BBB in Middle Tennessee

We were honored to host the BBB Middle TN Advisory Board meeting at our office today. Today’s meeting included leaders from BBB Middle TN, Total Trans4mation Heating and Air Conditioning, Redstone Federal Credit Union (South Rutherford), and Beaman Dodge Chrysler Jeep Ram Fiat. If you’re not a BBB member, contact Terrie Page at tpage@gobbb.org to find out what you are missing!
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Non-Profit 990 Due Dates

Form 990 for non-profit organizations with a December 31 year end are due May 15.  An extension can be filed to give the non-profit more time to file.  Generally, Form 990’s are due 5 months and 15 days after a non-profit organization’s year end.  A complete list of non-profit year ends and due dates can be found here.  If you aren’t sure which 990 your organization needs to file, a list and information for all Form 990s can be found here.
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Home Office Deduction

IRS Tax Tip 2018-112 gives advice for claiming the home office deduction: Regular method This method requires computing the business use of the home by dividing the expenses of operating the home between personal and business use. Direct business expenses are fully deductible and the percentage of the home floor space used for business is assignable to indirect total expenses. Simplified method The simplified method has a prescribed rate of $5 a square foot for business use of the home. There is a maximum allowable deduction available based on up to 300 square feet. Choosing this option requires taxpayers to
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Amending a Tax Return

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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New Rules for Depreciation and Expensing

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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Estimated Tax Payments

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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Where’s My Refund?

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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New IRS Withholding Calculator and Form W4

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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Standard or Itemized Deductions?

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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