Year: 2022

Tax Planning Guide for Disaster Area Victims

4 min read

Tax Planning Guide for Disaster Area VictimsThe recent hurricane Ian impacted much of the southeast United States. As a result, it is good to know the general tax rules related to disaster victims. Below, we look at several tax topics for disaster area victims.

1. Tax Returns and Filings

Q: I am a disaster area victim and needed to move from my home. I might not be back for a long time or even at all. Which address should I use on my tax return?

A: A taxpayer should always use their current address in filing a tax return. In the situation where you move after filing your return, you need to update your address with the IRS. You can do this either by filing form 8822 or calling the IRS Disaster Hotline at 866-562-5227.

Q: I filed an extension for my form 1040, giving me until Oct. 15 to file. Are there any further extensions available?

A: Taxpayers who already filed for an extension until Oct. 15 and live in a federally declared disaster area of the recent hurricanes receive an automatic extension due date of Dec. 31.

2. Payments

Q: I have a balance due on my 2021 tax return and am currently accruing interest on it. Is there any relief for disaster victims on interest charges?

A: No, the IRS is not giving any forbearance or cancellation of interest on tax balance liabilities. The IRS is, however, willing to waive late payment penalties when the taxpayer can prove the reason they are late is caused by issues related to the disaster.

3. Property and Casualty Loss

Q: During a recent disaster, we lost electricity, and all the food in my refrigerator and freezers spoiled, and I had to throw it away. My homeowners’ insurance reimbursed me, and it was for more than the food cost me. Do I have to report any income on the amount over my food costs?

A: No. The tax code makes a distinction between scheduled property and general reimbursements. For unscheduled property (general reimbursements), the taxpayer does not need to recognize income for reimbursements on personal property, even if it was more than the cost of the lost property.

Q: I need to prove the reasonable value (FMV) of my home. Am I allowed to use property tax assessments to substantiate the FMV of my home?

A: No, the only way a taxpayer can establish the FMV of a property is either with an appraisal by a credentialed appraiser or using the cost of repairs method.

4. Sale of Home

Q: My primary residence was destroyed, and the cause was deemed to be a federally declared disaster. After clearing the lot, I sold the land alone for a gain. Do I have to pay taxes on the gain or is there an exclusion since it is where my primary residence used to be?

A: Selling a vacant lot does not qualify for the exemption on gains from primary residences. The exception to this rule is if the land previously had the taxpayer’s main residence on it. In this case, if the taxpayer would have qualified for the main residence exemption before the disaster, the gain on the sale of the vacant land would be exempt here as well.

5. Expenses

Q: I worked in a federally declared disaster area and had to move for my job at my own expense. Can I deduct my travel and related expenses?

A: The answer depends on whether or not the move is expected to last for more than one year. If you expect the move to be temporary, defined as less than one year, then there is no change in your tax home. In this case, you can deduct travel and related expenses to get you both to and back from your temporary work assignment. If the move is long-term, defined as more than one year, then the expenses are not deductible, regardless of whether your employer reimbursed you.

Shoring up Protections for Sexually Abused Children, the Mentally Ill in Crises, and a Benefit Increase for Disabled Veterans

3 min read

Shoring up Protections for Sexually Abused Children, the Mentally Ill in Crises, and a Benefit Increase for Disabled VeteransEliminating Limits to Justice for Child Sex Abuse Victims Act of 2022 (S 3103) – Introduced by Sen. Richard Durbin (D-IL) on Oct. 28, 2021, this Act eliminates the statute of limitations for civil lawsuits by anyone who, as a minor, was a victim of human trafficking or a federal sex crime. The bill passed in the Senate on March 2, in the House on Sept. 13, and was signed into law on Sept. 16 by President Biden.

Law Enforcement De-Escalation Training Act of 2022 (S 4003) – This bill would authorize training for de-escalation and alternatives to the use of force when law enforcement officers are called to a scene involving mental and behavioral health and suicidal crises. The Act was introduced by Sen. John Cornyn (R-TX) on April 5. It passed in the Senate on Aug. 1 and is currently under consideration in the House.

National Aviation Preparedness Plan Act of 2022 (HR 884) – This legislation directs the Department of Transportation (DOT), in consultation with the aviation industry and labor stakeholders such as air carriers, to develop a national aviation preparedness plan for future outbreaks of communicable diseases. The plan must include provisions for frontline, at-risk workers to be equipped with the appropriate personal protective equipment (PPE) to reduce exposure and spread of the disease. The bill was introduced by Rep. Rick Larson (D-WA) on Feb. 5, 2021. It was passed in the House on Sept.14and has moved to the Senate.

Veterans’ Compensation Cost-of-Living Adjustment Act of 2022 (HR 7846) – This legislation was introduced by Rep. Elaine Luria (D-VA) on May 19. It proposes a cost-of-living increase beginning Dec. 1 for the compensation of veterans with service-connected disabilities as well as dependency and indemnity compensation for the survivors of certain disabled veterans. The bill passed in the House on Sept. 14 and is currently under consideration in the Senate.

Securing and Enabling Commerce Using Remote and Electronic Notarization Act of 2022 (HR 3962) – Introduced by Rep. Madeleine Dean (D-PA) on June 17, 2021, this bill would permit notaries public to perform electronic notarizations and remote notarizations for matters pertaining to interstate commerce. The Act specifies that minimum standards be established, and that all Federal courts be required to recognize notarizations performed by a notarial officer of any state. This bipartisan bill passed in the House on July 27 and has a very high chance of passing in the Senate.

Jenna Quinn Law (S 734) – On March 11, 2021, Sen. John Cornyn (R-TX), re-introduced this bill from an earlier version he proposed in 2019. The legislation would amend the Child Abuse Prevention and Treatment Act to authorize grants for training and education to teachers (as well as other school personnel, students and the community)for sexual abuse awareness and prevention programs among primary and secondary school students. The bill passed unanimously in the Senate on Aug. 3 and is awaiting further action by the House.

Increase In Deepfake Attacks and How Enterprises Can Prepare

4 min read

Deepfake AttacksDeepfake technology utilizes machine learning and artificial intelligence (AI) to manipulate or create synthetic audio, video and images that appear authentic. Deepfakes are commonly featured in entertainment and politics to spread false information and propaganda. For instance, deepfake has been used to show a celebrity or leader saying something that they didn’t, and this creates fake news.

Unfortunately, in deepfakes, cybercriminals have found a new tool for cyberattacks. Cybercriminals are now using deepfakes to pose a variety of enterprise risks.

How Cybercriminals Are Using Deepfakes

Deepfake technology is now used to create scams, hoaxes and false claims that undermine and destabilize organizations. For instance, a manipulated video might show a senior executive associated with fake news, such as admitting to a financial crime or spreading misinformation about a company’s products. Such corporate sabotage costs a lot of time and money to disprove and can impact a business’s reputation.

Another way businesses can be negatively impacted is through social engineering attacks such as phishing, which relies on impersonation to compromise an email. Similarly, social engineering using deepfakes can feature voice or video impersonations. A good example of such an impersonation was reported in The Wall Street Journal, in which fraudsters used AI to mimic a CEO’s voice. This incident happened in March 2019, when criminals impersonated a chief executive’s voice to direct a payment of $243,000.

Cybercriminals are able to execute social engineering attacks by accessing readily available information online. They can research a business, employees and executives. The criminal will even use an actual event picked from social media – for instance, a financial director who is just returned to work from a holiday – to sound more legitimate.

This emerging security threat is also made possible by the development of video editing software that can swap faces and alter facial expressions. Such developments have enabled deepfakes to fool biometric checks (like facial recognition) to verify user identities.

The deepfake cybersecurity threat has become such a concern that the Federal Bureau of Investigation (FBI) has issued a Private Industry Notification (PIN) cautioning companies of the possible use of fake content in a newly defined cyberattack vector referred to as Business Identity Compromise (BIC).

How to be Prepared and Protect Against Deepfakes

Deepfake videos and images can be recognized by checking for unnatural body shape, lack of blinking in videos, unnatural facial expressions, abnormal skin color, bad lip-syncing, odd lighting, awkward head and body positioning, etc. However, cybercriminals keep evolving and creating more convincing deepfakes.

Other measures introduced to combat deepfakes include creating solutions that detect deepfakes. There also was an introduction of deepfake legislation in the National Defense Authorization Act (NDAA) in December 2019.

Unfortunately, this has not been enough, and enterprises have the task of helping reduce the impact of these attacks. The following measures can help:

  1. Use anti-fake technologies
    Businesses should explore automated technologies that help identify deepfake attacks. They should also consider watermarking images and videos.
  2. Enforce robust security protocols
    Implement security protocols to help avoid deepfakes, such as automatic checks for any procedure involving payments. For instance, putting systems that allow verification through other mediums.
  3. Develop new security standards
    As security threats keep evolving, so should security standards within a company. For instance, introduce new security standards involving phone and video calls.
  4. Training and awareness
    Enterprises should enforce regular training and raise awareness among employees, management, and shareholders on the dangers of deepfakes to businesses. When all involved parties are trained to identify deepfake social engineering efforts, this will help reduce the chances of falling victim.
  5. Keep user data private
    Deepfake attackers use the information found in public domains such as social media. Although not a failsafe procedure, company profiles can be made private. Users also should avoid adding or connecting with strangers they don’t know and posting too much personal information online.
  6. Disinformation response policy
    Some deepfake incidents are out of control for an enterprise, such as fake videos purporting to be from top management. However, establishing a disinformation response plan will help in cases of a reputation crisis. This should include monitoring and curating all multimedia output – which will help present original content to the public as authentic content.

Conclusion

Deepfake is an emerging cybersecurity concern that requires enterprises to be aware of its potential threats and stay prepared. Although it might be possible to identify a poorly generated deepfake with the naked eye, the technology continues to advance. In response, countermeasures must keep pace.

How to Host Awesome Holiday Office Parties

4 min read

How to Host Awesome Holiday Office PartiesFall is here and so are many of the holidays we love. Whether it’s Halloween, Thanksgiving or December holidays, here are some fail-safe things you can do to make sure everyone shows up and has a good time.

Throw a Potluck

One of the easiest ways to lure people away from their desks is – you guessed it – food. Create a sign-up sheet with different categories to make sure you have enough savory and sweet dishes, and provide options for those with dietary restrictions. If you’re the organizer, you might supply the drinks and utensils, maybe even some appetizers or snacks. Depending on the holiday, you might also suggest a theme. If it’s Halloween, you could ask folks to bring their spookiest fare.

Have a Raffle

This is yet another way to get people out of their offices. Everyone who shows up gets a ticket and on the back they’ll sign their name. At different times during the party, have a drawing. Maybe leave the big prize to the end. You could even stipulate that people must be present to win. Some of the prizes you could offer are: gift cards, smart watches, paid time off (PTO) or tickets to an event (a sporting event, a concert, etc.). A weekend at a local hotel (think staycation) or airline tickets are also attractive options. If resources allow, the sky’s the limit.

Designate Secret Santas

During December, this is always a big hit. Employees draw random names and get paired up with someone. The Secret Santa is given a wish list to choose from to give to their giftee. A smart idea is to set a monetary limit, such as gifts for under $25. After opening the present, the giftee has to guess who gave them the gift.

Set Up Games

Think giant Jenga. Pin the carrot nose on the snowman. Cornhole. These can be scheduled or ongoing. And best of all, it’s easy and uncomplicated. Employees can come and go as they wish. A little competition while everyone is noshing is a surefire way to foster employee bonding.

Host a White Elephant Gift Exchange

This is another classic. Everyone brings a wrapped gift and then you draw numbers. People sit in a circle with the presents in the middle, select their gifts in numerical order and unwrap them for all to see. But here’s the fun part: You can steal a gift that someone before you has unwrapped, which causes that person to either select a gift from the pile or steal from someone else. After three steals, the gift is frozen with whoever has it.

Volunteer Together

Working side by side with your colleagues for a purpose greater than yourself always cultivates a sense of community. For example, you could print off blank cards with your company logo on them, then ask employees to send a note of thanks to deployed military members. Another thing you could do with the cards is send a word of encouragement to those who live at places like The Salvation Army. The holidays can bring up lots of emotions, and sending positive messages to others is always a reward in and of itself. After all, when you give, you receive.

If you try one or all of these ideas, taking a break from the grind and enjoying a little non-work fun is not just necessary, it’s critical. When employees can cut loose, as well as feel appreciated and cared for, it’s highly likely you’ll have a happier, healthier workplace.

Sources

https://www.indeed.com/career-advice/career-development/office-holiday-party

Financial Accounting Overview

5 min read

What are financial statementsFinancial accounting is how accounting professionals document, compile and outline how a business performs financially over a discrete period of time. Unlike cost accounting, which is used primarily for internal short and long-term strategic planning, financial accounting focuses primarily on producing relevant documentation for outside parties interested in short- and long-term financial performance.

Small businesses, large corporations and nonprofits use the following financial statements produced for relevant parties: the Balance Sheet, the Cash Flow Statement and the Income Statement. When it comes to publicly traded companies, their financial accounting standards are overseen by generally accepted accounting principles (GAAP). It’s one way to provide a standardized means to communicate the business’s monetary details to potential and current shareholders, lenders, government oversight and tax enforcement agencies.

Balance Sheet

As the U.S. Securities and Exchange Commission (SEC) explains, the balance sheet is a financial statement that informs readers about a business’s assets, financial obligations and shareholders’ equity. It’s how a business documents its asset valuation, its financial obligations and cash holdings. It provides owners, lending institutions and investors a way to analyze a business. The current ratio shows the ratio of current assets to current liabilities. This is a way to evaluate a business’ ability to manage financial obligations over the next year. Shareholders’ equity represents how much cash would remain if the business satisfied all creditors and all assets were liquidated; whatever remains would be the property of the shareholders.

Income Statement

Released once a month, every quarter or once per year, an income statement reports revenue, expenses, and net earnings or losses of a company for a given period. A company’s net revenue is calculated by subtracting allowances for uncollectable accounts, discounts, etc. from a business’s gross sales or revenues. From there, subtract the cost of sales, or how much the lot of products or services cost to make for the accounting period, from the net revenues figure. This results in gross profit or gross margin. Depreciation, along with amortization, or the cost of machinery and equipment losing life over time, is subtracted from the gross profit figure.

From there, operating expenses, which aren’t directly attributable to product or service production but are running day-to-day operations, are deducted from the resulting gross profit figure. This number is now called income from operations or operating profit before interest and income expense. Depending on the number, the interest income or interest expense is either added or subtracted from operating profits to arrive at the operating profit before income tax. Finally, income tax is deducted, resulting in net profit (net income or net earnings) or net losses. For publicly traded companies, it gives investors insight as to how much the company is making per share, so-called “earnings per share” (EPS).

Statement of Cash Flow

Per the SEC, a statement of cash flow features three sections that detail sources and utilization of the business’ operating, financing and investing cash flows. It paints a picture of inflows and outflows of the business’s cash levels. At the end of the day, it helps anyone interested in the company’s financials, especially potential and current investors, see the latest status and trends of cash flow.

One way to calculate cash flow, according to the SEC, is to look at a company’s free cash flow (FCF). This is calculated as follows:

Free Cash Flow = Operating Cash Flow – Capital Expenditures

Free Cash Flow = $50 million – $20 million = $30 million

This information is helpful because free cash flow can help determine a company’s financial health, how well (or not) the business model is performing, and its overall likelihood of success moving forward. Additionally, understanding the difference in accounting methods is another helpful piece of financial accounting analysis.

Accrual Method vs. Cash Method

Accrual Method

When it comes to the accrual method, according to the Congressional Research Service, when a business is paid for services or products to be rendered in the future, the payment is permitted to be recognized as revenue only when the product or service has been rendered. When it comes to accounting for expenses that are presumably deductible, under the accrual method, the expense can be recorded when it’s experienced by the business, not when payment has been made to the utility, raw material supplier, etc.

Cash Method

If a consultant gets payment immediately but isn’t expected to do said job until the following month, this approach requires revenue to be recognized when the cash has been received. Similarly, when expenses are paid is when expenses are recorded.

Considerations

For any business that handles inventory or sells to customers on credit, accrual accounting is required by the Internal Revenue Service. Similarly, for companies with average gross receipts of revenues greater than $25 million for the past 36 months, the IRS mandates accrual accounting. For companies with average gross receipt of revenues of less than $25 million, depending on the exact circumstances of the company’s business nature, cash or accrual may be used.

Financial accounting provides investors, business owners, and those providing businesses with legal and accountability a way to monitor performance and compliance.

Sources

IRS, IRS, IRS, FAS, SEC, SEC

How to Increase After-Tax Returns on Investments

4 min read

How to Increase After-Tax Returns on InvestmentsIt is all about how much you keep after taxes – not what you earn from your job, a business, or investments. While it is always great to see fabulous investment gains, the only financial metric that really matters is what is in your bank account at the end of the day. One of the ways you can influence this is by minimizing the taxes you pay on your investments.

Unfortunately, many people do not think about how taxes impact their investment returns until near the end of the year; however, you should act all year round. Taking part in investment tax planning throughout the year will give you opportunities to keep more of what you earn. Here are some rules and strategies to keep in mind.

Know When to Take Your Losses

Psychologically, many investors are averse to taking losses, holding out to “make their money back.” Instead of emotion, logic and investment acumen needs to be applied here. If an investment does not have a fundamental reason to turn around, then you are better off selling it and taking a tax loss.

Losses reduce taxes on either your capital gains for the year or, when losses exceed gains, up to $3,000 on other income. Excess losses can be carried forward to future years. Plus, you will have the proceeds to reinvest in something more likely to produce a return.

Let Winners Run

Unlike long-term capital gains, short-term capital gains are taxed as ordinary income. This means your marginal income tax rate (the highest rate applied to you) can impact your investment gains.

While you should not let the tax tail wag the investment dog, ideally you want to hold a winning investment for at least a year and a day to benefit from long-term capital gains tax treatment. This means you will pay only a 20 percent maximum tax versus whatever your marginal rate is.

As with losses, the fundamentals of the investment are key. Therefore you should not sell a holding if you think the gains are at risk just to save on taxes. If you believe in the investment for the long term, then holding out for preferred capital gains treatment can be a clever idea.

Give the Gift of Appreciation

Making charitable donations you would not otherwise give is generally not a viable tax strategy. However, if you are already charitably inclined then consider donating stock or mutual funds instead of cash.

When you donate property such as stocks, your charitable deduction is based on the fair market value of the asset on the date of the gift. It is much better to do this than donate cash.

For example, if you have a stock you purchased for $35 and it is now worth $135, when you donate it you will receive a charitable deduction of $135. If you were to sell the stock first, you would have to pay tax on the $100 gains and then have only $103 to donate in cash – assuming you are in the 32 percent tax bracket. The only winner in this situation is the IRS; both you and the charity lose. This is because the charity is excluded from paying capital gains taxes on the appreciation that occurred while you owned the asset.

Hold Until You Die

This strategy does not benefit you directly, but rather your heirs. When someone inherits an asset such as real estate, stocks, bonds, mutual funds, etc., the cost basis of the asset is reset to the fair market value at the date of death.

This means that if you have stock in company XYZ that you bought for $50 and now it is worth $500, you would pay tax on the gain of $450 per share. However, your heir would pay $0 if he sold it on the day you died. If your heir continues to hold the stock, the benefit still applies as his cost basis in the stock of XYZ would reset to $500, so he will pay taxes only on gains over that amount.

Conclusion

While you should never cheat on your taxes or do anything unethical, it is foolish to pay any more than legally necessary to the IRS. Engage in investment tax planning year-round and you may see better after-tax returns and more money in your bank account.

Productive Month Passing Domestic Manufacturing and Prescription Drug Allowances, Climate and Gun Violence Mitigation, and Veteran Burn Pit Healthcare Legislation

3 min read

Productive Month Passing Domestic Manufacturing and Prescription Drug Allowances, Climate and Gun Violence Mitigation, and Veteran Burn Pit Healthcare LegislationInflation Reduction Act of 2022 (HR 5376) – This legislation was originally introduced as the Build Back Better Act, President Biden’s signature bill of 2021. After suffering defeat in the Senate, the bill was later revised with fewer provisions to enhance its likelihood of passage, and renamed the Inflation Reduction Act. The bill authorizes funding for investments in domestic energy production and manufacturing with the goal of reducing U.S. carbon emissions by 40 percent by 2030. The bill provides tax credits for clean energy home enhancements and electric vehicle purchases, permits Medicare to negotiate prescription drug prices,and extendslower healthcare premiums for insurance purchased via the Affordable Care Act program through 2025. Also billed as a deficit reduction tool, the legislation imposes a minimum 15 percent corporate tax rate on large businesses with more than $1 billion in reported income, and a 1 percent excise tax on corporate stock buybacks. Furthermore, the bill increases previously reduced funding for the IRS in order to help track down and recoup taxes unlawfully skirted by high income earners. Initially introduced on Sept. 27, 2021, the Act was passed by both the House and the Senate in August and signed into law on Aug. 16.

CHIPS and Science Act of 2022(HR 4346) – This legislation includes $280 billion in funding to build a domestic supply chain for semiconductor chips as well as scientific and technological research to help keep U.S. industries competitive. The bill authorizes new and expanded investments in STEM education for K-12 to community college, undergraduate and graduate education.The bill was enacted on Aug. 9.

Bipartisan Safer Communities Act (S 2938) – Introduced by Sen. Marco Rubio (R-FL) on Oct. 5, 2021, this Act expands background checks for anyone under age 21 who seeks to purchase firearms, and offers incentives for states to pass red flag laws to remove weapons from people deemed a threat to themselves or others. The bill provides $11 billion in funding for mental health services in schools and local clinics, and to support mental health courts, drug courts, veterans’ courts and extreme risk protection orders. The final version of the bill passed in the Senate on June 23 and in the House on June 24. President Biden signed the bill into law on June 25.

Honoring our PACT Act of 2022 (S 3373) – This legislation, which expands healthcare benefits for veterans who were exposed to burn pits and other toxic substances while on active duty, was introduced by Sen. Tim Kaine (D-VA) on Dec. 9, 2021. Amid much fanfare and controversy this summer, this bipartisan bill was finally passed in both the House (July) and the Senate (August, requiring a second vote) and was signed into law by President Biden on Aug. 10.

PPP and Bank Fraud Enforcement Harmonization Act of 2022 (HR 7352) – Introduced by Rep. Nydia Velazquez (D-NY) on March 31, this bill amends the Small Business Act to extend the statute of limitation to 10 years for criminal charges and civil enforcement against borrowers under the Paycheck Protection Program, enacted during the early stages of the COVID-19 pandemic. The bill passed in the House on June 8 and in the Senate on June 28. It was enacted on Aug. 5.

2020 Vs 2021 Vs 2022 Federal Income Tax Brackets

3 min read

2020 Vs 2021 Vs 2022 Federal Income Tax BracketsThe US tax system is progressive, meaning that the more you earn the more you pay. For the years 2020-2022 there are seven different brackets for each year. Which bracket you are in depends on your taxable income; however, your bracket does not equal your tax rate.

Tax brackets work so that you pay part of your income at each level bracket as you move-up in income. In other words, someone in the 24% marginal rate bracket will pay 10% on part of their income, 12% on another part, 22% on yet another and finally 24% on everything else. In other words, moving into a higher tax bracket does NOT mean you pay higher taxes on all your income.

Below we will present comparative tables, so you change see the changes across the years, but before we do let’s look at how the rates and brackets have changes over the periods.

Evolution of Tax Rates and Brackets

The tax rates over the period are the same. There are seven brackets with progressive rates ranging from 10% up to 37% and they are the same over all three years.

Federal income tax rate brackets are indexed for inflation.  The brackets are adjusted using the chained Consumer Price Index (CPI). There were no structural changes to the tax brackets in any of the periods, so the only impact are increases year-over-year due to the inflation indexing.

The inflation adjustment factor for 2022 was 3.1% for example. This caused the 22% rate bracket for single filer to increase from $81,051 up to $83,551.

Tax Rates and Brackets

Below are the 2020-2022 tables for personal income tax rates. Note, that the 2020 figures below are the amounts applicable to the income earned during 2020 and paid in 2021 when you file your taxes.

 

Tax Brackets & Rates

Single Taxpayers
2020 2021 2022
10% 0 – $9,875 10% 0 – $9,950 10% 0 – $10,275
12% $9,875 – $40,125 12% $9,951 – $40,525 12% $10,276 – $41,775
22% $40,126 – $85,525 22% $40,526 – $86,375 22% $41,776 – $89,075
24% $85,526 – $163,300 24% $86,376 – $164,925 24% $89,076 – $170,050
32% $163,301 – $207,350 32% $164,926 – $209,425 32% $170,051 – $215,950
35% $207,351 – $518,400 35% $209,426 – $523,600 35% $215,951 – $539,900
37% $518,401 and Over 37% $523,601and Over 37% $539,901 and Over

 

Married Filing Jointly and Surviving Spouses
2020 2021 2022
10% 0 – $19,750 10% 0 – $19,900 10% 0 – $20,550
12% $19,751 – $80,250 12% $19,901 – $81,050 12% $20,551 – $83,550
22% $80,251 – $171,050 22% $81,051 – $172,750 22% $83,551 – $178,150
24% $171,051 – $326,600 24% $172,751 – $329,850 24% $178,151 – $340,100
32% $326,601 – $414,700 32% $329,851 – $418,850 32% $340,101 – $431,900
35% $414,701 – $622,050 35% $418,851 – $628,300 35% $431,901 – $647,850
37% $622,051 and Over 37% $628,301and Over 37% $647,851 and Over

 

Married Filing Separately
2020 2021 2022
10% 0 – $9,875 10% 0 – $9,950 10% 0 – $10,275
12% $9,875 – $40,125 12% $9,951 – $40,525 12% $10,276 – $41,775
22% $40,126 – $85,525 22% $40,526 – $86,375 22% $41,776 – $89,075
24% $85,526 – $163,300 24% $86,376 – $164,925 24% $89,076 – $170,050
32% $163,301 – $207,350 32% $164,926 – $209,425 32% $170,051 – $215,950
35% $207,351 – $311,025 35% $209,426 – $314,150 35% $215,951 – $323,925
37% $311,026 and Over 37% $314,151and Over 37% $323,926 and Over

 

Heads of Housholds
2020 2021 2022
10% 0 – $14,100 10% 0 – $14,200 10% 0 – $14,650
12% $14,101 – $53,700 12% $14,201 – $54,200 12% $14,651 – $55,900
22% $53,701 – $85,500 22% $54,201 – $86,350 22% $55,901 – $89,050
24% $85,501 – $163,300 24% $86,351 – $164,900 24% $89,051 – $170,050
32% $163,301 – $207,350 32% $164,901 – $209,400 32% $170,051 – $215,950
35% $207,351 – $518,400 35% $209,401 – $523,600 35% $215,951 – $539,900
37% $518,401 and Over 37% $523,601and Over 37% $539,901 and Over

 

 

Conclusion

There are no dramatic changes in the rates or brackets for the years 2020-2022, nor are there structural changes currently expected from congressional action.

Risk of Browser Extensions and How to Stay Safe

4 min read

Risk of Browser ExtensionsWeb browsers such as Google Chrome, Firefox, Safari and Edge, among others, play an essential role in enabling access to websites on the internet. Most browsers allow users to install extensions, also referred to as add-ons or plug-ins. These extensions are applications or small software modules that add functionality and other useful features to a browser.

By means of the extensions, users can carry out various tasks such as password management, cookie management, ad blocking, interface modification, productivity tracking, grammar and spell-checking, etc.

However, although the extensions offer different useful functionalities, cybercriminals have taken advantage of them, creating a security risk to users and their data.

The Need to Beware of Browser Extensions

Browsers enable websites to collect information such as viewing history, adding cookies, etc. Also, when installing the extensions, some require to be allowed various permissions, like the ability to read or change data. For instance, according to a recent study by Talon, a digital security company, most Chrome Web Store extensions (62.43 percent of extensions) require dangerous permissions, including permission to read or change user data and activity. This means that an extension can see the sites visited, keystrokes, login credentials and private data, such as payment card details.

Since this information is readily available on a user’s web browser, cybercriminals can use a malicious extension to collect the data for their gain. At the same time, the data collected is sold without user consent or knowledge and used by third-party data brokers to send users tailor-made ads.

Although not all browser extensions are a security risk, some might be built to impersonate legitimate extensions, especially those from third-party resources. In other cases, legitimate extensions have been compromised or bought by a developer who uses them for malicious purposes.

Some browser add-ons are built to download malware onto your device, redirect search traffic to malicious websites or download ad ware and Trojan horse viruses.

The extensions can automatically update without requiring any action from a user. This means that if a legitimate extension is compromised, it can be used to install malware without user knowledge. Even secure extensions are prone to attacks or can be compromised, enabling attackers to gain access to data stored by browsers.

Additionally, malicious extensions can be built to bypass fraud detection by official Web stores. For instance, in 2020, Google removed over 500 extensions from its web store that violated policies, with some already having infected users and stolen their data. This followed the discovery of some malicious extensions that users had already downloaded.

A recent report released by Kaspersky, a cybersecurity firm, shows just how dangerous malicious add-ons are. After the firm analyzed data from January 2020 to June 2022, it discovered that over this time frame, 4.3 million users were attacked by adware hiding in browser extensions. This put adware as the highest representative of browser extension risks, with malware coming second. The report also indicates that Kaspersky products prevented more than 6 million users from downloading adware, malware or riskware disguised as browser extensions.

Such figures from just one cybersecurity firm are worrying, considering the study focused only on users that use their security solutions. This creates a need for users to be more vigilant when using browser extensions.

How to Make Sure Browser Extensions Are Safe

There are various ways to help reduce the risks posed by browser extensions:

  1. Ensure the extension is from an official web store. Since these extensions can also be compromised, it is best to find out more information about the developer.
  2. Check reviews as they help to know what other users think of the extension and if there have been any complaints. However, users should be cautious of identical comments or too many 5-star reviews, as these could be fake.
  3. Check whether the extension is updated regularly. An extension last updated many years ago might not be reliable.
  4. Review extension permissions for each extension.
  5. Check that you are not installing clones of the original extension. For instance, if you search for an extension, you can find other similar ones that look legit.
  6. Uninstall browser extensions that you don’t recognize or those you no longer need.
  7. Use browsers that have the features you want.
  8. Install reliable antivirus software that will help spot malicious activities or applications.

Conclusion

Browser extensions play an important role in the user browsing experience. Although not all extensions are dangerous, users must conduct due diligence to ensure they install legitimate extensions.

Top Side Hustles

4 min read

Top Side HustlesIn our current economy, or anytime actually, it can’t hurt to have a side hustle to bring in extra cash. Some of these options can be quite lucrative, but like everything, it takes a little work to create a steady income stream. However, with a little pre-planning, you can do it. Let’s take a look.

Become a Tutor

Are you a math whiz? A wordsmith? History nut? Whatever your specialty, you can earn between $10 and $75 an hour. You might vary your price based on whether you’re tutoring high school, college or adult education classes. You can conduct your sessions online or in-person –totally up to you and your comfort level. All you have to do is create a lesson plan, then spread the word on social media, contact your local high schools and universities, or tack a notice near a central location such as a local coffee shop. When you’re sharing your knowledge and helping others, it might not feel like work at all.

Deliver Groceries with Instacart

If you haven’t heard of this, you might have seen people in grocery stores with their carts stuffed with brown paper bags full of items, list in hand – these are most likely Instacart workers. In sum, this gig is a same-day grocery delivery app. You shop for other folks; you don’t have to pay out-of-pocket when you’re at the store; and you can start earning money the very first week. Oh, and you get tips. According to ridester.com, you can make anywhere from $200 to $1,000 a week. Pretty easy and cool, right?

Rent an Extra Room Through Airbnb

While this might require some prep like buying extra towels and toiletries, as well as communicating with customers, you can make a lot in the long run. It might take a couple of months to get up and running, but you can bring in around 7 percent to 12 percent of your property value per year.

Help with Finances

If you have a background in accounting or finances, you might start up a business doing someone’s books, taxes or other services that have to do with money and/or budgeting. You can make from $20 to $100 an hour. Be sure to check with your city and state to find out what licenses and certifications you need.

Walk Dogs

Yes, dog walking can bring in more than you think. And you’ve probably seen these hearty souls on the sidewalks, sometimes with more than one furry friend in tow. If you live in a big city, there’s ample opportunity to make this work: you can make between $10 and $100 per day. And this is just a ballpark estimate. Plus, you’ll get your steps in. It’s healthy both fiscally and physically.

Write Resumes and Cover Letters

With all the job seekers out there, you could make a good chunk of change doing this. And you don’t necessarily need to be a writer. If you have a background in HR, recruitment or you’ve worked as a hiring manager, you’ll be ready to go. Hesitant about all that punctuation? One word: grammarly.com. This app will help you navigate all those writing questions you might have that inevitably come up when you’re composing. The average you might earn is somewhere in the neighborhood of $500 or more.

One Thing to Note

If you make more than $600, you must report it to the IRS. If you see that your side hustle is booming, if you start making thousands or tens of thousands of dollars a year, you might want to start a business. You could enjoy additional tax write-off opportunities so you can keep more of what you earn.

So start exploring, hang those shingles and watch the extra dough come rolling in.

Sources

https://careersidekick.com/side-hustle-ideas/

https://time.com/nextadvisor/financial-independence/best-side-hustles/

https://www.ridester.com/how-much-can-you-make-a-week-with-instacart/#:~:text=As%20an%20Instacart%20shopper%2C%20you,orders%20will%20earn%20more%20money.