Newsletters
Many Retirement Plan Dollar Limits Increase for 2019
Posted November 2018
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.
Solve An Underpayment of Estimated Tax Problem
Posted November 2018
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.
Check Your Safe Harbor Payments
Posted November 2018
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.