Category, TAXES

NEW W4 – WHAT’S CHANGING? EVERYTHING!!!
17 APR 2019

NEW W4 – WHAT’S CHANGING? EVERYTHING!!!

  • NEW DRAFT OF W4 EXPECTED TO BE RELEASED FOR COMMENT BY MAY 31, 2019
  • FINAL VERSION TO BE RELEASED BY THE END OF THE YEAR IN TIME FOR 2020.
  • WHAT’S NEEDED FOR THE NEW FORM
 
  • Your filing status (Single, Married, MFS, HOH)
  • Number of dependents
  • Itemized Deduction information (mortgage interest, state and local taxes, charity, etc.)
  • Information about NONwage income (business income, interest, dividends, etc.)
DO YOU AGREE WITH WHAT THE IRS IS ASKING? SOME FEEL IS WAY TO INTRUSIVE – LET US KNOW YOUR THOUGHTS.RTW FEELS THAT PROVIDING NONWAGE INFORMATION TO AN EMPLOYER IS UNACCEPTABLE – LETS SEE WHAT HAPPENS.

WOULD YOU LIKE TO KNOW WHAT CRYPTOCURRENCY IS? LOOK FOR TRAINING COMING SOON!!!

“FIRST CLASS SOLUTION SUITE”

CONTACT RTW TODAY FOR ALL YOUR TAX AND BUSINESS NEEDS DOMESTIC AND INTERNATIONALLY. DON’T WAIT, CALL OR EMAIL NOW. Business Email Blog! Can also find this one and previous blogs at www.rtwxxact.com By Robbie Terry-Washington, CPA Contact info: info@rtwxxact.com

OFFICE: GA: 470-441-5140 OH: 216-282-9706 CELL: 216-533-6586 FAX 855-541-5140

Send secure files https://www.rtwxxact.com/contact

Posted by robbie Categories: BLOG, TAXES Comments: Post closed for comments

Changes To Tax Law
27 FEB 2019

CHANGES TO TAX LAW

  • Tax rates lowered. Starting in 2018, there are seven income tax brackets, ranging from 10 percent to 37 percent.
  • Standard deduction nearly doubled over last year. For 2018, the basic standard deduction is $12,000 for singles, $18,000 for heads of household and $24,000 for married couples filing a joint tax return. Higher amounts apply to people who are blind or filers who are at least age 65. The increased standard deduction, coupled with other changes, mean that more than half of those who itemized their deductions – for mortgage interest, charitable contributions and state and local taxes – in tax year 2017 may instead take the higher standard deduction in 2018, according to IRS projections.       NOTE: NO EXEMPTIONS
  • Various deductions limited or discontinued. For example, the state and local tax deduction is limited to $10,000, $5,000 if married and filing a separate return, and new limits apply to mortgage interest. In addition, the miscellaneous itemized deduction for job-related costs and certain other expenses is not available.
  • Child Tax Credit doubled, and more people now qualify. The maximum credit is now $2,000 for each qualifying child under age 17. In addition, the income limit for getting the full credit is $400,000 for joint filers and $200,000 for other taxpayers.
  • New credit for other dependents. A $500 credit is available for each dependent who does not qualify for the Child Tax Credit. This includes older children and qualifying relatives, such as a parent.
  • Personal and dependency exemptions suspended. This means that an exemption can no longer be claimed for a tax filer, spouse and dependents. NOTE: THIS HURTS – DOES NOT HELP!!!!!!

WOULD YOU LIKE TO KNOW WHAT CRYPTOCURRENCY IS? LOOK FOR TRAINING COMING SOON!!!!!

“FIRST CLASS SOLUTION SUITE”

CONTACT RTW TODAY FOR ALL YOUR TAX AND BUSINESS NEEDS DOMESTIC AND INTERNATIONALLY. DON’T WAIT, CALL OR EMAIL NOW.

Business Email Blog! Can also find this one and previous blogs at www.rtwxxact.com

By Robbie Terry-Washington, CPA

Contact info: info@rtwxxact.com

OFFICE: GA: 470-441-5140 OH: 216-282-9706 CELL: 216-533-6586 FAX 855-541-5140

Send secure files https://www.rtwxxact.com/contact

Posted by robbie Categories: BLOG, TAXES Comments: Post closed for comments

IRS REFUNDS
12 FEB 2019

IRS REFUNDS:

  • REFUNDS ARE BEING PROCESSED WITHIN A 2 WEEK PERIOD IF ELECTRONICALLY FILED
  • SOME REFUNDS WILL NOT BE ISSUED UNTIL FEBRUARY 27, 2019 IF YOU CLAIM THE EARNED INCOME CHILD TAX CREDIT
  • REFUNDS ARE ISSUED FASTER WITH DIRECT DEPOSIT
  • AFTER YOU HAVE FILED YOUR TAX RETURN, YOU CAN CHECK YOUR REFUND STATIS AT;
  • Must have SSN, Filing Status and Exact Amount of Refund
  WOULD YOU LIKE TO KNOW WHAT CRYPTOCURRENCY IS? LOOK FOR TRAINING COMING SOON!!!!! “FIRST CLASS SOLUTION SUITE” CONTACT RTW TODAY FOR ALL YOUR TAX AND BUSINESS NEEDS DOMESTIC AND INTERNATIONALLY. DON’T WAIT, CALL OR EMAIL NOW. Business Email Blog! Can also find this one and previous blogs at www.rtwxxact.com By Robbie Terry-Washington, CPA Contact info: info@rtwxxact.com OFFICE: GA: 470-441-5140 OH: 216-282-9706 CELL: 216-533-6586 FAX 855-541-5140 Send secure files https://www.rtwxxact.com/contact  

Posted by robbie Categories: TAXES Comments: Post closed for comments

UNITED NATIONS MAY 2018 REPORT ON POVERTY
25 JUN 2018

  • The U.N. report faulted the Trump administration for pursuing policies it said would exacerbate U.S. poverty.
  • In May, U.N. special rapporteur on extreme poverty and human rights Philip Alston released a report sayingthe United States has the highest rates of youth poverty, infant mortality, incarceration, income inequality and obesity among all countries in the developed world, as well as 40 million people living in poverty.
  • Alston accused President Trump and the Republican Congress of deepening poverty and inequality in the country, citing the Republican tax law passed last fall.
  • “The policies pursued over the past year seem deliberately designed to remove basic protections from the poorest, punish those who are not in employment and make even basic health care into a privilege,” Alston wrote in the report.
 

Let us know your thoughts on this matter!!!!!

This GOP series of information will continue – stay tuned!!!!

 

“FIRST CLASS SOLUTION SUITE”

CONTACT RTW TODAY FOR ALL YOUR TAX AND BUSINESS NEEDS DOMESTIC AND INTERNATIONALLY.     DON’T WAIT, CALL OR EMAIL NOW 216-533-6586; info@rtwxxact.com

Posted by robbie Categories: TAXES Comments: Post closed for comments

GOP’S $10,00O FEDERAL TAX DEDUCTION LIMIT ON STATE, LOCAL AND REAL ESTATE TAXES
29 MAY 2018

STATES RESPONSE

  • State legislatures have reacted to the new $10,000 limit on the federal deduction for state and local taxes (SALT) with workaround legislation
  • States intend to ensure that taxpayers won’t lose the benefit of deducting all state and local income tax on their federal returns
  • Some states, such as California and Illinois, have passed bills that allow taxpayers to make charitable contributions to a state fund rather than pay state taxes
  • Other states have enacted statutes that allow taxpayers to make charitable contributions to a state or local government fund in addition to or instead of paying taxes. These government funds would serve “public purposes”.
  • Taxpayers who make a contribution could also claim a credit or take a deduction against state tax for the contribution.
  • Treasury Department will propose regulations to address state workaround legislation.
  • For a married taxpayer filing a separate return, the cap is $5,000 (Ouch!!) The cap applies for tax years that begin in 2018 through 2025.
  • GOP did not limit the deduction for state and local real or personal property taxes incurred in carrying on a trade or business or income-producing activity.
  Let us know your thoughts on this matter!!!!! This GOP series of information will continue – stay tuned!!!! “FIRST CLASS SOLUTION SUITE” CONTACT RTW TODAY FOR ALL YOUR TAX AND BUSINESS NEEDS DOMESTIC AND INTERNATIONALLY.     DON’T WAIT, CALL OR EMAIL NOW 216-533-6586; info@rtwxxact.com

Posted by robbie Categories: TAXES Comments: Post closed for comments

PRESIDENT CALLS ON CONGRESS TO PULL BACK $15 BILLION IN PREVIOUS “APPROVED” SPENDING AS THE GOP TAX PLAN WOULD AMOUNT TO A TAX DEFICIT THAT EXCEEDS $1 TRILLION BY 2020
15 MAY 2018

WHAT’S IMPACTED

  • Half of the proposed cuts would come from two accounts within the Children’s Health Insurance Program (CHIP)
  • CHIP is governmental funding to help states cover expenses for children’s health care, primarily to low-income children.
  • These cuts are to offset a proposed 25% increase in spending ($768 BILLION for border control of which $18 BILLION would be for the wall; patrol agents and ICE officers, $716 BILLION for Defense, among other items)
  • In 2017 the government spent $3.98 TRILLION and bought in $3.32 TRILLION, leaving a deficit of $665 BILLION, 2018 deficit is estimated to widen to $804 BILLION, $919 BILLION in 2019 and $1 TRILLION BY 2020
  • The proposal includes $1.5 TRILLION for Infrastructure; however, the Federal Government is only kicking in $200 BILLION (less than 15%) of this total. The state and local governments will have to foot the remaining 86.7%.
 

Let us know your thoughts on this matter!!!!!

This GOP series of information will continue – stay tuned!!!!

 

“FIRST CLASS SOLUTION SUITE”

CONTACT RTW TODAY FOR ALL YOUR TAX AND BUSINESS NEEDS DOMESTIC AND INTERNATIONALLY.     DON’T WAIT, CALL OR EMAIL NOW 216-533-6586; info@rtwxxact.com

Posted by robbie Categories: TAXES Comments: Post closed for comments

GOP TAX PLAN SERIES
02 APR 2018

EXAMPLE: MATH:  $5,000 TAX REFUND 2017 AND PRIOR UNDER OLD LAW $1,040 EXTRA ON 2018 PAYROLL CHECK UNDER NEW GOP TAX PLAN $3,960 LOSE UNDER NEW GOP TAX PLAN YOU DO THE MATH!!!!! GOP TAX CUT TAKES HOLD (from WashingtonPost) link to ariticle (copy paste url in your browser) http://wapo.st/2BSxWsW?tid=ss_tw-bottom&utm_term=.9b85e6da3165 PROS: Americans have just started to see the tax cut show up in their paychecks this month, and along with those boosts in pay have come a spate of recent polls that show public opinion turning in favor of the tax legislation CONS: “That’s a great thing that people are getting some benefits,” the low-key Donnelly said in an interview at a coffee shop in downtown Indianapolis last week. But the first-term senator contended that if voters understood the full implications of the legislation, they might be inclined to turn down those $1,000 bonuses or retirement-account contributions from Midwestern businesses such as Anthem, a health insurance firm, and Fifth Third Bancorp. “Here’s the proposition that they’re not saying but that’s the truth,” said Donnelly, 62. “We’ll have a thousand dollars out there. And you’ll get that. And in return — and this is the part that goes unspoken — we’re going to send your children and grandchildren and great-grandchildren the bill for that. They will pay it with interest, repeatedly, year after year after year, much of it going to the Chinese and others. ACCOUNTANTS/TAX PREPARER WARNING: Republicans structured the law so that withholding tables have already been adjusted, so many Americans have seen their paychecks go up. But accountants warn that when it comes time to file their taxes next year, voters might get an unpleasant surprise when they realize they are getting a smaller refund than expected or none at all. Contact info@rtwxxact.com or 216-533-6586

Posted by robbie Categories: TAXES Comments: Post closed for comments

TAX RETURN PREPARER FRAUD RANKS ON 2018 DIRTY DOZEN
12 MAR 2018

  • Unscrupulous Tax Preparer looking to make a fast buck from honest people
  • Fraudulent Preparer will put fake business on returns at a loss to yield a high tax refund
  • Fraudulent Preparer will put deductions (most common unreimbursed employee expenses) on return to reduce tax liability or yield tax refund
  • Fraudulent Preparer will NOT sign the return and in some cases will not provide taxpayer with a copy
  • Fraudulent Preparer will NOT return your call if you receive an IRS, State or Local letter
What you should look for in a Reputable Tax Return Preparer:
  • Check to see if Preparer is listed on IRS Directory of Federal Tax Return Preparers with Credentials https://irs.treasury.gov/rpo/rpo.jsf
  • CPAs, Attorneys and Enrolled Agents can represent any client before the IRS in any situation. Other preparers cannot!
  • Check with the BBB – there are many preparers who have been barred and charged but who continues to prepare returns
  • Make sure the preparer signs the return and includes their PTIN number and EFIN number (for efile).
Note:  Due to Fraud specifically with Schedule C, Earned Income Tax Credit and Unreimbursed Employee Expenses has resulted in increased audits.  If you have received higher refunds or lower tax bill under these circumstances – be careful – it’s simply a HIGH INTEREST LOAN!!!  “FIRST CLASS SOLUTION SUITE” CONTACT RTW TODAY FOR ALL YOUR TAX AND BUSINESS NEEDS DOMESTIC AND INTERNATIONALLY.  2017 TAX REFUNDS ARE AVERAGING A 2 WEEK TURNAROUND.   DON’T WAIT, CALL OR EMAIL NOW 216-533-6586 or info@rtwxxact.com

Posted by robbie Categories: TAXES Comments: Post closed for comments

DUE DATES FOR TAX RETURNS:
26 FEB 2018

TAX DAY DATE TYPE OF TAX RETURN
March 15, 2018 Partnership 1065
  S Corporation 1120S
April 17, 2018 (normally 4.15) Personal Federal 1040, States and Local
  Includes Sole Proprietorships (Schedule C)
  Includes Single-Member LLC’s
  C Corporation 1120 (prior years due 3.15)
  Trust & Estate 1041
May 15, 2018 Exempt/Non-Profit 990
TAX DAY DATE ON EXTENSION TYPE OF TAX RETURN
September 15, 2018 Partnership 1065
  S Corporation 1120S
  Trust & Estate 1041
October 15, 2018 Personal Federal 1040, States and Local
  C Corporation 1120 (prior years due 3.15)
November 15, 2018 Exempt/Non-Profit 990
   “FIRST CLASS SOLUTION SUITE” CONTACT RTW TODAY FOR ALL YOUR TAX AND BUSINESS NEEDS DOMESTIC AND INTERNATIONALLY.  2017 TAX REFUNDS ARE AVERAGING A 2 WEEK TURNAROUND.   DON’T WAIT, CALL OR EMAIL NOW 216-533-6586; info@rtwxxact.com

Posted by robbie Categories: TAXES Comments: Post closed for comments

TAX EXTENDERS CONTINUED THRU 2017 – BURDEN TO BE LIFTED
13 FEB 2018

  1. On February 9, 2018 President Trump signed the Bipartisan Budget Act; Tax Extenders Included
  2. Tax Returns including tax extenders were delayed; IRS and TAX Software firms now updating forms so that Tax Returns maybe filed. Estimate that they should be ready for filing this week – will keep you updated.
  • Deduction for School Teacher Expenses ($250) – most common
  • Tuition and Fees Deduction – most common
  • State and local sales tax deduction – most common
  • Mortgage Insurance Premiums – most common
  • Exclusion for discharge of principal residence (foreclosures)
  • Tax-free distributions from IRA’s for charitable purposes – JURY IS STILL OUT ON THIS ONE
  • Special rule for contributions of capital gain real property made for conservation purposes
  • Parity for exclusion of employer-provided mass transit and parking benefits
“FIRST CLASS SOLUTION SUITE” CONTACT RTW TODAY FOR ALL YOUR TAX AND BUSINESS NEEDS DOMESTIC AND INTERNATIONALLY.  2017 TAXES SHOULD BE FILED EARLY DUE TO THE EQUIFAX DATA BREACH.   DON’T WAIT, CALL OR EMAIL NOW 216-533-6586 or info@rtwxxact.com

Posted by robbie Categories: TAXES Comments: Post closed for comments