Tehachapi's Online Community News & Entertainment Guide
Tehachapi's Online Community News & Entertainment Guide
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The Tax Cuts and Job Act (TCJA) is the most sweeping change in federal tax law since 1986. It contains more than 115 new provisions. Identity Theft Tax-related identity theft occurs when someone uses a taxpayer's stolen Social Security number and name to file a tax return to claim a fraudulent refund. Often the taxpayer doesn't know this has occurred until they try to file a legitimate tax return and have their return rejected with an error code stating that a return has already been filed...
The Tax Cuts and Job Act (TCJA) is the most sweeping change in federal tax law since 1986. It contains more than 115 new provisions. Tax Credits and Tax Deductions I have noticed confusion in the people I talk to regarding tax credits and tax deductions. A tax deduction reduces the amount of income that is subject to tax. Examples include the itemized deductions for mortgage interest, real estate taxes, contributions, etc. If you earn $80,000 but have $25,000 in itemized deductions, you pay tax...
The Tax Cuts and Job Act (TCJA) is the most sweeping change in federal tax law since 1986. It contains more than 115 new provisions. Do I need to file a tax return? The answer depends on your filing status, your age and the type of income you earn. Each person is allowed to earn a certain amount of income before they are required to file a tax return. For 2018 tax returns, individuals are no longer allowed a personal exemption deduction, but are still entitled to a standard deduction of $12,000...
The Tax Cuts and Job Act (TCJA) is the most sweeping change in federal tax law since 1986. It contains more than 115 new provisions. I will list a few of them now. Do you qualify for the new section 199A deduction? As a result of the new federal tax reform, owners of pass-through entities (e.g. partnerships, S corporations and sole proprietors) may be entitled to a new section 199A deduction for qualified business income ("QBI"). Under section 199A, certain taxpayers may be entitled to a deducti...
The Tax Cuts and Job Act (TCJA) is the most sweeping change in federal tax law since 1986. It contains more than 115 new provisions. I will list a few of them now. The federal standard deduction for Married filing a joint return has increased from $12,700 to $24, 000; Head of Household increased from $9,350 to $18,000; Single from $6,350 to $12,000; and married filing separately from $6,350 to $12,000. Those who have itemized in the past may still have to keep track of deductions for the State...
The answer is maybe! Only tax law is strange enough to have three different answers to the same question. Let us wade through the murky water together and I will give you some examples of different answers to the same question. The first factor to consider is, did you own the property you sold for more than one year? Exception#1- Tax law differentiates between property held more than a year and property held a year or less. If you held the property more than a year, it is taxed at a more...
The answer depends on your filing status, your age and the type of income you earn. Each person is allowed to earn a certain amount of income before they are required to file a tax return. Each individual is allowed a personal exemption of $4,050 and a standard deduction of $6,350 for 2017. Hence an individual can have $10,400 of taxable income before being taxed if under age 65. If age 65 or over, an additional $1,550 standard deduction is allowed, so the filing threshold increases to $11,950...
Health Insurance Some of you will receive a Form 1095 (do not throw this away, we will need the information to prepare your 2017 federal tax return). If you have not received a Form 1095, we are required to ask you several questions about your health care coverage to help you avoid penalties and comply with the federal requirements. If you received a reduction in your health insurance premiums based on information you furnished Covered California, the IRS will match your income and household...
Trusts have been used as an integral part of sophisticated tax and financial arrangements for centuries. Exactly how they are used depends on a person’s particular goals, current tax rules, and other factors. Hopefully this article helps you to understand some ways a trust may help you. A trust is an arrangement in which title to property is held by someone for another’s benefit. The trust can be established to benefit the person creating it (the grantor), or to benefit another (the beneficiary). Trusts can operate during the grantor’s life,...
Extensions Whether you file a tax return by the April due date, or obtain an extension to file, filing an annual tax return is mandatory if your income is above a certain level, which will vary depending upon your filing status. Reasons to file an extension include waiting for an important document such as a late 1099 or K-1 form showing income which needs to be reported, you may be overseas and unable to file by the April deadline, or you may just be a habitual procrastinator. Whatever the...
Tax-related identity theft occurs when someone uses a taxpayer's stolen Social Security number and name to file a tax return to claim a fraudulent refund. Often the taxpayer doesn't know this has occurred until they try to file a legitimate tax return and have their return rejected with an error code stating that a return has already been filed using that name and Social Security number. This article discusses the steps to take when a taxpayer's identity has been stolen, along with helpful...
Proving tax deductions without cancelled checks There is a growing trend toward remote deposit of checks. Because of the increasing sophistication of smartphones, you can now photograph a check written out to you and digitally send it to your bank for deposit. All this and more became possible after the Check Clearing for the 21st Century Act (Check 21) became effective in 2004. As a result of this act most banks discontinued the practice of retaining a paper version or copy of your checks....
I have noticed confusion in the people I talk to regarding tax credits and tax deductions. A tax deduction reduces the amount of income that is subject to tax. The itemized deductions for mortgage interest, real estate taxes, contributions, etc are examples. If you earn $60,000 but have $15,000 in itemized deductions, you pay tax on $45,000 of income. If you are in a 15% federal tax bracket, a $15,000 tax deduction reduces your tax $2,250 ($15,000 x 15% tax rate). A tax credit reduces your tax b...
Affordable Care Act (Obamacare) Let’s begin with changes under Obamacare. The Internal Revenue Service has 5 tax forms as part of your federal tax return. Some of you will receive a Form 1095 (do not throw this away, we will need the information to prepare your 2016 federal tax return). If you have not received a Form 1095, we are required to ask you several questions about your health care coverage to help you avoid penalties and comply with the new federal requirements. This additional work we...
