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Social Security wage base increases to $132,900 for 2019

By: Tax Advisors | Jan 28, 2019

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. More ...

IRS Waives Penalty For 2018 Estimated Tax Shortfalls

By: Tax Advisors | Jan 17, 2019

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. More ...

31 Business Tax Deductions

By: Tax Advisors | Dec 4, 2018

31 Business Tax DeductionsAs 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. More ...

New Tax Law Eliminates Alimony Deductions After 2018

By: Tax Advisors | Nov 29, 2018

New Tax Law Eliminates Alimony Deductions After 2018Any 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. More ...

Investment Expenses Are No Longer Deductible Starting In 2018

By: Tax Advisors | Nov 20, 2018

Investment Expenses Are No Longer Deductible Starting In 2018Under 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. More ...

RMD & IRA Withdrawals

By: Tax Advisors | Nov 16, 2018

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. More ...

Can A Foreign Inheritance Be Taxed?

By: Tax Advisors | Oct 29, 2018

Can A Foreign Inheritance Be Taxed?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. More ...

Who Pays Self-Employment Tax?

By: Tax Advisors | Oct 28, 2018

Who Pays Self-Employment-TaxIf 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. More ...

The Internal Revenue Code

By: Tax Advisors | Oct 27, 2018

The Internal Revenue CodeSince 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. More ...

What Is FICA Tax?

By: Tax Advisors | Oct 26, 2018

What Is FICA Tax?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. More ...