Services You Can Trust
(813) 929-3098
Is a Tax Surprise Waiting for You?
Written by MJS Admin
Saturday, 01 September 2018 00:00

ItemWith summer coming to a close, now is a good time to assess your tax situation while there is still time to make adjustments if necessary. To help you prepare, this newsletter includes articles on potential 2018 tax surprises and how the new changes affect education related deductions and credits. For your business, there are articles to help you battle employee turnover and tips to prepare for a possible trade war. Finally there are some tips for improving your credit score and a piece on video games and the impact they are having on a major portion of society.

Often lost in the excitement of large-scale tax change is how they can negatively impact some individual situations. Check out the questions below to see if you might be in for a tax surprise this year.

Item Will you pay more than $10,000 in state and local taxes?
Previously, you could take a full deduction for all state income, sales and property taxes as an itemized deduction. That deduction is now capped at $10,000 per year. Take a look at your 2017 itemized deductions to see if your state and local taxes were greater than the new cap. If so, you will now lose any excess amount over $10,000 as a deduction.
Item Do you pay for work expenses?
Before this year, employees were able to deduct work expenses (business mileage, uniforms, continuing education and other non-reimbursed expenses) as an itemized deduction. These deductions are now gone. If you typically pay for job related expenses, you might be on the hook for more taxes. Employees who deduct business use of their homes may be impacted even more.
Tornado and dollar bills
Item Do you own a small business?
There are many business tax changes for 2018. Bonus depreciation and Section 179 expensing are expanded, the domestic production activities deduction (DPAD) is eliminated, and there is a new qualified business income deduction for pass-through entities. It is a near certainty that one or more of these changes will affect your business taxes.
Item Did you adjust your withholding allowances?
When the tax cuts were finalized, the IRS adjusted the withholding tables as best they could to fit with your current allowances. As a result, your take-home pay likely increased earlier this year. However, based on a recent report by the U.S. Government Accountability Office (GAO), as many as 21 percent of taxpayers will unknowingly underwithhold their taxes throughout the year. If you are one of these people, you will have a tax bill and maybe some penalties to pay next April. It would be time well spent to double-check your withholding for 2018.
Item Do you have children?
Some good news! The Child Tax Credit is now double to $2,000 per child versus $1,000 last year. The income limits for the credit are also raised significantly to $200,000 Adjusted Gross Income (AGI) for single status and $400,000 AGI for married couples. In many cases, the additional credit will actually offset the loss of the personal exemption that you could take for yourself, your spouse and children in the past.

Now is a great time to do an assessment of your situation in light of the new tax changes.

Please call if you would like to discuss how any of this information relates to you. If you know someone who can benefit from this newsletter, feel free to forward it to them.

Should you wish to review your situation please feel free to call. Also feel free to forward this newsletter to someone who may benefit from this information.

This newsletter is provided by
MJS Payroll Plus, LLC
27251 SR 54, Suite B-14/308
Wesley Chapel, FL 33544
Phone (813) 929-3098
Fax (813) 929-3099

This e-mail address is being protected from spambots. You need JavaScript enabled to view it

RSS

This publication provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, rewritten or redistributed without permission, except as noted here. This publication includes, or may include, links to third party internet web sites controlled and maintained by others. When accessing these links the user leaves this web page. These links are included solely for the convenience of users

 

Our Contacts

28949 State Road 54
Wesley Chapel, Fl 33544
Phone: +1 813 929 3098
216651

Connect With Us

Subscribe To Our Monthly Newsletter

For Email Marketing you can trust