McCarther & Associates, 3914 Murphy Canyon Road , Ste. A203, San Diego, CA (2026)

01/04/2019

Quarterly Estimated Tax Payments - Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the September 1st - December 31st quarter of the year is January 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 date.

If the due date for making an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time if you make it on the next day that's not a Saturday, Sunday, or legal holiday.

12/28/2018

FSA Grace Period or $500 Carryover – Did You Know?

If you are having 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 FSA plans can offer one (not both) of the following options for unused FSA funds:

• A 2.5-month grace period, which means you will have until March 15, 2019 to use up your 2018 FSA funds.
– OR –
• A carryover of up to $500 of your 2018 FSA funds into your 2019 FSA. The carried over amount will not count toward your maximum allowed contribution for 2019, and can be spent anytime during 2019.

Although the law does not require employers to offer either option, most employers do offer one or the other. Check with your employer's benefits expert to find out if an FSA grace period or carryover is available to you.

12/16/2018

2019 Mileage Rate Increase

Starting on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

- 58 cents for every mile of business travel driven, an increase of 3.5 cents from the rate for 2018.
- 20 cents per mile driven for medical or moving purposes, an increase of 2 cents from the rate for 2018.
- 14 cents per mile driven in service of charitable organizations.

You also have the option of calculating the actual costs of using your vehicle rather than using the standard mileage rates.

12/10/2018

FINAL NOTICE: Healthcare Open Enrollment Deadline 12/15

This week is the last week to register for the HealthCare.gov open enrollment period with the deadline being Saturday, December 15th, 2018. Once the Open Enrollment period is over, you will only be able to enroll if there's a qualifying life event for the Special Enrollment Period.

Enrollment can be done at https://Healthcare.gov, and a simple checklist of documents you'll need can be found here: https://marketplace.cms.gov/outreach-and-education/marketplace-application-checklist.pdf.

12/07/2018

Reporting ACA Changes - Did You Know?

The open enrollment period for 2019 health insurance under the Affordable Care Act (ACA) is from November 1, 2018 to December 15, 2018. Even if you're keeping a current insurance plan that you purchased through the Exchange in your state, you should still report major life changes to the Exchange. Changes that should be reported include:

- Increase or decrease in family size, including children turning 26 so they can no longer be covered on your health insurance plan
- Change in tax filing status (single, married filing jointly, married filing separately)
- Change in income, including an expected increase or decrease in 2019
- Change of address (If you moved to a different state, you will need to re-apply for coverage.)
- Anyone in your household gaining or losing access to health insurance plans offered by an employer (whether or not they signed up for one of those plans)

You should also report these and similar changes to your state Exchange if they occur at any time during 2019.

Any changes reported may affect the amount of your Advanced Premium Tax Credit (APTC), and therefore the monthly insurance premiums. Not reporting life changes may result in losing your eligibility for the APTC.

11/26/2018

Giving Tuesday and Charitable Donations - Did You Know?

Giving Tuesday is an annual event that highlights charitable giving after Thanksgiving.

If you are considering charitable donations, you may be able to donate to a Donor-Advised Fund (DAF) every two or three years instead of every year. This may qualify you to receive tax benefits now, allow the amount to grow tax-free, and the decision on which qualified charity to fund can be made later.

If you are 70.5 years or older, you may be able to make a qualified charitable distribution (QCD) from your IRA this year, and this may satisfy all or part of the required minimum distribution (RMD) each year.

The IRS has released a tool to make it easier to get information about qualified charitable organizations. The Exempt Organizations Select Check tool can be found at: https://www.irs.gov/charities-non-profits/tax-exempt-organization-search.

11/14/2018

Saver's Credit Income Limits - Did You Know?

The IRS has increased the income limit for the Saver's Credit for tax year 2019 (also known as the Retirement Savings Contributions Credit):

- Single and married individuals filing separately: $32,000 from $31,500
- Married couples filing jointly: $64,000 from $63,000
- Heads of households: $48,000 from $47,250

11/07/2018

401(k) and IRA Contribution Limits - Did You Know?

The IRS has announced cost-of-living adjustments that increase the contribution limits for 2019. The limit for 401(k), 403(b), most 457 plans as well as the Thrift Savings Plan is increased from $18,500 to $19,000.

For IRAs and Roth IRAs, the limit on annual contributions is increased from $5,500 to $6,000. If you are aged 50 or older, the catch-up contribution limit remained at $1,000 meaning you may now be able to contribute up to $7,000.

11/01/2018

2019 Healthcare Open Enrollment Starts Today

The 2019 Open Enrollment period for Marketplace health insurance starts today, November 1, 2018, and ends December 15, 2018. Plans will start January 1, 2019.

Once the Open Enrollment period is over, you will only be able to enroll if there's a qualifying life event for the Special Enrollment Period.

Enrollment can be done at https://Healthcare.gov, and a simple checklist of documents you'll need can be found here: https://marketplace.cms.gov/outreach-and-education/marketplace-application-checklist.pdf.

10/24/2018

2019 Healthcare Open Enrollment - Did You Know?

The 2019 open enrollment period for Marketplace health insurance starts on November 1, 2018, and ends December 15, 2018. Plans will start January 1, 2019.

Enrollment can be done at https://Healthcare.gov, and a simple checklist of documents you'll need can be found here: https://marketplace.cms.gov/outreach-and-education/marketplace-application-checklist.pdf.

10/17/2018

2018 Personal Exemptions – Did You Know?

The Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction for most taxpayers, but eliminated personal exemptions for yourself, your spouse, and/or your dependents for at least the years 2018 through 2025.

The higher standard deduction may or may not make up for the loss of personal and dependent exemptions.

We recommend scheduling an appointment to go over your specific situation.

10/08/2018

Six Month Filing Extension Deadlines

If you requested an extra six-month extension in April to file your 2017 personal income tax return, that deadline to file is coming up on Monday, 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 deposits.

10/03/2018

HSA Accounts - Did You Know?

Health savings accounts or HSAs are often referred to as another form of retirement plan for those with access to them. An HSA is a medical savings account that may offer triple tax advantages. Contributions are pre-tax, the money can be withdrawn tax-free to pay for qualified medical and related expenses and any interest earned is tax-free as well.

For those who can afford to allow their HSA to accumulate for retirement, they can be used to pay for Medicare premiums and other healthcare costs in retirement as unused funds can be carried over year-to-year. If you are over age 65, withdrawals for non-qualified expenses can be made without penalty, but subject to taxes just like an IRA

An HSA can only be opened in connection with a high deductible health insurance plan as defined by the IRS. Contribution limits for 2018 are $3,450 for single people and $6,900 (this was reduced to $6,850 in March but has since been restored) for families, with an extra $1,000 for anyone age 55 or over.

09/28/2018

Employer Family and Medical Leave Credit - Did You Know?

If you are an employer who provided family and medical leave to your employees during 2018 and 2019, you may qualify for a new business tax credit.

To be eligible, you must:

- Have a written policy that meets certain IRS requirements
- Provide at least two weeks of paid family and medical leave to full-time employees, and a prorated amount of paid leave for part-time employees

The credit may be available for wages paid during taxable years after Dec. 31, 2017, and before Jan. 1, 2020, and is generally 12.5 to 25 percent of paid family and medical leave for those employees that qualify.

09/22/2018

Military Contractors and Employees – Did You Know?

If you perform services for the U.S. Military in a combat zone and meet eligibility requirements, you may now be able to exclude as much as $103,900 in earnings from the gross income you report on your tax return. In the past, to qualify for the Foreign Earned Income Exclusion, you had to live in a foreign country and not "maintain an abode" in the U.S. However, in February 2018, Congress removed this requirement for military contractors and their employees working in registered combat zones.

You can only exclude foreign income that you earned while working in support of the U.S. Armed Forces, and you can't claim any deductions or credits related to that income, such as business travel expenses. Still, if you've worked in a combat zone, this law change could save you a lot at tax time.

The foreign earned income exclusion is not automatic. Please contact us to learn more about filing for this exclusion.

09/10/2018

Quarterly Estimated Tax Payments - Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the June 1st - August 31st quarter of the year is September 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 date.

If the due date for making an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time if you make it on the next day that's not a Saturday, Sunday, or legal holiday.

09/07/2018

Paycheck Checkup - Did You Know?

With the major tax law changes, the IRS has issued several press releases urging taxpayers to use the IRS Withholding Calculator to double-check their tax withholding.

The Tax Cuts and Jobs Act passed in December, 2017 made significant changes including:

- Increased standard deduction
- Eliminated personal exemptions
- Increased Child Tax Credit
- Limited or discontinued certain deductions
- Changed the tax rates and brackets

Checking your withholding amount can help protect against having too little tax withheld and getting unexpected tax bills and penalties at tax time next year. You may also prefer to have less tax withheld up front and receive more in your paychecks.

The IRS Withholding Calculator can be found at: https://www.irs.gov/individuals/irs-withholding-calculator.

08/31/2018

Flexible Spending Accounts - Did You Know?

Flexible spending accounts (FSAs) are a way to pay for medical expenses and get a tax break at the same time. You decide how much to contribute to the FSA before the start of the year and then that amount is deducted from each paycheck. The contributions are pre-tax and the reimbursements for the expenses come out tax-free.

FSAs are generally "use it or lose it", however. If you don't use all the money, it will be lost. Unused dollars cannot be carried over from year-to-year. Make sure you are on track to use all of the funds. If not, they can be used for a variety of expenses, such as eye glasses and other items. Be sure to review your FSA spending to make sure you don't lose this tax-free benefit.

McCarther & Associates