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The Thomas Howell Ferguson Blog

Law Change Affects Moving, Mileage, and Travel Expenses

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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Tax Reform: Changes to Depreciation Affect Businesses Now

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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If You Are in a Two-Income Family or Work Multiple Jobs, You Should Check Your Withholding Amount

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 […]

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Grandparents Caring for Grandchildren Should Check Their Eligibility for EITC

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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Retirement Plan Credit

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 […]

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Make the Most of Your HSA

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 […]

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College Tax Benefits

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. […]

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Employers that hire Holiday Help: Understand the Health Care Law’s Rules Around Seasonal Workers

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 […]

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5 Helpful Tips about Employee Business Expenses

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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5 Things to Know to Avoid Surprises at Tax Time

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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Tips on How to Reconstruct Records After a Hurricane

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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