News you can use
IRS updated per diem rates
Individuals who do contract work and travel out of town where they stay overnight for work purposes, are allowed to take actual deduction for meals and lodging spent or per diem rate (whichever is higher). Per diem rates vary by regions. IRS has just announced updated rates for the period October 2021 – September 2022 which are slightly higher than last year (lodging & meals daily per diem rates range from $202 – $296 depending on the region). Contractors that most frequently use per diem rates (that I do work for) are truck drivers and oil and gas consultants. Both of those categories spend number of days and nights working away from home. Here is the link where you can find per diem rates for different regions of the USA.
Child Tax Advance Credit could be extended through 2025
House of Democrats has proposed extending the Child Tax Advance credit payments through 2025. They are hoping to lock in the payments for another four years from which will benefit the vast majority of Americans. The child tax credit currently provides up to $300 a month per child age 5 and under, or $3,600 annually. For children between ages 6 and 17, families can receive $250 each month, or $3,000 annually. Married couples making $150,000 ($75,000 singles) and less are eligible for full benefit. The benefit phases out completely for couples at $400,000 (singles $200,000). For more details, click on the link below.
Increase in Tax
Democrats plan a commerce vote this week on proposed plan of increasing corporate tax from 21% to 26.5% for businesses that report more than $5 million in income. The corporate tax rate would be lowered to 18% for small businesses that make less than $400,000 and remain at 21% for all other businesses. They will also be voting on capital gain rate increase from 20% to 25% and bumping the individual max tax rate to 39.6% from current 37% plus 3% surtax for people who make more than $5 million. Even though there was some talk that there would be possible tax consequences on unrealized gains for heirs, this no longer seems to be focus and no changes are proposed or will be implemented. For more details, click on the link below.
Dragana's World
Novak Djokovic
My favorite male tennis player is Novak Djokovic. Just a few years older than me, Serbian native Novak was born and raised about six hours drive from my hometown. Novak just lost this past weekend in the finals of the US Open to Russian tennis player Danill Medvedev. Even though Djokovic lost, he is still my favorite. Novak is very competitive (Balkan personality 😊), stubborn, persistent, and pretty funny. As a young child Novak went through a lot. He overcame all of the obstacles and became an athlete that not just Serbia, but the whole former Yugoslavia, is proud of. Here is a short and interesting video about Novak.
Let's Talk
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It is interesting how the more people I help the more rewarding my career becomes.
E-mail: dragana@dcmtax.com