Lots of questions can come up about income taxes after one has retired. Listed are answers to just a few common questions for retired taxpayers. What types of income are taxable? Some common types of taxable income: military retirement pay, all or part of pensions and annuities, all or part of Individual Retirement Accounts (IRA), unemployment compensation, gambling income,
If you own a restaurant, then your employees probably receive tips for their great service. However, there are a few “tax tips on tips” you should know about. In general, tips are subject to withholding, and employees are required to claim all tip income, including tips via credit card transactions. If you operate a large food and/or beverage establishment,
The passage of the Tax Cuts and Jobs Act (TCJA), slightly more than one year ago, changed the way you can itemize your deductions. The act nearly doubled the standard deduction and altered several itemized deductions that you can claim on Schedule A, Itemized Deductions. The changes in itemized deductions may make using the higher standard deduction more enticing
You can avoid surprises in filing your 2018 taxes by planning early. The IRS provides tips to help taxpayers prepare—especially with significant changes to the tax law. The agency provides information with helpful steps for smoother tax filing. For information, go to https://www.irs.gov/individuals/steps-to-take-now-to-get-a-jump-on-next-years-taxes. Here are the documents you should collect before preparing to file your return: Your 2017 tax return.
Corporations will pay different tax rates for 2018. Last year’s Tax Cuts and Jobs Act enacted a flat 21% corporate tax rate, which replaced a graduated tax structure. The new tax rate took effect January 1, 2018, meaning corporations with a fiscal year that includes that date will pay the flat rate. However, corporations will not pay the flat
If you own a small business, you may be able to use the cash method of accounting, thanks to the passage in late 2017 of the Tax Cuts and Jobs Act. The act redefines small business as a taxpayer who has average annual gross receipts of $25 million or less for the three previous tax years and doesn’t serve
The IRS is offering a new publication to help taxpayers better understand tax reform. Called Tax Reform Basics for Individuals and Families, Publication 5307 explains the Tax Cuts and Jobs Act, enacted late last year for 2018, and how it will affect tax filings. The publication targets individual taxpayers and families and what they can expect on their 2018 federal
The Tax Cuts and Jobs Act changed how farmers and ranchers can deduct farming equipment for depreciation. Depreciation deductions allow taxpaying farmers to recoup some of the costs for the use of their property and equipment. Here are some of the changes to the tax code: New farming equipment and machinery is considered five-year property. If you put equipment
The IRS offers small business leaders helpful information on taxes. Last year’s Tax Cuts and Jobs Act may have helped bolster revenue for many businesses, but understanding tax reform can be challenging. Many small business owners may be able to take advantage of new 20% tax deductions on their qualified business income. To learn more, go to https://www.irs.gov/tax-reform.
If you’re a business owner, you can reap the benefits this year of changes in the tax code enacted in December 2017. You can write off most of your depreciable business assets in the year the assets were used. Here is what you need to know about the new deductions: Business assets with 20-year recovery periods or less may be