Pay too little in taxes last year? IRS offers relief for underpayment
Many taxpayers saw a bump in their take-home pay last year as a result of the lower tax rates and increased standard deduction thanks to the Tax Cuts and Jobs Act. That’s the good news. On the other hand, some taxpayers may have had too little tax withheld in 2018, exposing them to potential penalties […]
How will tax reform impact your 2018 taxes? A review of the TCJA provisions
Now that 2019 has begun, there isn’t too much you can do to reduce your 2018 income tax liability. But it’s smart to begin preparing for filing your 2018 return. Because the Tax Cuts and Jobs Act (TCJA), which was signed into law at the end of 2017, likely will have a major impact on […]
Standard mileage rates to increase in 2019
The standard mileage rate for business travel is increasing in 2019 by more than 3 cents per mile. Beginning Jan. 1, 2019, the standard mileage rate for transportation or travel expenses is 58 cents per mile, up 3.5 cents from 2018 when it was 54.5 cents per mile. The Tax Cuts and Jobs Act suspended […]
Check deductibility before making year-end charitable gifts
As the holidays approach and the year draws to a close, many taxpayers make charitable gifts — both in the spirit of the season and as a year-end tax planning strategy. But with the tax law changes that go into effect in 2018 and the many rules that apply to the charitable deduction, it’s a […]
Calculating QBI deduction can be complex and time-consuming
One of the more beneficial provisions of the 2017 Tax Cuts and Jobs Act for individuals and small business owners is the new qualified business income (QBI) deduction under Section 199A. Eligible taxpayers may be entitled to a deduction of up to 20 percent of QBI, a significant tax savings for owners of sole proprietorships, […]
Could ‘bunching’ medical expenses into 2018 save you tax?
Some of your medical expenses may be tax deductible, but only if you itemize deductions and have enough expenses to exceed the applicable floor for deductibility. With proper planning, you may be able to time controllable medical expenses to your tax advantage. The Tax Cuts and Jobs Act (TCJA) could make bunching such expenses into […]
Tax law makes planning for investments more complicated
For investors, fall is a good time to review year-to-date gains and losses. Not only can it help you assess your financial health, but it also can help you determine whether to buy or sell investments before year end to save taxes. This year, you also need to keep in mind the impact of the […]
Charitable IRA rollovers may be especially beneficial in 2018
If you’re age 70½ or older, you can make direct contributions — up to $100,000 annually — from your IRA to qualified charitable organizations without owing any income tax on the distributions. This break may be especially beneficial now because of Tax Cuts and Jobs Act (TCJA) changes that affect who can benefit from the […]
Back-to-school time means a tax break for teachers
When teachers are setting up their classrooms for the new school year, it’s common for them to pay for a portion of their classroom supplies out of pocket. A special tax break allows these educators to deduct some of their expenses. This educator expense deduction is especially important now due to some changes under the […]
New Treasury Department rules clarify ‘specified service trade or business’
In some ways the sweeping tax reform law that was passed at the end of 2017 left as many questions unanswered as it answered. Just last week, the Treasury Department issued rules that seek to clarify some issues related to qualified business income. The Tax Cuts and Jobs Act created a new provision, Section 199A, which […]