There is still time to make a contribution to a traditional IRA or Roth IRA for the 2019 tax year. The annual contribution limit is $6,000 or $7,000 if you are age 50 or over. Prior to making a contribution, if you (or your spouse) are an active participant in an employer’s qualified retirement plan (a 401(k), for example), you will need to make sure your modified adjusted gross income (MAGI) does not exceed certain thresholds. There are also income limits to qualify to make Roth IRA contributions. Maximum 2019 IRA Contribution amounts: $6,000 or $7,000 (with age 50+ catch-up pro ..read more

If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES. The 2019 fourth-quarter due date is now here. Normal due date: Tuesday, January 15, 2020 Remember you are required to withhold at least 90 percent of your current tax obligation or 100 percent of last year’s federal tax obligation.* A quick look at last year’s tax return and a projection of this year’s obligation can help determine if a payment is necessary. Here are some other things to consider: Underpayment penalty. If you do not have pr ..read more

Late on Friday December 20th a new 1,770 page bill was signed into law. Deep within the pages of the bill are a number of retroactive tax law changes to current and expired tax laws. These new law extenders are in place for both 2019 and 2020. Here is what you need to know: 2019 Tax Law Changes The tuition and fees deduction is available. The above the line deduction for up to $4,000 in qualified tuition and fees that expired is now available once again. You will need to evaluate this tax break versus others like the American Opportunity Credit and the Lifetime Learning Credit ..read more

Dear Friends and Clients: When tracking and planning your business objections, it’s easy to focus your analysis on two reports – the income statement and balance sheet. But one of the primary keys to your business’s success relies more on how you handle the money flowing in and out of the business. The appearance of a solid profit can hide a lurking cash flow problem. Here are practices to help you give your cash flow the attention it deserves: Understand your cash position. Start with simply getting in the habit of monitoring your bank account activity daily to watch for mista ..read more

Year-end is a good time to ensure you have proper documentation to substantiate your tax deductions. This is important as many banks start deleting online documentation that is over one year old. Background Two things have happened over the past ten years that have greatly reduced the ability to have a canceled check as proof when the auditor comes calling. The first is the advent of online bill paying services. The second is a regulation commonly known as Check 21. With online bill paying, you pay a bill via an online banking service. Your only receipt is often just an entry in ..read more

Before 2019 comes to a close, take some time to review these essential items to ensure you are not missing something that could cause tax trouble when you file your tax return: 1. Take required minimum distributions (RMDs). If you are age 70½ or older, you need to take RMDs from certain retirement accounts before Dec. 31 to avoid a 50 percent penalty! This includes most IRAs (except Roth IRAs) and 401(k)s. Your annual RMD is calculated by dividing the prior Dec. 31 balance by the life expectancy factor provided by IRS tables. 2. Watch for your IRS PIN. If you are a victim of IRS ..read more

Handling employment taxes can be complicated, especially when you’re required to file important tax documents throughout the year. Here’s a list of key forms and deadline dates to help keep you on track. Form 941 — Employer’s quarterly federal tax return This form is used to report income tax withheld from employees’ pay and both the employer’s and employees’ share of Social Security and Medicare taxes. Employers generally must deposit Form 941 payroll taxes on either a monthly or semiweekly deposit schedule. There are exceptions if you owe $100,000 or more on any day during a de ..read more

Here are five tax saving ideas that can be used by most taxpayers. Act soon because there’s not much time left until our tax year comes to an end. 1. Make late-year charitable donations. Consider making donations with appreciated stock you have owned over one year. You can typically receive the higher value donation without paying capital gain taxes. Also consider non-cash donations of items in good or better condition. But pay attention to your total deductions. With higher standard deductions, you should use your charitable giving to ensure you can maximize your tax savings. Th ..read more

Tax identification theft is becoming all too common. Victims know how frustrating the experience can be. Thankfully, the IRS is willing to help. The frustration If you are a victim of IRS identity theft, your first instinct is to find out what was filed and who filed it. In the past, most requests by victims of this theft could not receive this information. The IRS often stonewalls these requests because of active investigations and because it wishes to protect other potential victims’ identification. There is help As long as you follow IRS instructions, you are now able to get t ..read more

Donating to charity not only helps others, it can reduce your tax bill — but only if the charity qualifies as a tax-exempt organization. Checking for qualified status If you plan on itemizing your deductions on your tax return, make sure the organization you’re donating to is designated by the IRS as a 501(c)(3) organization in good standing. You can find a list qualified 501(c)(3) organizations on the IRS website. Remember, even last year’s qualified organizations could lose their non-profit status if they do not submit their annual tax filing! Is it a good charity? Ensuring a t ..read more