Yearly Archives 2018

The IRS has published Tax Tip 2018-63 with tips for amending a tax return: Tips for Taxpayers Who Have to Amend a Tax Return Taxpayers who discover they made mistakes or omissions on their tax return can correct them by filing an amended tax return. Those who need to amend should remember these tips: File using paper form. Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct the tax return. Taxpayers can’t file amended returns electronically. They can obtain the form on IRS.gov/forms. Mail the Form 1040X to the address listed in the form’s instructions. Amend to correct errors. File an
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The Tax Cuts and Jobs Act, signed Dec. 22, 2017, changed some laws regarding depreciation deductions. TCJA increases the maximum deduction for a section 179 property deduction from $500,000 to $1 million. It also increases the phase-out threshold from $2 million to $2.5 million. You can read the IRS Depreciation and Expensing Fact Sheet for more information.
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If you are self-employed or have income from sources besides a W2 job, estimated tax payments throughout the year can help you avoid a big tax liability on tax day. The IRS has updated their information for calculating estimated tax payments.  Please click here to access this information.
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You can check the status of your tax refund here. You will need to enter your social security number, your filing status, and the exact whole dollar amount of your refund. You can check the status of your refund 24 hours after your tax return has been efiled or 4 weeks after your return has been paper filed.  The website is updated every 24 hours.  Most refunds are processed in 21 days.
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The Tax Cuts and Jobs Act changed the tax law by increasing the standard deduction, eliminating personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions, and changing the tax rates and brackets. The IRS is encouraging employees to check their paychecks to make sure the correct amount of tax is being withheld.  A new IRS Withholding Calculator can be accessed here.  The withholding calculator will help employees complete a new Form W4.  
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You may be able to lower your tax bill by itemizing when you file your 2017 tax return. It’s a good idea to know both numbers before deciding on a deduction method. Itemized Deductions Include: Home mortgage interest State and local income taxes or sales taxes – but not both Real estate and personal property taxes Gifts to charities Casualty or theft losses Unreimbursed medical and employee business expenses above certain amounts Standard Deduction Amounts:  Single — $6,350 Married Filing Jointly — $12,700 Head of Household — $9,350 Married Filing Separately — $6,350 Qualifying Widow(er) — $12,700 *If a taxpayer
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Personal exemptions help reduce taxable income.  Most taxpayers can claim one personal exemption for themselves and one for their spouse if they are married.  Personal exemptions may also be claimed for each dependent. Each exemption normally allows a deduction of $4,050 for 2017 tax returns. While each exemption is worth the same amount, different rules apply to each type. Here are five things to remember about exemptions and dependents when filing your 2017 tax return: Claiming Personal Exemptions: On a joint return, taxpayers can claim one exemption for themselves and one for their spouse if they file a joint return.
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If you will be getting a tax refund, direct deposit is fast, secure, and easy.  You can even have your refund split to be deposited into 2 accounts.  You can read more information from the IRS by clicking here.
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