Tax Tidbits

Posted November 2, 2017 / No comments

How should C corporations tackle year-end tax planning amid uncertainty? As year end approaches, C corps should decide when and how to shift income and deductions between 2017 and 2018. Despite the uncertainty in tax reform proposals (nobody knows when a law might be enacted and what net effect the new rules may have), the

Posted October 27, 2017 / No comments

Most U.S. retirees will face economic challenges, according to a new GAO report. Changes in Social Security, employer-sponsored pensions, retirement savings plans and individual savings make it hard to plan for and manage retirement, says the report. Other findings: 34% of households age 65 or over receive 90% or more of their income from Social

Posted October 20, 2017 / No comments

Social Security “wage base” increases for 2018. The Social Security Administration has announced that the wage base for computing the Social Security tax in 2018 will increase to $128,700. This is up from $127,200 for 2017. For 2018, an employee will pay 6.2% Social Security tax on the first $128,700 of wages. In addition, an

Posted October 9, 2017 / No comments

Charitable deduction limitations are suspended under a hurricane relief bill. An individual generally can deduct charitable donations up to 50%, 30% or 20% of adjusted gross income, depending on the type of property contributed and the type of charity. The Disaster Tax Relief and Airport and Airway Extension Act of 2017 temporarily suspends most charitable

Posted September 19, 2017 / No comments

Late-filing partnerships catch a break. Penalties generally apply when tax returns are filed late. Prior to 2016, calendar-year partnerships were required to file by April 15. A new due date (now March 15) resulted in late filing of returns and extension requests by many partnerships. The IRS has granted relief from late penalties for eligible

Posted September 12, 2017 / No comments

After the devastation of Hurricane Harvey and with the looming threat of Hurricane Irma, the IRS has issued a list of ways that taxpayers should prepare for hurricanes, floods and other disasters. Specifically, the IRS recommends that taxpayers keep a duplicate set of key documents in a safe, waterproof place. Also, photograph or videotape the

Posted September 5, 2017 / No comments

Beware of fake charity scams. The IRS is warning that fake charity schemes are emerging due to Hurricane Harvey and advised taxpayers to find recognized charitable groups for their donations. Some criminals impersonate charities to get money or private information from well-meaning taxpayers, the IRS stated. The scams may involve telephone calls, social media and

Posted August 30, 2017 / No comments

How does living abroad change your tax picture? As Americans become increasingly mobile, many more taxpayers are living outside the United States or holding foreign investments. Globetrotters may not be aware that their worldwide income is subject not only to U.S. tax, but also to extensive reporting requirements related to their foreign assets. If you’re