If you have discovered you made mistakes or omissions on your tax return, you can correct them by filing an amended tax return. If you need to amend, you should remember these tips: File using paper form. Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct the tax return. You can’t file amended […]
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If you make an effort to comply with the law, but are unable to meet your tax obligations due to circumstances beyond your control, you may qualify for relief from penalties. If you receive a notice stating that a penalty was assessed, you first should check that the information in the notice is correct. If […]
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During the summer, people often rent out their property. They usually think about things such as cleanup and maintenance, but owners also need to be aware of the tax implications of residential and vacation home rentals. If you receive money for the use of a house that’s also used as a someone’s personal residence, it […]
The Tax Cuts & Jobs Act (TCJA) created wide sweeping changes to tax rules at both the business and individual level. Detailed below are some changes centered around vehicles that are now in effect. Changes to the deduction for move-related vehicle expenses The TCJA suspends the deduction for moving expenses for tax years beginning after […]
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If you are a business owner, the Tax Cuts and Jobs Act may affect your depreciation deductions and taxes. You can generally depreciate tangible property except land, which includes buildings, machinery, vehicles, furniture, and equipment. Changes to depreciation and how they will affect businesses may include: Businesses can immediately expense more under the new law. […]
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The passage of the Tax Cuts and Jobs Act, which will affect 2018 tax returns that you file in 2019, makes checking your withholding amounts even more important. These tax law changes include: Increased standard deduction Eliminated personal exemptions Higher thresholds for individual alternative minimum tax (AMT) Increased Child Tax Credit Limited or discontinued certain […]
Grandparents who work and are also raising grandchildren might benefit from the earned income tax credit. The EITC is a refundable tax credit. This means that if you qualify and claim the credit, you could pay less federal tax, pay no tax, or even get a tax refund. Grandparents who are the primary caretakers of their […]
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Small employers that create a retirement plan may be able to claim up to $500 in income tax credit per year for three years by filing the Form 8881 Credit for Small Employer Pension Startup Cost. The credit is limited to 50% of qualified startup costs. To be eligible, small employers should not exceed 100 […]
Did you know that adoptive parents may qualify for a tax credit? Parents who either adopted a child or tried to adopt a child may claim the adoption credit. Here are nine things you should know about this credit. Credit. The credit is nonrefundable. This means the credit may only reduce your tax liability to […]
For the 2017 tax year, most taxpayers can claim an exemption for themselves and reduce their taxable income on their 2017 tax return. You may also be able to claim an exemption for each of your dependents. Each exemption normally allows you to deduct $4,050 on your tax return. Here are seven key points to […]
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If you are not required to file a tax return, you may want to do so, because you might be eligible for a tax refund. Some taxpayers might qualify for a tax credit that can result in money in their pocket. You need to file a 2017 tax return to claim these credits. Four tax […]
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If you’re hoping to build retirement wealth in a health savings account (HSA), it helps to have a game plan. There’s a growing buzz and excitement around HSAs. HSAs have a triple tax advantage. Contributions are tax-deductible, typically grow tax-free, and can be withdrawn without incurring taxes as long as you use them for qualified […]
Taxpayers who get an unsolicited phone call from the IRS should be cautious – it’s probably a scam. These scammers will use your personal information to gain access to your bank or other accounts. When a scammer calls, it might be a recording or an actual person claiming to be from the IRS. Sometimes they […]
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The TCJA passed by Congress and signed into law by President Trump is a sweeping tax package. Below is an outline of some changes and the TCJA’s impact on individual and business tax filers. Individual Tax Change Highlights Tax Brackets There are seven tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Your income […]
The Tax Cuts and Jobs Act (TCJA) passed by Congress and signed into law by President Trump is a sweeping tax package. Many in the tax profession are calling its passage and enactment the greatest change to the tax code in over 30 years! One change that will affect everyone is the new tax brackets. […]
With the fall semester coming to a close, it’s important for parents and students to think about tax benefits that can help with college expenses. There are two college tax credits that can apply to students enrolled in an eligible college, university, or vocational school: the American Opportunity Tax Credit and the Lifetime Learning Credit. […]
As an employer, your size – for purposes of the Affordable Care Act – is determined by the number of your employees. If you hire seasonal or holiday workers, you should know how these employees are counted under the health care law. Employer benefits, opportunities, and requirements are dependent upon your organization’s size and the applicable […]
From scrapbooking to glass blowing, many Americans enjoy hobbies that are also a source of income. You must report income on your tax return even if it is made from a hobby. However, the rules for how to report the income and expenses depend on whether the activity is a hobby or a business. There […]
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Did you know if you are looking for a new job, you may be able to deduct some job-hunting expenses on your federal income tax return? Here are five facts to know about deducting costs related to job searches: Same Occupation. Expenses are tax deductible when the job search is in your same line of […]
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As teachers, administrators, and aides have kicked off the new school year, taxes may not be heavy on their minds just yet. However, knowing what to track throughout the school year can help reduce the burden at tax time. There are three key work-related tax benefits that may help educators reduce what they pay in taxes. […]
Taxpayers who pay unreimbursed work-related expenses out of their own pocket may be able to deduct them, if certain criteria is met. In general, the deduction for employee business expenses is part of a taxpayer’s itemized deduction shown on Schedule A of their personal tax return and is deductible to the extent that the expenses […]
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The federal income tax is a pay-as-you-go system. Employers generally withhold tax from workers’ wages; however, taxpayers often have taxes withheld from certain other income including pensions, bonuses, commissions, and gambling winnings. Individuals who do not pay tax withholding, like the self-employed, as well as those who earn income such as dividends, interest, capital gains, […]
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Homeowners may qualify to exclude from their income all or part of any gain from the sale of their main home. Here are some tips to keep in mind when selling your home: Gain. If there is a gain from the sale of the main home, the homeowner may be able to exclude up […]
If you’re a victim of a natural disaster, you may need to reconstruct records to prove your losses for insurance purposes. Doing this may be essential for tax purposes, getting federal assistance, or insurance reimbursement. Here are 11 tips to help you reconstruct your records: To establish the extent of the damage, you should take […]
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With the end of the year quickly approaching, individuals may looking to relocate for a new job. Be sure to keep up with all those receipts, because the cost of moving may be deductible on your tax return. The IRS will let you deduct your moving expenses so long as you meet two basic “tests”: […]
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When qualifying property is sold and payments are received in the year of sale, the installment sale method of accounting for the transaction is available. Under the installment method, a portion of a gain resulting from the sale is reported as each payment is received. Each payment will generally consist of three parts: gain on […]
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