Single Taxpayers
2021	2022	2023
10%	0 – $9,950	10%	0 – $10,275	10%	0 – $11,000
12%	$9,951 – $40,525	12%	$10,276 – $41,775	12%	$11,001 – $44,725
22%	$40,526 – $86,375	22%	$41,776 – $89,075	22%	$44,726 – $95,375
24%	$86,376 – $164,925	24%	$89,076 – $170,050	24%	$95,376 – $182,100
32%	$164,926 – $209,425	32%	$170,051 – $215,950	32%	$182,101 – $231,250
35%	$209,426 – $523,600	35%	$215,951 – $539,900	35%	$231,251 – $578,125
37%	$523,601and Over	37%	$539,901 and Over	37%	$578,126 and Over

Married Filing Jointly and Surviving Spouses
2021	2022	2023
10%	0 – $19,900	10%	0 – $20,550	10%	0 – $22,000
12%	$19,901 – $81,050	12%	$20,551 – $83,550	12%	$22,001 – $89,450
22%	$81,051 – $172,750	22%	$83,551 – $178,150	22%	$89,451 – $190,750
24%	$172,751 – $329,850	24%	$178,151 – $340,100	24%	$190,751 – $364,200
32%	$329,851 – $418,850	32%	$340,101 – $431,900	32%	$364,201 – $462,500
35%	$418,851 – $628,300	35%	$431,901 – $647,850	35%	$462,501 – $693,750
37%	$628,301and Over	37%	$647,851 and Over	37%	$693,751 and Over

Married Filing Separately
2021	2022	2023
10%	0 – $9,950	10%	0 – $10,275	10%	0 – $11,000
12%	$9,951 – $40,525	12%	$10,276 – $41,775	12%	$11,001 – $44,725
22%	$40,526 – $86,375	22%	$41,776 – $89,075	22%	$44,726 – $95,375
24%	$86,376 – $164,925	24%	$89,076 – $170,050	24%	$95,376 – $182,100
32%	$164,926 – $209,425	32%	$170,051 – $215,950	32%	$182,101 – $231,250
35%	$209,426 – $314,150	35%	$215,951 – $323,925	35%	$231,251 – $346,875
37%	$314,151and Over	37%	$323,926 and Over	37%	$346,876 and Over

Heads of Housholds
2021	2022	2023
10%	0 – $14,200	10%	0 – $14,650	10%	0 – $15,700
12%	$14,201 – $54,200	12%	$14,651 – $55,900	12%	$15,701 – $59,850
22%	$54,201 – $86,350	22%	$55,901 – $89,050	22%	$59,851 – $95,350
24%	$86,351 – $164,900	24%	$89,051 – $170,050	24%	$95,351 – $182,100
32%	$164,901 – $209,400	32%	$170,051 – $215,950	32%	$182,101 – $231,250
35%	$209,401 – $523,600	35%	$215,951 – $539,900	35%	$231,251 – $578,100
37%	$523,601and Over	37%	$539,901 and Over	37%	$578,101 and Over

Sanctioning Terrorist Activities by Iran, Accelerating Disaster Assistance and Expanding Healthcare Opportunities for Native Americans

3 min read

MAHSA Act (HR 589) – The Mahsa Amini Human Rights and Security Accountability (MAHSA) Act is a bipartisan bill that was introduced on Jan. 27 by Rep. Jim Banks (R-IN). The purpose of this bill is to impose sanctions on the leaders of Iran for supporting human rights abuses and terrorism. The sanctions block both property and visas owned by certain foreign individuals and entities affiliated with Iran. The bill passed in the House on Sept. 12 and currently resides in the Senate.

Fight CRIME Act (HR 3152) – This bipartisan bill was introduced by Rep. Michael McCaul (R-TX) on May 9. It imposes visa- and property-blocking sanctions specific to Iran’s missile-related activities, including acquiring, developing, transporting, or deploying missiles or related items, such as drone technologies. These sanctions also may be imposed on adult family members of people directly involved, as well as foreign individuals and entities that engage in transactions and knowingly provide support for the Missile Technology Control Regime (MTCR). This legislation was passed in the House on Sept.12 and is under consideration in the Senate.

Disaster Assistance Simplification Act (S 1528) – This bipartisan bill aims to facilitate streamlined information sharing among federal disaster assistance agencies, accelerate life-saving assistance to disaster survivors, and expedite the ability for communities to recover from disasters, as well as other purposes. The legislation was introduced by Sen. Gary Peters (D-MI) on May 10 and was passed in the Senate on July 27. It is presently under review in the House.

Tribal Trust Land Homeownership Act of 2023 (S 70) – Introduced by Sen. John Thune (R-SD) on Jan. 25, this bill mandates that the Bureau of Indian Affairs expedite processing and completion of residential and business mortgage applications within certain deadlines (e.g., provide approval or disapproval within 20 or 30 days, depending on the type of application). The bipartisan bill passed in the Senate on July 18 and is currently under consideration in the House.

Urban Indian Health Confer Act (S 460) – This Act, introduced by Sen. Tina Smith (D-MN) on Feb. 15, passed in the Senate on July 18 and is currently in the House. Its purpose is to expand the requirements of the Indian Health Service (IHS) on matters relating to both American Indians and Alaskan Natives. At present, the IHS is required to confer only with urban Indian organizations. However, this new bill would mandate that the U.S. Department of Health and Human Services (HHS) ensure that the IHS and other agencies consult on matters related to the Indian Health Care Improvement Act, as well as other healthcare provisions for Native Americans. The Act passed in the Senate on July 26 and has been forwarded to the House.

FEND Off Fentanyl Act (S 1271) – The objective of this bill is to impose sanctions on individuals, cartels and transnational criminal organizations involved in trafficking illicit fentanyl and related products. The legislation was introduced by Sen. Tim Scott (R-SC) on April 25 and was assigned to the committee for review on June 21. This bipartisan bill is co-sponsored by 32 Republicans, 32 Democrats and two Independents. It has a high probability of being passed by both houses and enacted by the president.

Work and Social Security Benefits

4 min read

You can work and still receive Social Security benefits, but how much you receive depends on a number of factors.

First, if you do plan to continue working after becoming eligible to receive benefits, you might consider delaying filing for benefits for as long as possible. That’s because the earlier you begin drawing benefits, the lower the amount you will receive. In fact, your monthly payout will be permanently reduced from what you’ll receive if you wait until full retirement age (FRA).

Your FRA depends on the year you were born (note that for people born on Jan. 1 of any year, they should refer to the previous year):

Born 1943-1954: full retirement age is 66
Born in 1955: 66 plus two months
Born in 1956: 66 plus four months
Born in 1957: 66 plus six months
Born in 1958: 66 plus eight months
Born in 1959: 66 plus 10 months
Born in 1960 or later: 67

Benefit Reduction Due to Work

If you are working and begin drawing benefits before your full retirement age, your payout could be further reduced if you earn more than the prescribed income limit. In 2023, the annual earnings limit is $21,240. In this scenario, Social Security will deduct $1 from your benefits for each $2 in excess of the limit.

Benefit Reduction in Your FRA Year

The benefit reduction amount and the earned income limit both change the year you reach FRA. In 2023, the earned income limit is $56,520. In this year only, the reduction is adjusted to $1 for every $3 in excess of $56,520, but only up until the month you reach FRA. After that, there will no longer be a reduction due to work income.

In the first full month after your FRA, Social Security will begin paying out your total eligible amount (which depends on the age you started drawing benefits) for any whole month after FRA, regardless of how much more you earn that year (and every year thereafter). In other words, from that point on, you will receive the full amount you were eligible for at the age you began drawing benefits.

You might wonder if you will ever receive the money that was held back due to your excess income. The answer is yes. Starting the following January, after you turn full retirement age, your Social Security benefit will increase to reflect those previously lost benefits.

Work Advantages

If working while drawing Social Security seems like a bad idea, consider that you could benefit from a couple of advantages. First, the automatic benefit reductions that occur while you’re working will help reduce your income tax liability for those years. Second, your work income could increase your permanent Social Security payout if any or all of those years before FRA are among your 35 highest-earning years. As you continue to pay FICA taxes on your work income, the benefit is recalculated every year. This is a way to increase your lifetime benefit if you begin drawing Social Security early.

Work Until Age 70

The most strategic way to earn the highest possible lifetime benefit from Social Security is to keep working and delay drawing Social Security benefits until age 70. This is because during the years between your official FRA and the month you turn 70, you can earn additional credits that reward you for delaying. This will permanently bump up your payout.

If You Go Back to Work

Also, be aware that if you’ve already started drawing Social Security benefits but wish you hadn’t, you can cancel your application as long as you do so in the first 12 months. Note that you are required to pay back all of the money you received from Social Security, including any spousal benefit that was based on your earnings record and all Medicare premiums that were deducted from your benefits. However, doing so could reset your benefit to a higher amount when you reapply later – if your subsequent annual income counts among your highest 35 years of earnings.

If you have already reached your full retirement age (but have not yet turned age 70), you no longer have the option cancel your application. However, you can have your Social Security benefit suspended, which might reduce your tax bill while you continue working.

Common Financial Reporting Mistakes and How to Correct Them

3 min read

With accounting fraud and financial reporting mistakes creating a lack of confidence, understanding how financial reporting mistakes occur and are detected is an important topic. According to the Association for Federal Enterprise Risk Management and the U.S. Securities and Exchange Commission, the first nine months of 2018 saw 8.8 percent more accounting fraud enforcement action cases versus 2017.

Controls are procedures implemented to lower the chance of financial reporting issues. While these mechanisms are meant to prevent an overload of problems, they are not always foolproof. Corporations also are required to show that sufficient financial oversight is in place for financial records and assets by the Sarbanes-Oxley Act of 2002. There are two types of controls: preventive and detective.

As the name implies, preventive controls are devised to avert mistakes before they happen. Methods include ongoing training, worker evaluations, and mandating different layers of authorization for transactions.

Detective methods look at the granular accounting steps. Having internal and external audits performed and comparing real-world activity against what’s been budgeted or forecasted are two ways to implement this approach. However, performing account reconciliation where the business’ financial data is compared against third-party documentation can provide near real-time insight into what is actually occurring. This includes analyzing checks and cash the business has collected and documented on their books but that may not be reflected on bank statements. Another factor in the reconciliation process is checks the company has sent out that have not been processed by the business’ vendors, etc.

Since detective controls alert companies to errors after the fact, it is important that they are conducted in a timely manner – daily, monthly, quarterly, or annually. If there’s a discrepancy between the company’s ending cash balance and the bank’s monthly statement, there might be differing balances. This can be due to the financial institution’s service fees and checks taken into account by the business that aren’t yet reflected on the financial institution’s statement. However, other cases of discrepancies could point to signs of fraud.

According to the University of California Los Angeles, there are many ways to split tasks. Doing this is integral to successful mitigation of errors and unauthorized behavior because it deters the likelihood of multiple workers collaborating. Specifically, when it comes to authorizations, reconciliations, and responsibility for the assets, it is a high priority for businesses to break tasks up among multiple workers.

Examples include dividing the duties between opening the mail/preparing a list of checks to review and the individual who deposits the checks. The individual who oversees accounts receivables should be separate from the person who creates a list of checks received. It’s not advisable for a sole employee to initiate, approve, and record a transaction. Similarly, reconciling balances, handling assets, and reviewing reports should not be done by a single employee. A minimum of two individuals should be available to handle any transaction.

While the most diligent accounting professional has made a mistake from time to time, learning how to identify financial reporting mistakes can reduce the likelihood of even rare mistakes being unknowingly shared with others.

Sources

https://www.aferm.org/erm_feed/wrong-numbers-the-risks-of-inaccurate-financial-statements/

IRS Plans to Use AI and Ramp Up Enforcement on Millionaires, Partnerships and Crypto

4 min read

Recently, IRS Commissioner Danny Werfel spoke of changes within the IRS, announcing several initiatives focusing on high-income earners and partnerships, as well as integrating the use of AI within the agency’s work. According to the commissioner, the initiatives were made possible by additional IRS funding provided by the Inflation Reduction Act. Without the funding from this bill, the agency would not have the budget to implement these ramp-ups in enforcement.

Millionaires with Tax Debt

The new initiative on millionaires is not just because they are high-earning taxpayers; it will focus on those with open tax debt. Currently, the IRS has identified approximately 1,600 millionaires who are in debt to the IRS for $250,000 or more. The agency plans to designate agents to focus on these high-impact collection cases. A prior campaign resulted in a collection of more than $38 million in tax debt.

High-Income Earners with Foreign Bank Accounts

Another new initiative focusing on high-earning taxpayers includes ramped-up inspection for those who have foreign bank accounts and use them to evade taxes.

By law, every U.S. resident who has a financial interest in or control over a foreign financial account must disclose this information if he or she had $10,000 or more at any point in the year by filing an FBAR.

The IRS conducted an analysis and identified potentially hundreds of taxpayers who should be filing an FBAR and are not, with average balances of more than $1 million. The most egregious cases are planned to be audited in fiscal year 2024.

Partnerships and Corporations

Starting in 2021, the IRS began the initial stages of a new compliance program focusing on complex partnership tax returns. Now, the IRS is set to expand this initiative over more partnerships.

In total, the IRS has plans to open examinations on the 75 biggest U.S. partnerships. “Biggest” means these businesses have, on average, more than $10 billion in assets, so it’s safe to say small and medium size businesses won’t be affected.

Additionally, the IRS will be looking into smaller (but albeit still large) partnerships with more than $10 million in total assets that have balance sheet mismatches. The focus is on partnerships with balance sheet discrepancies where the prior year’s ending balance sheet is not equal to the next year’s opening balance sheet without any explanation. The IRS uses this as a red flag because they have found through full inspections that balance sheet issues are often the proverbial canary in the coal mine for other areas of non-compliance.

Once again, the focus will be on larger partnerships with balance sheet mismatches. The agency plans to send notices to approximately 500 partnerships. Depending on the initial follow-up, an audit may result.

Digital Assets, Including Crypto

The IRS plans to continue its virtual currency compliance campaign, educating taxpayers on the rules, regulations, and reporting obligations surrounding cryptocurrencies. The rules around the taxation of digital assets have evolved in recent years, and more and more taxpayers are invested in these types of assets.

The IRS subpoenaed transaction information from centralized exchanges and found that potentially an estimated 75 percent of taxpayers involved in crypto are non-compliant, some as a form of tax evasion and others simply from ignorance. In any case, the IRS plans to ramp up digital asset enforcement this coming year.

Artificial Intelligence

Lastly, the IRS is looking to utilize artificial intelligence to help agents do their job more effectively. The IRS is particularly interested in how AI can help flag tax returns for audit in important areas.

The agency plans to invest in the latest analytic solutions that can detect patterns, trends, and activities that are typically linked to tax evasion, thereby freeing up employees to focus on other matters.

Conclusion

Overall, the IRS’s focus is on high-income, tax-debt-burdened individuals, the largest partnerships, and sizable crypto players. This means that these enforcement campaigns shouldn’t have much of an impact on the average taxpayer. However, the growing use of AI will impact everyone from top to bottom.

Securing Your Identity: The Role of Decentralized Identity Systems in Data Breach Prevention

4 min read

second quarter of 2023, 110.8 million user accounts were breached. Of these accounts, 49.8 million were from the United States, accounting for 45 percent of the global figure. However, amid the rising threats, a revolutionary concept known as decentralized identity systems has created a solution to reduce data breach cases.

Data Breaches and the Current State of Identity Management

A data breach happens when unauthorized individuals or entities gain access to sensitive information, often for malicious purposes. These breaches can happen to anyone, from individuals to large corporations, and they come with severe consequences that could include financial losses, reputation damage, and identity theft.

The current identity systems are centralized and have inherent vulnerabilities and limitations. These centralized identity systems involve a central authority, such as a government agency or a corporation, storing and managing individuals’ personal information. This means that if a hacker breaches the central authority’s security, he or she gains access to a vast amount of sensitive data.

Furthermore, since the centralized systems often collect extensive personal information, the practice raises concerns about data privacy. The entities storing user data predominantly control and monetize it, which has led to discomfort and distrust among users.

The centralized systems also create a fragmented user experience. This is because different platforms, such as social media, online retailers, news websites, etc., require users to create accounts. Users then must juggle multiple usernames, passwords, and data formats, complicating the digital experience. Businesses also incur high costs associated with ensuring secure systems, the latest infrastructure, and compliance.

How Decentralized Identity Systems Can Help Prevent Data Breaches

Decentralized identity systems are an alternative to centralized identity management. These systems put individuals in control of their own digital identities. The decentralized identity systems are enabled by technologies such as Web3, a concept based on a trust framework for identity management. Web3 evolution has led to decentralized identifiers, and this allows for secure management of user data and authentication through blockchain wallets.

Using blockchain technology ensures the security and immutability of identity data. Once information is added to the blockchain, it cannot be altered or deleted without the user’s consent.

However, they allow users to have control over their identity information. Users choose what data to share and with whom, enhancing privacy and security. There is no need for third parties to verify user identity.

Since users store data on their devices or a location they choose, it eliminates single points of failure. Instead of a centralized authority, identity data is distributed across a decentralized network of nodes. Additionally, these systems use advanced cryptographic keys, allowing only the user to access their data.

Decentralized identity systems are already making an impact in various industries, such as healthcare, financial services, and government services. The security benefits of decentralized identity include:

Enhanced Security

Decentralized identity systems offer robust security measures. With data stored on a blockchain, it becomes exceedingly difficult for hackers to breach the system. Even if one node is compromised, the decentralized nature of the network ensures that other nodes maintain the integrity of the data.

Privacy Control

Users regain control over their personal information. They decide what data to share and retain the ability to revoke access at any time. This puts an end to excessive data collection by corporations and governments.

Reduced Identity Theft and Fraud

Decentralized identity systems make it incredibly challenging for fraudsters to impersonate individuals or access their data. This significantly reduces the risk of identity theft and related fraudulent activities.

New Economic Models
Decentralized identity models can create new economic models where consumers are awarded when they choose to share their data with service providers.

While decentralized identity systems offer promising solutions, they are not without challenges. The widespread adoption of decentralized identity systems presents scalability challenges. Another challenge is usability, as complexity can deter individuals and businesses from embracing this technology. The need for a regulatory framework is another challenge, as it is necessary to address factors related to legal and compliance.

Conclusion

Decentralized identity systems offer hope in an age where data breaches are a constant threat. These systems can revolutionize how users secure their digital identities by putting control back into individuals’ hands. While challenges exist, the benefits of enhanced security, privacy control, and reduced fraud make decentralized identity systems a promising solution in the ongoing battle against data breaches.

Securing Your Identity: The Role of Decentralized Identity Systems in Data Breach Prevention

October 1, 2023 · Blog, Uncategorized, What’s New in Technology

4 min read

How to Securing Your Identity Data breaches have been on the rise as cybercriminals keep coming up with new ways to steal user-sensitive information. Just in the second quarter of 2023, 110.8 million user accounts were breached. Of these accounts, 49.8 million were from the United States, accounting for 45 percent of the global figure. However, amid the rising threats, a revolutionary concept known as decentralized identity systems has created a solution to reduce data breach cases.

Data Breaches and the Current State of Identity Management

How Decentralized Identity Systems Can Help Prevent Data Breaches

Using blockchain technology ensures the security and immutability of identity data. Once information is added to the blockchain, it cannot be altered or deleted without the user’s consent.

Enhanced Security

Privacy Control

Reduced Identity Theft and Fraud

New Economic Models
Decentralized identity models can create new economic models where consumers are awarded when they choose to share their data with service providers.

Conclusion

Disclaimer

How to Identify and Avoid Cash Flow Pitfalls

4 min read

Looking at expenses for one’s business is essential to reduce cash flow issues. For example, it would show if there’s too much money leaving the business or what type of scenario the business might face if there’s an unexpected and large expense that guts the business’ cash position. Tracking expenses on a monthly basis is one way to determine a company’s financial health.

Estimating sales by starting with last year’s month-by-month figures is one way to start. Looking at credit and cash sales from a business’ monthly income statements provides historical reference. Examining both fixed and variable past expenses, specifically, is a good starting point. However, it’s important when projecting future sales and reasonable increases to remember that the business could be impacted negatively by a new competitor or positively if one goes out of business.

Determining when payment will be received is a good way to project cash flow. If it’s cash, then it’s instant and no further calculation is necessary. However, if payment is conducted by invoices, credit lines, etc., businesses are encouraged to perform the Days Sales Outstanding (DSO) calculation. This calculates, on average, how long customers take to pay outstanding invoices.

DSO = (Monthly accounts receivables/Total sales) x Days in the month

This is a good way to measure how long customers actually take to pay invoices versus what terms are specified in contracts or invoices.

Another consideration is to look at fixed and variable expenses. While fixed expenses are just that, fixed, it’s important to monitor variable expenses because they can fluctuate. One example is inflation, which can increase the cost of input materials, salaries, overhead, etc. Depending on the volume of production or sales, electricity, commission, or similar costs can also vary.

Once this information is gathered, the current month’s projected cash flow can be calculated.

The formula is as follows: (Last month’s cash balance + Current month’s projected receipts) – Projected expenses.

Preventing Bad Debt from Happening Before Collections is Necessary

According to SCORE, there are many things a business can do to reduce the likelihood of customer debt default and increase cash flow. Businesses can check the creditworthiness of both individual and commercial clients before offering credit to determine the likelihood of defaulting.

Similarly, if Net 30 is the standard timeframe to pay an invoice, offering a 5 percent discount if it’s paid within seven days is one way to encourage prompt payment. Businesses that get a deposit when signing the contract or before beginning work will generate a more consistent cash flow.

Operating Cash Flow Ratio Example

This looks at how easily a company can satisfy current liabilities from its cash flows that are produced from the business operations. If there’s negative cash from operations, a business might be relying too heavily on financing or selling assets to run its operations. If earnings are steady, but cash flow from operations is falling, this is a negative indication of a company’s health. It’s calculated as follows:

(Operating Cash Flow/Current Liabilities) = ($15 billion/$45 billion) = 0.33

Businesses with an operating cash flow ratio greater than 1 have produced more cash in an operating period than is necessary to satisfy current liabilities. Businesses that have a reading less than 1 did not produce enough cash to satisfy current liabilities. However, further investigation is required to ensure that it’s not taking some of its excess cash to reinvest in projects with the potential to create future rewards.

While there’s no way to predict future cash flow trends, making projections can help businesses compare actual results to projects and adjust their plans more efficiently.

Sources

https://www.score.org/resource/article/10-ways-improve-collections-and-cash-flow

Widow/er Social Security Benefits

5 min read

A widow or widower is eligible for a survivor’s benefit from Social Security even if they never worked – as long as the deceased spouse qualified for benefits based on his or her own income record. Also, note that surviving spouses must have been married to their most current spouse for at least the nine months prior to their passing or for 10 years if the couple was divorced.

When Can You Claim?

A widow/er may apply for benefits once she turns age 60, age 50 if she qualifies as disabled or if she is responsible for the care of a child under age 16 (or a mentally or physically disabled child aged 16 or older). However, if the widow/er applies for a surviving spouse’s benefit starting at age 60/50, that benefit will be permanently reduced from the maximum amount available if she were to wait until her own full retirement age.

What Is Full Retirement Age for the Widow/er?

For anyone born from 1945 to 1955, their full retirement age (FRA) is 66. If born between 1955 and 1959, FRA increases by two months each year from age 66 to 67. FRA is age 67 for anyone born in 1960 or later.

How Much Can You Get?

First and foremost, all Social Security beneficiaries receive the highest benefit for which they qualify. Therefore, if a surviving spouse would receive a higher benefit from her own record of earnings than that of the deceased spouse, then that’s the amount she will receive.

If the deceased was receiving Social Security disability benefits when he passed, the survivor benefit is based on the deceased’s disability benefit.

Normally, the spousal benefit equals half the benefit of the higher-earning spouse. However, the surviving spouse’s benefit equals 100 percent of what the deceased worker would have received, including any delayed retirement credits he earned by postponing benefits to age 70.

The minimum surviving spouse benefit at age 60 is 71.5 percent of the available amount. This represents a permanent loss of 28.5 percent of the benefit available at FRA. The widow/er benefit is reduced for each month shy of his or her own FRA, so the closer they get to FRA before applying, the higher the benefit. The amount freezes once they begin drawing benefits, although it will increase incrementally based on cost-of-living adjustments.

The maximum benefit a widow/er may receive is 100 percent of what the deceased spouse would receive if he was still alive. However, that amount may already be reduced. For example, if the deceased began drawing benefits at age 62 instead of waiting until FRA, then that is the maximum benefit the widow/er is eligible for. If she begins drawing early before her own FRA, that benefit will be reduced further.

Ideally, the deceased will not have started receiving Social Security before his death. In this scenario, even if he died in his 50s, his maximum benefit is what he would have received at FRA. Now it’s up to the widow/er to time her survivor benefit – she can wait until her own FRA or take a permanently reduced benefit.

Delay Strategy

One strategy a widow/er may want to consider is to begin her own benefit at age 62, even if it is less than what she would draw as a survivor. Then, she can delay drawing the survivor benefit until it grows higher – ideally, the highest benefit at her FRA.

If the widow/er does not have her own benefit from earnings or can’t live on that amount alone, she may want to withdraw income from other sources, such as retirement savings or an annuity. While that may reduce her overall net worth, it’s important to remember that the Social Security benefit continues for life, so it may be worthwhile to get the highest benefit possible. Other accounts, such as an IRA or 401(k), will stop paying out income once they are depleted.

If the widow/er has a stronger earnings record, another option is to begin drawing the survivor’s benefit early and delay taking her own benefit until FRA or age 70, to receive a higher benefit for life based on her own record. Once she applies for her own benefit, the payout will increase to a higher amount.

Seek Professional Advice

Knowing when to begin drawing a widow/ers benefit can be challenging. The best option is usually based on factors such as other income resources and even the widow’s health. If in poor health and not expected to live many years, it may be wise to begin the survivor’s benefit as soon as possible. Otherwise, it’s probably better to wait and get a higher payout for as long as she lives.

Another thing to keep in mind is that if the widow/er doesn’t know the deceased spouse’s FRA benefit at the time of death, she is not likely to find out until age 60. The Social Security shuts down the deceased’s account at death and won’t reveal the benefit until the widow/er is of qualifying age to begin receiving it. It’s always a good idea for both spouses to check (and share with each other) their accrued benefits each year so that they have accurate numbers to plan with in case one spouse passes away.

IRS Ruling: Crypto Currency Staking Rewards Are Taxable When Received

3 min read

The IRS recently issued an important ruling on the taxability of cryptocurrency staking rewards, determining that staking rewards are essentially “income” and, therefore, taxable upon receipt and not deferrable until sale or swapping. Below, we will look at the ruling in more detail and what it means for taxpayers. But first, let us revisit the concept of cryptocurrency staking as a refresher.

Crypto Staking 101: What Is Staking?

Staking, at its most basic form, is a way for holders of cryptocurrencies to earn rewards or passive income on their digital assets without needing to sell.

One way to think of staking is like a high-yield savings account. When you stake digital assets, you deposit and lock up your coins. This helps run and maintain security on different blockchains (depending on the asset staked). In return, you typically receive more of the digital asset staked.

Rates of return on digital asset staking can be lucrative; however, staking is not without risks.

Staking risks include:

The inherent volatility of cryptocurrencies, where the rewards earned can be less than the change in the underlying digital asset price (causing an overall loss).

Minimum lock-up periods, where staked assets cannot be unstaked and sold or swapped and therefore are illiquid for a period.

Counterparty risk if operating as part of a staking pool, where rewards can be negated as a bad actor and therefore never paid out.

The staking pool or underlying digital asset can be hacked, leading to a loss of funds (remember, there is such a thing as FDIC insurance to protect depositors in the cryptocurrency realm).

Taxability of Staking Rewards

The tax treatment of buying and selling cryptocurrencies is clear. In IRS Notice 2014-21, the government declares that crypto trades should be treated as property, resulting in capital gains treatment like other property bought and sold. Staking, however, is different than trading.

To clarify, given the vague mechanisms of crypto staking, the IRS recently issued a ruling declaring that crypto staking rewards need to be included when received in a taxpayer’s gross income. This ruling formalizes the position taken by the IRS in the Jarrett case.

The argument in the Jarrett case was that the coins received as staking rewards are new property that was created and not the same as income, interest, etc. Essentially, this means the staking rewards are zero-basis assets that would be taxed when sold and not upon receipt. They made the argument that staking rewards were like the products of a baker, where each new cake, although from the same recipe, is a newly created product/asset and, therefore, taxable upon sale.

The court determined that staking rewards, due to their proof-of-stake creation mechanism, are not a new asset, but compensation for helping to maintain and provide validation of the underlying blockchain, with the staked assets used as collateral.

Conclusion

As a result, staking rewards are income when “received.” The taxable amount is the fair market value of the coins when the taxpayer receives the staking reward in an “unlocked” manner. In other words, once the taxpayer controls the staking rewards, the taxpayer is capable (regardless of exercising this capability) of selling them.

How Businesses Can Leverage Data and Personalization for Targeted Campaigns and Growth

4 min read

analyzing, and leveraging data to make informed decisions. Therefore, business owners need to understand how to harness the power of data and personalization to create targeted campaigns that drive growth.

Importance of Data and Personalization in Modern Business

Businesses today collect loads of data, enabling them to understand their customers’ preferences, behaviors and interests. The data comes from different channels, such as a business website, emails, or social media. It is then used to identify patterns and trends to make informed marketing decisions. This yields valuable insights that help craft highly personalized and effective marketing strategies.

Data is the foundation of personalization strategies. Personalization involves tailoring customer experiences to meet individual interests, needs, and preferences. It aims to build strong customer relationships, encourage engagement, and drive revenue and growth.

Personalization takes different approaches, such as recommendations based on previous purchases, creating unique landing pages, or sending emails based on customer browsing behavior. For example, e-commerce websites recommend products based on user browsing history and search queries.

Business owners can’t afford to ignore personalization since customers today are more informed, can easily access information, have more options, and have more control over purchase decisions. Furthermore, customers are more demanding and want to be recognized as individuals, expecting to receive personalized experiences. This has rendered traditional, one-size-fits-all marketing strategies obsolete.

How Businesses Can Use Data and Personalization for Targeted Campaigns and Growth

Using a data-driven approach, a business can create campaigns that deliver the right message to the right audience at the right time by doing the following:

1. Audience segmentation

Capturing the attention of a specific audience segment leads to higher conversion rates. To do this, a business can leverage data insights to segment the target audience. This means it is possible to categorize potential customers based on demographics, interests, or browsing behavior.

2. Crafting personalized content

Once segmentation is complete, it becomes possible to create tailored campaigns that resonate with each segment’s unique preferences. Aside from addressing customers by their names, it involves delivering content that speaks directly to their needs, interests, and pain points. This could include product recommendations based on past purchases or sending targeted offers that align with customer browsing history.

3. Omnichannel personalization

Customers interact with businesses using various channels, such as a business website, social media, emails, and mobile apps. A business can integrate data and personalization efforts to ensure a seamless journey for customers, regardless of where they engage. Additionally, it is crucial to deliver consistent and personalized experiences across these channels.

4. Continuous improvement in data-driven campaigns

Data insights also help guide businesses on the most suitable content and distribution strategies. They can analyze types of content performing well and in which channels. For example, a business can conduct A/B testing to compare campaign and content variations to identify the most effective approach for each segment.

5. Measuring and analyzing results

To establish the effectiveness of personalized campaigns, a business will need to develop clear key performance indicators (KPIs) and measurement methods. One way to measure the impact of personalization is through customer engagement. This is done by measures such as click-through rates on personalized emails, customer retention rates, customer lifetime value, customer feedback, and number of sales.

It is worth noting that to make the most out of data insights. It is helpful to invest in advanced analytics tools or collaborate with data experts.

6. Adapting to changing trends

The digital landscape is evolving constantly, with new technologies and trends emerging regularly. Businesses must stay updated on these changes and adapt their personalization strategies accordingly. Remaining flexible and open to innovation ensures that the company’s targeting efforts are relevant and effective.

Data Privacy and Security

Although personalization in modern business is crucial, it must be balanced with privacy concerns. First, a business must be transparent about the data it collects and how it will be used. In addition, businesses need to be careful with the data they collect. They must ensure data security by safeguarding data storage and using safe transmission methods, have access control limits, and regularly audit data privacy policies and practices. Customers should be allowed to opt out of data collection and personalization efforts easily.

Customer data must be well protected to ensure compliance with relevant regulations. It also helps build trust with customers. Besides, a breach of trust can severely affect a business’s reputation and growth.

How Businesses Can Leverage Data and Personalization for Targeted Campaigns and Growth

September 1, 2023 · Blog, Uncategorized, What’s New in Technology

4 min read

Data and Personalization, Targeted Campaigns Marketing efforts today depend on collecting, analyzing, and leveraging data to make informed decisions. Therefore, business owners need to understand how to harness the power of data and personalization to create targeted campaigns that drive growth.

Importance of Data and Personalization in Modern Business

How Businesses Can Use Data and Personalization for Targeted Campaigns and Growth

Using a data-driven approach, a business can create campaigns that deliver the right message to the right audience at the right time by doing the following:

1. Audience segmentation

2. Crafting personalized content

3. Omnichannel personalization

4. Continuous improvement in data-driven campaigns

5. Measuring and analyzing results

It is worth noting that to make the most out of data insights. It is helpful to invest in advanced analytics tools or collaborate with data experts.

6. Adapting to changing trends

Data Privacy and Security

Disclaimer

2021 Vs 2022 Vs 2023 Federal Income Tax Brackets

3 min read

The US tax system is progressive, meaning that the more you earn the more you pay. For the years 2021-2023 there are seven different brackets for each year (2020 was the same structure as well). 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 32% marginal rate bracket will pay 10% on part of their income, 12% on another part, then 22% on another band of income, 24% on the next tranche and finally, 32% on everything else. In other words, moving into a higher tax bracket does NOT mean you pay higher taxes on all your income.

Below are comparative tables for the taxable years 2021 – 2023. This way you can not only see the tax brackets that apply 2023 taxable income, but the trend changes over time.

Updates to 2023 Tax Rates and Brackets

Over the 3-year period shown below, there are seven brackets with progressive rates ranging from 10% up to 37% and they are the same overall 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 2023 was 7% for example, raising income thresholds applied to the tax brackets across the board.

Tax Rates and Brackets

Below are the 2021-2023 tables for personal income tax rates. Note, that the 2023 figures below are the amounts applicable to the income earned during 2023 and paid in 2024 when you file your taxes.

Tax Brackets & Rates

Single Taxpayers
2021		2022		2023
10%	0 – $9,950	10%	0 – $10,275	10%	0 – $11,000
12%	$9,951 – $40,525	12%	$10,276 – $41,775	12%	$11,001 – $44,725
22%	$40,526 – $86,375	22%	$41,776 – $89,075	22%	$44,726 – $95,375
24%	$86,376 – $164,925	24%	$89,076 – $170,050	24%	$95,376 – $182,100
32%	$164,926 – $209,425	32%	$170,051 – $215,950	32%	$182,101 – $231,250
35%	$209,426 – $523,600	35%	$215,951 – $539,900	35%	$231,251 – $578,125
37%	$523,601and Over	37%	$539,901 and Over	37%	$578,126 and Over

Married Filing Jointly and Surviving Spouses
2021		2022		2023
10%	0 – $19,900	10%	0 – $20,550	10%	0 – $22,000
12%	$19,901 – $81,050	12%	$20,551 – $83,550	12%	$22,001 – $89,450
22%	$81,051 – $172,750	22%	$83,551 – $178,150	22%	$89,451 – $190,750
24%	$172,751 – $329,850	24%	$178,151 – $340,100	24%	$190,751 – $364,200
32%	$329,851 – $418,850	32%	$340,101 – $431,900	32%	$364,201 – $462,500
35%	$418,851 – $628,300	35%	$431,901 – $647,850	35%	$462,501 – $693,750
37%	$628,301and Over	37%	$647,851 and Over	37%	$693,751 and Over

Married Filing Separately
2021		2022		2023
10%	0 – $9,950	10%	0 – $10,275	10%	0 – $11,000
12%	$9,951 – $40,525	12%	$10,276 – $41,775	12%	$11,001 – $44,725
22%	$40,526 – $86,375	22%	$41,776 – $89,075	22%	$44,726 – $95,375
24%	$86,376 – $164,925	24%	$89,076 – $170,050	24%	$95,376 – $182,100
32%	$164,926 – $209,425	32%	$170,051 – $215,950	32%	$182,101 – $231,250
35%	$209,426 – $314,150	35%	$215,951 – $323,925	35%	$231,251 – $346,875
37%	$314,151and Over	37%	$323,926 and Over	37%	$346,876 and Over

Heads of Housholds
2021		2022		2023
10%	0 – $14,200	10%	0 – $14,650	10%	0 – $15,700
12%	$14,201 – $54,200	12%	$14,651 – $55,900	12%	$15,701 – $59,850
22%	$54,201 – $86,350	22%	$55,901 – $89,050	22%	$59,851 – $95,350
24%	$86,351 – $164,900	24%	$89,051 – $170,050	24%	$95,351 – $182,100
32%	$164,901 – $209,400	32%	$170,051 – $215,950	32%	$182,101 – $231,250
35%	$209,401 – $523,600	35%	$215,951 – $539,900	35%	$231,251 – $578,100
37%	$523,601and Over	37%	$539,901 and Over	37%	$578,101 and Over

Conclusion

While the tax brackets are the same in 2023 as the prior year, the income thresholds increased 7% following hot inflation in the CPI. You can lower your marginal rate or at least reduce the amount of taxable income subject to it by optimizing itemized deductions.

Sanctioning Terrorist Activities by Iran, Accelerating Disaster Assistance and Expanding Healthcare Opportunities for Native Americans

Work and Social Security Benefits

Common Financial Reporting Mistakes and How to Correct Them

IRS Plans to Use AI and Ramp Up Enforcement on Millionaires, Partnerships and Crypto

Securing Your Identity: The Role of Decentralized Identity Systems in Data Breach Prevention

How to Identify and Avoid Cash Flow Pitfalls

Widow/er Social Security Benefits

IRS Ruling: Crypto Currency Staking Rewards Are Taxable When Received

How Businesses Can Leverage Data and Personalization for Targeted Campaigns and Growth

2021 Vs 2022 Vs 2023 Federal Income Tax Brackets

Tax Brackets & Rates

Author: Service2Client

Sanctioning Terrorist Activities by Iran, Accelerating Disaster Assistance and Expanding Healthcare Opportunities for Native Americans

Work and Social Security Benefits

Common Financial Reporting Mistakes and How to Correct Them

IRS Plans to Use AI and Ramp Up Enforcement on Millionaires, Partnerships and Crypto

Securing Your Identity: The Role of Decentralized Identity Systems in Data Breach Prevention

How to Identify and Avoid Cash Flow Pitfalls

Widow/er Social Security Benefits

IRS Ruling: Crypto Currency Staking Rewards Are Taxable When Received

How Businesses Can Leverage Data and Personalization for Targeted Campaigns and Growth

2021 Vs 2022 Vs 2023 Federal Income Tax Brackets

Tax Brackets & Rates

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