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Answers to 3 Common Questions After Filing Your Tax Return

Answers to 3 Common Questions After Filing Your Tax Return
Answers to 3 Common Questions After Filing Your Tax Return 850 500 smolinlupinco

The 2023 federal tax filing deadline has come and gone. (Unless, of course, you filed for an extension until October 15.) Whether you’ve already filed or you’re still working on your return, you might have some questions once it’s been filed.

Let’s take a look at three of the most common ones.

1. When can I expect to receive my tax refund?

If you waited until the final hour to file, you may still be waiting for your return. The IRS says nine out of ten taxpayers should see their refunds within 21 days.

If you’re concerned that it’s taking too long, the IRS has an online tool that can help. Just type irs.gov into your browser and click on “Get your refund status.”

Make sure you’re prepared, though. You’ll need: 

  • Your social security number or individual taxpayer identification number 
  • Filing status 
  • Exact refund amount 

2. How do I need to keep tax records?

Typically, the statute of limitations for the IRS to audit your return or assess additional taxes is three years after you file your return. Thus, it’s a good idea to hold onto tax records related to your return for at least this long.

However, the statute of limitations is actually six years for taxpayers who underreport their gross income by more than 25%.

It’s a good rule of thumb to keep your actual tax returns indefinitely. That way, you can prove that you filed a legitimate return if needed. (No statute of limitations applies for an audit if you didn’t file a return or you filed a fraudulent one.) 

Retirement account records should be kept until three or six years after you’ve depleted the account and reported the last withdrawal on your tax return.

Real estate or other investment records should be kept for as long as you own the asset or until three or six years after you sell it and report the sale on your tax return. 

3. What do I do if I fail to report something? 

In most cases, you can file an amended tax return on Form 1040-X and claim your refund. You’ll need to do this within three years after the date you filed your original return or within two years of the date you paid the tax, whichever is later.

For example, if you filed a 2023 tax return on April 15, 2024, you’d be able to file an amended return until April 15, 2027.

There are some circumstances in which you could have longer to file an amended return. For example, the statute of limitations for bad debts is longer than the usual three-year time limit for most items on your tax return. Typically, you can amend a tax return to claim a bad debt for seven years after the due date of the tax return for the year that the debt became worthless. 

Questions? Smolin can help

Questions about filing an amended return, or accessing your refund? We’re here to help—and not just during tax season! Feel free to contact your Smolin accountant for guidance year-round.

2024 Q2 Tax Deadlines for Businesses and Employers

Key 2024 Q2 Tax Deadlines for Businesses and Employers
Key 2024 Q2 Tax Deadlines for Businesses and Employers 850 500 smolinlupinco

The second quarter of 2024 has arrived! If you’re a business owner or other employer, add these tax-related deadlines to your calendar. 

April 15

  • Calendar-year corporations: File a 2023 income tax return (Form 1120) or file for an automatic six-month extension (Form 7004) and pay any tax due.
  • Corporations: Pay the first installment of estimated income taxes for 2024. Complete Form 1120-W (worksheet) and make a copy for your records.
  • Individuals: File a 2023 income tax return (Form 1040 or Form 1040-SR) or file for an automatic six-month extension (Form 4868). Pay any tax due.
  • Individuals: pay the first installment of 2024 estimated taxes (Form 1040-ES), if you don’t pay income tax through withholding.

April 30

  • Employers: Report FICA taxes and income tax withholding for the first quarter of 2024 (Form 941). Pay any tax due.

May 10

  • Employers: Report FICA taxes and income tax withholding for the first quarter of 2024 (Form 941), if they deposited on time, and fully paid all of the associated taxes due.

May 15

  • Employers: Deposit withheld income taxes, Medicare, and Social Security for April if the monthly deposit rule applies.

June 17

  • Corporations: Pay the second installment of 2024 estimated income taxes.

Questions? Smolin can help

This list isn’t all-inclusive, which means there may be additional deadlines that apply to you. Contact your accountant to ensure you’re meeting all applicable tax deadlines and learn more about your filing requirements.

Standard-Business-Mileage-Rate-Increasing-in-2024

Standard Business Mileage Rate Increasing in 2024
Standard Business Mileage Rate Increasing in 2024 850 500 smolinlupinco


The IRS recently announced an increase to the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business. In 2024, the cents-per-mile rate for panel trucks, pickups, vans, and cars will rise from 65.5 cents to 67 cents.

The increase is meant to reflect, in part, changing gasoline prices. According to AAA, the national average price of a gallon of gas rose from $3.10 in December 2022 to $3.12 in December 2023.

Tracking expenses vs. standard rate

Generally, businesses can deduct actual expenses attributable to the business use of vehicles, such as:

  • Vehicle registration fees 
  • Licenses 
  • Insurance
  • Repairs
  • Oil
  • Tires
  • Gas

You may also claim a depreciation allowance for the vehicle. (Of course, it’s worth noting that certain limits may apply.) 

If maintaining detailed records of vehicle-related expenses feels tedious, the cents-per-mile rate may be a helpful alternative. However, you’ll need to keep track of certain information for each trip, including:

  • Destination 
  • Rate
  • Business trip

Businesses use the standard rate when reimbursing employees for the business use of their personal vehicles. This practice aids in attracting and retaining employees who utilize their personal vehicles for business purposes. The rationale behind this is that, according to existing laws, employees cannot deduct unreimbursed business expenses, including business mileage, from their individual income tax returns.

When employing the cents-per-mile rate, it’s important to note that adherence to various rules is necessary. Failure to comply may result in reimbursements to employees being treated as taxable wages for them.

How the rate is calculated

The IRS commissions an annual study about fixed and variable costs of vehicular operation, including depreciation, repairs, maintenance, and gas. The business cents-per-mile rate is adjusted each year based on this study.

Occasionally, the IRS will change the rate midyear if gas prices fluctuate substantially. 

Cases where the cents-per-mile rate is not allowed

The cents-per-mile method isn’t appropriate—or allowed—in every scenario.

  • How you’ve claimed deductions for the same vehicle in the past
  • Whether the vehicle is new to your business 
  • If you plan to take advantage of certain first-year depreciation tax breaks on it

Questions? Smolin can help.

Need assistance determining the best method to deduct business vehicle expenses? We’re here to help. Contact us to learn more about tracking and claiming these expenses on your 2023 tax returns and throughout 2024.

New Per Diem Business Travel Rates Effective October 1st

New Per Diem Business Travel Rates Effective October 1st
New Per Diem Business Travel Rates Effective October 1st 850 500 smolinlupinco

Do traveling employees at your business find documenting expenses tedious? Are you equally frustrated at the energy and time needed to review business travel expenses? If so, relief is on its way. In Notice 2023-68, the IRS set forth special “per diem” rates, which became effective on October 1st.

These rates may be used to substantiate expenses for lodging, incidentals, and meals when traveling away from home. (Note: Employees in the transportation industry can use the transportation industry rate.)

How to use the “high-low” method

Rather than tracking actual business travel expenses, the high-low method provides a simplified alternative through fixed travel per diems. These amounts are provided by the IRS and vary by locality.  

For certain areas with higher costs of living, the IRS establishes an annual flat rate. Any location within the continental United States that the IRS does not list as a “high-cost” area should automatically be considered “low-cost” under the high-low method. 

Areas such as Boston and San Francisco, for example, may be considered high-cost, while less metropolitan areas could be considered low-cost. Some areas, like resort areas, could be considered high-cost only during certain times of the year.

For business travel, this method can be used in lieu of the specific per-diem rates for business destinations.

When employers provide lodging or pay for the hotel directly, employees may only receive a per diem reimbursement for meals and incidental expenses. For employees who don’t incur meal expenses for a calendar day (or partial day) of travel, there is also a $5 incidental-expenses-only rate. 

Recordkeeping simplified

Employees working for companies that use per diem rates don’t need to meet the typical recordkeeping rules required by the IRS. Generally, receipts aren’t required under the high-low per diem method.

However, employees are still responsible for substantiating the business purpose, place, and time of travel. Per diem reimbursements aren’t typically subject to payroll tax withholding or income tax withholding reported on an employee’s Form W-2. 

What to know about the FY2024 rates

For travel occurring after September 30, 2023, FY2024 rates apply. The high-cost area per diem increased by $12, and the low-cost area per diem increased by $10. 

High-cost area per diem in 2024

The 2024 rate for all high-cost areas within the continental United States is $309. This can be broken down as follows.

Lodging: $235
Meals and incidental expenses: $74

Low-cost area per diem in 2024

For all other areas within the continental United States, the per diem rate is $214 for travel occurring after September 30, 2023. This may be broken down as follows:

Lodging: $150
Meals and incidental expenses: $64

Special considerations

The rules and restrictions that apply to reporting business travel expenses are nuanced. 

As an example, companies using the high-low method for an employee must continue using the same method to reimburse expenses for travel within the continental United States throughout the calendar year. However, the company may reimburse the same employee for travel outside of the continental United States using any permissible method during that calendar year.

In the last three months of a calendar year, employers must continue to use the same method (high-low method or per diem) for an employee as they used during the first nine months of the calendar year. 

Also worth noting: per diem rates don’t apply to individuals who own at least 10% of the business. 

Questions? Smolin can help. 

Now is the time to review travel rates and consider switching to the high-low method in 2024. Reduce the time and frustration associated with traditional travel reimbursement benefits managers and traveling employees alike.

For more information, contact your accountant.

Adjustments Social Security Wage Base

Adjustments to Social Security Wage Base Ahead
Adjustments to Social Security Wage Base Ahead 850 500 smolinlupinco

In 2024, the Social Security wage base for employees and self-employed people will increase.

Employees and employers can expect the wage base for computing Social Security tax to rise to $168,600 next year—a significant jump from the wage base of $160,200 in 2023. 

Self-employment income and wages above this amount won’t be subject to Social Security tax.

The basics on the Social Security wage base increase

Employers pay two taxes under the Federal Insurance Contributions Act (FICA): Social Security tax (for Old Age, Survivors, and Disability Insurance) and Medicare tax (for Hospital Insurance).

The amount of compensation subject to the Social Security tax is capped at a maximum, but there is no maximum amount for the Medicare tax. 

In 2024, employers should expect a FICA tax rate of 7.65%. This includes 6.2% for Social Security, with the remaining 1.45% going to Medicare. 

What is changing in 2024

In 2024, employees will pay a total of:

  • 6.2% Social Security tax on the first $168,600 of wages (6.2% x $168,600 makes the maximum tax $10,453.20)
  • 1.45% Medicare tax on the first $200,000 of wages ($250,000 for joint returns, $125,000 for married taxpayers filing separate returns)
  • 2.35% Medicare tax (regular 1.45% Medicare tax plus 0.9% additional Medicare tax) on all wages in excess of $200,000 ($250,000 for joint returns, $125,000 for married taxpayers filing separate returns)

In 2024, self-employed people pay the following rates in self-employment tax:

  • 12.4% Social Security tax on the first $168,600 of self-employment income, for a maximum tax of $20,906.40 (12.4% x $168,600)
  • 2.90% Medicare tax on the first $200,000 of self-employment income ($250,000 of combined self-employment income on a joint return, $125,000 on a return of a married individual filing separately)
  • 3.8% (2.90% regular Medicare tax plus 0.9% additional Medicare tax) on all self-employment income in excess of $200,000 ($250,000 of combined self-employment income on a joint return, $125,000 for married taxpayers filing separate returns)

What to know if you have more than one employer

Many people worked more than one job to make ends meet in 2023. If your employees are among them, you might have questions. 

Employees with a second job will have taxes withheld from two different employers. They may not ask you to stop withholding Social Security tax once they reach the wage base threshold. Even when an individual’s combined withholding exceeds the maximum amount of Social Security taxes that can be imposed for the year, each employer must withhold Social Security taxes. 

For any excess withheld, the employee should see a credit on their tax return.

Questions? Smolin can help.

If you have questions about payroll tax filing or payments, contact the helpful team at Smolin. We’ll help ensure you stay in compliance while achieving the most favorable tax rate possible.

Catch a tax break for making energy-efficient home improvements this summer
Catch a tax break for making energy-efficient home improvements this summer 850 500 smolinlupinco

According to the National Weather Service, nearly 190 million Americans have been under a heat advisory this summer. These scorching months might have you thinking about ways to make your home more energy efficient so that you don’t pay utility prices that are just as high as the heat index.

If you do decide to make some upgrades, there’s a new tax break that could ease some of the financial burden of the process. The Inflation Reduction Act of 2022 is an enhanced residential energy tax credit that can be used to mitigate the costs of qualifying improvements.

Who’s eligible for the tax credit

By making eligible energy-efficient improvements to your home on or after January 1, 2023, you might qualify for a tax credit of up to $3,000, and you can claim this credit for any eligible improvements through 2032.

This tax credit equals 30% of specific qualified expenses for energy improvements to a home located in the United States, including:

  • Qualified energy-efficient improvements installed during the year
  • Residential “energy property” expenses
  • Home energy audits

Of course, there are limits on the allowable yearly credit and the amount of credit for specific expenses.

The maximum claimable credit available each year is:

  • $1,200 for energy property costs and specific energy-efficient home improvements, with limits on doors ($250 per door and $500 total), windows ($600 total), and home energy audits ($150)
  • $2,000 per year for qualified heat pumps, biomass stoves or biomass boilers

In addition to the credit for windows and doors, other energy property includes central air conditioners and hot water heaters.

Prior to the 2022 law, there was a lifetime credit limit of $500. Today, this credit has no lifetime dollar limit. You’re allowed to claim the maximum annual amount every year that you make qualifying improvements until 2033.

For instance, you can make a few improvements this year and take a $1,200 credit for 2023, and then make additional improvements the next year to claim a $1,200 credit for 2024.

It’s important to note that the credit is claimed in the year in which the installation is completed.

Additional limits and rules

Generally speaking, the credit is available for your primary residence, although some improvements on secondary residences may qualify. 

If a property is used exclusively for business, you’re not allowed to claim this credit. 

If your home is partially used for business, the amount of credit you can receive will vary. For business use maxing out at 20%, you can claim the full credit, but anything over 20% will get you a partial credit.

While the credit is available for specific water heating equipment, you can’t claim it for anything that’s used to heat a swimming pool or hot tub.

This credit is nonrefundable, which means you can’t get back more on the credit than you owe in taxes. Additionally, you can’t apply any excess credit to future tax years. However, there’s no phaseout based on your income level, so even high-income taxpayers can benefit from this credit.

Have questions? Smolin can help

If you have questions about making energy-efficient improvements or purchasing energy-saving property for your home, contact the knowledgeable professionals at Smolin. We’ll show you how to make the Inflation Reduction Act and other tax breaks work for you.

NJBIZ Leaders in Finance Paul Fried

Paul Fried Selected as an NJBIZ Leader in Finance
Paul Fried Selected as an NJBIZ Leader in Finance 1200 628 smolinlupinco

Smolin is pleased to announce that Paul Fried, CEO-elect, has been selected as an NJBIZ Leader in Finance. NJBIZ Leaders in Finance recognizes financial executives whose passion and energy help drive their company’s success. Honorees are selected ​​because of their professional and civic engagement and their innovative contributions to their fields. They will be recognized at a ceremony on April 25, 2023. 

“Paul has been an instrumental team member at Smolin since he joined our family” shares Ted Dudek, Managing Member of the Firm. “His work for clients over the years has been impactful at all levels. His contributions to both Smolin and our community make him well-deserving of this honor.”

As a New Jersey Certified Public Accountant with over 40 years of industry experience, Fried has a long history at Smolin. He works with clients in the construction, real estate, manufacturing, distribution, and professional services industries and advises on tax matters, forensic accounting, and mergers and acquisitions.  

Paul currently serves on Smolin’s Executive, Merger and Acquisition, Finance, Strategic Planning, and Wealth Management committees. Fried is also a member of the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accounts. 

About NJBIZ Leaders in Finance awards

NJBIZ Leaders in Finance is conferred by NJBIZ, a publication of Bridge Tower Media. A description of the selection methodology is available here. 

Following an open nomination period, honorees are chosen by a panel of independent judges with experience in the financial field. The award categories include banking, corporate, investment, and professional. Selections are based on the nominees’ involvement in their industries and communities, their professional achievements, and innovative ideas. 

About Smolin 

Since 1947, Smolin has been committed to providing industry-leading professional financial and accounting services uniquely designed to meet the needs of each and every client. Smolin’s attention to the needs of each client has helped them become the successful and respected

Smolin Lupin 75th Anniversary

Smolin, Lupin & Co., LLC Celebrates 75 Years of Excellence
Smolin, Lupin & Co., LLC Celebrates 75 Years of Excellence 1600 837 smolinlupinco

Smolin Lupin, an Independent Member of the BDO Alliance USA and one of the NJBIZ Top 20 Public Accounting Firms in New Jersey, is celebrating 75 years of excellent accounting services helping clients achieve success. 

Since 1947, Smolin Lupin has been dedicated to developing long-lasting client relationships by providing professional financial and accounting services uniquely designed to meet the needs of each and every client. 

Smolin is known for helping clients and businesses grow through quality tax, accounting, and advisory services. Smolin helps clients meet their financial goals, and their innovative tax and accounting services have helped countless businesses grow and thrive in the always-changing market. 

“We’re proud of the past 75 years of Smolin, and we thank our incredible team, loyal clients, and the adaptability of the business as a whole,” says Smolin Member of the Firm and member of Smolin’s Executive Committee Henry Rinder.

Smolin’s roots take them back to Newark, New Jersey, servicing a core clientele of private, closely held businesses and professional firms. They helped grow what used to be small businesses and start-ups into medium-sized firms and large corporations. 

As they helped their clients grow, they continued to grow themselves, evolving into a full-service accounting firm with offices in Fairfield, Red Bank and Spring Lake Heights, New Jersey, and Juno Beach, Florida.

With their continued growth—and exceptional personnel—Smolin now offers a complete menu of traditional services from tax planning and preparation, audits and assurance, to specialized services, which include litigation support, forensic accounting, business consulting, estate planning, business valuations and much more. They’ve expanded to serve clients in various industries including (but not limited to) professional services, healthcare, hospitality, non-profit organizations, real estate development, and technology. 

But one thing has remained constant in Smolin’s 75 years of business: their commitment to offering clients the knowledge and expertise to help their businesses grow and thrive. Through their many years of experience and active service with their clients, Smolin’s team brings expertise to advise clients on key issues regarding their respective industries. 

“I’m excited about the future of our organization, and seeing the next levels of what’s to come—and how the future will help Smolin grow into even higher levels of excellence,” says Ted Dudek, Smolin President and Managing Member of the Firm. 

roche-miseo-barchetto-joins-smolin-lupin

Roche Miseo Barchetto Joins Smolin Lupin 
Roche Miseo Barchetto Joins Smolin Lupin  1600 1067 smolinlupinco

FAIRFIELD, NJ – January 19, 2023 – Smolin Lupin, an Independent Member of the BDO Alliance USA and one of the NJBIZ Top 20 Public Accounting Firms in New Jersey, is pleased to announce the merger of Roche Miseo Barchetto, LLC, a CPA firm headquartered in Parsippany, New Jersey. 

The professional team from Roche Miseo Barchetto, LLC services clients throughout the tri-state area. With a specialty in accounting for contractors spanning over 35 years, the firm has built a strong reputation in the surety and banking community. RMB also services wholesale distributors, professional service entities, and real estate professionals.

“We are thrilled to have RMB join us in providing the quality accounting and consulting services Smolin has always been known for,” said Ted Dudek, CPA and Managing Member of the Firm. “We believe Smolin will benefit greatly from RMB’s accounting and tax experience and commitment to quality and timely service.”

This merger will expand Smolin’s ability to deliver industry-leading financial and accounting solutions throughout New Jersey. RMB’s unique specialty in accounting for contractors will enhance Smolin’s existing client base in the construction industry.

“Our merger with Smolin will allow us to expand our client services and provide the necessary specialization in an ever-expanding marketplace of accounting and tax services,” said Carmen Miseo, CPA. “The cultural synergies between the two companies are apparent, as we share the same vision and philosophies. We look forward to continuing to service our clients in the same manner that you have grown accustomed to.”

As part of this merger, the RMB staff will relocate to Smolin’s Fairfield, New Jersey offices.

About Smolin Lupin

Since 1947, Smolin has been committed to providing industry-leading professional financial and accounting services uniquely designed to meet the needs of each and every client. Smolin’s attention to the needs of each client has helped them become the successful and respected CPA firm they are today. Smolin Lupin is an Independent Member of the BDO Alliance USA and one of the NJBIZ Top 20 Public Accounting Firms in New Jersey.

About Roche Miseo Barchetto, LLC

In 1987 Carmen Miseo and Richard Roche founded Roche Miseo & Co. and gave rise to what is now known as Roche Miseo Barchetto, LLC. Christopher Barchetto joined the firm in 1998 and became a partner in 2006. Today the firm thrives, servicing clients throughout the tri-state area. RMB’s commitment to quality and timely service is the driving force behind the firm’s growth over the years.

New Jersey Manufacturing Voucher Program

New Jersey Manufacturing Voucher Program
New Jersey Manufacturing Voucher Program 1600 941 smolinlupinco

The New Jersey Manufacturing Voucher Program: What you need to know

New Jersey is launching a $20,000,000 pilot program to assist manufacturers with accessing the equipment they need to be more efficient, productive, and profitable. The New Jersey Manufacturing Voucher Program will provide grants to those within targeted industries for a portion of eligible equipment costs, with an award of up to $250,000 per manufacturer. 

The program also offers bonuses focused on businesses that: 

  • Are women-owned, minority-owned, or veteran-owned 
  • Are located in an opportunity zone eligible for census tracts
  • Employ less than 100 full-time equivalent employees 
  • Have a collective bargaining agreement in place

How to apply

To be eligible for the program, applicants must be seeking assistance for a project they are actively contemplating but have not yet committed to. 

Manufacturing projects are ineligible for the program if: 

  • A contract has been signed
  • A purchase order has been placed
  • A deposit has been made
  • Equipment has been purchased prior to an approved application 

Learn more and apply online.

Note: Pre-qualification for this program is open as of Thursday, December 15, 2022 at 10:00 am. 

Need assistance? Contact us

Not sure how the New Jersey Manufacturing Voucher Program may impact your taxes? Our CPAs as Smolin are here to help. Contact us if you have any questions. 

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