With significant changes occurring from the Tax Cuts and Jobs Act of 2017, the general consensus was that taxes would go down and refunds would go up. Did this happen for you? For a majority of 2018 taxpayers, the total tax did go down; mainly a result of lower tax brackets, increased standard deductions, pass-through business deductions, and/or AMT changes. However, for those W-2 employees that pay income taxes through withholdings on their paycheck, the refund may have be

On January 16, 2019, the IRS issued some relief from the penalty for underpayment of estimated income tax. Individual taxpayers who paid at least 85% of their total tax liability during the year through federal income tax withholding or quarterly estimated tax payments or a combination of the two will not be subject to the underpayment penalty. Prior to this relief, under Sec. 6654(d)(1)(B), the required annual income tax payment an individual taxpayer is required to make is

Happy New Year and Happy Tax Season 2019! With many changes coming to us as a part of the “Tax Cuts and Jobs Act” of 2017, it is important that our clients stay updated and feel prepared this tax season in our efforts to provide you with the best service possible. There may be questions as to what items should be provided to your accountant this year with all the changes. Although the standard deductions have significantly increased due to the tax reform and may cause many ta

The “Tax Cuts and Jobs Act” of 2017 brought sweeping changes to the standard deduction and allowable itemized deductions for taxpayers which will result in significantly less taxpayers claiming itemized deductions (refer to the prior BKC post for more details - Standard Deduction & Itemized Deductions | Tax Reform Update. As a result of the changes, the Tax Policy Center estimates 21 million taxpayers will stop claiming charitable deductions. According to estimates, househo

As a business owner we don’t plan to generate a loss, but due unexpected customer loss, taking advantage of generous tax depreciation rules

According to the IRS, there is around $1.1 billion in unclaimed tax refunds for 2014 (whoa, that’s a lot of money just sitting around). They estimate half of these refunds are greater than $847. In order to claim your refund you must file your 2014 tax return no later than Tuesday, April 17, 2018. Otherwise all of that money goes back to the U.S. Treasury. #tax

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