The Social Security Administration (SSA) has announced that the wage base for computing the Social Security tax (OASDI) in 2019 will increase to $132,900. (Code Sec. 1401(a), Code Sec. (Code Sec. 1401(b)(2))Tags: TaxTips, Tax, Income Tax, SanDiego, California, Social Security, Social Security Tax, SSA, WagesWe are also on Facebook, Twitter, Instagram, and LinkedIn @TaxAdvisors4You

The usual percentage threshold is 90 percent to avoid a penalty. The waiver computation announced today will be integrated into commercially-available tax software and reflected in the forthcoming revision of Form 2210 and instructions. Tags: TaxTips, Tax, Income Tax, SanDiego, California, Alimony, TCJA We are also on Facebook, Twitter, Instagram, and LinkedIn @TaxAdvisors4You

As a small business owner, there are a variety of expenses you can use as tax deductions. Take a look at the top 31 small business deductions you should take advantage of this year.

Any idea why the alimony deduction will be eliminated for divorce agreements executed after December 31, 2018? For every 100 tax returns on which there was an alimony deduction, only 19 returns reported receiving alimony. That disparity costs taxpayers $644 million per year. The recipient had to report the money as taxable income. This treatment continues under the new law for alimony payments made under divorce agreements reached before 2019.

Under new the Tax Cuts and Jobs Act tax reform, starting in 2018, investment expenses will no longer be deductible on Schedule A as a miscellaneous itemized deduction. If you have an investment account and are paying fees to have it managed, those fees will no longer be deductible. This also means IRAs and other types of retirement account fees will not be deductible as well. Fees vs.

After you reach age 70½, you are required by the IRS to take annual Required Minimum Distributions (RMDs) from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account. You can withdraw more than the minimum required amount. The deadline to take your RMD is by Dec. 31. You can withdraw more than the minimum required amount. Roth IRAs do not require withdrawals until after the death of the owner.

Although gifts or inheritances from foreign persons are not subject to income tax or an inheritance tax, if the gifts of money or other property are valued over certain amounts, the recipient of the gifts must report them to the IRS on the Form 3520. 3) With Foreign Trust Distributions, the IRS is very stringent. There is no minimum threshold requirement for having to report the receipt of the trust.

If you are asked to complete a Form W-9, most probably next year you will also receive a Form 1099-MISC for income that might be subject to self-employment tax. Self-employed individuals generally pay income tax as well as self-employment tax (SE tax). Self-employment tax consists of two parts - Social Security and Medicare tax. In this way, the IRS differentiates the SE tax from the income tax.

Since 2001, Congress has made nearly 5,000 changes to the Tax Code. That’s more than a change per day. The Tax Code is now about four million words, nearly as long as seven versions of War and Peace or the novel version of Les Miserablesand just under four times the number of words in all of the Harry Potter books put together.

The Federal Insurance Contributions Act (FICA), which was passed in 1935 as part of the Social Security Act, requires employers to withhold three (3) separate taxes from the wages they pay to their employees.

October 31, 2018  - File Form 941 - Employer’s Quarterly Payroll Taxes Return. Taxes for the third quarter, ending September 30, submit by October 31.  October 31, 2018  - Second quarter federal unemployment (FUTA) taxes for larger employers are due ​at the end of July.

If you have seriously delinquent tax debt, IRC § 7345 authorizes the IRS to certify that debt to the State Department for action. The State Department generally will not issue a passport to you after receiving certification from the IRS.   Upon receiving certification, the State Department shall deny your passport application and/or may revoke your current passport.

The Internal Revenue Service unveiled proposed regulations Friday for what Treasury Secretary Steven Mnuchin says could be a $100 billion investment opportunity for real estate and businesses in distressed areas. The rules provide investors with guidelines about how they can qualify for special tax breaks in so-called Opportunity Zones — underdeveloped areas where the U.S. government is trying to promote investment.

The majority of Americans now consider renting more affordable than buying a home — a belief that could foreshadow a decline in home sales. 78% of those surveyed by Freddie Mac say renting is more affordable than home ownership, up 11% from just six months ago. And a further 58% of renters say they don’t currently have plans to buy a home.

While the Tax Cuts and Jobs Act removed the deduction for entertainment that many businesses enjoyed in years past, the IRS announced Notice 2018-76, which outlines when business owners can deduct half of the price tag for business meals.

Bitcoin, the digital currency, has been in the news a lot recently. What’s it all about and how does it work? Is it something you or your clients should invest in? Bitcoin is a decentralized digital currency — a cryptocurrency. It’s essentially a form of money that exists only as computer code and is not overseen by any central bank. It was created in 2009 and is maturing as a recognized asset class on Wall Street.

There are a lot of great things about being self-employed. You get to set your own hours, you’re in charge of your own future, and you can even wear sweatpants to work if you feel like it. But there are a few aspects of self-employment that aren’t so wonderful. For one, lying awake at night worrying about when your next invoice will get paid. When you work for yourself, you don’t get a steady paycheck every two weeks.

Social Security benefits are taxed depending on your total income from all sources. Here is how to calculate how much of your Social Security benefits is taxable. Provisional Income Provisional income is your total worldwide income, including tax-exempt income, plus half of your Social Security benefits. Base Amounts These base amounts are used in figuring the taxable portion of your Social Security benefits for tax years 2017 and 2018.

For purposes of this calculation, your assets include the value of everything you own liabilities include the entire amount of recourse debts (debts that you are personally responsible for but not guaranteed with specific collateral, like your credit cards), the amount of nonrecourse debt (secured debt, like a mortgage). Generally, your canceled debt would be reported to you on a form 1099-C.

Corporate officers will sometimes attempt to disguise what should be payment for services as distributions of cash, dividends, and loans as a means of avoiding payroll taxes on the income. Because they are pass-through entities, Sub Chapter S corporations are especially prone to the misclassification of income attributable to a misunderstanding of the compensation rules or by deliberate attempts to reduce the payroll tax bite.

You can make a change or an adjustment to a tax return you’ve already filed by filing an amended return. Here are the top 10 things the IRS wants you to know about amending your federal tax return. If you need to amend your tax return, use Form 1040X, Amended U.S. Individual Income Tax Return. Use Form 1040X to correct previously filed Forms 1040, 1040A or 1040EZ. The 1040X can also be used to correct a return filed electronically.

Beginning with the 2017 filing season, partnership returns will be due on March 15 (the 15th day of the third month for fiscal year partnerships).  C corporation returns will be due on April 15 (the 15th day of fourth month for fiscal year corporations).  S corporation returns will continue to be due on March 15. California FTB conforms to the federal changes.

Form No.Reporting InformationDue Date 1099-MISC (Attorney’s fees) Attorney’s fees 8 substitute payments Jan. 31 1099-R Retirement plan distributions (including IRAs profit sharing plans) Feb. 15 1099-S (Real Estate) Information about real estate gales Jan. 31 1099-SA (Distributions) Distributions from HSA, Archer MSA, or Medicare Advantage MSA Jan. 31 SSA-1099 Social Security payments Jan.

New Tax Relief/Job Creation Act of 2010 bill extends Bush-era tax cuts, provides payroll tax relief, and reinstates the estate tax. This reduction applies to all wage earners and self-employed individuals with no reduction for income (i.e., no AGI phase-outs). However, the amount allowed returns to the pre-2009 lifetime limit of $500 (rather than the 2009/2010 maximum of $1,500).