Yearly Archives 2018

IRS reminder: Deadline Dec. 31 for most retirees who must make required retirement plan distributions WASHINGTON — The Internal Revenue Service today reminded retirees born before July 1, 1948, that they usually must take distributions from their individual retirement arrangements (IRAs) and workplace retirement plans by Dec. 31. The payments, called required minimum distributions (RMDs), are normally made by the end of the year. Those who reached age 70½ during 2018 are covered by a special rule that allows them to wait until April 1, 2019, to take their first RMDs. This means that those born after June 30, 1947,
More

You can access a digital copy of the Rutherford County, TN Magazine here.   Printed copies are available at the Rutherford County Chamber of Commerce office.  
More

The IRS posted Tax Reform Tax Tip 2018-182 concerning child tax credits.  The Tax Tip provided the following information:  The new law increases the child tax credit from $1,000 to $2,000. Eligibility for the credit has not changed. As in past years, the credit applies if all of these apply: the child is younger than 17 at the end of the tax year, December 31, 2018 the taxpayer claims the child as a dependent the child lives with the taxpayer for at least six months of the year Credit refunds. The credit is refundable, now up to $1,400. If a
More

401(k) contribution limit increases to $19,000 for 2019; IRA limit increases to $6,000 WASHINGTON — The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019.  The IRS today issued technical guidance detailing these items in Notice 2018-83. Highlights of Changes for 2019 The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000. The limit on annual contributions to an IRA, which last increased in 2013, is increased from $5,500 to $6,000.
More

The IRS posted links with resources about tax reform for businesses.  Some of the topics covered are: Income–Gains and Losses Deductions and Depreciation Credits Taxes Changes in Accounting Methods To access the website with these and other links, click here.
More

The IRS is encouraging taxpayers to check their withholdings due to changes in the tax law for 2018.  Taxpayers can use the IRS Withholding Calculator to see if adjustments need to be made to correct over or under withholding for the 2018 tax year.
More

The IRS published Tax Tip 2018-138 with information for charitable organizations applying for tax exempt status. Charitable organizations should apply for tax-exempt status from the IRS.  In order to apply, a determination must be made as to its type:  trust, corporation or association. Once the determination has been made, there are three additional steps: 1. Gather organization documents: Each application for exemption except Form 1023-EZ  must be accompanied by an exact copy of the organization’s  organizing document.  This is generally one of these: Articles of incorporation for a corporation Articles of organization for a limited liability company Articles of association or constitution for
More

2018 3rd Quarter Estimated Tax Payments are due on September 17, 2018.  Instructions and a payment voucher can be found here.  Checks should be written to the United States Treasury with Form 1040-ES listed on the memo line along with the taxpayer’s social security numbers. When to Pay Estimated Taxes: Payment Period Due Date January 1 – March 31 April 15 April 1 – May 31 June 15 June 1 – August 31 September 15 September 1 – December 31 January 15* of the following year.
More

The IRS published Tax Tip 2018-129 to help tax professionals create strong passwords but the advice is good for all taxpayers to use to protect their data.  The list below is from the IRS and you can read the full tax tip by clicking here. Opt for a multi-factor authentication process when available. Many email providers now offer customers two-factor authentication protections to access email accounts. Use word phrases that are easy to remember rather than random letters, characters and numbers that are harder to remember. By using a phrase, preparers don’t have to write down the password, which exposes it to more
More