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LIFE MILESTONE: COLLEGE AND EDUCATION TAX TIPS

May 27, 2019
College and Education Tax Tips: A good education can be a steppingstone to a bright future, but it can also be a big financial burden. Whether it’s the first day of kindergarten at a private school or a second graduate degree, paying for an education has major tax consequences.
Saving for future education costs can help parents fund their child’s education through federal and state-sponsored plans or tax-advantaged income exclusions. Also, some income used for education expenses can qualify for an exclusion. Other education expenses could be eligible for a deduction or credit. (AICPA)
27 May, 2019
Monday, April 15, 2019 is the filing deadline for U.S. taxpayers. For those needing more time to prepare your federal tax return, Form 4868 is used by individuals to apply for six (6) more months to file Form 1040, 1040NR, or 1040NR-EZ. A U.S. citizen or resident files this form to request an automatic extension of time to file a U.S. individual income tax return. Please be aware the IRS states that an extension of time to file your return does not grant you any extension of time to pay your taxes. We would be happy to answer any questions you may have regarding your filing responsibilities.
27 May, 2019
There is a lower debt limit and home equity interest for mortgage interest. Purchase of athletic tickets will not be included in deductions for charitable contributions. State, local, real estate, and sales taxes will have a $10,000 limit. Miscellaneous itemized deductions have been repealed (such as unreimbursed employee expenses, investment fees, etc.) Contact our office so we can help determine your itemized deduction and necessary recordkeeping responsibilities. (AICPA)
27 May, 2019
Tax rates have changed for individuals and some businesses. There is an increase in the standard deduction and a removal of personal exemptions. There are also changes to several itemized deductions and an increase in the estate tax exemption. Contact our office with any questions regarding your deductions. (AICPA)
27 May, 2019
Contributions must be made to a qualified charity. Donations must be made by cash or check and there must be proof of payment. Cash or non-cash contributions of $250 or more need "contemporaneous written acknowledgment from the charity." The 80% deduction for right to purchase athletic tickets is no longer available. Non-cash contributions over $500 need details of donee organization, items donated, cost, value and more. Non-cash contributions, including non-publicly traded stock worth over $5,000 need a qualified appraisal. Clothing and household items must be in good used condition or better. Contact our office with any questions regarding charitable contributions. (AICPA) KEY CHANGES FOR 2018
27 May, 2019
Tax Tips for Marriage: A wedding is an exciting milestone, but it’s also a big financial turning point for couples. Whether it’s a first marriage or two families are blending, these unions have major tax consequences. Getting married could influence which tax bracket a couple falls into, so the first step is determining the most advantageous filing status. A couple must determine if it’s in their best interest to file jointly or separately. Then, they should review how this choice affects each spouse’s tax burdens and adjust tax withholdings accordingly. (AICPA)
27 May, 2019
Starting Retirement off Right at Any Age: Retirement is an exciting time. After a lifetime of hard work, you’re finally ready to focus on family, travel and hobbies. But just because the work stops doesn’t mean taxes do. When your income is fixed, taxes can take on whole new hue. As you consider budgeting for your retirement, don’t forget that certain taxes don’t discriminate based on employment. These include property taxes, sales taxes, special assessments from your city or state, etc. Adding these up and making sure you set a proportional amount aside monthly will make paying them much less painful. (AICPA) LIFE MILESTONE: TAX TIPS FOR MARRIAGE
27 May, 2019
Welcoming a New Child: Welcoming a new child into your life is a great joy, but it also means big financial changes. These young family members can affect your tax situation. Parents may qualify for one or more tax credits or deductions. Adjust your withholding to compensate for these life changes. Not doing so could result in more funds being withheld than necessary. (AICPA)
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