TCJA modified the individual penalty rate to zero for not having health insurance begining of 2019
Smart Accounting & Tax Solutions, Inc is a full-service tax and accounting firm for individual and Businesses.
TCJA modified the individual penalty rate to zero for not having health insurance begining of 2019
's cover photo
WASHINGTON ― Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.
“We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period,” said IRS Commissioner Chuck Rettig.
IRS will pay refunds during shutdown, easing pressure for a deal
The IRS will issue refunds to taxpayers even if the U.S. government shutdown extends into the filing season.
IRS RESOURCES CAN HELP SMALL BUSINESS OWNERS UNDERSTAND HOW TAX REFORM AFFECTS THE BOTTOM LINE - The National Society of Tax Professionals
Small business owners can visit IRS.gov for a wide range of resources that will help them better understand tax reform.
The IRS will begin accepting all business tax returns at 9 a.m. Eastern on January 8, 2019
Wish all of you HaPpy New year 🎉🎊
Tax Reform Basics For Individuals And Families.
Please do not enter any personal information. Your comment is voluntary and will remain anonymous, therefore we do not collect any information which would enable us to respond to any inquiries.
Tax reform that affects both individuals and businesses was enacted in December 2017. It’s commonly referred to as the Tax Cuts and Jobs Act, TCJA or simply tax reform. In addition to nearly doubling standard deductions, TCJA changed several itemized deductions that can be claimed on Schedule A, Itemized Deductions.
This means that many individuals who formerly itemized may now find it more beneficial to take the standard deduction. Taxpayers may only do one or the other. They either take the standard deduction or claim itemized deductions.
Deduction for home equity interest modified.
Interest paid on most home equity loans is not deductible unless the interest is paid on loan proceeds used to buy, build or substantially improve a main home or second home.
For example, interest on a home equity loan used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal living expenses, such as credit card debts, is not.
As under prior law, the loan must be secured by the taxpayer’s main home or second home (known as a qualified residence), not exceed the cost of the home and meet other requirements.
Miscellaneous itemized deductions suspended.
Previously, when a taxpayer itemized, they could deduct the amount of their miscellaneous itemized deductions that exceeded 2 percent of their adjusted gross income. These expenses are no longer deductible.
This includes unreimbursed employee expenses such as uniforms, union dues and the deduction for business-related meals, entertainment and travel. It also includes deductions for tax preparation fees and investment expenses, such as investment management fees, safe deposit box fees and investment expenses from pass-through entities.
Los ITINs los usan aquellas personas que tienen requisitos de declaración de impuestos bajo la ley de los Estados Unidos, pero no son elegibles para un número de Seguro Social. El IRS envió más de 1.3 millones de cartas a los hogares de los contribuyentes que incluyen a alguien con un ITIN para recordarles que renueven. Aquí hay detalles acerca de los ITINs que están expiran y cómo alguien renueva su ITIN:
Los ITINs que expiran al final de este año tienen dígitos medios 73, 74, 75,76, 77, 81 y 82 – por ejemplo: 9NN-73-NNNN
Los contribuyentes que deben renovar sus ITINs pueden optar por renovar los ITINs de toda la familia incluso si miembros de la familia tienen un ITIN con dígitos medios que no sean 73, 74, 75, 76, 77 o 82. Los miembros de la familia incluyen al contribuyente, su cónyuge y dependientes reclamados en la declaración de impuestos.
Los contribuyentes cuyos ITINs expiran a fines de año y que necesiten presentar una declaración de impuestos en 2019 deben presentar una solicitud de renovación. Otros no necesitan tomar ninguna acción.
Podemos ayudarlo a llamarnos al 703-776-0176.
The IRS mailed more than 1.3 million letters to taxpayer households that include an ITIN holder with middle digits 73, 74, 75, 76, 77, 81 or 82. Affected taxpayers who expect to file a tax return in 2019 should submit a renewal application now.
The Internal Revenue Service reminds taxpayers who filed extensions that electronic filing and other options for help with taxes are still available before the Oct. 15 deadline. Taxpayers who did not request an extension and have yet to file a 2017 tax return can generally avoid additional penalties and interest by filing the return as soon as possible and paying any balance due.
We can help you. Call us now
The Internal Revenue Service today urged taxpayers who requested the six-month filing extension to double check their tax returns and file on or before the mid-October deadline. IRS e-file and Free File are excellent filing options and are still available.
We can help you. Call us now
Here are facts to help taxpayers understand the different filing statuses
Single. Normally this status is for taxpayers who aren’t married, or who are divorced or legally separated under state law.
Married Filing Jointly. If taxpayers are married, they can file a joint tax return. When a spouse passes away, the widowed spouse can usually file a joint return for that year.
Married Filing Separately. A married couple can choose to file two separate tax returns. This may benefit them if it results in less tax owed than if they file a joint tax return. Taxpayers may want to prepare their taxes both ways before they choose. They can also use this status if each wants to be responsible only for their own tax.
Head of Household. In most cases, this status applies to a taxpayer who is not married, but there are some special rules. For example, the taxpayer must have paid more than half the cost of keeping up a home for themselves and a qualifying person. Taxpayers should check all the rules and make sure they qualify to use this status.
Qualifying Widow(er) with Dependent Child. This status may apply to a taxpayer if their spouse died during one of the previous two years and they have a dependent child. Other conditions also apply.
Five Tax Deductions that Disappeared in 2018
Under tax reform, taxpayers who itemize should be aware that deductions they may have previously counted on to reduce their taxable income have disappeared in 2018.
1. Moving Expenses
Prior to tax reform (i.e., for tax years starting before January 1, 2018), taxpayers could deduct expenses related to moving for a job as long as the move met certain IRS criteria. However, for tax years 2018 through 2025, moving expenses are no longer deductible--unless you are a member of the Armed Forces on active duty who moves because of a military order.
2. Unreimbursed Job Expenses
For tax years starting in 2018 and expiring at the end of 2025, miscellaneous unreimbursed job-related expenses that exceed 2% of adjusted gross income (AGI) are no longer deductible on Schedule A (Form 1040). Examples of unreimbursed job-related expenses include union dues, continuing education, employer-required medical tests, regulatory and license fees (provided the employee was not reimbursed), and out-of-pocket expenses paid by an employee for uniforms, tools, and supplies.
3. Tax Preparation Fees
Tax preparation fees, which fall under miscellaneous fees on Schedule A of Form 1040 (also subject to the 2% floor), have been eliminated for tax years 2018 through 2025. Tax preparation fees include payments to accountants, tax prep firms, as well as the cost of tax preparation software.
4. Personal Exemptions
Repealed for tax years 2018 through 2025, the personal exemption enabled individual taxpayers to reduce taxable income ($4,050 in 2017). Each household dependent was able to take the deduction as well. While the standard deduction did increase significantly ($12,000 for individuals, $24,000 for married taxpayers filing jointly, $18,000 for heads of household) to compensate, some taxpayers may still lose out.
5. Subsidized Parking and Transit Reimbursements for Employers
Before tax reform, employees could take advantage of a perk offered by many employers whereby parking and transit pass costs (up to $255 per month in 2017) were reimbursed by their employers tax-free. These reimbursements were not included in the employee's taxable income and were deductible to companies on their tax returns. However, for tax years starting in 2018, the employer deduction is no longer available.
If you have any questions about tax reform and how it affects your particular tax situation, don't hesitate to call.
Taxpayers who usually itemize deductions should check their withholding to avoid tax surprises
WASHINGTON – The Internal Revenue Service encourages taxpayers who typically itemized their deductions on Schedule A of the Form 1040 to use the Withholding Calculator this year to perform a “paycheck checkup.”
People who have itemized before may be affected by changes from the Tax Cuts and Jobs Act. Taxpayers who itemize should use the IRS Withholding Calculator to make sure their employers are withholding the appropriate amount of tax from their paychecks for their financial situation.
The law changes are effective in 2018 and affect the tax returns taxpayers will file in 2019. The new law makes a number of major changes, including:
- Limiting the deductions for state and local taxes
- Limiting the deduction for home mortgage interest in certain cases (see IR-2018-32 for more information)
- Excluding deductions for employee business expenses, tax preparation fees and investment expenses, including investment management fees, safe deposit box fees and investment expenses from pass-through entities
Didn't file by April 18??
here is no penalty for filing a late return after the tax deadline if a refund is due. Penalties and interest only accrue on unfiled returns if taxes are not paid by April 18. The IRS provided taxpayers an additional day to file and pay their taxes following system issues that surfaced early on the April 17 tax deadline. Anyone who did not file and owes tax should file a return as soon as they can and pay as much as possible to reduce penalties and interest. For those who qualify, IRS Free File is still available on IRS.gov through Oct. 15 to prepare and file returns electronically.
Filing soon is especially important because the late-filing penalty on unpaid taxes adds up quickly. Ordinarily, this penalty, also known as the failure-to-file penalty, is usually 5 percent for each month or part of a month that a return is late.
But if a return is filed more than 60 days after the April due date, the minimum penalty is either $210 or 100 percent of the unpaid tax, whichever is less. This means that if the tax due is $210 or less, the penalty is equal to the tax amount due. If the tax due is more than $210, the penalty is at least $210.
In some instances, a taxpayer filing after the deadline may qualify for penalty relief. If there is a good reason for filing late, be sure to attach an explanation to the return.
Alternatively, taxpayers who have a history of filing and paying on time often qualify for penalty relief. A taxpayer will usually qualify for this relief if they haven’t been assessed penalties for the past three years and meet other requirements. For more information, see the first-time penalty abatement page on IRS.gov.
Revised Form W-4: Check your Withholding
The Tax Cuts and Jobs Act made changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions and changing the tax rates and brackets. As such, a new version of Form W-4, Employee's Withholding Allowance Certificate, was released on February 28.
Taxpayers with less complex tax situations--single, married couples with only one job, or those who have no dependents, and who have not claimed itemized deductions, adjustments to income or tax credits--might not need to make any changes to their withholding or revise their Forms W-4.
Taxpayers with more complicated financial situations, however, might need to revise their W-4. Among the groups who should check their withholding are:
People with two or more jobs at the same time or who only work for part of the year.
People with children who claim credits such as the Child Tax Credit.
People who itemized deductions in 2017.
People with high incomes and more complex tax returns.
To determine whether changes to withholding should be made for 2018, taxpayers should first check the updated IRS Withholding Calculator to make sure they have the right amount of tax taken out of their paychecks. If a taxpayer needs to fill out a new Form W-4, they should do so and then submit the new Form W-4 to their employer.
The withholding changes do not affect 2017 tax returns due this April. However, having a completed 2017 tax return can help taxpayers work with the Withholding Calculator to determine their proper withholding for 2018 and avoid issues when they file next year.
If you have any questions about the amount you should be withholding on Form W-4, please call.
Missing Important Tax Forms? Here's what to do
You should receive a Form W-2, Wage and Tax Statement, from each of your employers for use in preparing your federal tax return. Employers must furnish this record of 2017 earnings and withheld taxes no later than January 31, 2018 (allow several days for delivery if mailed).
If you do not receive your Form W-2, contact your employer to find out if and when the W-2 was mailed. If it was mailed, it may have been returned to your employer because of an incorrect address. After contacting your employer, allow a reasonable amount of time for your employer to resend or to issue the W-2.
If you received certain types of income, you may receive a Form 1099 in addition to or instead of a W-2. Payers have until January 31 to mail these to you.
In some cases, you may obtain the information that would be on the Form 1099 from other sources. For example, your bank may put a summary of the interest paid during the year on the December or January statement for your savings or checking account. Or it may make the interest figure available through its customer service line or Web site. Some payers include cumulative figures for the year with their quarterly dividend statements.
You do not have to wait for Form 1099 to arrive provided you have the information (actual not estimated) you need to complete your tax return. You generally do not attach a 1099 series form to your return, except when you receive a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., that shows income tax withheld. You should, however, keep all of the 1099 forms you receive for your records.
The 2018 tax filing season officially opens on Monday, Jan. 29, and will close on Tuesday, April 17, when individual tax returns and payments are due to the IRS.
The earned income tax credit provides a boost to workers, their families and the communities where they live. A tax credit usually means more money in the taxpayer’s pocket. Many qualified taxpayers don’t claim this credit simply because they don’t know about it. In fact, every year millions of people are newly eligible for EITC because their family or financial situation changed. Word of mouth is one way to spread information about this credit.
This credit can not only reduce the amount of taxes someone owes, it can also result in a refund. The amount of EITC taxpayers receive is based on their income, family size and filing status. The maximum amount of credit for Tax Year 2017 is:
$6,318 with three or more qualifying children
$5,616 with two qualifying children
$3,400 with one qualifying child
$510 with no qualifying children
Below are the due date of when you should expect to receive need forms to file your taxes.
The IRS reminds taxpayers that, by law, the IRS cannot issue refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) before mid-February. While the IRS will process those returns when received, it cannot issue related refunds before mid-February. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2018, if they chose direct deposit and there are no other issues with the tax return. The IRS also reminds taxpayers that they should keep copies of their prior-year tax returns for at least three years. Taxpayers who are using a tax software product for the first time will need their adjusted gross income from their 2016 tax return to file electronically. Taxpayers who are using the same tax software they used last year will not need to enter prior-year information to electronically sign their 2017 tax return. Using an electronic filing PIN is no longer an option.
101 E Holly Ave, Ste 15
|Monday||09:30 - 06:00|
|Tuesday||09:30 - 06:00|
|Wednesday||09:30 - 06:00|
|Thursday||09:30 - 06:00|
|Friday||09:30 - 06:00|
|Saturday||09:30 - 06:00|
|Sunday||09:30 - 04:00|
Be the first to know and let us send you an email when Smart Accounting & Tax Solutions Inc posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.
Send a message to Smart Accounting & Tax Solutions Inc: