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What to do when excess social security tax is withheld

If you are switching jobs or working two jobs as an employee and your total wages for the calendar year will exceed the social security wage base ($132,900 in 2019), you may be overpaying social security tax.  Unfortunately, you cannot stop the withholding.  However, you will get a credit on your next tax return for any excess withheld. Each employer is obligated to withhold social security taxes from your wages.  The total they both can withhold may exceed the maximum amount of tax that can be imposed for the year….

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Updated individual returns – new “easy” return for seniors

The IRS has released a draft of the new simplified individual income tax form, Form 1040-SR. This form may be used by taxpayers 65 and over (senior taxpayers) for the tax year 2019 and future returns. It is similar to Form 1040-EZ but without the limitations that restricted the use of Form 1040-EZ.   The new form is two pages long and has larger font sizes. It also removes the shading around some of the boxes to improve contrast for taxpayers with declining vision. It is available for seniors of…

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Can I deduct business trip expenses for my spouse?

The rules for deducting a spouse’s travel costs are very restrictive. First of all, to qualify, your spouse must be your employee. This means you cannot deduct the travel costs of a spouse, even if his or her presence has a bona fide business purpose, unless the spouse is a bona fide employee of your business. This requirement prevents deductibility in many cases. If your spouse is your employee, then you can deduct his or her travel costs if his or her presence on the trip serves a bona fide…

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Tax Filing Reminders

September 16th 2019 calendar-year corporations third installment of estimated income tax 2019 individual and trust third installment of estimated income tax 2018 calendar-year S corporation income tax return (Form 1120S) on extension 2018 calendar-year partnership income tax return (Form 1065) on extension September 30th 2018 estate and trust income tax return (Form 1041) on extension October 15th 2018 calendar-year C corporation income tax return (Form 1120) on extension 2018 individual income tax return (Form 1040) on extension 2018 gift tax return (Form 709) on extension

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