Newsletters

Tax Filing Reminders

December 17th Due date for calendar-year corporations to pay the fourth installment of 2017 estimated income tax December 31st Deadline to complete 2017 tax-free gifts up to $15,000 per recipient Deadline for paying expenses you want to deduct on your 2017 cash basis income tax return January 15th Due date for the fourth installment of 2018 individual estimated tax January 31st Due date for employers to furnish W-2 statements to employees, and to file Forms W-2 with the Social Security Administration (both paper and electronic forms). Due date for payers…

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Many Retirement Plan Dollar Limits Increase for 2019

IRS has announced the 2019 cost-of-living adjustments (COLAs) with respect to retirement plan limits. Many limits are changed for 2019 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. The following plan limits are increased effective Jan. 1, 2019: Elective deferrals to Code Sec. 401(k) plans, Code Sec. 403(b) plans, and Code Sec. 457 plans increase from $18,500 to $19,000 for 2019. SIMPLE accounts. The maximum amount of compensation an employee may elect to defer for a SIMPLE plan increases from $12,500 to $13,000…

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Solve An Underpayment of Estimated Tax Problem

Employees may discover that prepayments of tax for 2018 have been too small because, for example, their estimate of income or deductions was off and they are underwithheld, or they failed to make estimated tax payments for unanticipated income, such as gains from sales of stock. Or they may be facing a penalty for underpayment of estimated tax because of the additional 0.9% Medicare tax and/or the 3.8% surtax on unearned income. To ward off or reduce an estimated tax underpayment penalty, employees can ask their employers to increase withholding…

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Check Your Safe Harbor Payments

Often, individual taxpayers calculate their 2018 Federal quarterly estimated tax payments based on 100% or 110% of 2017 tax liability to provide a “safe harbor” from penalty and interest when filing their 2018 tax returns. If you generally pay your tax liability with both withholdings and estimated tax payments, your 2018 withholdings may have been estimated to be the same as 2017. However, your 2018 actual withholdings may be lower than 2017 withholdings due to a decrease in gross income, a change to your W-4, or the adjusted 2018 withholding…

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