| Notification from Washington Department of Revenue: 2025년 2분기 워싱턴주 판매세율 변경이 있습니다. 2025년 2분기 업데이트는 아래의 Sales Tax Rate Tools 를 통해 자세히 보실수 있습니다. |
2025 Minimum Wage Resources
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The Quarter 2, 2025, Washington State sales tax rate changes
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Quarter 2, 2025 Update — Sales Tax Rate Tools The Quarter 2, 2025, Washington State sales tax rate changes are now available. |
2025 Minimum Wage Resources
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2025년 1분기 워싱턴주 판매세율 변경
| Notification from Washington Department of Revenue: 2025년 1분기 워싱턴주 판매세율 변경이 있습니다. 2025년 1분기 업데이트는 아래의 Sales Tax Rate Tools 를 통해 자세히 보실수 있습니다. |
2025 Minimum Wage Resources
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The Quarter 1, 2025, Washington State sales tax rate changes
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Quarter 1, 2025 Update — Sales Tax Rate Tools The Quarter 1, 2025, Washington State sales tax rate changes are now available. |
2025 Minimum Wage Resources
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2025-03 Reminder: Combined Excise Tax Filing Due
Summary Read:
A reminder that the deadline for filing the February 2025 Washington State combined excise tax return is approaching. Businesses should submit their sales information by March 20, 2025, to avoid late filing. Also included are recent updates to local sales tax rates effective January 1, 2025, and changes to state and city minimum wages.
A reminder that the deadline for filing the February 2025 Washington State combined excise tax return is approaching. Businesses should submit their sales information by March 20, 2025, to avoid late filing. Also included are recent updates to local sales tax rates effective January 1, 2025, and changes to state and city minimum wages.
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Important Due Dates & Tax Supporting Documents are Due
Summary Read
2024 tax filing deadlines are quickly approaching! To ensure timely filing, please upload your tax documents to our secure client portal by the following dates:
2024 tax filing deadlines are quickly approaching! To ensure timely filing, please upload your tax documents to our secure client portal by the following dates:
- Partnerships (Form 1065) and S Corporations (Form 1120S): February 15, 2025
- Individuals (Form 1040 and FBAR filings) and C Corporations (Form 1120): March 15, 2025
Keep in mind that penalties and interest may apply if taxes owed are not paid by the original IRS due dates. For further assistance or to request an extension, please contact our office.
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2025-02 Reminder: Combined Excise Tax Filing Due
Summary Read:
A reminder that the deadline for filing the January 2025 Washington State combined excise tax return is approaching. Businesses should submit their sales information by February 18, 2025, to avoid late filing. Also included are recent updates to local sales tax rates effective January 1, 2025, and changes to state and city minimum wages.
A reminder that the deadline for filing the January 2025 Washington State combined excise tax return is approaching. Businesses should submit their sales information by February 18, 2025, to avoid late filing. Also included are recent updates to local sales tax rates effective January 1, 2025, and changes to state and city minimum wages.
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2024-12 Preparing for 2024 Tax Filing: Essential tips and Key Tax update
Happy Holidays from Alisa Na CPAs and Advisors!
With 2025 approaching, we want to share essential tips for our individual and business clients.
The Internal Revenue Service encouraged taxpayers to take key steps now to prepare for filing their 2024 federal income tax returns next year. There are several things’ taxpayers can do to get ready as the end of 2024 nears and the start of the 2025 tax season approaches.
Gather and organize 2024 tax documents
To make tax time easier, taxpayers should establish an adequate record-keeping system, either electronic or paper, to organize all essential documents in one place. This includes year-end income forms such as Forms W-2 from employers, Forms 1099 from banks or other payers, Forms 1099-K from third-party payment networks, Forms 1099-NEC for nonemployee compensation, Forms 1099-MISC for miscellaneous income, Forms 1099-INT for interest income and records of all digital asset transactions.
Having all necessary documentation ensures taxpayers can file an accurate return and reduces the likelihood of processing delays or refund issues.
Please download our 2024 Tax Prep Checklist to help you gather and organize your 2024 Individual Tax documents. We also have a Tax Organizer for Small Business (Sch. C) and Rental Property (Sch. E).
IRS Online Account
Individuals can create or access their IRS Online Account at Online account for individuals. Currently, the IRS Online Account is not available for Business accounts. With an IRS Online Account, you can:
- View, make, and cancel payments.
- Set up or change payment plans and check their balance.
- View key details from their most recent tax return, such as adjusted gross income.
- Request an Identity Protection PIN.
- Get account transcripts to include wage and income records.
- Sign tax forms like powers of attorney or tax information authorizations.
Get an Identity Protection Personal Identification Number (IP PIN)
An IP PIN is a six-digit number that prevents someone else from filing a federal tax return using an individual’s Social Security number or Individual Taxpayer Identification Number. It’s a vital tool for ensuring the safety of taxpayers’ personal and financial information.
The best way to sign up for an IP PIN is through the IRS Online Account. If an individual cannot create an Online Account, alternative methods, such as in-person authentication at a Taxpayer Assistance Center, are available.
Deadline for 2024 last quarterly estimated payment is Jan. 15, 2025
Taxpayers with non-wage income—such as unemployment benefits, self-employment income, annuity payments, or earnings from digital assets—may need to make estimated or additional tax payments. The Tax Withholding Estimator on IRS.gov can help wage earners determine if they need to make an additional payment to avoid an unexpected tax bill when filing their return.
Prepare to include digital assets on taxes in 2025
Like previous filing years, taxpayers must report all digital asset-related income when they file their 2024 federal income tax return.
When filing 2024 federal income tax returns, taxpayers will be asked to answer “Yes” or “No” to the following question:
“At any time during the tax year, did you:(a) receive (as a reward, award or payment for property or services); or (b) sell, exchange or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”
Taxpayers who answer “Yes” must report all income related to their digital asset transactions.
Be sure to keep records that prove their purchase, receipt, sale, exchange, or any other disposition of the digital assets, and that includes the fair market value, as measured in U.S. dollars, of all digital assets received as income or as a payment in the ordinary course of a trade or business. Information on how to report digital asset transactions, including calculating capital gain or loss, determining basis, and reporting the income on the correct form, can also be found on the digital assets landing page.
Understand refund timing and how to avoid delays
Several factors can influence the timing of a refund after the IRS receives a tax return. While the IRS issues most refunds in less than 21 days, taxpayers are advised not to depend on receiving a 2024 federal tax refund by a specific date. Some returns may require additional review and take longer to process if there are possible errors, missing information, or indications of identity theft or fraud.
Additionally, under the PATH Act, the IRS cannot issue refunds for tax returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) before mid-February.
Use direct deposit for a faster refund
Filing electronically and selecting direct deposit remains the fastest and safest way for taxpayers to receive their 2024 tax refunds. Direct deposit ensures quicker access to refunds compared to receiving a paper check. Please provide the most updated bank account information to your tax preparer for a faster refund.
Key Tax Updates
- Washington’s Long Term Capital Gain Tax – Washington’s Long Term Capital Gain Tax of 7% is due on April 15, 2025, for long-term gains greater than $270,000 (except for real estate and several other circumstances). There are penalties for not paying in April. Please get in touch with us in February if you would like to schedule a consultation regarding this. For more detail, please click here to visit the Department of Revenue’s page.
- The child tax credit – The child tax credit is $2,000 for dependent children under 17 (The refundable portion of the child tax credit is $1,700). You qualify for the full 2024 Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 for a single return ($400,000 if filing a joint return).
- IRS gift exclusion – The IRS gift exclusion is $18,000 in 2024 and $19,000 in 2025, respectively. Gifts above these amounts should be reported on the gift tax return.
- Federal lifetime gift and estate tax – As of January 1, 2024, the federal lifetime gift, estate, and GST tax exemption amount increased to $13,610,000 per person.
- Educator Credit – You can deduct up to $300 of unreimbursed classroom expenses if you are an eligible educator. If both spouses are educators and file jointly, they can deduct up to $600 (with each individual capped at $300).
- Interest Rate – Due to inflation, the underpayment or late interest rate for individual taxpayers will increase to 8% in 2024. Please consider making estimated payments by April 15th, even if you request an extension to file your tax return.
- Social Security benefit and wage base – Social Security benefits will increase by 2.5% beginning in 2025. Social Security wage base will increase to $176,100 in 2025.
- IRS Business Mileage rate – The IRS standard mileage rates are 67 cents per mile for business purposes in 2024 and 70 cents per mile beginning Jan. 1, 2025. Standard mileage rates | Internal Revenue Service
- Form 1099-K – Taxpayers who received over $5,000 ($2,500 in 2025 and $600 in calendar year 2026 and thereafter) in payments for goods and services through an online marketplace or payment app in 2024 should expect to receive a Form 1099-K in January 2025. However, they can send you a Form 1099-K with lower amounts. Although the IRS is taking a phased approach to implementing the Form 1099-K reporting threshold, companies could still send the form for over $600. Whether or not you receive a Form 1099-K, you must still report any income on your tax return.
- Student Loan Forgiveness – Student Loan Forgiveness will not be taxable on Federal returns but may be taxable in some states.
- Charitable contributions – We recommend obtaining receipts for all charitable contributions. For more details, please check IRS website: Charitable contribution deductions | Internal Revenue Service
- EV credit – In 2025, you can get a tax credit for electric vehicles (EVs) tax credit of up to $7,500 for a new EV or $4,000 for a used EV. New EV credit is divided into two parts: $3,750 for meeting battery part requirements and $3,750 for meeting critical minerals requirements. Vehicles that satisfy both conditions are eligible for the full $7,500 credit. The income limits for the EV credit are $300,000 for married filing jointly and $150,000 for Single filers.
- Home energy credit – If you make qualified energy-efficient improvements to your home after Jan. 1, 2023, you may qualify for a tax credit of up to $3,200. You can claim credit for improvements made through 2032. The maximum credit you can claim each year is:
- $1,200 for energy-efficient property costs and specific energy efficient home improvements, with limits on exterior doors ($250 per door and $500 total), exterior windows and skylights ($600), and home energy audits ($150).
- $2,000 per year for qualified heat pumps, water heaters, biomass stoves, or biomass boilers.
- The Maximum Retirement contributions for 2024
- $7,000 for Traditional IRA or Roth IRAs ($8,000 if you are age 50 or older)
- $16,000 for SIMPLE IRAs ($19,500 if you are age 50 or older)
- $23,000 for 401ks ($30,500 if you are age 50 or older)
- $69,000 for SEP IRAs (Contributions cannot exceed the lesser of 25% of the employee’s compensation or $69,000 for 2024)
- The Maximum Health Savings Account (HSA) contributions for 2024
- $4,150 for Self-only coverage
- $8,300 for Family coverage
- Those 55 and older can contribute an additional $1,000 as a catch-up contribution.
If you have questions, be sure to reach out to us.
[2024-11-22 Alert] Potentially Confusing or Misleading Notices and solicitations from State and Federal agencies, such as the WA Secretary of State, FinCEN, and IRS.
Dear Clients,
Our office has received inquiries from our clients regarding solicitation text messages, emails, phone calls, and notice mailings they received from third-party solicitors. When you receive a letter from a state or federal agency, pay more attention to it, and if you are in any doubt, never click on a link or scan a QR code. Also, keep your credit card and personal information private over the phone. Please collect the sender/callers’ information, such as name and badge ID information, and directly call the agency instead of calling the number they provide. This is the best way to determine whether the caller was legitimate. We want to alert our clients to common confusing or misleading notices.
WA Secretary of State
- Annual Report Solicitations from a third party – An annual report must be filed each year by the end of the anniversary month and can be filed by the Secretary of State website or by requesting assistance from our office. The Office of the Secretary of State will send due date reminder notices directly to registered businesses via email and paper notice. The office does not send text messages.
- Please find details and examples of these solicitations from the link below:
Examples of Potentially Confusing or Misleading “Notices” & “Solicitations” | WA Secretary of State
FinCEN – Financial Crimes Enforcement Network
- Beneficial Ownership Information (BOI) report solicitation—FinCEN has posted an alert regarding recent fraudulent attempts by hackers to solicit information from individuals and businesses that may be subject to reporting requirements under the CTA.
- These fraudulent scams may include:
- Correspondence requesting payment.
- Correspondence that asks the recipient to click on a suspicious URL or to scan a suspicious QR code.
- Correspondence requesting personal information.
- Please find details and examples of these solicitations from the link below:
Beneficial Ownership Information Reporting | FinCEN.gov
IRS
We want you to understand how and when the IRS contacts taxpayers and help you determine whether a contact you may have received is truly from an IRS employee.
The IRS initiates most contacts through regular mail delivered by the United States Postal Service. They don’t initiate contact by email, text, or social media to request personal or financial information. There are circumstances in which the IRS will call or come to a home or business. These include when a taxpayer has an overdue tax bill, a delinquent (unfiled) tax return, or has not made an employment tax deposit. Even then, taxpayers will generally first receive several notices and letters from the IRS in the mail.
- Tax scam warning signs: Scammers mislead you about tax refunds, credits, and payments. They pressure you for money or personal, financial, or employee information. IRS impersonators try to look like us.
- Watch out for:
- A big payday – If it sounds too good to be true, it probably is. Bad tax advice on social media could urge you to falsify tax forms or credit claims.
- Demands or threats – Impersonators want you to pay “now or else.” They threaten arrest or deportation.
- Website links – Odd or misspelled web links can take you to malicious sites instead of IRS.gov.
- How do I verify contact from the IRS? – Go to IRS.gov and search on the letter, notice, or form number. Please be aware that fraudsters often modify legitimate IRS letters and forms. You can also find information at Understanding your notice or letter or by searching forms and instructions. For additional information please see How to know it’s really the IRS calling or knocking on your door.
- Please find details and examples of these solicitations from the link below:
Recognize tax scams and fraud | Internal Revenue Service
Please use caution when you receive correspondence from an unknown party. Verify the sender. We ask our clients to become familiar with these fraudulent messages, not to respond, not to click on links, not to scan QR codes, and never to provide their personal information.
If you have questions, be sure to contact us. Our entire team is here to support and guide you.
Sincerely,
ALISA NA CPAs & Advisors
2024-11 Combined Excise Tax & Beneficial Ownership Information Reporting
This is a friendly reminder that the due date to file the October 2024 Washington State Department of Revenue excise tax return is approaching.
If you have not provided the information to our office yet, please send us your October* sales (or Quarter sales for Quarterly fliers and Annual sales for Annual fliers) information by Monday morning (11/18/24) to ensure timely filing.
Corporate Transparency Act: Beneficial Ownership Information Reporting:
The new filing requirement, Beneficial Ownership Information Reporting (BOI) to FinCEN started in 2024. This requirement applies to all businesses that are registered with the State to engage in business. https://fincen.gov/boi.
Please keep in mind the following filing deadlines based on your company’s creation date, and make sure you comply:
Notification from Washington Department of Revenue:
Local sales tax rates in the following areas will change beginning January 1st, 2025:
- City of Burlington Transportation Benefit District
- City of Burlington Transportation Benefit District Car Dealers and Leasing Companies
- City of Covington Transportation Benefit District
- City of Covington Transportation Benefit District Lodging Businesses
- City of DuPont Transportation Benefit District
- City of Gig Harbor Public Safety Tax
- City of Gig Harbor Public Safety Tax Car Dealers and Leasing Companies
- City of Gig Harbor Transportation Benefit District
- City of Gig Harbor Transportation Benefit District Car Dealers and Leasing Companies
- Kittitas County Emergency Communication Tax
- Kittitas County Emergency Communication Tax Car Dealers and Leasing Companies
- City of La Conner Transportation Benefit District
- City of La Conner Transportation Benefit District Car Dealers and Leasing Companies
- City of Maple Valley Transportation Benefit District
- City of Maple Valley Transportation Benefit District Lodging Businesses
- City of Pullman Transportation Benefit District
- City of Snoqualmie Public Safety Tax
- City of Snoqualmie Public Safety Tax Car Dealers and Leasing Companies
A complete list of location codes and tax rates can be found here on the website.
2025 Minimum Wage Resources
Washington State: https://www.lni.wa.gov/news-events/article/24-24
The Washington State Department of Labor & Industries (L&I) announced an increase in the state’s minimum wage to $16.66 per hour, effective on January 1, 2025.
Starting January 1, 2025, all employers, regardless of schedule size, will be required to pay the same minimum wage of $20.76 per hour. Small employers will no longer be able to count tips and/or payments toward an employee’s medical benefit plan toward an employee’s minimum compensation requirements under Seattle’s Minimum Wage Ordinance.
Bellingham: https://cob.org/services/business/city-minimum-wage
Starting May 1, 2025, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage. Every year after, starting in 2026, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage, effective on January 1 every year. The city will establish the city minimum wage within two weeks of the publication of the new state minimum wage.
Burien: https://www.burienwa.gov/city_hall/laws_regulations/minimum_wage
Employers with 20 or fewer full-time equivalents (FTEs) are exempt from the ordinance.
“Level 1 employer” means all employers, including franchisees, that employ more than 500 FTEs in King County or franchisors who employ more than 500 FTEs in the aggregate. Effective January 1, 2025, at 12:01 a.m., Level 1 employers shall pay each employee an hourly minimum wage of at least $3.00 over the Washington State hourly minimum wage.
“Level 2 employer” means all employers, including franchisees, that employ 21 – 499 FTEs in King County. Effective July 1, 2025, at 12:01 a.m., Level 2 employers shall pay each employee an hourly minimum wage of at least $2.00 over the Washington State hourly minimum wage.
“Level 3 employer” means all employers with 20 or fewer FTEs. Employers with 20 or fewer FTEs are exempt from this ordinance.
Renton: https://www.rentonwa.gov/city_hall/finance/2024_labor_standards
Covered employers will be required to pay a new higher minimum wage for hours worked in the City. Covered employers are required to pay employees not less than the minimum hourly wage as follows:
SeaTac: https://www.seatacwa.gov/home/showpublisheddocument/38011/638634620180370000
2025 Minimum Wage: $20.17 per hour
The increase in the living wage rate (2.35%) has been calculated using the consumer price index for urban wage earners and clerical workers, (CPIW) for the twelve (12) months prior to September 1 as calculated by the United States Department of Labor. Therefore, in accordance with SeaTac Municipal Code (SMC) Section 7.45.050, the living wage rate in effect for hospitality and transportation employees within the City will increase to $20.17, effective January 1, 2025.
Effective January 1st, 2025, Tukwila Minimum Wage hourly rates will be:
(On July 1st, 2025, mid-size employers are required to increase their minimum wage rate to equal the large employer rate of $21.10) Going forward, mid-size employer minimum wage will be the same as the large employer rate.
If you have questions, be sure to reach out to us.
Sincerely,
ALISA NA CPAs & Advisors
