Site Updated Each Tax Year
“America is a land of taxation that was founded to avoid taxation."
~ Dr. Laurence J. Peter
The IRS will begin accepting tax returns on Jan. 29. The tax filing deadline will be April 17 this year – so you have two extra days to file. Keep in mind, many software companies and tax professionals will be accepting tax returns before Jan. 29 and will submit your return when IRS systems open.
Although the IRS will begin accepting both electronic and paper returns Jan. 29, paper returns will begin processing later in mid-February as system updates continue.
Q: Why are these changes being made?
A: The new withholding tables are needed to reflect the changes in tax rates and tax brackets, increased standard deduction and repeal of personal exemptions that were included in the new tax reform law signed in December. The withholding guidance issued today is for employers to make changes to their payroll systems and is designed to work with existing W-4s that employees have on file.
December 20, 2017: Just after 1 a.m. Wednesday morning, the Senate passed the GOP tax bill. Due to a procedural error, the house will have to redo their vote. House Ways and Means Committee Chairman Kevin Brady, R-Texas, jokingly said he'll be happy to vote twice for a tax cut. Looks like President Trump will get his chance to give the country the Christmas present he's been promising.
Here's what's in the bill:
If you suffer damages to your home or personal property, you may be able to deduct the loss on your federal income tax return. If your area receives a federal disaster designation, you may be able to claim the loss sooner.
Ordinarily, a deduction is available only if the loss is major and not covered by insurance or other reimbursement.
Here are 10 tips taxpayers should know about deducting casualty losses:
The quick answer is, YES if you have a ROTH IRA and NO if you have a Traditional IRA (there is an exception that applies to non-deductible contributions).
You may elect to deduct up to $5,000 of start-up costs in the year your business begins operations. The $5,000 first-year deduction limit is reduced by the amount of start-up costs exceeding $50,000.
Generally, the cost of meals are considered a personal expense and are not deductible, unless they meet certain IRS rules.
Offshore accounts have been used to lure taxpayers into scams and schemes. According to the IRS, hiding money or assets in unreported offshore accounts remains on its annual list of tax scams.
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Have an accounting or bookkeeping question? Email it to me.