Article Highlights Higher Standard DeductionIRA OptionsSelf-Employed ParentEmploying Your ChildTax Benefits Children who are dependents of their parents are subject to what is commonly referred to as the kiddie tax. This generally applies to children under the age of 19 and full-time students over the age of 18 and under the age of 24. The kiddie [...]
Article Highlights: QualificationsActual Expense MethodSimplified MethodHome Office Expenses for Renters vs. HomeownersHow Moving Affects the Home-Office DeductionOther IssuesGross Income Limitation "Home office" is a type of tax deduction that applies to the business use of a home; the space itself may not actually be an office, it could be a modern studio shed in the [...]
Article Highlights: Expiring ITINsIRS Currently Accepting Renewal ApplicationsFamily Renewal OptionsHow to Renew Common Errors to Avoid According to the Internal Revenue Service (IRS), just about 2 million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2019. ITINs are used by people who have tax filing or payment obligations under U.S. [...]
Article Highlights: Adjusted BasisPassive Loss CarryoversInstallment SaleTax-Deferred ExchangeTax on Net Investment IncomeQualified Opportunity FundHome Sale Exclusion If you are contemplating selling real estate property, there are a number of issues that could impact the taxes that you might owe, and there are steps you can take to minimize the gain, defer the gain, or spread [...]
Article Highlights: • Solar Credit • Plug-In Electric Vehicle Credit • Penalty for Not Having Health Insurance • Medical Deduction Restrictions • New Alimony Rules • Standard Deduction Increase • Increased Retirement Contributions • Federal Tax Brackets Increase You have your 2018 tax return filed, or perhaps on extension, and now it is time to [...]
July 2019 Individual Due Dates July 1 - Time for a Mid-Year Tax Check Up Time to review your 2019 year-to-date income and expenses to ensure estimated tax payments and withholding are adequate to avoid underpayment penalties. July 10 - Report Tips to Employer If you are an employee who works for tips and received [...]
According to one recent study, the average retirement age in the United States was 62 years old as of 2017. Currently, the minimum age necessary to collect Social Security is 62, while 66 is largely considered to be "full retirement age" in many industries. The vast majority of people who will retire this year will [...]
Article Summary: Filing OptionsMarried Filing JointlyUnpleasant ConsequencesPleasant ConsequencesMarried Filing SeparatelyNotifying SSA, IRS, employersOther Issues to Consider A taxpayer’s filing status for the year is based upon his or her marital status at the close of the tax year. Thus, if you get married on the last day of the tax year, you are treated as [...]
Article Highlights: Limit on Tax Allowed as an Itemized DeductionStates’ Attempted Workarounds Supreme Court RulingFinal RegulationsNotice 2019-12 The Treasury Department and the IRS have essentially shot down efforts by several states to help their residents circumvent the $10,000 cap on the itemized deduction for state and local taxes (SALT). When the Tax Cuts and Jobs [...]
It’s a common conundrum: You want to file your taxes on time, but you anticipate or already know that you will owe money you can’t afford to pay right now. As a result, you put off filing your tax return under the assumption that the IRS can only bill you if they receive your latest [...]
