There are no personal or dependent exemptions under the new tax law. Effective January 1, 2018 the standard deduction is: • $24,000 for married filing jointly • $18,000 for heads of household • $12,000 for all other taxpayers Child tax credit The new tax law increases the credit to $2,000 per qualifying child and [...]
Do you have a child that will be graduating from college next spring and have been phased out of the tuition credit due to your income level? We recommend you consider paying for his or her final semester of college until 2020. If the graduate has taxable income in the year they graduate they [...]
For those turning 50 this year, we recommend you increase your 401(k) salary deferral to include the “catch up” amount of $6,000 making your total salary deferral for 2019 $25,000. There is a $1,000 catch up amount for IRAs as well, making the total you can contribute to an IRA in 2019 $7,000. [...]
One of the most interesting wrinkles of the Tax Cuts and Jobs Act, passed last December, was the creation of Opportunity Zones. According to the IRS, Opportunity Zones are particular distressed communities throughout the country in need of economic revitalization. Under a nomination process completed in June 2018, 8,761 communities in all 50 states, [...]
The Internal Revenue Service is reminding small businesses that recent tax reform legislation lowered the backup withholding tax rate to 24 percent and the withholding rate that usually applies to bonuses and other supplemental wages to 22 percent. The agency is also recommending that employers encourage their employees to check their withholding using the [...]