Tax Tips

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 […]

IRS Waives Penalty for Many Whose Tax Withholding and Estimated Tax Payments Fell Short in 2018

I received the following good news today from the IRS Newswire, an IRS e-mail service. IRS Newswire January 16, 2019 ______________________________ Issue Number: IR-2019-03 Inside This Issue _______________________________ IRS waives penalty for many whose tax withholding and estimated tax payments fell short in 2018 WASHINGTON — The Internal Revenue Service announced today that it is […]

401(k) and IRA Contribution Limits for 2019

The IRS implemented cost-of-living adjustments that increased the contribution limits for 2019. The limit for 401(k), 403(b), most 457 plans, & Thrift Savings Plan increased from $18,500 to $19,000. For IRAs and Roth IRAs, the limit on annual contributions is increased from $5,500 to $6,000. If you are aged 50 or older, the catch-up contribution […]

Quarterly Estimated Tax Payments – Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the September 1st – December 31st quarter of the year is January 15th. For payments made using IRS Direct Pay, you can make payments until 8PM EST, and for payments using a credit or debit card, payments can be made […]

2019 Mileage Rate Increase

Starting on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: – 58 cents for every mile of business travel driven, an increase of 3.5 cents from the rate for 2018. – 20 cents per mile driven for medical or moving purposes, an […]

FSA Grace Period or $500 Carryover – Did You Know?

If you are having difficulty using up the funds in your medical flexible spending account (FSA) before the end of the year, your employer might offer you relief from the “use it or lose it rule” through a grace period or carryover. Under IRS regulations, employers that offer FSA plans can offer one (not both) […]

Severn, MD: End of Year Tax Saving Ideas

With less than one week left in the year and taxes being a significant percent of where our income goes, consider the following to reduce your 2018 tax bill: 1) Estimate your Total Income.  Update your accounting records; estimate your total income.  Work with your CPA (or do it yourself) to do a quick estimate […]

FINAL NOTICE: Healthcare Open Enrollment Deadline 12/15

This week is the last week to register for the HealthCare.gov open enrollment period with the deadline being Saturday, December 15th, 2018. Once the Open Enrollment period is over, you will only be able to enroll if there’s a qualifying life event for the Special Enrollment Period. Enrollment can be done at https://Healthcare.gov, and a […]

Reporting ACA Changes – Did You Know?

The open enrollment period for 2019 health insurance under the Affordable Care Act (ACA) is from November 1, 2018 to December 15, 2018. Even if you’re keeping a current insurance plan that you purchased through the Exchange in your state, you should still report major life changes to the Exchange. Changes that should be reported […]