Yearly Archives: 2019

Article Highlights: Primarily Business Primarily VacationSpecial CircumstancesForeign Conventions, Seminars and MeetingsCruise ShipsSpousal Travel Expenses Note: effective for years 2018 through 2025, the Tax Cuts and Jobs Act of 2017 suspended the deduction of miscellaneous itemized expenses that must be reduced by 2% of the taxpayer's adjusted gross income. Employee business expenses, including travel expenses, fall [...]

Article Highlights: Donor-Advised FundItemized or Standard DeductionsSponsoring OrganizationsTax BenefitsBunching StrategyHigh Income YearsDonating Appreciated Assets If you would like to make a substantial tax-deductible charitable donation this year, but have the ability to spread the actual distribution of funds to specific charities over a number of years, a donor-advised fund (DAF) may fill that need. There [...]

Article Highlights: EmployeesSelf-Employed IndividualsIndividuals with Sources of Income Without WithholdingQuarterly PaymentsUnderpayment PenaltySafe Harbor Payments June 15th falls on the weekend this year, so the due date for the second installment of estimated taxes is the next business day, June 17, which is just around the corner. So, it is time to determine if your estimated [...]

Article Highlights: Child Age LimitsEmployment-Related ExpenseMarried Taxpayer Earnings LimitsDisabled or Full-Time-Student SpouseExpense Limits Summer has just arrived, and there is a tax break that working parents should know about. Many working parents must arrange for care of their children under 13 years of age (or any age if disabled) during the school vacation period. A [...]

Article Highlights: Tax CreditCredit Phase-OutTeslaGeneral MotorsDetermining the CreditOff-Road Vehicles and Golf Carts             Allocation Between Business and Personal UseCredit Reduces BasisBusiness Standard Mileage Back in 2009 Congress created a tax credit for the purchase of electric vehicles as a stimulus for car companies to manufacture “green” vehicles and as an incentive for consumers to purchase electric [...]

Article Highlights: Purpose of Qualified Tuition PlansGift Tax ImplicationsSpecial Five-Year ElectionChange of BeneficiaryEligible ExpensesDirect Payment of Tuition Qualified tuition plans (QTPs) provide a means for family members and others to save for the future educational needs of children. Investment earnings within a QTP account are tax deferred and not taxable when withdrawn if used to [...]

June 2019 Individual Due Dates June 10 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during May, you are required to report them to your employer on IRS Form 4070 no later than June 10. Your employer is required to withhold FICA [...]

There are different types of IRS penalties that can be assessed against you. The most common penalties include those for failing to file a tax return, filing your return late, or accuracy-related penalties if you didn’t correctly state items on your tax return. But were you aware that sometimes, the IRS can issue penalty abatements [...]

Article Highlights: • IRS Notices • CP Series Notice • Automated Notices • Frequent Errors • ID Theft • What You Should Do • What We Will Do Now that most tax refunds are deposited directly into taxpayers’ bank accounts, the dream of opening your mailbox and finding an IRS refund is all but gone. [...]

Article Highlights: Early WithdrawalsExcess ContributionsMultiple RolloversNo Traditional IRA Contributions in the Year Reaching age 70 Failing to Take a Required Minimum Distribution (RMD)Late ContributionsSwitch the Type of IRABackdoor Roth IRAAlimony as CompensationSpousal IRASaver's CreditIRA-to-Charity Direct Transfers There are both opportunities and pitfalls for IRA owners, and while you definitely don't want to get caught up [...]