For children with unearned income, the change made with the Tax Cuts and Jobs Act of 2017 to the calculation of tax on that income, the so-called “kiddie tax”, has been repealed.  This tax is now calculated as it was prior to 2018.  In addition, if the taxpayer was subject to this tax, an election may be made to amend the 2018 return to recover any difference between the revised tax and the tax as paid.  If your children were subject to this tax in 2018, please contact our office to discuss whether an amended 2018 return may be beneficial.

With the passage of the SECURE ACT, various requirements for contributions to and distributions from an IRA have changed.  Please contact our office for a discussion of how these new rules might affect you.

Beginning January 1, 2020, the standard mileage rates for use of a car, van, pickup or panel truck are;

  • 57.5 cents per mile for business miles driven, down 0.5 cents from 2019
  • 17 cents per mile for medical purposes, down 3 cents from 2019
  • 14 cents per mile driven for service or charitable organizations

Beginning January 1, 2019, the standard mileage rates for use of a car, van, pickup or panel truck are;

  • 58.0 cents per mile for business miles driven, up 3.5 cents from 2018
  • 20 cents per mile for medical purposes, up 2 cents from 2018
  • 14 cents per mile driven for service or charitable organizations

Beginning January 1, 2018, the standard mileage rates for use of a car, van, pickup or panel truck are;

  • 54.5 cents per mile for business miles driven, up 1 cent from 2017
  • 18 cents per mile for medical or moving purposes, up 1 cent from 2017
  • 14 cents per mile driven in service or charitable organization

Tax Time and the Health Care Law: The individual shared responsibility provision requires that you and each member of your family have qualifying health insurance, a health coverage exemption, or make a payment when you file. If you, your spouse and dependents had health insurance coverage all year, you will indicate this by simply checking a box on your tax return. No further action is required.

For those who purchased coverage through the Marketplace, you may be eligible for the premium tax credit.

For tax years beginning January 1st, 2013, the tax law imposes a 3.8 percent surtax on certain passive investment income of individuals, trusts and estates. For individuals, the amount subject to the tax is the lesser of (1) net investment income (NII) or (2) the excess of a taxpayer's modified adjusted gross income (MAGI) over an applicable threshold amount.

Net investment income includes dividends, rents, interest, passive activity income, capital gains, annuities, and royalties. Specifically excluded from the definition of net investment income are self-employment income, income from an active trade or business, gain on the sale of an active interest in partnership or S corporation, IRA, or qualified plan distributions and income from charitable remainder trusts. MAGI is generally the amount you report on the last line of page 1, Form 1040.

Accounting

IFS is a professional accounting firm which is dedicated to maintaining the highest standards of financial management and reporting. We are on constant guard to ensure that our clients use the complex tax code to their best advantage, as well as eliminating potential tax pitfalls.

 

Read More

 

Income Tax Prep

The complexity of the current tax code demands the experience and knowledge of a tax professional when preparing business and personal income tax returns. Our CPAs and tax professionals at IFS are dedicated to legally and appropriately minimizing tax liabilities for our clients.

 

Read More

 

Financial Planning

Whether you are conservative or aggressive in your approach to financial management, IFS’s team can help you make the right moves, at the right times, with the right resources. Our financial planning services take every aspect of your financial landscape into account and devise the most appropriate scenarios for your review prior to moving forward.

Read More