Focus- on Tax Planning

Focus- on Tax Planning

Written on 11/16/2019
Professor Anthony Rivieccio, MBA, PFA


Starting today, we will spend the rest of 2019 Tax Season, explaining the obvious- that if you want a HIGHER Tax Refunds- you must NOW Plan-- in advance!!!

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Avoid tax refund surprises by filling out this new form

Washington(CNN) There's a new federal income tax withholding form, and a good reason to fill it out fresh this year. It's the first major update to the form since Congress made sweeping changes to the federal tax system in 2017, backed by President Donald Trump.

Form 1040-SR: Should You Use It for Your 2019 Tax Return?

One of the biggest changes that taxpayers faced last year as a result of tax reform was a new 1040 tax form. The IRS eliminated the popular 1040-EZ and 1040A short forms, requiring everyone to use the full revised Form 1040.

3 ways your tax prep will change

It's time to start thinking about filing your taxes. April 15 will be here before you know it, so let's get up-to-speed on what you should remember about 2019 changes. This browser does not support the Video element. We darted over to Emory's Goizueta Business School and talked with associate professor in accounting Usha Rackliffee.


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Here's a breakdown of the new income tax changes

New tax changes for 2020 give taxpayers the opportunity to save more for retirement and health-care expenses, take a bigger deduction on their individual tax return and fine-tune how much tax is withheld from their pay, which could result in larger refunds next year.

A big tax deadline is just a week away. Here's what you need to know to avoid underpayment penalties

Whether you have a side hustle or you're running your own business, you're a week away from a major tax deadline. Individuals who pay their estimated taxes every quarter - including independent contractors and members of partnerships - are expected to make their fourth and final payment for 2019 on Jan.

Everything you need to know to help save on taxes in 2020

Whether you're resolving to cut your 2020 tax bill or save more for retirement in the new year, it's time to start planning. It's hard to believe, but we're staring down at the third year under the new Tax Cuts and Jobs Act - the overhaul of the tax code that took effect at the start of 2018.

Moving all your IRA money to a Roth means losing some valuable tax breaks

Anyone planning to roll over all their assets from a traditional individual retirement account to a Roth version might want to pause before making the move. While Roth IRAs grow tax-free and withdrawals generally also are untaxed - and they come with no lifetime required minimum distributions, or RMDs - traditional IRAs have some potential tax benefits that are lost for good once the money is moved.

Blue states file appeal in legal battle over SALT tax deductions

New York, New Jersey, Connecticut and Maryland contest the dismissal of their lawsuit over the $10,000 cap on state and local tax deductions. NY Gov. Andrew Cuomo calls the tax policy "retribution politics."

How to Pay $0 Tax on a Six-Figure Income

I want to introduce you to some friends of mine. They are comfortable, middle-class professionals with a decent income, yet they pay zero federal income tax. There's no need to call the IRS, though. What they're doing is completely legitimate because they take advantage of enough tax deductions and credits to get their income to a level that results in zero taxes.

Tax Refund Loans: Here's What You Need To Know

While the holidays can do some major damage to your household finances each year, many people look forward to receiving a tax refund that can "undo" some of that hurt. But getting a tax refund loan can do much more harm than good.

The Ultimate List of Small Business Tax Deductions

Small business owners spend time each quarter reviewing invoices and receipts as a first step toward filing their taxes. But this process typically results in spending money rather than saving it. Let's flip this concept on its head for a moment.

Here are your new income tax brackets for 2019

Prepare your calculators. The Internal Revenue Service has updated its tax brackets for 2019. This year marks the first under the new Tax Cuts and Jobs Act, an overhaul of the tax code that resulted in lower individual income tax rates, a doubled standard deduction and the elimination of personal exemptions.

The government took single mom's $3,063 tax refund to cover her student loans. She's trying to get it back

Tax refunds are a lifeline for many low-income people. For the increasing number of people who've fallen behind on their student loans, however, that relief never comes.

5 hidden ways to boost your tax refund

While Americans may disagree on how their taxes are spent, at tax time, most of us are looking for ways to pay no more than we owe, or even boost our tax refunds. These five strategies go beyond the obvious to give you tried-and-true ways to reduce your tax liability.

2020 Tax Brackets

On a yearly basis the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent what is called "bracket creep," when people are pushed into higher income tax brackets or have reduced value from credits and deductions due to inflation, instead of any increase in real income.

The IRS at the Breaking Point | National Review

The agency and the tax-collection system it oversees are on the brink of catastrophic collapse. Anyone who deals with the IRS on a regular basis knows that the agency is in trouble: IRS employees are less able than ever to effectively and efficiently handle their work.

IRS audits more poor taxpayers because it's easier, cheaper than targeting the rich

Instead of going after the wealthy, the IRS has been under fire for targeting lower-income taxpayers with audits - which the agency now says is partially because it is easier and can be accomplished by less-skilled employees. When questioned by Oregon Democrat Sen.

1040-SR: What you need to know about the new tax form for seniors - Clark Howard

The Internal Revenue Service (IRS) is showing off how it hopes to simplify the federal income tax-filing process for around 15 million senior-aged households with the release of the second draft of new tax form 1040-SR, the U.S. Tax Return for Seniors.


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IRS Releases Updated Version Of Tax Form Just For Seniors

With the new tax filing season just months away, the Internal Revenue Service (IRS) has released the second draft of federal form 1040-SR, U.S. Tax Return for Seniors. The form, with larger print and less fussy boxes, is intended to make life easier for some of the approximately 15 million senior households expected to file tax returns in 2020.

Surprising Tax Changes From The IRS You Should Know

The IRS has been busy the last few months. Some of its work is of special interest to people in or near retirement. The IRS ruled that the health portion of genetic-testing kits qualifies as medical care under the tax code. Typically, part of the report from a genetic-testing kit summarizes a person's ethnic or geographic heritage.

Your First Look At 2020 Tax Rates: Projected Brackets, Standard Deduction Amounts And More

The U.S. Bureau of Labor Statistics reported that the consumer price index (CPI) has increased by 0.1% for August, after rising 0.3% in July. Here's what that means for taxpayers in 2020, together with a first look at predicted rates for the next year as calculated by Bloomberg Tax & Accounting.


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IRS Announces Automatic Penalty Waivers For 2018, Will Issue Refunds To Affected Taxpayers

Share to facebook Share to twitter Share to linkedin Did you owe an estimated tax penalty for 2018 but didn't claim the waiver? All is not lost. The Internal Revenue Service (IRS) has announced that it is waiving the estimated tax penalty for those eligible taxpayers who filed their 2018 federal income tax returns but did not claim the waiver.

You Could Save Thousands Each Year and Reduce Your Taxes - Here's How

On a recent trip to LA to see some of my clients, I realized that I had reached a milestone with a few of these successful women: they were all just starting to make a great deal of money.

How to convince the IRS your hobby is a profitable business

You've had a hobby for years, but now want to turn it into a business, qualifying for tax deductions. Can you? The IRS has several tests. "If someone has a business, they operate the business to make a profit," the IRS says. "In contrast, people engage in a hobby for sport or recreation, not to make a profit."

IRS Introduces New Tax Withholding Estimator To Help Taxpayers Avoid Surprises In 2020

Remember all of the times that the Internal Revenue Service (IRS) reminded you to do a payroll checkup (like this one)? And remember that you didn't? The IRS is hoping you'll reconsider this year. The agency has launched a new Tax Withholding Estimator that they hope will make it easier for everyone to figure the right amount of tax withheld during the year.

Scammers are sending out fake IRS letters to taxpayers demanding money - here's how to spot a fraud

The IRS has warned taxpayers about a scam in which letters are being mailed to taxpayers from a fake agency called the "Bureau of Tax Enforcement" demanding immediate payments. Some even mention the IRS. A tax lawyer says any legitimate IRS letter or notice will have an official seal and a notice or letter number, among other distinguishing markers.

Beware: Fake IRS Letters Are Making The Rounds This Summer

Correspondence season is in full swing. That means that the Internal Revenue Service (IRS) is sending out bills and notices to taxpayers. It may be hard for taxpayers to tell the real thing from the fakes - and scammers are taking advantage of the confusion. Here's what you need to know.

The IRS revamps its 'postcard-sized' tax return, drafts a new one for 2019

When it comes to income tax returns, shorter isn't always better. The IRS has released a draft of the new Form 1040 for 2019, reverting to nearly two full pages. Here's what you should know.

The wealth tax that Democrats and Republican billionaires both support

In Wednesday's Financial Times, hedge fund manager and longtime Republican supporter Leon Cooperman said that while he opposed a wealth tax, he supports eliminating a feature of the tax code known as the "step-up in basis" for capital gains.

The Most Forgotten Tax Deductions Business Owners Should Take

Opinions expressed by Entrepreneur contributors are their own. The following excerpt is from Mark J. Kohler 's book The Tax and Legal Playbook. Buy it now from Amazon | Barnes & Noble | IndieBound | Entrepreneur Books When I review a client's tax return, I always try to grab the low-hanging fruit first- -- simple, easy deductions that can quickly have a big impact on my clients' bottom lines.


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This is how much income tax you're paying to your state

Hello, New York! The Empire State is home to some of the highest income taxes in the country. It collected $2,249 per capita in individual income taxes in 2017, according to the Tax Foundation.

IRS Introduces New Form For Seniors Which Looks A Lot Like A Form We Used To Know

What's the old saying? If you love something, throw it away and then reintroduce in another tax year? Or something like that. Just as the form 1040 appears to be making a return to a more pre-TCJA-like format, we have another repackaged (sort of) tax form: form 1040-SR, U.S.

IRS Introduces New Form For Seniors Which Looks A Lot Like A Form We Used To Know

What's the old saying? If you love something, throw it away and then reintroduce in another tax year? Or something like that. Just as the form 1040 appears to be making a return to a more pre-TCJA-like format, we have another repackaged (sort of) tax form: form 1040-SR, U.S.


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Everything Old Is New Again As IRS Releases Form 1040 Draft

Just six (or so) months after the Internal Revenue Service (IRS) released the much talked about - and maligned - form 1040 for the 2018 tax year, there's a new draft in town. Here's a quick peek at the latest version, intended for the 2019 tax year.

IRS Form 5329: Reporting Taxes on Retirement Plans

When filing taxes, it's important to make sure you're reporting all of your income correctly. That includes making note of early distributions from qualified retirement plans or other tax-favored accounts that may be subject to a 10% early withdrawal penalty. ... Continue reading ->The post

New, confusing W-4 form is coming for 2020: What to do now to get bigger tax refund

If you grumbled about the size of your tax refund or even writing a huge check for your federal income taxes in April, don't expect things to change without tinkering with a W-4. And if you think the current W-4 form is a headache, get ready for a migraine with a new form for 2020 and beyond.

IRS warns of impending higher tax penalty for late filers

The IRS is cautioning those behind on their 2018 taxes to act now, before they face stiffer penalties. As of Friday, taxpayers who have not yet filed and owe taxes will face an escalation in consequences, as it approaches 60 days beyond the filing deadline.

What's the average annual income after taxes in every state?

To paraphrase Benjamin Franklin, taxes are one of only two certainties in the world. Americans know this all too well. Taxpayers in the United States pay over $11,000 a year on average in federal, state, and local taxes, or 20% of their gross annual pay.

Advisors must weigh benefits and real dangers before offering this hot new tax play

Perhaps the hottest new investment on the block is the qualified opportunity zone fund. Here's what financial advisors should know before recommending this tax-advantaged real estate strategy to a client.

W-4 Form

Form W-4 is an Internal Revenue Service (IRS) tax form that is filled out by employees to indicate their tax situation to their employer. The W-4 form tells the employer the amount of tax to withhold from an employee's paycheck based on their marital status, number of allowances and dependents, and other factors.

The Case for Ending Income Tax Itemization of Deductions | Brian Riedl

While liberals and conservatives battle over the wisdom of the 2017 tax cuts, that law has quietly created an opportunity for a new reform that could please both flat-tax conservatives and tax-the-rich liberals. For decades, many economists have argued that itemized tax deductions complicate the individual income tax code, overly benefit the rich, and distort economic decision-making.

Botched your tax withholding in 2018? It's about to get more complicated

We're coming up on the halfway mark of 2019, so if you were unhappy with your 2018 return, you're running out of time to avoid a similar outcome next year. The IRS is reminding taxpayers to take a closer look at their withholding and ensure they're paying sufficient taxes for 2019.

H&R Block figures out what happened to people's tax cuts last year

H&R Block has figured out what happened to people's tax cuts last year. The company said overall tax liability was down 24.9%. Wow, that's great! But how come people didn't feel 24.9% richer? That's because the IRS changed the withholding tables and people got that extra money in dribs and drabs in their regular paychecks.

The 3 New Tax Law Deductions You Probably Missed This Tax Season

Opinions expressed by Entrepreneur contributors are their own. The 2017 Tax Cut and Jobs Act (TCJA) impacted returns for the first time this year, bringing considerable change and causing mass confusion among taxpayers and tax preparers alike.The TCJA is the most comprehensive tax reform since 1986.

NYC taxes are squeezing out small businesses to Florida

City Hall's growing appetite for Gotham's business revenues is starving small operators and pushing them to Florida. Exhibit A: In a ranking of small business growth, Miami overtook New York City last week. Analysts say that underlines how thousands of New York's most enterprising, tax-fleeced residents are fleeing for lower-cost places like the Sunshine State.

Tax Planning Tips: 3 Ways You Can Reduce Your Taxes

The idea of tax planning is to arrange your financial affairs so you ultimately end up owing as little in taxes as possible. You can do this in three basic ways: You can reduce your income, increase your deductions, and take advantage of tax credits. These options aren't mutually exclusive.


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The Importance of Tax Planning

Many people use the term "tax planning," but it is often misunderstood. It is the art of learning how to manage your affairs in ways that postpone or avoid taxes. Skilled tax planning means more money to save and invest, and it can make the tax season more of a financial boost instead of a financial burden.

7 yearend tax planning strategies for small business owners - MarketWatch

Published: Dec 31, 2018 9:59 am ET You still have time to significantly reduce your 2018 business income tax bill. Here are seven year-end moves to consider, taking into account changes included in the Tax Cuts and Jobs Act (TCJA). 1.

Why that IRS calculator might not be enough to pinpoint your 2019 tax liability

Stung by the taxman in 2018? The first step you should take is to review your return and consider adjusting your withholding for 2019. Fair warning however: The IRS tax calculator might only tell you part of the story.

Taxpayers could see no refunds, but bigger paychecks

BIRMINGHAM, AL (WBRC) - The IRS is making big changes that could stop big refunds checks every year. A lot of folks are walking around with, or expecting, their tax refunds. Some may even have plans to spend the money. "I think that is a good idea," Jonathan Marbury, a taxpayer said.

Unhappy with your tax return? How to prepare for 2019

Your refund tells only part of the story of how you fared under the Tax Cuts and Jobs Act. If you really want to dig into your taxes, check out your liability. Strategize with your accountant to avoid a surprise next year.

Another tax headache ahead: IRS is changing paycheck withholdings, and it'll be a doozy

You finally finished your taxes and are learning - for better or worse - the ins and outs of the new law. But wait, the law isn't done with you. There's another complication coming out later this year: The Internal Revenue Service is changing how you adjust your paycheck withholdings, and early indicators show it won't be easy.

Tax refund fraud: IRS crackdown ensnares legitimate taxpayers

Kim Henry thought she had a simple tax return this year. The 59-year-old resident of Fort Wayne, Indiana, was expecting a small refund - just $327. But after submitting her return electronically on the first tax filing day in January, she got a letter from the IRS about two weeks later asking her to verify her identity.

How to Pay $0 Tax on a Six-Figure Income

I want to introduce you to some friends of mine. They are comfortable, middle-class professionals with a decent income, yet they pay zero federal income tax. There's no need to call the IRS, though. What they're doing is completely legitimate because they take advantage of enough tax deductions and credits to get their income to a level that results in zero taxes.

How to Pay $0 Tax on a Six-Figure Income

I want to introduce you to some friends of mine. They are comfortable, middle-class professionals with a decent income, yet they pay zero federal income tax. There's no need to call the IRS, though. What they're doing is completely legitimate because they take advantage of enough tax deductions and credits to get their income to a level that results in zero taxes.

6 Fabulous Ways Successful People Pay Way Less In Taxes

Millionaires here is how to keep more of your hard earned money. We outline 6 tax savings strategies used by successful Americans to pay the least amount of taxes possible. How many of these tax dodges can you benefit from? Are you paying to much taxes? read this post.

4 things you might not know about the new tax law

If you're having trouble getting a handle on the Tax Cuts and Jobs Act, the overhaul of the U.S. tax code passed in 2017, you're not alone. As many as 8 out of 10 people surveyed by Betterment, an online investment company, were uncertain about it as well.

Treasury grants extra 5 percent in relief on IRS withholding penalties

DISTRICT OF COLUMBIA (AP) - The Treasury Department announced Friday that it is expanding again the relief it grants taxpayers who had too little in income taxes withheld from their paychecks in the first year of a sweeping tax overhaul.

If the IRS is reviewing my tax return, how do I complete the FAFSA?

Q. I'm the parent of a son who is graduating from high school this year. He's trying to fill out the FAFSA. Last year my husband and I filed separately. While his return is complete, mine is under review by the IRS. What should we do for the FAFSA?- Parent A.

Can I Deduct That As A Business Expense?

I work with many business owners and by far, the most commonly asked question I get is, "Can I deduct that as a business expense?" As with all good tax law questions, it depends on a lot of factors - the type of expense, the type of business that you have and whether you can verify the purpose behind the expenses.

6 Small Business Tax Deductions

Make sure you're taking advantage of often-overlooked tax breaks, including the home office deduction and the qualified business income deduction.

Suze Orman: If you get a tax refund, you're 'making one of the biggest mistakes out there'

Financial expert Suze Orman says that it's not smart to get a tax refund because you're basically giving the government an interest-free loan. Instead, you should adjust your the amount you're withholding and get more money in each paycheck.

Only 25 percent of Americans know this effective tax-saving strategy is legal

If you're as confused about the rules as most Americans, you could be missing out on money-saving deductions this tax season, like the ability to donate to your IRA.

5 weird tax deductions the IRS has allowed

A private jet, your pet's expenses and even breast implants might be eligible for a tax write-off - under the right circumstances. Here are five cases in which the IRS has permitted some odd tax breaks.

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Tax Plan Calculator by Maxim Lott

How the Trump tax plan will change YOUR taxes. Will the GOP tax plan lower your taxes or raise them? This is the only site that'll tell you!

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Individual Tax Highlights: Focus on key information you need to know for the upcoming tax season.