Category: Tax and Life Changes | Blog

rt_lifechangesLife changes happen for everyone. If there’s a baby on the way or wedding bells in the air, life changes affect your taxes… for better or for worse. We’ll keep you informed about what to do if you’re anticipating any of the following:

  • marriage
  • having a baby
  • divorce
  • purchasing a new home
  • filing your first tax return
  • moving out of your parents home
  • a new job/career
  • death in the family
  • and more!
Questions? Don’t hesitate to leave a comment on our blog posts. We’ll get back to you with the answers you need!

Archive for the ‘Tax and Life Changes | Blog’ Category

How the Tax Cuts and Jobs Act Affects Businesses

Posted by Manisha Hansraj on October 26, 2018
Last modified: October 26, 2018

business taxes

The upcoming tax year brings in a lot of changes for self-employed and business taxpayers.

Taxpayers with sole proprietorship, partnerships, trusts, and S corporations will face some difficulties when they’re ready to file for the 2019 tax season because of the Tax Cuts and Jobs Act (TCJA).

Read below for the changes you need to know for your business taxes.

Here’s what qualifies as business income.

In order to have qualified business income (QBI), it must be domestic income from a trade or business. Your qualified business income (QBI) is calculated into a net amount and does not include employee wages, capital gain, interest and dividend income.

The maximum deduction increases.

Prior to the TCJA, you could deduct up to $500,000 for any section 179 property. It has now increased to $1 million. The phase-out threshold also increases from $2 million to $2.5 million. (Subject to change due to inflation.)

The new 20% deduction.

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10 Tax Changes for 2019!

Posted by Manisha Hansraj on September 6, 2018
Last modified: November 8, 2018

how will my taxes change

After this tax season ends, another begins.

You might wonder what the Tax Cuts and Jobs Act (TCJA) has in store for you next year. The answer is a lot. Many of the common deductions you know will either be limited or removed until 2025, when the TCJA expires.

  1. No more personal and dependent exemptions.

The $4,050 personal exemption that taxpayers claim for themselves, spouses and dependents are no longer available in 2019. Currently, you can still deduct personal exemptions for the 2017 tax year. Click here to deduct your personal exemptions now.

  1. The Standard Deduction doubles.

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It’s Back-to-School & Time For Your Refund!

Posted by Manisha Hansraj on August 21, 2018
Last modified: August 29, 2018

back to school

It’s back to school time, so here are some tips for tax time!

Attention parents:

  1. Get up to $1,000 for the Child Tax Credit if your child is under 17, resided for more than half the year with you, a dependent on your tax return, your relative, a U.S. citizen, national or resident alien.
  2. If your child is under 13, claim the child and dependent care credit for child care expenses.
  3. Depending on your income, you can claim the Earned Income Credit (EIC).
  4. The Adoption Tax Credit reduces your tax for fees related to court, attorney, travel and meal expenses. You can also claim the Special Needs Credits for all relating child’s special needs expenses.
  5. If you’re paying for your child’s college education, claim the Education Credit for tuition, mandatory supplies and related fees.

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What is the Tax Refund Schedule for 2018?

Posted by Manisha Hansraj on July 27, 2018
Last modified: October 12, 2018

tax refund schedule 2018

Do you feel like you’re playing the waiting game?

You might be wondering how long it takes for you to receive your refund. Typically, the IRS issues tax refunds in less than 21 days as long as there are no discrepancies.

If you are due a refund, it may take longer depending on the situation or time your financial institution takes to direct deposit or mail it to you.

Here are some situations that may prevent you from receiving your refund:

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Can I Still File a Tax Extension for 2018?

Posted by Manisha Hansraj on July 11, 2018
Last modified: August 29, 2018

tax extension 2018
Don’t wait until the last minute to file your 2017 tax return.

April 18th has passed for the 2018 tax season deadline. However, you can still e-file your tax return until October 15, 2018; the e-file and tax extension deadline. Even if the 2018 tax deadline has passed, those with refunds can still e-file their tax return without any penalties.

On the other hand, individuals with a tax due may end up facing interest, late filing penalties, and failure-to-pay penalties. We advise that you file your tax return as soon as possible so you receive your refund faster.

Can I still file a tax extension?

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Tax Reform: Tax Tips for Lowering Rates for 2018 Taxes!

Posted by Manisha Hansraj on March 2, 2018
Last modified: August 29, 2018

tax reform
Be ready for the new tax reform.

Get your to do list out and take some action to reduce your 2018 taxes now! Although taxpayers might be hurriedly finishing their 2017 tax returns before the e-file deadline, some tax deductions will not be there for the next tax season due to the Tax Cuts and Jobs Act. (TCJA) Ultimately, the design of the new tax reform is to lower taxes for individuals of all income groups until 2025. Bear in mind that along with that idea, many individuals who itemize their deductions are worried about the tax turmoil they’ll face when filing with each capped or eliminated deduction.

Did you know that can take steps in 2018 to decrease your taxes for next tax season? Here’s a few tax tips for you.

Rack up your medical receipts.

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Tax Tips: How to Choose a Tax Preparer

Posted by Manisha Hansraj on January 23, 2018
Last modified: January 24, 2018


Are you stuck on choosing a Tax Preparer?

“One size fits all,” doesn’t apply when choosing your tax preparer. Take a second to imagine this scenario. John is a college student and it’s time to file his taxes for the very first time. Nerve wracking, isn’t it? He has one W-2 statement and a myriad of education expenses that surely affected his bank account. He’s unsure of where to begin and if he should simply file online or visit a tax accountant.

Whether you’re new to taxes, like John, or an experienced taxpayer, filing your tax return can be a demanding process. On top of that, you might be wondering if you should file your tax return online or go to a local tax accountant. Here are some tax tips to consider when making that decision.

Online filing may be right for you.

During tax season, convenience, quality and time are both important. By filing your taxes online, you can complete a self-prepared return by opting to e-file your current year tax return or paper file your prior year return right from the comfort of your own home. Tax preparation sites require you to have: (more…)

Claiming Parents as Dependents If They Receive Social Security Benefits

Posted by Robert Flanagan on December 19, 2016
Last modified: January 25, 2017

It’s been said that life comes full circle. Well, so do taxes.

It’s difficult to watch your parents grow old. The ones who supported you while growing up are now the ones you’re taking care of. You may be curious if you can claim your parents as dependents on your tax return like they once did for you.

The answer lies in the following five tests set up by the IRS:

#1. They must be related to you.

#2. They must be a citizen or resident of the United States, Canada, or Mexico.

#3. They must not be filing a joint tax return.

#4. They must have an annual gross income of less than $4,000.

#5. You must provide more than 50% of their financial support for the year.

With these qualifications in mind, let’s take a look at some special circumstances that might apply to you and your parents. (more…)

Tax Filing for Low Income Taxpayers

Posted by Robert Flanagan on December 10, 2016
Last modified: December 16, 2016

Need a hand preparing your tax return this year?

There’s a good chance that if you are one of many low income taxpayers, you will file a tax return this year. Preparing that return doesn’t have to cost you most of that refund you’ve been looking forward to.

There are credits specifically targeted toward taxpayers earning less than $50,000 per year. Let’s take a look at four credits that should be on your radar this year.

Earned Income Tax Credit

This credit was originally created as an incentive for people to work. Eligibility and the amount you receive from this credit are determined by filing status and income; specifically your adjusted gross income. To qualify for the credit, you must be between 25 and 65 years old. You also must be either single or married filing a joint tax return. If you qualify, you can earn up to $6,242! A few things to keep in mind before blindly claiming this credit are: (more…)

Can You Claim Parents as Dependents?

Posted by Robert Flanagan on December 6, 2016
Last modified: December 19, 2016

Sometimes we’re so busy growing up that we forget they’re growing old.

Everyone knows that claiming a dependent on your income tax return can get you a significantly larger refund. For every dependent you claim on your taxes you can claim an extra personal exemption. That’s a large chunk of change you can deduct from your income, thus reducing your tax burden.

But who exactly can you claim? Are you eligible to claim your parents as dependents?

When it comes to taxes there are actually two different types of dependents: qualifying children and qualifying relatives.

Obviously, you can’t claim your parents as qualifying children. So the question becomes, do they meet the requirements for qualifying relatives? (more…)