Now that the extended deadlines have passed for 2018 returns, we can take a moment to reflect on the lessons learned throughout a challenging year. Below we have put together five major takeaways we have come across to aid in planning for the 2019 tax year and beyond. To this end, please kee... Megan Bierwirth, CPA
Form 1040 changed significantly for the 2018 tax season. It is changing again for the 2019 tax year. It appears that the 2017 and 2018 forms had a baby — the 2019 form. In other words, the pendulum is swinging back a bit. Beth Logan, EA. 1040 and 1040-SR The cha... Beth Logan, EA
I read Gil Charney’s analysis of the application of §199A to a rental activity in the September/October 2019 edition of EA Journal (“Your Questions Answered,” pp. 12-13) and I do not agree with it. In that case, I believe the taxpayer clearly qualifies to take the §199A deduction on th... Thomas A. Gorczynski, EA, CTC, USTCP
Donor-advised funds are growing in popularity as a way for individuals and corporations to give to charities. Broad-sweeping changes to the tax code at the end of 2017 sent nonprofits into a state of panic. The doubling of the standard deduct... Kim Moore
The TCJA Raises Some Questions. As anyone not living under a rock these last 18 months knows, the Tax Cuts and Jobs Act (TCJA) imposed a $10,000 ($5,000 married filing separately) cap on deductions of state and local taxes (SALT)—including income, real estate, property, and s... Gil Charney, CPA/PFS, CFP, CGMA, CMA, MBA
When clients hands over a QuickBooks (QB) file at income tax time, the expectation is you have what you need and tax preparation will be a breeze. Depending on the client, you are either elated or you want to cringe; there is not much in between. It is important for tax preparers to feel ... Geri Bowman, EA, CPA, USTCP
Forms W-2 were filed with the Social Security Administration (SSA) by January 31, 2019, but that is the end of the story only if all those Forms W-2 are correct. While 100 percent accuracy is always the goal, it is rarely achieved. So, the second part of the year-end pro... Alice Gilman, Esq
Please remember that this article was written in late September based on the draft forms available at that time. Some changes may have occurred between that date and the publishing of this article. Line 7 Wages. Line 21 — Other income. Lines 37 and 38 – adjusted gross income (AG... Beth Logan, EA
This year, we get to deal with many tax changes. Members of Congress, as well as presidential candidates, stated that one of their goals was to simplify the tax code (U.S. Code title 26). And simplification has occurred to some extent with Public Law 115-97, also known as the Tax Cuts and Jobs Act of 2017 (TCJA). Congress made some issues simpler while creating at least one new issue that has confused many. Many popular de... David Mellem, EA
Barry Leonard Bulakites, Petitioner v. Commissioner of Internal Revenue, Respondent Many taxpayers prepare their own tax returns, without professional help, by using off-the-shelf retail software programs. These programs often offer recommendations based upon the information that is inputted by the taxpayer and may also provide one-toone answers... Steven R. Diamond, CPA
Education is perhaps the single best investment that a person can make during his or her life. According to a recent report from the U.S. Bureau of Labor Statistics, bachelor degree holders earn $1 million more over t heir lifetimes t han high school graduates. The Internal Revenue Service allows several tax benefits that help to defray the cost of education. These benefits are not just for the taxpayer, but they are also for the spouse and/o... Anthony Santullo, EA
Do you have clients who are foster parents? Do you have clients who have adopted from the foster care system? If you have answered yes to either of these questions, you need to know about the Adoption Tax Credit. Many taxpayers who are adoptive parents have been told they do not qualify for the Adoption Tax Credit because they had no expenses. As tax professionals, we often hear our clients say, “My friend told me something different.” Wi... Becky Wilmoth, EA
The Tax Appointment Worksheet is a tool to help you gather the needed information for new and returning clients for the 2016 tax year. This year’s worksheet has been enhanced to reflect the changes in tax law. Now that the American Opportunity Credit is permanent, the need for the proper Form 1098-T and the educational expense evidence is increasingly crucial. Type of plan Amount of contribution Form 1099-... Mary Mellem, EA
Autumn is the perfect time to begin promoting yourself and your EA credential in preparation for the upcoming tax season. Many members already know that NAEA provides tools to help them attract new clients and raise awareness of their EA credential, but many may not know that these tools are regularly refreshed. It’s time to take another look. Last year, NAEA formed a new partnership to present the improved “Find a Tax Expert... Gigi Jarvis, CAE
Single TAX RATES 2015 2016 10% bracket tops at 9,225 9,275 15% bracket tops atDavid Mellem, EA
The following is designed to review healthcare changes impacting your clients for the 2016 filing season. The changes that began in 2013 and 2014 are intensifying in 2015. So, strap yourself in and get ready for the latest changes and information that is coming. Since this article was written in the fall of 2015, review of more recent updates is recommended. New Healthcare Coverage Forms for Tax Year 2015 You’ve se... Ben A. Tallman, EA