Tax Tips

New Simplified 1040-SR for Seniors

The IRS has released a draft of Form 2019 1040-SR.  This is a U.S. tax return for seniors (individuals age 65 or older).  This is a simplified form (similar to the former 1040-EZ, but will be for seniors only). However, unlike the 1040-EZ, Social Security and distributions from qualified retirement plans, annuities or similar deferred-payment arrangements […]

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Is Summer Camp Deductible?

Summer Camp May Qualify for the Child and Dependent Care Credit Has your child attended day camp this summer?  If so, you may qualify for the Child and Dependent Care Credit. Following are some requirements to qualify: the child is under the age of 13 at the time of the camp  – or –  the child can […]

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Happy Summer! Did your income change this year?

Keep in mind that income tax is a “pay as you go” system. If your income changed during the year compared to last year then it may be necessary to set up or change estimated tax payments. We are here year round so don’t hesitate to call us if you have any questions or would […]

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Health Savings Accounts

There is still time to make a contribution to your Health Savings Account and get the tax deduction (if you qualify).  You have until April 15th, 2019 but be sure you make it a “2018 tax year contributions”.

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Required Minimum Distributions: IRAs, pensions, etc.

RMD!! Did you turn age 70 1/2? Did you take your Required Minimum Distribution from your IRA, SEP or Simple? Or from your retirement plan if required?  If so, you can rest easy…..For IRA’s, SEPs and SIMPLEs, YOU MUST TAKE YOUR RMD by April 1 of the year following you year you turn 70 1/2. There […]

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A NEW credit for “Other Dependents”

CHANGES TO THE CHILD TAX CREDIT & the Addition of a New Credit!!! The new maximum Child Tax Credit from $1,000 to $2,000 per eligible child. To qualify, the child must not yet be age 17 by the end of the tax year. Dependents who can’t be claimed for the child tax credit may still qualify […]

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Common Filing Errors

The IRS shared the most common errors when filing a tax return.  Be sure to avoid these errors when filing your return. Incorrect or missing social security numbers – be sure to verify the social security numbers for yourself, your spouse and anyone that you are claiming as a dependent. Math errors – check and […]

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The 2018 Form 1040 is NOT a postcard

More Tax Forms & More Complex, not Less Don’t be tricked by talk of a new tax “postcard”!   It is NOT a postcard. The IRS has taken the main 2 pages of Form 1040 & turned it into 8 pages. Yes, 8!!!!    There are now an additional 6  NEW schedules that didn’t exist before 2018. […]

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Tax Transcripts

Do you need prior year tax information and you cannot seem to find a copy of your tax return?  Don’t worry.  You can request a tax transcript from the IRS.  There are two types of transcripts available: 1) Tax return transcript – this shows most line items on a tax return as originally filed 2) […]

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Do You Typically Itemize Deductions?

If you do, the IRS recommends that you review your federal withholding.  This is due to the Tax Cuts and Jobs Act passed in 2017.  This new tax law significantly increased the standard deduction.  With this change in tax law, some individuals who have previously itemized their deductions may find it beneficial to claim the standard deduction. […]

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