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Common tax increase surprises: I didn't owe that last year!

Tue, Jul 31st 2018
Picture this: For the past few years you've received your tax return and have had a small but nice refund. Now imagine your surprise, when next year, you are required to send in a fairly big check to settle your tax bill. Believe it or not, this message is almost as hard to deliver to a taxpayer as it is to hear it. Here are some situations to watch for that can increase your tax liability: New tax laws. The Tax Cuts and Jobs Act is the most impactful tax reform in years. While the goal of the... Read More »

Should you expense or depreciate your capital asset?

Tue, Jul 24th 2018
If you own a business, you know that you may accelerate the expensing of qualified capital purchases. This can be done within two special provisions in the tax code that were recently expanded: Section 179 The annual amount of qualified assets that may be expensed (instead of depreciated) was raised to $1 million for 2018 and beyond. This benefit can be maximized as long as the total assets purchased by your business don't exceed $2.5 million. Qualified purchases can be new or used equipment,... Read More »

IRS debuts postcard-size 1040 for 2018

Mon, Jul 16th 2018
At the end of June, the IRS unveiled a new draft version of the 2018 Form 1040. This newly proposed postcard-sized 1040 form replaces the old 2017 1040, as well as forms 1040EZ and 1040A. While some in Washington are celebrating the design as a simpler way to file, a closer look may tell a different story.   What is changing? Fewer lines. The new form has only 23 lines - 50 lines less than the 2017 1040. Some of the lines saved come from the elimination of exemptions, but most come from... Read More »

Here's how to avoid the most common retirement mistakes

Mon, Jul 9th 2018
Retirement should be something to look forward to, and with a little planning it can be a reality for most of us. Here are five common retirement planning mistakes and steps you can take to avoid them. 1. Not having a plan Surprisingly, most do not know how much money is needed for retirement. A retirement plan should consider how long you expect to live, establish an estimate of the amount of money you will need, and consider your desired lifestyle during retirement. Your plan should have... Read More »

Is it worth it to amend your return?

Mon, Jul 2nd 2018
Whether it makes sense to amend your return depends on which of these situations you're in: If you owe the IRS If you discover an omission on your tax return that results in you owing additional tax, you need to correct it with an amendment and provide the tax due. Don't delay if this is your situation. If the IRS discovers the omission before you do, they may add interest and penalties to your bill. If you are due a refund If you find a mistake that should result in getting a larger refund... Read More »

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