Find an Accountant
TaxTips Volume 8, Issue 19 For distribution 3/11/19; publication 3/14/19
C Corp Taxes
As a result of tax reform under the Tax Cuts and Jobs Act (TCJA), C corporations were also affected. This will directly impact C corporation shareholders.
Under previous law, the tax rate a corporation would pay on its profits could be anywhere from 15% to 35%, depending on the corporate taxable net income level. With tax reform, all C corporations pay a flat 21% on their profits, regardless of the taxable income amount.
For C corporations with profits in excess of $50K, this is obviously going to result in potentially significant tax savings - but what about corporations with profit typically lower than that? In that case, businesses may actually pay more with this change - jumping from a 15% to 21% corporate tax rate.
With that in mind, businesses will want to plan for the additional tax and may even want to reassess entity type to determine if another business structure would be right. With the (up to) 20% pass-through (Section 199A) deduction now available for other entity types, corporations could possibly realize tax savings by switching!
When a C corporation converts to an S corporation, a built-in gains tax is imposed. The recognized built-in gains were previously taxed at the highest rate of tax applicable to corporations, 35%. With the new the tax bracket reorganization, the rate drops to 21%. Transitioning from a C corporation to an S corporation is now much more affordable compared to previous years.
There are a few laws that did not change with the TCJA. The accumulated earnings tax (AET) imposed on C corporations with retained earnings deemed to be unreasonable and in excess of what is considered ordinary (accumulations beyond $250,000), remains at a 20% tax rate. The personal holding company tax also remains at a 20% tax rate. A corporation is recognized as a personal holding company if 60% of income is from investments.
The TCJA repeals C corporation alternative minimum tax (AMT) for tax years beginning after 2017. Under prior law, AMT applied if a C corp’s tentative minimum tax ((AMTI less $40,000 exemption) x 20%) exceeded its regular tax. Individuals, trusts and estates are still subject to AMT. The elimination of C corp AMT opens up the possibility that C corps may more freely enter redemption buy-sell agreements after 2017.
Be sure to contact your tax professional to determine which entity is the best option for your specific needs!
***
Tweets
Insert a link to your newsletter, web site or blog before you post these:
Our latest blog: C Corp Taxes Subscribe here: [link]
Did you know that C corp taxes were greatly affected by the TCJA? Find out more: [link]
Tax Tip: Transitioning from a C corporation to an S corporation is now much more affordable compared to previous years. [link]
Businesses may want to reassess entity type to determine if another business structure would be right, especially with the (up to) 20% pass-through deduction now available for other entity types. [link]
The TCJA repeals C corporation alternative minimum tax (AMT) for tax years beginning after 2017. [link]
C corporations with profits in excess of $50K will have significantly more tax savings compared to previous years. Find out more here: [link]
Is your current business structure right for you or should you reassess your entity type? Find out here: [link]
C Corp Taxes Sign up for our newsletter: [link]
TaxTips Volume 8, Issue 18 For distribution 2/25/19; publication 2/28/19
How to Speak “Tax”
This time of year and into April, we begin to hear a different vocabulary come to life: “Credit.” “Exemption.” “Adjusted Gross Income.” It can seem as if your accountant speaks a different language from you.
While we’ll do our best to explain the tax terms we use during your appointment, we’ve compiled a list of them for those of you who’d like to be more “in the know.” Not only will this better equip you to keep up at your next social gathering, but it will allow you to ask the right questions when you meet with your tax professional.
TY = Tax Year
If you file your taxes on time, the tax year is always one year behind the year we’re in. In 2019, you will be filing your TY 2018 tax return.
FY = Fiscal Year
Fiscal year is a one-year period for accounting purposes. Most businesses make their fiscal year the same as the calendar year: January 1st through December 31st. Others run their business with start and stop dates different from the calendar year. A common fiscal year is July 1st to June 30th.
EIN = Employer Identification Number
This is a unique identification number assigned to a business by the IRS.
Form 8879 = IRS e-file Signature Authorization
This form must be signed for your return to be efiled, and it can be digitally signed.
Form 1040 = U.S. Individual Income Tax Return
This is the main form used when reporting individual income. It includes the taxpayer’s basic information, dependents, and tax calculations. If the taxpayer is a sole proprietor or a single-member LLC, their business activity is reported on their personal tax return.
Form 1120 = U.S. Corporation Income Tax Return
When reporting C corporation income, this form is used. S corporations are reported on Form 1120S.
AGI = Adjusted Gross Income
AGI is equal to your total income subject to income tax minus specific deductions you may be eligible to take. AGI is calculated before applying the standard or itemized deduction. Many credits are subject to AGI limitations, meaning that if your AGI is above a certain amount, you may be disqualified from certain deductions and credits.
MFJ = Married Filing Jointly
This is one of five possible filing status categories.
MFS = Married Filing Separate
This is another one of five possible filing status categories. You may see these acronyms frequently in tax articles explaining how new laws affect the different types of taxpayers.
TCJA = Tax Cuts and Jobs Act
The name bestowed upon the largest tax law changes approved by Congress, many of which went into effect for TY 2018.
SSTB = Specified Service Trade or Business
This term specifically relates to Section 199A, which is a new tax law that allows for up to a 20% deduction on “qualified business income” (“QBI”) for any “qualified trade or business” (“QTB”) other than a “specified trade or business” (“SSTB”). This deduction is available to sole proprietors and passthrough entities.
This list will get you started, and if you run across another tax term, feel free to reach out and ask us what it means.
Our latest blog: How to Speak “Tax” Subscribe here: [link]
Does your accountant’s tax vocabulary have your head spinning? Check out our tax vocabulary list: [link]
Tax Tip: The tax year is always one year behind the year we’re in. In 2019, you will be filing your TY 2018 tax return. [link]
Many credits are subject to adjusted gross income (AGI) limitations, meaning that if your AGI is above a certain amount, you may be disqualified from certain deductions and credits. [link]
Form 1040 is the main form used to report individual income. Form 1120 is used to report C corporation income and Form 1120S is used to report S corporation income. [link]
Brush up on some tax vocabulary so that you can ask your tax professional the right questions at your next appointment. Find out more here: [link]
Want to learn how to speak “tax” so you can be more “in the know” at your next tax meeting? Check out our list of important tax terms: [link]
How to Speak “Tax” Sign up for our newsletter: [link]
TaxTips Volume 8, Issue 17 For distribution 2/11/19; publication 2/14/19
Tax Reform Changes Affecting the Child Tax Credit
The Child Tax Credit (CTC) was one of many items touched by the sweeping tax reform coming into effect for the 2018 tax year. In addition to the amount of the credit increasing, the threshold for qualifying for the credit has improved, resulting in more taxpayers being able to benefit from it.
In order to receive the credit, you need to first determine if your kids will qualify. A child must be under age 17 at the end of the tax year and they must be your own child, stepchild or foster child place with you by a court or authorized agency (an adopted child is always treated as your own.)
You can claim your brother or sister, stepbrother, and/or stepsister as well as the descendants of any of these qualifying people if they meet all other requirements.
The child cannot have provided more than half of their own financial support during the tax year and must be claimed as a dependent on your tax return. The child must be a US citizen, a US national or a US resident alien.
The child must have lived with you for more than half of the tax year. Temporary absences either by you or the child for special circumstances like school, vacation, business, medical care, and military services are counted as time the child lived with you.
The child must have a Social Security Number issued by the Social Security Administration before the due date of your tax return (including extensions) to be claimed as a qualifying child. This is new for the 2018 tax year!
In 2017, the phase out threshold was $55,000 for married filing separate; $75,000 for single and head of household; and $110,000 for married filing jointly taxpayers. Under the new tax law, phaseout of the credit begins at $200,000 or $400,000 for married filing jointly tax payers. The credit has also doubled from $1,000 for each qualified child to $2,000 per child.
The CTC was previously nonrefundable, meaning that if your tax liability was zero, any remaining credit from the CTC was lost. For tax year 2018, there is a refundable amount of up to $1,400 per qualifying child.
Since the personal exemption is suspended in 2018, the changes to the Child Tax Credit (and the standard deduction) may help offset some of the deductions that were lost.
Our latest blog: Tax Reform Changes Affecting the Child Tax Credit Subscribe here: [link]
Do you have children that qualify for the Child Tax Credit? Find out here: [link]
Tax Tip: For tax year 2018, the Child Tax Credit is worth up to $2,000 per qualifying child. [link]
For tax year 2018, the Child Tax Credit has a refundable amount of up to $1,400 per qualifying child. [link]
To qualify for the Child Tax Credit, a child must be under age 17 at the end of the tax year and they must be your own child, stepchild or foster child placed with you by a court or authorized agency. [link]
More taxpayers will be able to benefit from the Child Tax Credit for the 2018 tax year. Find out more here: [link]
Are you aware of the tax reform changes affecting the Child Tax Credit for the 2018 tax year? [link]
Tax Reform Changes Affecting the Child Tax Credit Sign up for our newsletter: [link]
TaxTips Volume 8, Issue 16 For distribution 1/28/19; publication 1/31/19
Moonlighting in the Gig Economy and Taxes
Are you one of the thousands of people who are working gig-type jobs for Uber, Lyft, DoorDash, Grubhub, or companies like them? Whether you’re full time or just moonlighting a few hours a week, the paperwork for this part of your taxes will be a little different. Here’s what to expect.
What Documents Will You Receive?
Both Uber and Lyft provide two different tax forms:
To calculate the gross income amount, add the amount listed in box 1a on the 1099-K form and the amount listed in box 7 of the 1099-MISC form.
What Expenses Should You Keep Track Of?
You can deduct certain items you spend on your job as long as you keep good records and receipts. Here are a few items you might have been charged for:
How Your Income Is Calculated
We will use the information you provide to calculate your net profit—that’s why it’s crucial that you keep detailed records and accurately capture your expenses. We’ll enter your gross income and subtract expenses, leaving you with net profit. You pay two types of taxes on your net profit:
Be prepared this tax season by keeping your expense receipts and records and being ready for your tax bill.
Our latest blog: Moonlighting in the Gig Economy and Taxes Subscribe here: [link]
If you’re working a gig-type job for Uber, Lyft, DoorDash, Grubhub, or a similar company, how prepared are you this tax season? Here’s what you should expect this tax season: [link]
Tax Tip: If you’re working a gig-type job, you can deduct certain items you spend on your job as long as you keep good records and receipts. [link]
If you work for Uber or Lyft, you can get your gross income amount by adding the amount listed in box 1a on the 1099-K form and the amount listed in box 7 of the 1099-MISC form. [link]
When you work a gig-type job, you pay two types of taxes on your net profit: your regular tax rate based on your income and self-employment taxes, which is currently 15.3% of your income. [link]
If you work a gig-type job, you can deduct certain expenses that you spend on the job, like tolls, parking fees, car insurance, and convenience items. Find out more here: [link]
Do you work for Uber, Lyft or a similar company? How prepared are you this tax season? [link]
Moonlighting in the Gig Economy and Taxes Sign up for our newsletter: [link]
TaxTips Volume 8, Issue 15 For distribution 1/14/19; publication 1/17/19
Getting Ready for Your Tax Meeting
Here’s a rough checklist of items to pull together for your tax professional. Please don’t panic at this long list; most of it will not apply unless you have a complex situation. In some cases, your tax professional will send you a form to complete called an “organizer.”
Hopefully, this list will help you gather the items you need. The sooner you do, the sooner you can get any refund owed to you from the government.
If you’re a business owner, it will depend on the type of entity you have as to the records needed, but in most cases, financial statements including a balance sheet and income statement for the last two years will be needed.
Some new information that will be needed this year includes:
Many tax preparers will provide you with a client portal where you can upload these documents when you receive them. You can also collect them on paper and mail them in to be scanned.
If you need help or have questions about any of this, please feel free to reach out any time.
Our latest blog: Getting Ready for Your Tax Meeting Subscribe here: [link]
Have you prepared all the items you need before you meet up with your tax professional? [link]
Tax Tip: Make sure you bring your Form 1099(s) if you’ve made an appointment to meet your tax professional for tax time. [link]
If you’re a business owner, the information you’ll need to bring to your tax meeting will depend on the type of entity you have. In most cases, you’ll need financial statements, including a balance sheet and income statement for the last two years. [link]
The sooner you gather all the items your tax professional needs to prepare your taxes, the sooner you can get any refund owed to you from the government. [link]
Do you have all the documents your tax preparer needs to prepare your tax return? Use our handy checklist! Check it out here: [link]
Not sure what items your tax preparer needs to prepare your 2018 tax return? Make sure you’ve got everything you need with our checklist! [link]
Getting Ready for Your Tax Meeting Sign up for our newsletter: [link]
TaxTips Volume 8, Issue 14 For distribution 12/31/18; publication 1/3/19
Sales Tax Checkup
Collecting sales tax is one of those things that most businesses need to do on a regular basis. It’s also a chore that is somewhat done by machines and administrative personnel. If the rules change and the procedures go out of date, business owners who are not watching for these changes could be taking risks they don’t realize they have.
In 2018, the world of sales tax was turned upside down by one court case: South Dakota vs. Wayfair, Inc. Wayfair is a mid-sized furniture retailer based in Boston, MA that the State of South Dakota sued to collect sales tax from. Wayfair has no physical store or presence in South Dakota but was selling to residents in South Dakota. The Supreme Court held that Wayfair needed to collect tax from the South Dakota residents they were selling goods to.
From Physical Nexus to Economic Nexus
The court case, which was decided June 21, 2018, changed the rules of online interstate sales. Previously, most states required businesses to collect sales tax if they had a physical presence or nexus in the state, meaning they had an office, building, warehouse, or even employees in the state.
Now, many states are rewriting their rules to follow economic nexus, which is when a company has (enough) customers in a state. Alabama, Arkansas, Colorado, Connecticut, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, New Jersey, Nevada, North Carolina, North Dakota, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Washington, Wisconsin, and Wyoming all have economic nexus laws that are effective now or will become effective on January 1, 2019. And this list is ever-changing.
Many of the states have a threshold of $100,000 of sales in one year in the state before a business needs to collect and file sales tax.
Changes in What’s Taxable
Businesses also need to review changes in items that have become taxable that were not previously taxable. Retail goods that are physical are pretty straightforward, but services are not. All states tax services differently, and states change what’s taxable over time.
This means you should periodically review all of the products and services you sell to determine if you are collecting tax on the proper sales. Better yet, have a professional do it so you don’t have to wade through legal laws.
Rate Changes
Periodically, sales tax rates will change. This is the easiest change to keep up with as your sales tax authority will usually notify you of these changes.
Deadlines for Paying and Reporting
The frequency with which you pay and report sales tax will vary based on the volume of sales and tax you collect. When a limit is reached, you may need to pay more often.
Sales Tax Apps to Make Your Job Easier
There are many great sales tax software add-ons that can help you collect and report the correct sales tax amounts. At the large firm level, there is Vertex and Avalara. At the small firm level, TaxJar is popular. We can help you integrate these apps with your accounting software.
Your 5-Item Checklist
The five items above are the things you should be monitoring with regard to sales tax liability, reporting, automation, and risk. States have strong penalties but also have amnesty programs on a regular basis.
If you plan to sell your business, the owner will most likely conduct a sales tax audit. If it’s determined that you owe sales tax, it will greatly reduce the value of your business.
If you need help from us to measure your exposure in this area, please feel free to reach out. We can either handle the engagement ourselves or refer you to a sales tax expert.
Our latest blog: Sales Tax Checkup Subscribe here: [link]
Did you know the world of sales tax was turned upside down by one court case in 2018? Find out more: [link]
Tax Tip: Periodically review all of the products and services you sell to determine if you are collecting tax on the proper sales. [link]
The frequency with which you pay and report sales tax will vary based on the volume of sales and tax you collect. [link]
Many states have economic nexus laws that are effective now or will become effective on January 1, 2019. [link]
Sales tax laws have changed in many states, so business owners who conduct interstate sales and are not watching for these changes could be taking risks they don’t realize they have. Find out more here: [link]
Are you caught up with the rules and procedures regarding sales tax? [link]
Sales Tax Checkup Sign up for our newsletter: [link]
TaxTips Volume 8, Issue 12 For distribution 12/3/18; publication 12/6/18
Is the New 1040 “Postcard” Tax Return Form as Easy as It Claims to Be?
The IRS unveiled a draft of the new 2018 Form 1040 over the summer which consolidates Form 1040, 1040A, and 1040EZ into one supposedly simpler postcard-sized form. The only problem is there are now 2 pages of the postcard 1040 and six new schedules. Here’s a link to the draft 1040 form for 2018 and a run-through of how things were re-arranged.
The front page is informational—filing status, taxpayer name(s), address, SSN(s), and dependent information. Since health care coverage reporting is still required in 2018, a checkbox is present to indicate whether you had full year health care coverage or an exemption.
Page two – or postcard two -- is a condensed version of the “old” Form 1040 and moves many items that previously appeared on the front of the 1040 to newly created schedules:
a) Schedule 1, titled “Additional Income and Adjustments to Income,” reports amounts that had previously been listed on lines 10-37 of the prior 1040 version and incorporates total income/losses from Schedules C, D, E, and F, as well as adjustments to income such as educator expenses, self-employment tax deduction, and student loan interest paid.
b) Schedule 2, “Tax,” combines lines 44-47 (tax, alternative minimum tax, APTC -- Advance Premium Tax Credit -- repayment) of the old 1040 and condenses it to a single amount that is reported on line 11 of the new 1040.
c) Schedule 3, “Non-Refundable Credits,” combines lines 48-55 (foreign tax, dependent care, education, retirement savings, child tax credit, residential energy, other credits) of the old 1040 and condenses it to a single amount that is reported on line 12 of the new 1040.
d) Schedule 4, “Other Taxes,” combines lines 57-63 (SE tax, unreported Social Security/Medicare tax, additional tax on retirement plans, household employment taxes, homebuyer credit repayment, health care responsibility, additional Medicare tax, net investment income tax) of the old 1040 and condenses it to a single amount that is reported on line 14 of the new 1040.
e) Schedule 5, “Other Payments and Refundable Credits,” combines lines 65-74 (income tax withholding, estimated tax payments, EIC, additional child tax credit, AOC, net premium tax credit, amount paid with extension, excess Social Security) of the old 1040 and condenses it to a single amount that is reported on line 17 of the new 1040.
f) Schedule 6, “Foreign Address and Third Party Designee,” is a new informational form which allows taxpayers, who live in a foreign country, to list their country, province, and postal code. This form also gives taxpayers the ability to list a third person allowed to discuss with the IRS any issues the taxpayer may have.
While the 1040 form may have been simplified, it requires multiple new supporting schedules to be filed along with it. All prior schedules remain, with the possible exception of Schedule B (Interest and Ordinary Dividends), whose fate is uncertain in 2018.
There are more changes in the tax laws and procedures than there have been in more than 30 years. But don’t worry, we’re on top of it for you, and if you have questions, feel free to reach out any time.
Our latest blog: Is the New 1040 “Postcard” Tax Return Form as Easy as It Claims to Be? Subscribe here: [link]
Will the new “postcard” 1040 form be easier for you? Find out more: [link]
Tax Tip: There is a new supporting schedule called the “Foreign Address and Third Party Designee” that allows taxpayers who live in a foreign country to designate a representative to discuss any issues the taxpayer may have. [link]
Page two of the new 1040 form moved many items from the front of the old 1040 form and combined them to create new schedules. [link]
All prior schedules from the old 1040 form remain, with the possible exception of Schedule B (Interest and Ordinary Dividends), whose fate is uncertain in 2018. [link]
Many of the reported items found on the front page of the old 1040 form have been consolidated into a single amount to be reported in the new 1040 form. Find out more here: [link]
What’s new about the new “postcard” 1040 form and how does it affect you? [link]
Is the New 1040 “Postcard” Tax Return Form as Easy as It Claims to Be? Sign up for our newsletter: [link]
TaxTips Volume 8, Issue 11 For distribution 11/19/18; publication 11/21/18
Meals & Entertainment Changes Under Tax Reform
A lot has changed in the deductibility of meals and entertainment expenses. This chart will help you easily see the changes.
Event
2017 Expenses (Old rules)
2018 Expenses (New rules)
Office Holiday Party or Picnic
100% deductible
Client Business Meals
50% deductible if taxpayer is present, and not lavish or extravagant
50% deductible if business is conducted, taxpayer is present, and not lavish or extravagant
Entertainment-Related Meals
50% deductible
No deduction (e.g. meals incurred when no business is conducted, potentially at night clubs, cocktail lounges, theaters, country clubs, golf and athletic clubs, sporting events, and on hunting, fishing, vacation and similar trips)
Transportation To/From Restaurant for Client Business Meal
Sporting Event Tickets
100% deductible for charitable sports events
Contributions for the right to purchase tickets to an educational institution’s athletic events 80% deductible
50% for transportation to/from and parking at sporting events
No deduction
Club Memberships
No deduction for club dues; however, 50% deduction for expenses incurred at a club organized for business, pleasure, recreation, or other social purposes if related to an active trade or business
Meals Provided for The Convenience of Employer
100% deductible provided they are excludible from employees’ gross income as de minimis fringe benefits under §119(a); otherwise 50% deductible
(nondeductible after 2025)
Meals Provided to Employees Occasionally and Overtime Employee Meals
100% deductible provided they are excludible from employees’ gross income as de minimis fringe benefits under §132(e)(1); otherwise 50% deductible
Water, Coffee, And Snacks at The Office
Meals in Office During Meetings of Employees, Stockholders, Agents, Or Directors
Meals During Business Travels
Meals at A Seminar or Conference, Or at A Business League Event
Meals Included in Charitable Sports Package
50% deductible (the exception provided under former §274(n)(2)(C), referring to former §274(l)(1)(B), was repealed)
Meals Sold to A Client or Customer (Or Reimbursed)
Food Offered to The Public for Free (e.g., At A Seminar)
You might want to ask your bookkeeper to start breaking out these amounts so that the information will be available for tax season. We can help you determine how to categorize your expenses to line up with the tax requirements.
And if you have questions about any of this, feel free to reach out any time.
Our latest blog: Meals & Entertainment Changes Under Tax Reform Subscribe here: [link]
Curious about how the new tax reform affects your business’s deductions for meal and entertainment expenses? Find out more: [link]
Tax Tip: Under the new tax reform, all sporting event ticket expenses are nondeductible. [link]
Water, coffee and snacks at your office are only 50% deductible under the new tax reform, compared to 100% in 2017. [link]
Entertainment-related meal expenses are nondeductible under the new tax reform for 2018. [link]
The new tax reform provides stricter limitations on the deductibility of business meals and entertainment expenses. Find out more here: [link]
Want to know if your business entertainment expenses are still deductible? Find out here: [link]
Meals & Entertainment Changes Under Tax Reform Sign up for our newsletter: [link]
TaxTips Volume 8, Issue 10 For distribution 11/5/18; publication 11/8/18
Tax Planning is Key This Year
If there ever was a year for tax planning, now is the time! Some people and businesses will be in for a big surprise this year because of all of the changes in the tax law for the 2018 year. Many people will be underwithheld on their federal and state taxes, meaning they will owe big; others could be overwithheld, meaning the IRS is tying up money that’s theirs now!
Wouldn’t it be nice to know in advance how your situation will be impacted by the hundreds of changes in the tax laws this year? When you know your situation, you can make decisions before the year ends to change the outcome. You can take advantage of every strategy, deduction, and credit you are entitled to.
Planning gives you peace of mind, whether you get an affirmation that you will receive a refund from the IRS or if you owe money…if you know in advance, it will make a difference.
When working with your tax professional, they will:
Here are a few things your tax pro may require:
Tax planning can achieve the greatest benefit for your unique situation. Don’t rely on (mis)information from your neighbor or colleague for strategies to implement! Seek professional tax advice and get educated on the laws and consequences relating to your unique situation. Your tax professional can warn you of something you might not have known or give you different scenarios for you to consider. The key is knowing your options, so that you can make decisions that will provide the greatest benefit for you and your family!
Our latest blog: Tax Planning is Key Subscribe here: [link]
Want to know how tax planning can benefit you? Find out more: [link]
Tax Tip: Seek professional tax advice and get educated on the laws and consequences related to your unique situation. [link]
Tax planning can help you take advantage of every strategy, deduction, and credit you are entitled to. [link]
If you seek a tax professional to help you with your tax planning, they can project your income through the end of December and maximize your deductions. [link]
You can have more money to save, invest, or spend by tax planning. Find out more here: [link]
Want to know in advance how your situation will be impacted by the tax law changes? [link]
Tax Planning is Key Sign up for our newsletter: [link]
TaxTips Volume 8, Issue 9 For distribution 10/22/18; publication 10/25/18
2018 Tax Law Changes for Individuals: Understanding Standard vs. Itemized Deductions
Now that the Standard Deduction has nearly doubled, many taxpayers won’t need to itemize their deductions, which will streamline the tax return process.
New Standard Deduction Amounts
Changes to Itemized Deductions
If you have a greater tax benefit by itemizing your deductions, understand how the 2018 tax reform has changed what you can deduct.
If you’re unable to itemize for the 2018 tax year but just missed the limits, you may be able to time your deductions to itemize every other year. Check with us on this common technique and other tax strategies so we can help you reduce your tax liability.
Our latest blog: 2018 Tax Law Changes for Individuals: Understanding Standard vs. Itemized Deductions Subscribe here: [link]
Curious about how the new 2018 tax law changes will affect you? Find out more: [link]
Biz Tip: The new standard deduction amounts have nearly doubled for 2018. [link]
The threshold for medical deduction has been retained and improved for 2018. [link]
Full interest deduction is allowed for up to $750,000 of indebtedness on primary/secondary home mortgage. [link]
Miscellaneous deductions have been suspended through 2025. Find out more here: [link]
Will you need to itemize your tax deductions for 2018? [link]
2018 Tax Law Changes for Individuals: Understanding Standard vs. Itemized Deductions Sign up for our newsletter: [link]
