4Thought Blog

4_thought_blog_graphic-red_border_-_sides_only.jpg

IRS Waives Penalties for Many on 2018 Withholding, Estimated Tax Payments

Posted by IRS on Thu, Jan 17, 2019

The IRS this week announced it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year.

The IRS is generally waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two. The usual percentage threshold is 90 percent to avoid a penalty.

This relief is designed to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to reflect an array of changes under the Tax Cuts and Jobs Act, the far-reaching tax reform law enacted in December 2017. 

Read More

Topics: 2018 Federal Tax Reform, Individual tax planning

Gift of MAGI? Tax planning can help!

Posted by Concannon Miller on Tue, Dec 11, 2018

The IRS has announced its 2019 cost-of-living adjustments to tax items that might affect you. Many of the amounts increased to account for inflation, but some remained at 2018 levels. As you implement 2018 year-end tax planning strategies, be sure to take these 2019 adjustments into account in your planning.

Read More

Topics: 2018 Federal Tax Reform, Individual tax planning

Still Time to Lower Your Personal Tax Bill

Posted by Concannon Miller on Tue, Nov 27, 2018

Have you thought about your personal tax situation for 2018? In addition to reviewing the adequacy of your payroll withholdings and estimated tax payments, there's still time to employ some tax-savvy moves that could potentially decrease this year's tax bill. Tax reform legislation has changed the rules of the game, so it's important to discuss end-of-year strategies with your tax advisor as soon as possible. 

Read More

Topics: 2018 Federal Tax Reform, Individual tax planning

Tax Moves for 2018: Act Now! Time’s Running Out!

Posted by Concannon Miller on Fri, Nov 23, 2018

The passage of the Tax Cuts and Jobs Act (TCJA) in late 2017 brought significant changes to the tax landscape. As the first tax season under the law looms on the horizon, new year-end tax planning strategies are emerging. Meanwhile, some of the old tried-and-true strategies have changed and others remain viable.

Read More

Topics: 2018 Federal Tax Reform, Small business, Business tax planning

Act Now to Cut Your 2018 Tax Bill

Posted by Concannon Miller on Tue, Nov 6, 2018

The Tax Cuts and Jobs Act (TCJA) created more than 100 new tax provisions — a staggering thought as you begin to prepare for the next filing season. The good news is that these and some of the surviving provisions create a wealth of year-end planning opportunities.


Read More

Topics: 2018 Federal Tax Reform, Individual tax planning

The QBI Deduction: The Newest Rules for Business Owners

Posted by Tony Deutsch on Tue, Oct 16, 2018

The recent federal tax reform measures included a new deduction offering possibly the greatest tax benefit to pass-through businesses in more than 60 years.

The Qualified Business Income Deduction – or QBI – allows qualified small business owners to simply not pay income taxes on 20% of their income in tax years 2018 through 2026.

Like many provisions in the federal tax code, there are of course stipulations. Restrictions kick in to reduce the benefit when a taxpayer’s income rises and there are a different set of qualifications for Specified Service Trades or Businesses (SSTB).

Late this summer, the IRS released new proposed regulations intended to clear up some of the QBI deduction rules. These regulations provided guidance how owners of multiple businesses can use aggregation to affect their deduction and the definition of SSTBs, which face deduction limitations.

Read More

Topics: 2018 Federal Tax Reform, Business tax planning

Post Tax Reform: Who Pays No Tax on Long-Term Gains and Dividends

Posted by Concannon Miller on Thu, Sep 27, 2018

Do you have long-term capital gains or qualified dividends? If so, there's good news: After the Tax Cuts and Jobs Act, you might still qualify for the 0% federal income tax rate on these types of income.

The rate is only available for those with relatively low income. But, if your income is too high to benefit, your children, grandchildren or other loved ones may still be eligible for the tax savings. Here are the details.

Read More

Topics: 2018 Federal Tax Reform, Individual tax planning

House Takes Steps on Further Federal Tax Reform

Posted by Concannon Miller on Tue, Sep 18, 2018

The U.S. House Ways and Means Committee last week passed three separate bills that will be the cornerstone of what is being referred to as Tax Reform 2.0.

The bills focus on making permanent certain provisions of the Tax Cuts and Jobs Act that affect individuals, families, and small businesses. They also promote family and retirement savings and new business innovation. For example, one proposal would allow new businesses to write off more of their initial start-up costs. Here’s a brief overview of the three bills.

Read More

Topics: 2018 Federal Tax Reform, Individual tax planning, Business tax planning

The Controversial SALT Limitation: What Taxpayers can do on State and Local Taxes Deductions

Posted by Concannon Miller on Thu, Sep 13, 2018

In recent weeks, the IRS has issued a series of proposed regulations to help clarify provisions of the Tax Cuts and Jobs Act. One of the most controversial parts of the law is the limit on individuals' deductions for state and local taxes that goes into effect this year.

In the wake of the TCJA, lawmakers in some high-tax states have enacted charitable contribution "workarounds" to preserve federal tax breaks for their residents. Earlier this summer, several states — New York, New Jersey, Connecticut and Maryland — filed a lawsuit against the U.S. Department of Treasury and the IRS, alleging that the SALT limitation is an "unconstitutional assault on states' sovereign choices."

Read More

Topics: 2018 Federal Tax Reform, Individual tax planning

How Business Owners can Aggregate to Maximize the Qualified Business Income Deduction

Posted by Concannon Miller on Tue, Sep 11, 2018

One of the most valuable tax breaks in the Tax Cuts and Jobs Act is the new deduction for up to 20% of qualified business income from pass-through entities.

The IRS recently issued proposed regulations that help clarify who can benefit from the deduction. One of the issues the regs clarify is how taxpayers can elect to aggregate, or combine, their trades or businesses for purposes of the QBI deduction (also called the pass-through or Section 199A deduction).

Read More

Topics: 2018 Federal Tax Reform, Business tax planning

Subscribe for more Timely Tips for Businesses

Recent Posts