Newsletters

Upcoming Conferences

Shareholders and employees of Stanfield + O’Dell attend and present at various meetings and conferences around the U.S. We invite you to join us at these events. January 9-10, 2019: Dunham + Company Ministry Summit – Scottsdale, AZ January 17, 2019: The Church Network Green Country Chapter at Southern Hills Baptist Church, 5590 S Lewis, Tulsa OK Jonathan Wish, Supervisory Senior Auditor, will be speaking on Auditing & Church Accounting February 20-21: C3 Conference – Hosted by Fellowship Church in Grapevine, TX

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Mileage Rates: Are You Over- or Under-Reimbursing Your Employees?

Many organizations use the IRS’s standard mileage rates to calculate deductible vehicle costs and reimburse employees. For 2019, the rate is 58 cents per mile driven for business. The standard rates offer simplicity, but if you use the same rate for all employees, across all geographic areas, some employees will be over-reimbursed and others will be under-reimbursed (which can result in litigation). The standard rate is based on national averages, and doesn’t account for gas prices and other variable costs that change over time, nor does it reflect costs (such…

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IRS Issues Standard Mileage Rates for 2019

The IRS has issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2019, the standard mileage rates for the use of a passenger vehicle will be: 58 cents per mile driven for business use, up 3.5 cents from the 2018 rate 20 cents per mile driven for medical or moving purposes, up 2 cents from the 2018 rate 14 cents per mile driven in service of charitable organizations. Notice-2019-02 contains the…

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Tax Filing Reminders

December 17th Due date for calendar-year corporations to pay the fourth installment of 2018 estimated income tax December 31st Deadline to complete 2017 tax-free gifts up to $15,000 per recipient 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 to provide most Forms 1099-MISC with non-employee compensation in box 7 to recipients and to the…

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Deductible alimony—for pre-2019 divorces

As you may have heard, for alimony under divorce or separation instruments executed after Dec. 31, 2018, the alimony deduction doesn’t apply, and alimony and separate maintenance payments aren’t deductible by the payor spouse. The alimony is also not included in income of the spouse. The changing tax law will change the negotiations in a divorce settlement. If you have a divorce or separation instruments that can be executed before Jan. 1, 2019, the payor spouse may continue to deduct alimony or separate maintenance that meets all the requirements of…

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TCJA eliminates the ACA “individual mandate” starting in 2019

Starting in 2019, the Tax Cuts and Jobs Act (TCJA) has eliminated the shared responsibility payment, more commonly known as the “individual mandate,” that penalizes individuals who are not covered by a health care plan that provides at least minimum essential coverage, as outlined in the Affordable Care Act of 2010 (ACA). Since this penalty is only eliminated starting in 2019, you still need to take account of it on your 2018 income tax return. For individuals who do not have the required health coverage in 2018, the minimum annual…

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LAST-MINUTE YEAR-END 2018 TAX-SAVING MOVES FOR INDIVIDUALS

Although there are only a few weeks left to go before the year ends, it’s not too late to implement some planning moves that can improve your tax situation for 2018 and beyond. A few ideas for actions to take before Dec. 31 to improve overall tax picture: Make HSA contributions. An individual is treated as having been eligible for the entire year regardless of the actual date of eligibility in 2018 and can therefore make a full year’s deductible-above-the-line contribution for 2018. The maximum contribution/deduction is $3,450 for individual…

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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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