Tax Tips Archives

Say Goodbye to These Tax Breaks after 2020

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33 temporary tax breaks (referred to as “tax extenders”) have been set to expire in 2020. 6 of them are related to individual income taxes. Cancelled mortgage debt Cancelled debt is typically included as income. But an exception had been made for cancelled mortgage debt under the Mortgage Forgiveness Debt Relief Act of 2007. Beginning … Read more

What is the tax return filing threshold?

Generally For 2019 tax returns, you’re required to file as follows based on your filing status: IF your filing status is… AND at the end of 2019 you were… THEN file a return if your gross income was at least… single under 65 $12,200 65 or older $13,850 head of household under 65 $18,350 65 … Read more

The IRS Free File Program Gets New Agreement

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The Internal Revenue Service announced today an agreement with Free File, Inc. (FFI) designed to bring more clarity for taxpayers choosing to use free online software during the 2020 filing season. The agreement reached will help make the Free File program more taxpayer-friendly while strengthening consumer protections in several key areas. What is the Free … Read more

Farming Tax Deductions and IRS Hobby Loss Rules

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Farmers who have sustained losses over many years should be aware of the IRS’ hobby loss rules which limit farm loss tax deductions. Hobby losses are one of the most frequently litigated issues in tax. In order to deduct a loss from a business activity, the taxpayer must be able to demonstrate that the activity … Read more

Saving Up for Education – Cloverdell ESA vs. 529 Plan

Cloverdell ESAs and 529 Plans are great ways to save for college. The investments can grow tax-free in stocks, mutual funds, bonds, and variety of investment vehicles. However, these savings plans may impact financial aid and needs-based scholarship eligibility. Therefore, most financial advisors recommend that parents max out their 401k and IRA contributions before contributing … Read more

IRS Whistleblower Award Program

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The whistleblower program is one of the weapons used by the IRS to detect underpayments of tax and violations of the internal revenue laws. The program is based on the principle “if you know something, say something.” The statute provides that if the IRS institutes an administrative or judicial action against a taxpayer and collects … Read more

Hurricane Dorian Tax Relief

As Dorian threatens and with the peak of hurricane season just ahead, the Internal Revenue Service posted a reminder to everyone to develop an emergency preparedness plan. Taxpayers, whether individuals, organizations or businesses, should take time now to create or update their emergency plans. Taxpayers can begin getting ready for a disaster with a preparedness … Read more

Bookkeeping for Small Business Owners

What is bookkeeping? Bookkeeping refers to the process of recording monetary transactions. This record-keeping process is usually done by a bookkeeper and the information is then input on a tax return by an accountant. Although online accounting software options now widely available, many small businesses still rely on “shoe box” record accounting. Before modern boookkeeping … Read more

Student Loan Debt Consolidation

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As of March 2019, U.S. student loan debt amounted to $1.6 trillion in federal and private student loan debt.

On July 11, 2019 the President of the American Federation of Teachers, AFL-CIO filed a lawsuit against the U.S. Department of Education (ED) for gross mismanagement of the Public Service Loan Forgiveness (PSLF) and Temporary Expanded Public Service Loan Forgiveness (EPSLF) programs.

President Trump declared a major disaster in Muskogee, Tulsa and Wagoner counties.

Residents who live or have a business in these counties may qualify for the following tax relief:

Certain deadlines falling between May 7 and September 16 are granted additional time to file through September 16th. This would include quarterly estimated tax payments that are due on June 17, and employment and excise returns due on July 31.
Taxpayers will qualify for penalty abatement on payroll and excise tax deposits due between May 7 and May 22.
If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.