A Breakdown of the Proposed IRS 1040
Article Highlights: The New Draft 1040 Form Comparing the Old and New 1040 Forms The Same Two-Page Length Six Additional Schedules Other Income Adjustments to Income Additional Taxes Nonrefundable Credits Other Taxes Other Payments and Refundable Credits Foreign Addresses and Third-Party Designees New Pass-Through Deduction Remember the IRS’s promise about being able to file your […]
133,000 Injured Veterans Entitled to Tax Refunds
Article Highlights: Combat-Injured Veterans Tax Fairness Act Disability Severance Payments Department of Defense Notice Standard Claim Amount Filing a Claim Lack of Documentation As a result of the 2016 Combat-Injured Veterans Tax Fairness Act, more than 133,000 injured veterans may qualify for a federal tax refund. The minimum refund is estimated at $1,750, meaning the […]
States Sue U.S. to Void $10,000 Cap on State and Local Tax Deduction
Article Highlights: Four States Sue Federal Government High-Tax States Challenging the $10,000 Itemized Deduction for State and Local Taxes Charitable Deduction Work-Around Substance over Form Proposed IRS Regulations to Counter Work-Arounds Taxpayers Should Exercise Caution Four states – New York, Connecticut, Maryland and New Jersey – have sued the federal government to void the tax-reform […]
E-filing Your Tax Returns
Basics of E-Filing When e-filing (electronic filing) was first introduced, only the less complicated tax returns qualified. This led to the general public’s perception that e-filing was for short forms with refunds. Since then, e-filing has matured to the point that even the most complicated returns can be electronically filed. It also offers the following […]
Do You Need to Renew Your ITIN?
Article Highlights: Over 2 Million ITINs Require Renewal Failure to Renew Can Affect Tax Filings and Refunds in 2019 W-7 Family Renewal Option Three Ways to Renew Avoiding Common Mistakes The IRS has announced that more than 2 million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2018. An ITIN […]
Avoid Becoming a Victim of Identity Theft
On December 22, 2017, The Tax Cuts and Jobs Act was signed into law. The information in this article predates the tax reform legislation and may not apply to tax returns starting in the 2018 tax year. You may wish to speak to your tax advisor about the latest tax law. This publication is provided […]
Tax Reform Eases the Alternative Minimum Tax – But It’s Still There
Article Highlights: What Is AMT? AMT Triggers Medical Deductions Deduction for Taxes Paid Home Mortgage Interest Miscellaneous Itemized Deductions Personal Exemptions Standard Deduction Incentive Stock Options Although Congress has been promising to repeal the alternative minimum tax (AMT), they failed to do that when they passed tax reform in 2017. Instead, they lessened the effects […]
Tax Reform 2.0 Is in the Works
Article Highlights: Tax Reform 2.0 House Ways and Means Committee Talking Points Prognosis The dust has not yet settled from the Tax Cuts and Jobs Act (TCJA), passed into law in December 2017, and the House Ways and Means Committee is already considering another round of tax changes. The committee chair, Kevin Brady, Republican from […]
Kiddie Tax No Longer Based on Parents’ Tax Rate
Article Highlights: Parents Attempting to Shift Income to Children Kiddie Tax Tax Reform Changes Tax on Child’s Unearned Income Tax on Child’s Earned Income Some years back, it was not uncommon for parents to put their investments in their dependent children’s names to take advantage of their children’s lower tax rates. Although the Uniform Gift […]
SALT Deduction – Battle Lines Have Been Set and Swords Have Been Drawn
Article Highlights: SALT Tax Limits State Work-arounds Converting Tax Deductions to Charitable Contributions IRS Regulations Taxpayer Beware Tax reform has limited the federal itemized deduction for state income and local government taxes (including property taxes), collectively referred to as the SALT deduction, to $10,000 a year. This set off a firestorm of protests from the […]