With the recent tax legislation come changes that affect businesses in every industry. What’s changing? A lot – everything from the tax rates you’ll pay to the deductions you can claim. For government contractors in the construction and manufacturing sectors, TCJA’s impact is mostly positive, although the law is not without costs for these companies. Here’s a look at some of the most significant impacts, both good and bad.
If you own a business, you will want to pay close attention to the Tax Cuts and Jobs Act (TCJA) of 2017. This act, effective for taxable years beginning after December 31, 2017, affects the financials of business owners and their companies. To make TCJA a bit easier to digest, we want to focus on three new additions to the act involving tax deductions, corporate meals and entertainment.
Summer is a time to relax, spend time by the pool and forget reality for a bit. Forget your stress, forget making school lunches for the kids, forget the cold. However, there is one thing you should not forget. Criminals and scammers don’t take summers off, so don’t let your guard down in the midst of summer; keep an eye out for IRS phone scams.
Credits related to higher education are some of Americans’ favorite tools for saving money on taxes. These benefits are relatively easy to claim, but the multiple IRS programs can create confusion for taxpayers. There are two separate routes to obtaining tax benefits surrounding educational expenses incurred by taxpayers or their dependents, and each has different qualifications and benefits.
The IRS can process e-file returns faster and with fewer errors than non-electronic options. This means quicker refunds and less contact with the IRS. Who doesn’t like that? IRS e-file provides proof of receipt within 24-48 hours of sending the tax return to the IRS. Individual and business clients can e-file a balance due return and schedule an electronic funds transfer (EFT) from their account for any date.
Contribute to 529 plans–it’s never too early or too late to start putting money away for a child’s college education. The education days will be here sooner than you think and likely more expensive than you were planning on! 529 contributions are not limited to parents; this is for grandparents, aunts, uncles or anyone with interest in helping provide the means necessary for a child’s higher education.
Taxpayers are constantly searching for ways to reduce their income tax liability. One common way is people trying to establish residency in a state with no income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming) or with limited tax only on certain investment income (New Hampshire and Tennessee). There are many common misconceptions about what it takes to establish residency in one of these states for tax purposes. Read More »
As you may be aware, major tax reform legislation has been signed into law this year and resulted in sweeping changes to the tax code for the first time in 30 years. Businesses should be aware of the provisions that have changed and plan now for how they affect you moving into 2018. Read More »
The 2018 tax reform legislation passed by Congress in late 2017 significantly changes the landscape for individuals for the coming years. For many taxpayers, the changes made by the legislation present a host of tax planning challenges and opportunities going forward. Due to the elimination or limitation on itemized deductions and the elimination of personal exemptions, a key consideration in planning for 2018 is to first look at ways to lower your taxable income. You should thus consider maximizing all pre-tax contribution opportunities such as your 401(k) and maximizing deductible IRA contributions.
With the 2017 tax filing deadline approaching, it’s never too early to start going through your documents and getting your paperwork in order. You are the one responsible for providing the necessary information to submit a tax return, regardless of whether you’re filing your own taxes or paying a tax preparer to do them for you. Read More »