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Tax Relief for Alaskans
February 5, 2019
If you live in the area that was affected by the Alaskan November 30, 2018 Earthquake that was measured at 7.0, you might be granted additional 15 days to file and pay your taxes. President has declared it a disaster, so individuals who reside or have a business in the Municipality of Anchorage, Kenai Peninsula Borough and Matanuska-Susitna Borough may qualify for tax relief. The report in IRS pages states that, "Under section 7508A, the IRS gives affected taxpayers until April 30, 2019, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after Nov. 30, 2018 and before April 30, 2019." Â
For more details, visit this site:Â https://www.irs.gov/newsroom/tax-relief-for-victims-of-earthquake-in-alaska
199A-Qualified Business Income Deduction
March 8, 2019
Starting this year, there is a new deduction business owners and renters (or real estate enterprises) may be eligible to claim, for tax years beginning after December 31, 2017. If you are an owner of sole proprietorships, partnerships, S corporations and some trusts and estates, check to see if your 2018 income shows a profit. If it does, under most business income and expenses, this might qualify you for a 20 percent deduction. See more details in Publication 535 of Internal Revenue Services. This publication discusses common business expenses and explains what is and is not deductible.
Child Tax Credit
January 21, 2019
One of the changes with the TCJA is the increase of Child Tax Credit and addition to Other Dependent credit. For a child who was either your biological child, foster or adopted child, your direct blood line relative like younger brother or sister, niece or nephew, grandson or granddaughter, stepson or stepdaughter....might all qualify to be your dependent for whom you can get a credit of $2000, instead of $1000, like it was in the past.
If you have provided the dependent with more than 50% of support, that dependent is less than 17 years old on December 31st and has a social security or ITIN number allowing him or her to work in US, and the child lived in the United States more than half a year....these all factors need to be met for you as a Taxpayer to get the Child Tax Credit or just $500 for the ones who are 17 years of age or older.
There is a phase out that happens for individuals with higher income. That threshold has also been increased to $400,000 for married filing jointly, and $200,000 all other returns.
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The Additional Child Tax Credit is also increased to $1,400 The ACTC may give you a refund even if you do not owe any tax.
FIRST QUARTER IS ALMOST OVER
February 28, 2019
If you are an employer and have employees for whom you paid wages to, you will need to report to IRS with form 941 all the tax withholdings and send a payment in by April 30, 2019.
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Your payroll accountant or bookkeeper might help with that aspect.
