Rod's Blog

Tax season is upon us and as the government temporarily comes out of the shutdown, tax season will officially begin on January 28^th. Starting on the 28^th, taxpayers can file their federal tax returns and tax refunds will begin to be issued. Employers are required by January 31^st to send out your W-2, this will list your earnings, retirement contributions and taxes that have been withheld. Businesses that hire independent contractors, should receive a 1099-MISC and they are also required to send them out before January 31^st. If you are form 1099sA, you will receive your form before mid-February. 

Good news for taxpayers that are going to owe more than they thought this year, the IRS is giving you a break. The agency said that it won’t penalize individuals who underpaid their estimated taxes for 2018, as long as they have paid 85% of what they owe. Due to the Tax Cuts and Jobs Act of 2017, taxpayers may not know all the changes that affect them and could have miscalculated how much they actually owe.

Each month our tax attorneys help solve everyday taxpayers problems. Our tax attorneys get levies released, set up IRS payment plans, help guide our clients through an IRS audit and help them resolve their tax debt through an IRS resolution. We help business owners who made a mistake and now owe thousands, clients who got sick and got behind on their taxes and people who got confused by the new tax law. Here are some of the best cases we were able to solve this month!

It’s 2019 and that means the Tax Cuts and Jobs Act will be affecting how you file your 2018 tax return. One of the many changes that were made by the new tax reform is to Alimony payments and the deductions. We wanted to talk to you about the changes because you may have heard that Alimony is going away– well the answer is yes and no. Here is what you need to know.

The IRS has announced rates and limitations for the 2019 tax year and there has been some changes to the Standard Mileage rate. Beginning January 1st, 2019, the standard mileage rate for use of a car will be 58 cents per mile driven for business use and 20 cents per mile driven for medical or moving purposes. You can also get 14 cents per mile driven in service of a charitable organization. The increases for mileage rate varied from increases of 2 cents to 3.5 cents. The charitable rate was unchanged. It’s important to remember that under the new tax law, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses.

2018 has drawn to a close and as we strive to help more clients get out of tax trouble and save more money in 2019, we would like to take a look back at all the clients we were able to help in 2018! In 2018, our firm was able to help 950 people solve their tax problems and saved them over 18 million dollars. We helped small business owners, truck drivers, contractors, retirees, and people from all walks of life. People who got into tax trouble by mistake, due to an error by an employee or accountant, or because they got sick or injured. Here’s some of our favorite cases we were able to close in 2018!

One of the greatest joys in life is having a baby or gaining a new member of your family. One thing people forget with the addition of a new family member is the tax benefit they now can receive.  Dependents on your federal tax return can help cut down on the taxes you owe and help you save money. Like any tax break, there are some rules and regulations that you have to follow before you can claim a dependent.

With over a hundred changes made by the Tax Cuts and Jobs Act, your taxes could look a bit different come April. You may have not owed taxes in years prior, but that could change due to the new limits placed on tax deductions and tax deductions that were eliminated due to the new tax reform. With these changes, it’s important to make sure you check your withholding's and check to see if the deductions you took the previous year are still there.

You might be seeing some more money on your tax refund this year, and that could all be due to the newly-revised Child Tax Credit. The Tax Cuts and Jobs Act increased the amount of the Child Tax credit and also created a smaller tax credit that would help people taking care of older children or relatives. There are still requirements you must meet to qualify for the tax credit.

Despite the government being shut down for over 25 days, the IRS is letting taxpayers know that it will still be processing 2018 Tax returns. The IRS announced this after taxpayers became concerned about if they will receive their tax refunds. The agency will start processing tax returns beginning January 28^th and will provide refunds as scheduled.