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Hope this tax season is treating everyone kindly! Have a little laugh with me with this tidbit! The difference between dog people and cat people: Dog people wish their dogs were people, cat people wish they were cats -@simonsinek
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Attention Seniors: New Form 1040-SR

New Form 1040-SR, alternative filing option available for seniors!
WASHINGTON ― The Internal Revenue Service wants seniors to know about the availability of a new tax form, Form 1040-SR, featuring larger print and a standard deduction chart with a goal of making it easier for older Americans to read and use.
The Bipartisan Budget Act of 2018 required the IRS to create a tax form for seniors. Taxpayers age 65 or older now have the option to use Form 1040-SR, U.S. Tax Return for Seniors. Form 1040-SR, when printed, features larger font and better readability.
Taxpayers who electronically file Form 1040-SR may notice the change when they print their return. More than 90% of taxpayers now use tax software to prepare and file their tax return.
Taxpayers born before Jan. 2, 1955, have the option to file Form 1040-SR whether they are working, not working or retired. The form allows income reporting from other sources common to seniors such as investment income, Social Security and distribut…

THURSDAY TAX TIDBITS

Tax Tip: Start Planning Ahead!

It is never too early to start thinking about the upcoming tax season. Don't procrastinate and be prepared for the tax reform changes that have been implemented this year. Under the Trump Administration, there have been several tax changes that may impact you or your business. Here are some changes that may impact you:


Tax Reform: Business Impact
There are many business considerations, including the corporate tax rate, limitations on net interest expense, full expensing of business assets, changes to net operating loss deductions, limitation of like-kind exchanges, limitation on deductibility of FDIC premiums, corporate alternative minimum tax, rules for recognition of income, changes to business tax credit, the modified limit on excessive compensation, and the modified deduction for meals and elimination of entertainment expenses. Not being able to claim the same expenses as before may lead to higher taxes! Tax Reform: Individual Impact
Individuals will …

THURSDAY TAX TIDBITS

What is the Dark Web?

As a tax accountant, I see and witness many clients falling victim to identity theft. Because of this, I make it my responsibility to bring awareness to the issue as much as I can. Recently, I came across an AARP article discussing what the Dark Web is. I found the article to be interesting and believe it is something of value to my blog readers. The intelligence and skill behind hacking are so advanced with today's technology; it is scary and difficult to know how to protect yourself from it. I encourage you to read AARP's article and share with friends and family. For more questions, our accountants at Cunningham Tax Help have the resources that can help you and your situation. We are open Monday through Friday from 9 AM to 5 PM; contact us by email or phone at: thetaxlady4u@gmail.com or 253.581.1461

AARP Article: https://www.aarp.org/money/scams-fraud/info-2018/what-is-the-dark-web.html

Follow me! Twitter: @thetaxlady4u And ask me about PolkaDotPowerhouse!

THURSDAY TAX TIDBITS

IRS Announces Major Changes to Form W-4!

Earlier this week the IRS and Treasury Department announced that the major changes for Form W-4 are to be delayed until the tax year 2020. These changes were planned to be made in 2019, however, after sharing the drafted version, the IRS and Treasury Department listened to feedback and decided to postpone the changes. Minor changes will be made to the 2019 W-4, but it will remain largely consistent with the present draft. 

In the meantime, it is important for individuals to learn how these changes may impact their personal finances. The IRS encourages taxpayers to use the paycheck checkup at https://www.irs.gov/payments/tax-withholding and review their withholding situation. By doing so, you can ensure withholding is not under-withheld or over-withheld. If under-withheld, there is a chance of having to pay taxes at the end of the year or receiving a smaller refund.

Don't ignore this issue until it is tax season. For more questions on how this …

THURSDAY TAX TIDBITS

PSA: Sales Tax Warning

Have you received one of these notices with your online order?


Confused about what this is? Let us help you! Last year, Washington state imposed a new bill to increase sales tax revenues. Out-of-state sellers are required to inform Washington State consumers of sales tax that is due on any purchases. They are required to attach this disclosure to applicable purchases if not, they are susceptible to hefty penalties. However, this only applies if the out-of-state seller has retail sales to Washington customers of more than $10,000. The notice sellers must provide need to inform Washington purchasers that:
Sales or use tax is due on certain purchasesWashington requires the purchaser to file a use tax returnThe notice is required under RCW 82.13.020(2)(a)(i)This bill was signed in July 7, 2017, and started to be enforced on January 1, 2018. Many Washington purchasers are uninformed and unaware about these notices or change in the bill. For more questions on how this …

THURSDAY TAX TIDBITS

6 Steps to Starting Your Business!

Do you have a great idea that you know will be a successful business? Or do you have the dream to open a small business, but don't know how to start? I get it, it's scary and overwhelming to think about everything you need to do to get started! Here is a list of the 6 steps you need to take to make your idea and dream into a reality:


Conduct Market ResearchMarket research will tell you if there’s an opportunity to turn your idea into a successful business. Gather information about potential customers and businesses already operating in your area. If you are unsure about your innovative ideas, we will provide honest feedback and help you dream of an idea you are passionate about!

Create a Business Plan

Your business plan is the foundation of your business. Cunningham Accountants will help you create a roadmap for how to structure, run, and grow your new business. We want to help you start your business, but your company's growth is important t…