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Showing posts from August, 2018

THURSDAY TAX TIDBITS

Five Facts the IRS doesn't want you to know!



1. Calling the IRS for help won't work.

Calling the IRS usually requires you to stay on hold. Last year, 35.6% of phone calls went unanswered by representatives; that's a lot! Additionally, this year the IRS projects that they will only serve 43 percent of callers after they wait for 30 minutes. Crazy, I know!
2. The IRS can't handle all the paperwork either.
About 50 percent of letters the IRS receives have not been handled in a timely manner. The IRS deals with over a million pieces of correspondence; it takes an average of 45 days to respond.
3. The IRS is worried about ObamaCare collection.
If you received a subsidy based on your projected income, and you made more than that estimate, you may have to pay back part of the subsidy. If you did not have a health care plan, you may be able to file for an exemption or you could owe a small penalty. The Trump administration ended this policy, however, it is not effective until …

THURSDAY TAX TIDBITS

Tax Reform Tip With the changes made in the tax policies late last year, there may be an impact to taxpayers with children and/or other dependents. Understanding the personal impact of this change may influence your withholding on your paychecks. This is a brief overview of how the tax law changes may affect the withholding of parents and caretakers:
Child tax credit The maximum child tax credit increased from $1,000 to $2,000 per qualifying child.Taxpayers whose income was too high to benefit from the Child Tax Credit in prior years may now find they qualify.The credit now phases out at $400,000 for couples and $200,000 for singles, compared with 2017 amounts of $110,000 for couples and $75,000 for singles.Additional child tax credit The maximum additional child tax credit increased from $1,000 to $1,400.The ACTC is a refundable credit for taxpayers who owe little or no federal income tax. Credit for other dependents There’s a new $500 credit that can benefit taxpayers who support other…

THURSDAY TAX TIDBITS

How to: Avoid an audit from the IRS Being audited by the IRS is a common worry among business owners. To help, here is a list of 8 tips to avoid an audit from the IRS Too many round numbers on a tax returnAvoid too high or unusual deductionsAssure income matches what is reported to the StateAvoid claiming any flaky deductionsAccount for everything the first timePay any bill from the IRS in a timely mannerReport actual numbers that are reasonableHave a professional do your tax return
Dealing with the IRS can be stressful! We understand that at my office, so let us offer you some cunning Cunningham tax help! Not only do we want to provide the best tax services, but we also care about the growth of your business. If your business is still audited despite our audit proof tips, we will continue to stand by your side and defend you throughout the audit process. For any questions, do not hesitate to reach out to my office! We are open Monday to Friday from 9 AM to 5 PM; contact us by email o…

THURSDAY TAX TIDBITS

More Tax Law Changes The Republican tax bill was signed into law at the end of December. The seven tax bracket ranges have been adjusted, personal exemptions have been removed, and standard deductions have increased.
The seven federal tax brackets have slightly lowered rates and new ranges.





In 2017, the standard deduction for a single taxpayer was $6,350, plus one personal exemption of $4,050.
The new law combines those into one larger standard deduction for 2018: $12,000 for single filers and $24,000 for joint filers.
To answer more personal questions on how this may impact your personal or business taxes, please reach out to my office! We are open Monday to Friday from 9 AM to 5 PM; contact us by email or phone at: thetaxlady4u@gmail.com or 253.581.1461 
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And ask me about PolkaDotPowerhouse!

THURSDAY TAX TIDBITS

How does Trump's new tax law affect you?
Under the Trump Administration, there have been many changes made. Read through this brief article on how it may impact you; if you come across any confusion or questions, do not hesitate to reach out! The Act eliminates most itemized deductionsThat includes moving expenses, except for members of the military. Those paying alimony can no longer deduct it, while those receiving it can. This change begins in 2019 for divorces signed in 2018. It keeps deductions for charitable contributions, retirement savings, and student loan interest. The Act limits the deduction on mortgage interest to the first $750,000 of the loan. Interest on home equity lines of credit can no longer be deducted. Current mortgage holders aren't affected.  Taxpayers can deduct up to $10,000 in state and local taxes. They must choose between property taxes and income or sales taxes. This will harm taxpayers in high-tax states like New York and California. The Act expand…