Steps to Take Now to Get a Jump on Next Year’s Taxes
IRS Publication 5307 Tax Reform Basics for Individuals and Families
IR-2018-211 401(k) contribution limit increases to $19,000 for 2019; IRA limit increases to $6,000
IR-2018-195 IRS issues guidance on business expense deductions for meals, entertainment
Tax Updates Effective 2017 & 2018
Charitable Contributions - the taxpayer must obtain a contemporaneous written acknowledgement for any contribution of $250 or more. In 2018, the percentage of AGI limitation for charitable contributions increased from 50% to 60%. No charitable deduction is allowed for payment to a higher education institution in exchange for which the taxpayer receives the right to purchase tickets or seating to an athletic event.
Medical Expenses - The threshold for deducting medical expenses is 7.5% of AGI for all taxpayers.
Tax Updates Effective 2018
Tax Cuts and Jobs Act aka H.R.1
2018 Tax Tables
2018 Standard Deduction & Personal Exemption
2018 Capital Gains & Qualified Dividends
2018 AMT Exemptions
2018 Mortgage Interest & Taxes Paid
2018 Child Tax Credit & New Family Credit
2018 Deduction for Qualified Business Income
2018 Section 529 Qualified Tuition Programs - 529 plans can allow distributions of up to $10,000 per-student to pay tuition expenses for a public, private, or religious elementary or secondary school. Postsecondary rules remain unchanged.
2018 Entertainment Expenses - No deduction is allowed to an activity considered to be entertainment, amusement or recreation. No deduction is allowed for membership dues to any club organized for business, pleasure, recreation or other social purpose or a facility used in connection with the above.
2018 Moving Expenses - Moving expenses deduction and exclusion from income provision is allowed only the members of the Armed Forces on active duty that move pursuant to a military order and incident to a permanent change of station until 2025.
2018 Bicycle Commuting Reimbursement Exclusion - Any employer reimbursement are taxable to the employee.
2018 Casualty Loss - A personal casualty loss is deductible only if such loss is attributable to a Federally Declared Disaster Area declared by the President until 2025.
2018 Itemized Deduction Phase-out - The phase-out of itemized deductions provision has been suspended until 2025.
2018 Kiddie Tax - The parent's tax rate is no longer used to calculate kiddie tax. Net unearned income in excess of $2,100 is now taxed according to the tax brackets applicable to trusts and estates until 2025.
2018 Section 179 Expense Deduction - Maximum amount is $1,000,000
2018 standard Mileage Rates
Tax Updates Effective 2019
2019 Medical Expenses - The threshold for deducting medical expenses increases to 10% for all taxpayers until 2025.
2019 Health Insurance - The penalty tax under ACA for not having minimum essential health insurance coverage is zero.
2019 Alimony - Alimony is no longer deductible by taxpayer spouse and includible in income by the recipient spouse. This rule only applies for divorce or separation instruments executed after December 31, 2018, and instruments executed on or before December 31, 2018 but modified after that date to include these new provisions.
Some Refunds Delayed in 2018
The IRS wants taxpayers to be aware of several factors that could affect the timing of their tax refunds next year. Due to a December 2015 law, the IRS cannot issue refunds on tax returns claiming the Earned Income Tax Credit or the Additional Child Tax Credit before mid-February. Under the change required by Congress in the Protecting Americans from Tax Hikes Act, the IRS must hold the entire refund – even the portion not associated with the EITC and ACTC. This law change, which went into effect in 2017, helps ensure that taxpayers get the refund they are owed by giving the IRS more time to help detect and prevent fraud.
IRS Private Debt Collection
The IRS began a new private collection program of certain overdue federal tax debts selecting four contractors to implement it. The IRS will always notify a taxpayer before transferring their account to a private collection agency (PCA). First, the IRS will send a letter to the taxpayer and their tax representative informing them that their account is being assigned to a PCA and giving the name and contact information for the PCA. This mailing will include a copy of Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency. Only four private groups are participating in this program: CBE Group of Cedar Falls, Iowa; Conserve of Fairport, N.Y.; Performant of Livermore, Calif.; and Pioneer of Horseheads, N.Y. The taxpayer’s account will only be assigned to one of these agencies, never to all four. No other private group is authorized to represent the IRS. Note: Check your account balance. If nothing is due, you typically wouldn’t be contacted by IRS or a private firm.
IR-2017-70, March 30, 2017 For Small Business Startups, New Option for Claiming Research Credit; Option Still Available for Those That Already Filed Notice 2017-23, provides guidance on a new provision included in the Protecting Americans From Tax Hikes (PATH) Act enacted in December 2015. This new option will be available for the first time to any eligible small business filing its 2016 federal income tax return this tax season. Those who already filed still have time to choose this option.
2017 Standard Mileage Rates for Business, Medical and Moving
IR-2016-169, Dec.13, 2016 — The IRS today issued the 2017 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Tax Preparedness Series: Tax Records — What to Keep
IR-2016-162, Dec. 6, 2016 — As tax filing season approaches, the IRS has information for taxpayers who wonder how long to keep tax returns and other documents.
The Protecting Americans from Tax Hikes Act of 2015 (the PATH Act), was enacted on December 18, 2015. The PATH Act contains several changes to the tax law that affect individuals, families, businesses and help safeguard against tax fraud.
Maryland - What's New for the 2016 Tax Filing Season (2015 Tax Year)
Here are some of the most important changes and benefits affecting the approximately 3.5 million taxpayers working on their 2015 Maryland income tax returns.
Refund Status: 800-829-1954
Website to check on Refund
Individual Tax Questions: 800-829-1040
Business Tax Questions: 800-829-4933
Contact your local IRS Office by State
IRS Electronic Payment Options
IRS Online Payment Agreement Application
Refund Status: 410-260-7701 or 800-218-8160
Website to check on Refund:
Pay Maryland Tax by Credit Card
Maryland Online Payment Systems
PA Website to check on Refund
Pay your PA Tax
Website to check on Refund
Pay your Delaware Individual Tax
To make Payment Arrangements