The IRS is urging taxpayers to check their mid-year withholdings. The IRS is now required to hold 2017 income tax refunds for a few weeks for taxpayers who claim the Earned Income Tax Credit and the Additional Child Tax Credit. The IRS will also be reviewing returns more closely due to the threat of identity theft and that will cause a delay in returns and refunds being processed. If you are accustomed to receiving a large refund early in the spring, you may want to change your withholdings so that you can have more take home money now. You can
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2016 3rd Quarter Estimated Tax Payments are due on September 15th. Form 1040-ES has an estimated tax worksheet and a payment voucher. Tennessee residents need to mail their voucher and estimated tax payment to: Internal Revenue Service P.O. Box 931100 Louisville, KY 40293-1100 2016 4th Quarter Estimated Tax Payments will be due on January 17, 2017.
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Do you know the difference in types of retirement plan contributions? Your employer-sponsored retirement plan may allow you to choose the types of contributions you make to the plan from your wages. Here’s a brief description of the different types of contributions your may be able to make: • Pre-tax elective deferrals – You don’t include these amounts in your gross income in the year that you make the contributions. For example, if you direct your employer to contribute $2,000 from your $30,000 salary in 2016, you only include $28,000 in your gross income. You will have to include these
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When a move is closely related to the start of a new job, moving expenses incurred within one year of the job start date can generally be deducted. The following 2 factors are used to determine the eligibility of deducting moving expenses: 1) Distance: The new job location must be at least 50 miles farther from the taxpayer’s old home than the taxpayer’s previous job location. 2) Time: Taxpayers must work full-time at their new job for at least 39 weeks in the first year of the move. Self-employed taxpayers must work full-time for a total of at least 78
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The IRS published a bulletin with tax tips about taxes on home sales. Most gains on home sales aren’t subject to tax but exceptions and exclusions may apply. Please click here to read the full IRS bulletin.
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Taxpayers who pay for college in 2016 may receive tax savings on their federal tax return. These credits are available for study abroad education, too. Education credits are subject to income limitations and may be reduced or eliminated based on the taxpayer’s income. Taxpayers may only use qualified expenses to figure their education credit. Qualified expenses include the costs paid for tuition, fees and other related expenses for an eligible student to enroll at, or attend, an eligible educational institution. Items such as computers, books, and other school supplies can also be claimed as qualified education expenses. Items such as
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Most gifts are not subject to the gift tax. There is usually no tax when: –you give a gift to your spouse –you give a gift to a political organization for its use –you give a gift to a qualified charity –your gift to anyone besides your spouse or dependent does not exceed the annual exclusion –you’ve paid tuition or medical expenses directly to an educational institution or medical facility for anyone that you don’t claim as a dependent on your tax return (If you pay tuition or medical expenses for yourself, a spouse, or a dependent, you may be
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Employees may be able to deduct the amount of work-related expenses when they purchase items required for their job and they are not reimbursed for those expenses. Amounts spent on work-required expenses that are over two percent of an employee’s adjusted gross income may be deducted as an employee business expense. Schedule A is used to claim employee business expense deductions on individual tax returns.  Records such as receipts, cancelled checks, and credit card statements must be kept to prove the expenses that are deducted. Some costs that employees may be able to deduct include uniforms and other required work clothing
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Effective July 1, 2016, the Internal Revenue Service  lowered the application fee for organizations with annual gross receipts of $50,000 or less or assets of $250,000 or less to apply for 501(c)(3) tax exempt status.  The application fee is being lowered from $400 to $275. Organizations who meet income and asset requirements may use Form 1023EZ, to apply for 501(c)(3) tax exempt status. The $275 fee may be submitted through www.pay.gov. The IRS introduced Form 1023EZ in 2014 to streamline the process for small organizations to apply for tax-exempt status under Section 501(c)3 of the Tax Code.
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Happy 4th of July!  We are blessed to live in the USA.  As Americans we enjoy many freedoms and protections.  The Taxpayer Bill of Rights is listed below: The Right to Be Informed Taxpayers are entitled to clear explanations of the laws and IRS procedures on all tax forms, instructions, publications, notices and correspondence. Taxpayers have the right to know what they need to do to comply with tax laws. Taxpayers have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes. The Right to Quality Service Taxpayers have the right
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