Tax Tips

Refundable Credits sent by IRS starting 2/27/19

Refundable credits are those which give you cash back even if you didn’t pay  tax into the system during the year. Popular refundable credits are the Earned Income Tax Credit and Additional Child Tax Credit. If you claimed either of these credits, your refund will be released by the IRS starting from February 27, 2019. You […]

Qualified Dividends vs Ordinary Dividends (Big Difference in Taxes)

Not all stocks pay dividends. However, If you own stock that pays dividends your dividend income will be classified as either “Qualified” or “Ordinary”.  The fund that pays the dividends will send you a Form 1099-DIV that will tell you type of dividend. On Form 1099-DIV Qualified dividends are listed in box 1b and Ordinary […]

Protect against Tax Fraud

Protect yourself from Tax Fraud by being aware that the IRS will never do the following 3 things: 1) Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card, or wire transfer. 2) Demand that you pay the taxes without the opportunity to question or appeal the […]

7 Steps to Protect You from Identity Theft this Tax Season

The tax season offers cyber-criminals a chance to steal financial account information, Social Security numbers, credit card information and other sensitive data to help them file a fraudulent tax return in 2019. IRS Commissioner Chuck Rettig says “With tax season quickly approaching, people should be extra careful during the holidays to protect their sensitive tax […]

10 Ways you Can Reduce Your Taxes if you are taxed as an S Corp

The S corp. designation refers to the way a business has chosen to be taxed under the Internal Revenue Code. If your business profits are greater than what the IRS considers a reasonable salary, then  S corp. taxation may save you money. You can elect LLC S corp. status at any time during the tax […]

Businesses: E-file your 1099-MISC if you missed the 1/31/19 Deadline

If you are a business owner the deadline to file your IRS form 1099-MISC (non-employee compensation over $600) was  January 31st, 2019. A Form 1099-MISC is required (with exceptions) for each person to whom you have paid  the following during 2018: *At least $10 in royalties or broker payments in lieu of dividends or tax-exempt […]

Deadline for issuing all W-2 forms is 1/31/19

January 31st, 2019 is the deadline for all employers to issue W-2 forms to their employees. If you are an employer: Remember to issue W-2 forms to your employees by 1/31/19. If you are an employee: Expect to receive your W-2 from your employer very soon.  

IRS will start processing Tax Returns on Jan 28, 2019

The IRS announced it will begin processing returns on January 28th, 2019, and provide refunds as scheduled. The recent government shutdown had no impact on this start date. The filing deadline for 2018 tax returns is Monday, April 15th, 2019. If you live in Maine or Massachusetts, you have until April 17th due to public […]

Dependent Care Tax Credits (increased limits may help you)

Increased income limits in the new tax law on dependent care tax credits may help you. If you have a child who was under the age of 13 throughout 2018 or who was under the age of 17 and requires assistance for self-care, you might be eligible to claim both the Child Tax Credit and […]

401K & IRA Contribution Limits for 2019 Taxes

Here is some more good news. Due to an increase in the cost of living the IRS increased the contribution limits for 2019 for retirement plans. The increases in the annual limit to contributions are as follows: 1) 401(k), 403(b), most 457 plans, Thrift Savings Plan: Limit increased from $18,500 to $19,000.  If you are age […]