Source: https://waterfronttax.com/client-resources/blog/
Timestamp: 2020-04-08 20:29:05
Document Index: 311293438

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Severn, MD | Crossville, TN | Blog | Waterfront Tax & Accounting
Introduction to some of the relief offered for COVID-19
The following is a brief introduction to just some of the US Government stimulus funding from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) that provides relief from the COVID-19 impact.
All individuals with a Social Security Number who do not exceed income limits shown in brackets “[ ]”...
In response to national health concerns, the IRS has extended both the 2019 federal income tax filing and payment deadlines for most taxpayers. Here are the important details:
- The filing deadline for 2019 federal individual income tax returns has been automatically moved from April 15, 2020 to July 15, 2020.
- The payment deadline for most...
The IRS has advised that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment without jeopardizing their status.
If you have a HDHP that covers these costs, you may continue to contribute to a health savings account (HSA). Health plans that otherwise qualify as HDHPs will not lose that status merely because...
Tax Deductions (above the line, itemized), Tax Credits
You may be eligible to claim multiple above-the-line deductions and/or tax credits on your 2019 federal tax return whether you itemize deductions on Schedule A 1040 or not. Above-the-line deductions are better than below the line deductions because they reduce your tax by directly lowering your taxable income and are not subject to the below the line limitations (e.g., medical can only deduct...
Tax Deductions when Use Home for Business
Llisa Church
Some home expenses are deductible on your 2019 tax return whether you use your home for business or not. Others home expenses are deductible on your 2019 tax return only if the home is used for business.
Deductible Home Expenses Regardless if used for Business or NOT
The following are deductible as an itemized deduction, subject to...
Filing an Extension: Penalties You Can & Cannot Avoid
If for any reason you will not be able to file your 2019 federal tax return by the April 15, 2020 due date, you can avoid some—but not all—penalty charges by requesting a filing extension. Most taxpayers can receive an automatic extension of up to six months simply by submitting IRS Form 4868.
Taxpayers who file after the deadline without requesting an...
New combined Schedules you many need for 2019 Tax Return
Last year Many taxpayers were surprised to learn that they needed to include multiple numbered schedules with their 2018 federal Form 1040s. The IRS has since then combined some of these schedules, there are fewer numbered schedules overall for 2019. However, as a result of this consolidation, the 2019 schedules are longer and more complex.
To avoid having your 2019...
Reminder to Update New W-4 Form for 2020
The W-4 is an IRS form that lets your employer know how much money to withhold from your paycheck for federal taxes. Updating your W-4 helps prevent a big balance due at tax time and prevents overpayment of taxes during the year.
The IRS has made a number of changes to Form W-4, the Employee Withholding Certificate, for tax year 2020. Most...
Other Income Impacts to your 2019 Tax Return
Now is the time to prepare to file your 2019 tax return, and the IRS is reminding taxpayers that certain end-of-year financial transactions might have significant tax impacts. For example, Tax withholding from paychecks does not ordinarily take into account income sources like yearly or holiday bonuses, stock dividends, or selling real estate or other property at a profit. If you receive...
1099 Reminder, File your Return Even if Can't Pay
If you are self-employed or own a business, remember that you may have to send an IRS Form 1099 to any contractor to whom you paid $600 or more in 2019. In most cases, appropriate 1099 forms were required to be provided to contractors by January 31, 2020. Any Form 1099-MISC that shows nonemployee compensation (Box 7) was also required to be filed with the IRS by January 31. The deadline for...
Bitcoin (Virtual Currency) Tax Example
For individuals, basic currency transactions like exchanging dollars for euros while traveling generally have no tax implications. However, the IRS treats virtual currencies like Bitcoins (also called cryptocurrencies) as property, not as true currencies. As a result, many transactions with virtual currencies result in capital gains (or losses) that must be reported on your tax returns. The...
This blog provides guidance for taxpayers who are undergoing an IRS audit. It includes an overview of how audits are conducted as well as a strategy for preparing for the audit.
The IRS website defines an Audit as: “An IRS audit is a review/examination of an organization's or individual's accounts and financial information to ensure information is...
'Tis the Season for Important Tax Paperwork
The IRS has confirmed that the individual tax filing season will start on Monday, January 27, 2020 and the deadline to file 2019 tax returns and pay any taxes owed is Wednesday, April 15, 2020.
Although the IRS systems open for processing on January 27, you do not have to wait until then to begin preparing for your tax return.
Keeping your records organized will...
Tax Planning if you have Irregular Income
If your income varies from year to year – for instance, if you change jobs often or get a significant part of your income from the gig economy – tax planning can get complicated. Certain activities that increase your tax bill during higher-income years might have little impact during lower-income years. Similarly, an expense that results in a sizable tax deduction during a...
Education Tax Credits (AOTC vs LLC)
The IRS offers two important tax credits for higher education expenses: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). You may claim both credits on the same tax return, but not for the same person. For example, you might claim the AOTC for your college-age dependent children and the LLC for your spouse.
If two or more members of your...
AOTC or LLC Education Tax Credit - which is better for you
2020 Retirement Plan Limits are up $500
Lisa D. Church
IRS limits for individual contributions to employer-sponsored retirement plans are increasing in 2020. If you are an employee who participates in 401(k), 403(b), the Thrift Savings Plan for civil and uniformed service members, or most types of 457 plans, you may contribute up to $19,500 in 2020, up from $19,000 in 2019. The catch-up contribution limit for employees 50 years of age or older...
Potentially taxable...
New Social Security Number Scam (IRS Impersonators)
Be on guard as Con artists continue to come up with new ways to impersonate the IRS and scam taxpayers out or their money and/or private information. Recently, the IRS issued a warning about a new scam in which callers use intimidation tactics to extort money from taxpayers.
The scammer claims that the call recipient has overdue taxes and threatens to suspend or cancel...
New IRS Per Diem Rates (Effective 10/1/2019)
The IRS recently raised the per diem rates for employee travel expenses, which are effective October 1, 2019. Within the Continental U.S., the new basic daily rates are $297 for high-cost regions (of which $71 is allotted for meals), and $200 for low-cost areas (with $60 for meals). The "incidentals only" per diem, which covers expenses like tipping bellhops, remains at $5 for all...
Our new website (from: www.yourtaxdiva.com to: www.waterfronttax.com)
Waterfront Tax & Accounting is excited to announce the recent launch of our firm’s new website. We’ve been working very hard to enhance our website and give our firm a fresh look. We’ve also continued to research and identify the latest and greatest technologies to improve the services we provide and ensure we continue to meet your needs.
Renewing ITINs
Individual Taxpayer Identification Numbers are used for taxpayers who are required for U.S. tax purposes to have a U.S. taxpayer identification number but do not qualify to get a social security number.
If you use an ITIN, you should check if it expires this year. If it does, information about how to renew your ITIN can be found...
QBI Tax Deduction for Self Employed
If you are a freelancer or otherwise participate in the “gig economy”, you may be able to claim a new tax deduction under the Tax Cuts and Jobs Act (TCJA). The Qualified Business Income (QBI) Deduction applies to self-employment earnings (basically, any income you receive in a setting where you are not classified as an employee). Under the provision, individuals may be able to...
Tracking Utility Cost for Home Office Expense
If you plan to claim a deduction for Expenses for Business Use of Your Home (home office expense) on your tax return, you need a reliable method to calculate your deductible utility costs. IRS rules require that you separate utility expenses that apply to only the residential portions of your home (such as cooking gas or electricity used by your refrigerator) from those that pertain to the...
Tracking Utilities for Home Office Expense
Save Tax Deduction Receipts for 3 to 6 yrs
For most personal or business expenses that you claim as deductions on your tax forms, the IRS requires that you preserve written documentation of each expense. Acceptable forms of written evidence include receipts, invoices, canceled checks, and credit card and bank account statements. These documents should clearly show the date, location, amount and, if possible, nature of each expense. An...
IRS Makes it easier to deduct PCs as business expense
Historically, the IRS classified many computers and computer peripherals (such as printers) as “Listed Property.” If your business use of Listed Property is less than 50%, you are usually required to distribute the business portion of the property's cost over your tax returns for multiple years, using a depreciation method that is unfavorable to the...
6 Month Filing Extension Deadline this Tues 10/15
If you requested an extra six-month extension in April to file your 2018 personal income tax return, that deadline to file is coming up this week on Tuesday, October 15th.
If you are an employer that makes contributions into employee Simplified Employee Pension IRA accounts, October 15th is also the six-month extension deadline to make those...
Higher Education Tax Tip
If you or any of your dependents are enrolled in a higher education program this fall, you may qualify to claim one or more credits on your 2019 tax return.
The American Opportunity Tax Credit (AOTC) is a credit of up to $2,500 for a student pursuing a degree or certified credential at a college or vocational school. You may claim the credit for up to...
Age Limited Child Tax Deductions
Several key tax credits end when a dependent child reaches a specified age. Here is a quick summary of the age rules for three of the most important tax credits for parents, as well as the most important exceptions:
Child and Dependent Care Credit: Child must be under 13 years of age (12 years old or younger), OR live with you more than half the year...
During this hectic back-to-school period when classroom expenses are most likely to occur, it is important to remember to save your receipts if you are educator.
If you are a teacher, principal, counselor, or classroom aide who works at least 900 hours a year in a state-accredited school (grades K-12), you may qualify for the Educator Expense Deduction. This IRS rule...
Taxable Events that must be reported to IRS (but are commonly overlooked)
In addition to traditional income sources like employee wages and business profits, there are a number of other activities and transactions that the IRS classifies as potentially taxable. It is important to consider all of these “taxable events” when you prepare your returns.
Some of the most commonly overlooked taxable events include:
September Withholding Tax Checkup
Making sure that the correct amount of tax is being withheld from your paychecks is the best way to avoid an unpleasant IRS surprise next spring. Here's a simple way to do a September withholding checkup:
Step 1) On your pay stub for the pay period ending August 31 or September 1, find your year-to-date federal income tax withholding. If the stub does not have this...
Teacher Education Expense Deduction
Taxable Events that must be reported to IRS
Sept & Oct Tax Deadlines
The following are tax deadlines due in September and October:
September 16th is the deadline for the third quarter installment for individuals & corporations paying estimated taxes throughout the year.
September 16th is the deadline for Forms 1120S (S Corporations) & 1065 (Partnerships) for S Corporations and Partnerships that requested a...
Rent a Bed In Your Home
Firms such as Airbnb have made bedroom rentals more common than just a few years ago. Depending on the length of the rentals and the people to whom you rent, the tax code treats your bedroom rental as one of the following:
1) A tax-free activity.
2) A bedroom rental that you report on Schedule C of your Form 1040.
3) A bedroom rental that you report on Schedule E of...
Business Meals Q&A
Here’s good news for business meals: The Tax Cuts and Jobs Act (TCJA) removed the “directly related and associated with” requirements from business meals. The net effect of this change is to subject business meals once again to the pre-1963 “ordinary and necessary” business expense rules. You are going to like these...
If you derive income from any activity where you are not an employee, from occasional dog sitting to playing guitar for tips at your local coffee shop, then the IRS requires you to classify the activity as either a hobby or a business on your tax returns. Importantly, this decision must be based on IRS rules governing what constitutes a business, not on how you personally view the activity....
Estimated Tax Payment vs Alternatives
The IRS states that federal taxes must be paid on a "pay as you go" basis, not just at the end of the tax year. This means that if you receive significant income that is not subject to withholding, it is likely necessary for you to make estimated tax payments throughout the year. In addition to those who officially classify themselves as self-employed, many people who participate in the "gig"...
Standard Mileage vs Actual Vehicle Expense Deduction
If you use your car, van or truck for business purposes, you may be able to claim a vehicle expense deduction on your tax return. You may either use the standard mileage rate or report the actual expenses associated with business uses of the vehicle. Actual expenses include gas, repairs, insurance and depreciation. Each expense must be prorated based on how much you use the vehicle for...
SCAM IRS Debt Collectors
The IRS began a program in 2015 where they may assign certain cases of overdue tax debts to private debt collectors. If this happens to you the IRS will give you (and your tax representative) written notice that your account is being transferred to the private collection agencies.
Watch out for scam phone calls from those who pretend to claim to collect for the...
Qualified Business Income Deduction (20%)
The Tax Cuts and Jobs Act (TCJA) created a new 20% federal tax deduction for many self-employed taxpayers and small business owners (i.e., not wage earners but those with business income). This is called the Qualified Business Income (QBI) deduction which applies to income derived from “pass-through entities”—businesses whose earnings are reported on individual owners' tax...
If you have student loans, you may be able to deduct up to $2,500 per year in loan interest on your federal tax forms. You do NOT have to itemize deductions to claim it. This deduction is instead classified as an adjustment to your gross income,
For any loan on which you paid $600 or more in interest during the year, you should receive a Form 1098-E from the loan...
If you purchased alternative energy equipment for your home in 2018 or 2019, you may be eligible for a tax credit up to 30% of the cost of materials and installation. The equipment that qualifies for the “residential renewable energy tax credit” includes:
Solar-powered water heaters for the home. (solar heaters used for hot tubs or...
Quarterly Estimated Tax Payments Due June 17
If you are making quarterly estimated tax payments to the IRS, the due date for the April 1 - May 31 quarter of the year is June 15th. However, because the due date this year falls on a Saturday the payment will be considered on time if you make it on the next day that's not a Saturday, Sunday, or legal holiday which is Monday June 17. That is tomorrow !!!!!
For payments made...
Overseas Tax Filing Extension Deadline Reminder
If you are a U.S Citizen or Green Card Holder living abroad or in active military service and have not filed your taxes yet, the deadline is coming up on June 17th, 2019.
The extension is for the date to file, not to pay. Any interest on the taxes owed will be calculated from the regular due date of the return, April 15th,
529 tax free...
If you are very good at what you do and know the business area for your set of skills then one of the most effective ways to create wealth is to start and operate your own business. When you operate your own business there are significantly less limits on your income than the alternative of being an employee with a job. There are also significant tax advantages to operating your own business....
Investing Tip Part 2 (what to do with that tax refund)
On my first investing blog I encouraged you to invest a good percent of your tax refund to create wealth for you in the future rather than spending it all now. I gave you several statistics showed that most millionaires were normal folks that did not have paying jobs but became...
Investing Tip Part 1 (what to do with that tax refund)
Last blog I encouraged you to invest a good percent of your tax refund to create wealth for you in the future rather than spending it all now. I gave you several statistics from the book “Everyday Millionaires” by Chris Hogan that showed that most millionaires were normal folks that had no special privileges and that did not have paying jobs. 79% of them became millionaires by...
Motivation for Investing Your Refund Rather Than Spending
It is often stated by those that study the wealthy that one of the significant differences between the wealthy and those that struggle to get ahead financially is that wealthy think long term and make decisions based...
If your refund amount is different than what is stated on your filed tax return, part or all of your refund may have been used to offset (i.e., pay off) past-due federal tax, student loans, state income tax or other past-due debts.
You'll receive a notice from the IRS if such an offset occurs that will show the original tax refund amount, the offset amount, as well...
If you file over 3 years late the IRS keeps your refunds!
There are currently more than $1.4Billion in unclaimed tax refunds. If you are owed a refund the only way to get the refund is to file the tax return within 3 years of the due date. Current tax law gives you 3 years to submit a tax return in order claim and receive your refund. If you file your return over 3 years late and are owed a refund you will not get the refund. Ouch, that can...
If You Can't Pay Taxes, It's Better to File Than Not File
If you can’t afford to pay your taxes by 4/15/2019 you are not alone. If you don’t have the money to pay your taxes on time you are far better off to file your return on time and don’t pay the taxes owed or file a request for an extension than not file a return at all.
The reason you are better off to file and not pay is not filing your return...
Key Tax Law Changes & Last-minute Tax Tips
You might be surprised to see you owe taxes this year when you were expecting to pay less taxes due to the tax law changes. Many Americans did pay less compared to 2017 taxes but less tax was taken out of their paycheck and the cumulated effect was they owed more when they filed.
Below are a few of the key changes to the tax law for this filing season:
1) Tax...
First Quarter Estimated Payments are Due 4/15/19
This is a gentle reminder that If you are making quarterly estimated tax payments to the IRS, the due date for the January 1 - March 31 quarter of the year is April 15th.
For payments made using IRS Direct Pay, you can make payments until 8PM EST, and for payments using a credit or debit card, payments can be made up to midnight on the due...
2018 Retirement Contribution up to 4/15/19
One of the most effective ways to reduce your taxes and fund your retirement is to max out your available retirement accounts.
If you haven't already funded your retirement account for 2018, you may still do so. You have until April 15, 2019 for contributions to a traditional IRA, deductible or not, and to a Roth IRA.
Your total contributions to...
When life gets in the way of filing your tax return by the April 15th deadline you can file for a 6-month extension on your federal income tax return which will give you until Oct 15th, 2019 to file your taxes. However, you are still required to pay any taxes due by April 15th, 2019 to avoid penalty and interest charges. You might be able to get a break on the late-payment penalty this...
Tax Related Identity (ID) Theft Reminder
Tax related ID theft is when someone uses your information (name, SSN, etc.) to file a false tax return and claim a fraudulent refund. The number one thing you can do to prevent this type of ID theft is to file early and file electronically. The IRS is “first-come, first-served”, meaning whomever files first, electronically, will be the only electronic return accepted. All others...
Tax Tip for 2nd Home & Vacation Property Owners
Second Home, Cabin, and Vacation Property Owners – Did You Know?
If you own a second home or vacation property that you live in only occasionally and rent out at other times, you might be able to deduct expenses you pay to maintain the property from your rental income. In addition, you might be able to classify the home as investment property instead of personal...
12 Tax Tips for Retirees & Elderly (Part 4 of 4)
This is the 4th part of a series of blogs on 12 Tax Tips for Retirees and the Elderly. Retirement can be a huge shock when retirees have to pay a significant tax due to retirement withdrawals and social security. Other than Roth IRAs, the money you withdraw from your retirement savings is most likely subject to ordinary income tax.
In Parts 1, 2, and 3 we covered the...
12 Tax Tips for Retirees & Elderly (Part 3 of 4)
This is part 3 of a series of blogs on tax tips for the retirees and the elderly. Retirement can be a huge shock when retirees have to pay a significant tax due to retirement withdrawals and social security. Other than Roth IRAs, the money you withdraw from your retirement savings is most likely subject to ordinary income tax.
In parts 1 and 2 we covered the following...
12 Tax Tips for Retirees & Elderly (Part 2 of 4)
This is part 2 of a series of blogs on tax tips for the retirees and the elderly. As pointed out in my last blog the first year of retirement can be a huge shock when retirees have to pay a significant tax due to retirement withdrawals and social security. Other than Roth IRAs, the money you withdraw from your retirement savings is most likely subject to ordinary income...
12 Tax Tips for Retirees & Elderly (Part 1 of 4)
This is a rather lengthy blog that I divided into 4 parts. I will post each part over the next 10 days. I included the outline so you can see the topics of the coming tax tips.
The first year of retirement can be a huge shock to most when they see the taxes they will have to pay on their savings withdrawals. Other than Roth IRAs, the money you withdraw from your...
Taxpayer's 10 Fundamental Rights
As a taxpayer, you have a set of ten fundamental rights that the IRS is obligated to protect.
Your taxpayer rights are:
Right for a clear explanation of all the tax laws & IRS procedures on all tax forms
IRS Statue of Limitations Laws
The IRS does not have unlimited power. The Internal Revenue Code requires the IRS to assess, refund, credit, and collect taxes within specific time limits. These time limits are called the statue of limitations. For example the IRS does not have legal authority to audit or penalize the tax payer for an incorrect tax return outside of the statue of limitations time period. The tax payer...
Owing Taxes is not pleasant. However, if you file a tax return that upsets the IRS then the IRS will charge you penalties and Interest that will make you wish you filed your return correctly in the first place. As a taxpayer or business owner you should be aware of what upsets the IRS and avoid making the mistakes in your tax return that will bring you tax...
Earned Income Credit, Child Tax Credit
If you're claiming the Earned Income Tax Credit or Additional Child Tax Credit, both of which are refundable credits, your refund will be released by the IRS starting from February 27, 2019. A refundable credit is one which gives you cash back even if you didn't pay any tax into the system during the year.
You may check the status of your refund...
Dividend Tax Rates: Qualified vs Ordinary
If you own stock that pays dividends your dividend income will be classified as either “Qualified” or “Ordinary”. The Financial institution that pays the dividends will send you a Form 1099-DIV that will tell you type of dividend. On Form 1099-DIV Qualified dividends are listed in box 1b and Ordinary dividends are listed in box 1a. Ordinary dividends are taxed at your...
Protect yourself from Tax Fraud by being aware that the IRS will never:
* Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card, or wire transfer.
* Demand that you pay the taxes without the opportunity to question or appeal the amount owed
* Threaten to bring in local police, immigration officers or other...
7 Security Tips to Stop Identify Thieves
With tax season coming into full swing, we should all take extra steps to protect our tax and financial data from identity thieves. Cybercriminals are looking for chances to steal financial account information, Social Security numbers, credit card information and other sensitive data to help them file a fraudulent tax return in 2019.
IRS Commissioner Chuck Rettig says...
10 Ways to Reduce Your S Corp. Taxes
If you are S corporation owner you should be aware of every tax break you are entitled to.
Below are 10 ways from the Bradford Tax institute to reduce your S Corp Taxes:
1) Reduce S Corporation Owner’s Wages
As the owner of an S corporation, you can legitimately cut payroll taxes by thousands of dollars by paying yourself a lower salary and taking...
1099-MISC Deadline 1/31/19 (E-file if you missed it)
For businesses, January 31st, 2019 was the deadline to file IRS form 1099-MISC (non-employee compensation over $600).
A Form 1099-MISC is required (with exceptions) for each person to whom you have paid during the year:
*At least $600 in services performed by someone who is not your employee, rents, prizes and awards.
*At least $600 in other income...
W-2 Coming Soon (Deadline is 1/31/19)
January 31st, 2019 is the deadline for employers to issue W-2 forms to their employees.
If you are an employee: You should expect to receive your W-2 from your employer soon, if you have not received it already.
If you are an employer: Remember to issue W-2s to your employees by
IRS Proc Returns 1/28/19, Qualifying Child for Tax Credit
The IRS will begin processing tax returns on January 28th, 2019, and provide refunds as scheduled. The recent government shut down did not delay this start date.
The filing deadline for 2018 tax returns is Monday, April 15th, 2019. If you live in Maine or Massachusetts, you have until April 17th due to public holidays in those...
Dependent Care Tax Credits
More good news due to increased income limits in the new tax laws. If you have a child who was under the age of 13 throughout 2018 or who was under the age of 17 and requires assistance for self-care, you might now be eligible to claim both the Child Tax Credit and the Child and Dependent Care Credit.
To qualify for the Child Tax Credit (also known as the...
Due to an increase in the cost of living the IRS increased the contribution limits for 2019 for retirement plans. The increases in the annual limit to contributions are as follows:
1) 401(k), 403(b), most 457 plans, Thrift Savings Plan: Limit increased from $18,500 to $19,000. If...
IRS Waives 2018 Tax Withholding Penalty for Many
Some more good news today. The National Association of Enrolled Agents (NAEA) provided the below announcement from the IRS in an email to me today.
“WASHINGTON — The Internal Revenue Service announced today that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their...
YouTube Video: FSA, Tax Due Date, Mileage Rate
I posted a YouTube Video on my last 3 blogs. It covers the following 3 topics:
1) Flexible Spending Account (FSA) Grace Period
2) Quartely Estimated Payment Due date for last Qtr of 2018
3) Standard Mileage Rate Increase for 2019 Taxes
The YouTube video is located...
Mileage Rate Increase for 2019 Taxes
Here is some good news. Starting on Jan. 1, 2019, the standard mileage rates for the use of a car, vans, pickups, or panel trucks will be:
- 58 cents for every mile of business travel you drive. (3.5 cent increase from the 2018 rate)
- 20 cents per mile driven for medical or moving purposes. (2 cent increase from the 2018 rate)
- 14 cents per mile driven for the service of...
Quarterly Estimated Tax Payments Reminder
If you are making quarterly estimated tax payments to the IRS, the due date for the 2018 September 1st - December 31st quarter of the year is January 15th, 2019.
If the due date for making an...
Flex Spend Account (FSA) Grace Period
Did you know most employers offer a Flex Spending Account (FSA) Grace Period or $500 Carryover?
If you had difficulty using up the funds in your medical flexible spending account (FSA) before the end of the year, your employer might offer you relief from the “use it or lose it rule” through a grace period or carryover.
Under IRS regulations, employers that offer...
End of Year Tax Saving Ideas
With less than one week left in the year and taxes being a significant percent of where our income goes, consider the following to reduce your 2018 tax bill:
1) Estimate your Total Income. Update your accounting records; estimate your total income. Work with your CPA (or do it yourself) to do a quick estimate of your tax liability.
2) Business owners reduce Taxable Income to...
YouTube Video: "Uncollectable ? Best Time to File your Offer"
I posted a YouTube Video on my Blog: "Uncollectable ? Why Now may be the time to File your offer"
The You Tube video is located at: https://youtu.be/SnrVQvj74ZY
The focus of my practice in Severn, MD is to help taxpayers get in compliance wiht their IRS and state tax filings and to represent them before the IRS and the states with...
YouTube Video on "What is Uncollectible Status"
I posted a YouTube Video on my Blog: "What is Uncollectible Status and How to Obtain it"
The You Tube video is located at: https://youtu.be/ZWjNngoXGxk
14 Terms to know before resolving tax debt
If you have not filed tax returns in previous years or if you owe the IRS money it is helpful to know some of the key terms and how they are used in the language of the IRS tax collection industry.
The focus of my practice in Severn, MD is to help taxpayers get in compliance with their IRS and state tax filings and to represent them before the...
In my last blog, I talked about why Uncollectible Status may be a good place for a taxpayer to be. I also explained that it wasn’t a good long-term solution since the IRS would revisit your case at any time. If you don’t see your financial situation changing, and the thought of those annual IRS check-ups doesn’t give you the warm fuzzies, now may be the perfect...
What is Uncollectable Status and How to Obtain it (Tax Resolution Topic))
I’ve written several blog posts on how IRS collection works and the different options available to you such as installment agreements and offers-in-compromise but there’s one option of which you may not be aware: UNCOLLECTIBLE.
The focus of my practice in Severn, MD is to help taxpayers get in compliance with their IRS and state tax filings and to...
YouTube Video on "Payroll Tax Debt & Personal Liability"
I posted a YouTube Video on my blog: "Payroll Tax Debt and Personal Liability".
The YouTube video is at:
Payroll Tax Debts and Personal Liability (Tax Resolution Topic)
I recently did a blog post on the importance of making estimated quarterly tax payments if you’re self-employed. I’d like to take this a step further for those of you who are not only self-employed but you also have employees. (And if you ARE an employee, you’re going to want to make sure that your employer is doing this!)
The focus of my...
Importance of Paying Estimated Taxes (Tax Resolution Topic)
One HUGE difference between being an employee and being self-employed is the need to pay estimated taxes throughout the year. Stay with me for the details!
The focus of my practice in Severn, MD is to help taxpayers get in compliance with their IRS and state tax filings and to represent them before the IRS and the states with their tax collection issues. A...
YouTube Video on "Importance of Paying Estimated Taxes"
I posted a YouTube Video on my blog: "The Importance of Paying Estimated Taxes".
The YouTube video is
New IRS Streamlined Installment Agreement (Tax Resolution Topic)
Did you know that you can enter into an installment agreement with the IRS without having to provide any of your financial information or any supporting documents? It’s true! And I can show you how.
The focus of my practice in Severn, MD is to help taxpayers get in compliance with their IRS and state tax filings and to represent them before...
Claiming Other Dependent Tax Credit
If you have a dependent who does not meet the criteria for the Child Tax Credit (CTC), you may still qualify for a $500 credit called the Other Dependent Credit. Also called the Family Tax Credit, this nonrefundable credit was created under the Tax Cuts and Jobs Act (TCJA) of 2017. Examples of qualifying dependents include children of age 17 or 18 (or up to age 23 if they are full-time...
Why You don't want to be a Non-Filer (file you tax return even if you can't pay the taxes) (Tax Resolution Topic)
Did you know that the IRS penalty for not FILING your Federal income tax return is 10 times greater than the penalty for not PAYING your income taxes? Yep…seriously. The IRS offers many different options to taxpayers to help them resolve their tax debt but you’ve got to file those returns! The focus...
YouTube Video on New IRS Streamlined Installment Agreement
I posted a YouTube Video on my blog: "The New and Improved IRS Installment Agreement is Here to Stay".
YouTube Video on "Why you don't want to be a non-filer"
I posted a YouTube Video on my blog: "Why you dont want to be a non-filer".
YouTube Video on How IRS Collection Process Works
Check out a YouTube Video I created that explains how the IRS Collection Process works. I go through charts that explain the process from start to finish of what happens when you owe the IRS money. I explain the steps you should follow when you owe the IRS money. The YouTube video is at:
How IRS Collection Works (Expanded with more Details) (Tax Resolution Topic)
As tomorrow is the due date for individual tax returns on extension, I wanted to expand on my previous blog post on how IRS collection works. Whether you live in Severn, MD or Anne Arundel County, MD or anywhere else in the world, the IRS collections process works the same. The focus of my practice in Severn, MD is to help taxpayers get in compliance with their IRS and state tax...
How IRS Collection Works (Initial Overview) (Tax Resolution Topic)
The collection process is...