022 changes that may affect your tax refund [税金]

Changes in the number of dependents, employment or self-employment income and divorce, among other factors, may affect your tax-filing status and refund for 2023.

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No additional stimulus payments. Unlike 2020 and 2021, there were no new stimulus payments for 2022 so taxpayers should not expect to get an additional payment in their 2023 tax refund.

Some tax credits return to 2019 levels. Several tax credits, including the Child Tax Credit (CTC), the Earned Income Tax Credit (EITC) and the Dependent Care Credit will revert to pre-COVID levels. This means that taxpayers will likely receive a significantly smaller refund compared with the previous tax year. For a comparison, those who got $3,600 per dependent in 2021 for the CTC will get $2,000 for the 2022 tax year. Similarly, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022. And the Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021. Visit Credits and Deductions for more details.

No above-the-line charitable deductions. During COVID, taxpayers were able to take up to a $600 charitable donation tax deduction on their tax returns. However, in 2022, this deduction will return to pre-COVID rules, which will not allow those who take a standard deduction to make an above-the-line deduction for charitable donations.

More people may be eligible for the Premium Tax Credit. For tax year 2022, taxpayers may qualify for temporarily expanded eligibility for the premium tax credit. Remember that simply meeting the income requirements does not mean you're eligible for the premium tax credit. You must also meet the other eligibility criteria.

The Inflation Reduction Act of 2022 changes the eligibility rules to claim a tax credit for clean vehicles. More details about clean vehicles will be available in coming months.

(Source of quote)
2022 changes that may affect your tax refund





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The tax responsibilities that come with shutting down a business [税金]

There are many reasons a business owner may choose to close their doors, and there are many things that must be done to go out of business. Two important steps all business owners must take are fulfilling their federal tax responsibilities and informing the IRS of their plans. The closing a business page of IRS.gov is designed to help owners navigate the process of shutting down.

Closing a business


Small businesses and self-employed taxpayers will find a variety of information on the page including:
•What forms to file
•How to report revenue received in the final year of business
•How to report expenses incurred before closure

The page also details step all business owners should take when closing a business.
•File a final tax return and related forms. The type of return to file and related forms depends on the type of business.
Take care of employees. Business owners with one or more employees must pay any final wages or compensation, make final federal tax deposits and report employment taxes.
•Pay taxes owed. Even if the business closes now, tax payments may be due next filing season.
Report payments to contract workers. Businesses that pay contractors at least $600 for services including parts and materials during the calendar year in which they go out of business, must report those payments.
•Cancel EIN and close IRS business account. Business owners should notify the IRS so they can close the IRS business account.
Keep business records. How long a business needs to keep records depends on what's recorded in each document.

The page also provides helpful information for business owners declaring bankruptcy, selling their business and terminating retirement plans.

(Source of quote)
IRS Tax Tip 2021-153





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Got a letter or notice from the IRS? Here are the next steps [税金]

When the IRS needs to ask a question about a taxpayer’s tax return, notify them about a change to their account, or request a payment, the agency often mails a letter or notice to the taxpayer. Getting mail from the IRS is not a cause for panic but, it should not be ignored either.

When an IRS letter or notice arrives in the mail, here’s what taxpayers should do:

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Taxpayers: File when ready, don’t wait until October 17 to file a 2021 tax return [税金]

For people who requested an IRS extension to file, the October 17, 2022, deadline may seem far away, but it's coming up fast. Taxpayers who haven't filed, whether they requested an extension or not, should file a complete and accurate return as soon as possible. For people who have all their paperwork in hand, filing sooner and filing electronically could help them avoid possible processing delays later.

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(Source of quote)
COVID Tax Tip 2022-131



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IRAs are one tool in the retirement planning toolbox [税金]

There are many ways people plan for retirement. Individual Retirement Arrangements, or IRAs, are a common one. IRAs provide tax incentives for people to make investments that can provide financial security when they retire. These accounts can be with a bank or other financial institution, a life insurance company, mutual fund, or stockbroker.

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