There has been a lot of changes when it comes to your taxes this year – How will you take advantage? These are some things you may want to consider as you schedule your 2020 farm tax planning meeting: Filing farm tax returns on or before April 15th is possible if you elect to make a tax deposit by January 15th This is a viable option when you have a number of tax documents that aren't received until the last week of February (right before the normal March 1st filing deadline) If farming as a C-corporation, the land rent paid to you does not qualify for the 199A deduction but would if you elected to be an S-corporation Utilizing commodity wage to pay employees will save payroll taxes for you and the employee If you Read More...
Charitable Contributions as Tax Deductions
It's almost tax time, which means our experts will be releasing information more frequently in an effort to make tax time easier for you. This time around, we want you to be aware of the potential tax deductions as it relates to charitable contributions. Taxpayers who donate to charity should check out the resources below to see whether they qualify for a deduction on their tax return. If you donate to a charity, you may be able to claim a deduction on your tax return. These deductions basically reduce the amount of taxable income. Keep in mind, you can only deduct charitable contributions if you itemize deductions. Although, Minnesota does have a subtraction of 50% of the total amount of contributions over $500. Here are some Read More...
Big Change in Alimony Rules
There have been many tax changes that impact filers during this year's tax filing season. We will be sharing as much information as possible to make this season simpler for you. Today, we share about changes that have been made for alimony rules, and how they may apply to your situation. For payments required under divorce or separation instruments that are executed after Dec. 31, 2018, the deduction for alimony payments is eliminated. Recipients of affected alimony payments will no longer have to include them in taxable income. The above rules for alimony payments also apply to payments that are required under divorce or separation instruments that are modified after Dec. 31, 2018, if the modification specifically states that the Read More...
IRS Expands Penalty Waiver – Key Threshold Lowered to 80 Percent
The Internal Revenue Service today provided additional expanded penalty relief to taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. The IRS is lowering to 80 percent the threshold required to qualify for this relief. Under the relief originally announced Jan. 16, the threshold was 85 percent. The usual percentage threshold is 90 percent to avoid a penalty. This means that the IRS is now waiving the estimated tax penalty for any taxpayer who paid at least 80 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two. Taxpayers who have already filed for tax Read More...
Filing Extension for U.S. Tax Returns
The new tax law passed this year is more complicated than it has been in decades. Many people who have traditionally done taxes on their own are opting to switch to a Certified Public Accountant to ensure they comply with the law and minimize their tax liability. As the tax law becomes more complex, there are situations when you will need to file for an extension of time to file your income tax returns. DID YOU KNOW: The IRS allows taxpayers to file a 6-month extension which is free, easy, and electronic and this can be done for any reason if you need more time to prepare your taxes. An extension form needs to be filed by April 15th for individuals and corporations and March 15th for partnerships and S corporations. An extension moves Read More...
IRS Warns: New Phishing Scam
The Internal Revenue Service (IRS) sounded the alarm about a new phishing scam in which cybercriminals are sending out fraudulent emails impersonating the IRS, claiming the attachments are tax transcripts, to fool recipients into clicking on and opening files containing malware that could infect their computers. The scam email bears an attachment labeled “Tax Account Transcript” or something similar and the subject line uses some variation of the phrase “tax transcript”. If you receive an email like this, do not open the email or the attachment. If you are using a work computer and you do open it, notify your company’s technology professionals as soon as possible. This malware is problematic for businesses, as the malware could Read More...
2018 Tax Filing Deadline on April 17th
We wanted to share a gentle reminder that the tax filing deadline this year has once again shifted away from April 15th. When is the Tax Filing Deadline? For individual taxes, the final date to file your taxes is Tuesday, April 17th, 2018. This goes against the traditional April 15th deadline for individual tax returns. The shift is due to April 15th falling on Sunday as the tax deadline cannot land on a Sunday. Also, since Monday April 16th is Emancipation Day (which is a legal holiday for the District of Columbia), the filing deadline will be pushed to Tuesday, April 17th, 2018. This gives you a couple of extra days to meet the deadline. Where's My Refund? Once taxes are filed, a common question we get is "where is my refund?". The Read More...
Good News! Three Well-Liked Tax Benefits are BACK!
We have good news for those of you who have capitalized on these benefits in the past and were concerned that they were going away for good. THEY'RE BACK! And they're retroactive so you may claim them for tax year 2017! These claims include: Exclusion from gross income of discharge of qualified principal residence indebtedness (often, foreclosure-related debt forgiveness), claimed on Form 982, Mortgage insurance premiums treated as qualified residence interest, generally claimed by low- and middle-income filers on Schedule A, and Deduction for qualified tuition and related expenses claimed on Form 8917. After expiring at the end of 2016, on February 9th, the Bipartisan Budget Act renewed for tax year 2017 for a wide range Read More...
TAX TIME – Keeping Records
At Christianson, making sure you're prepared and never at risk is one of our top priorities. One of the most commonly asked questions is: "how long do I have to keep my tax records?". This is important for both individuals and for businesses. Here's what you need to know: How Long Should I Keep Records? The general recommendation is to keep tax records for 3 years from the date you filed your tax return. So for 2016 tax returns filed by April 15, 2017, the 3 year period expires on April 15, 2020. This is the timeframe that you have to amend a tax return or the IRS has to audit you. There are certain circumstances when the IRS can initiate an audit after the 3 year period, such as if a tax return was never filed, or if a Read More...
Equifax Security Breach – What Now?
“What now?” This is the question that burdens many minds of those impacted by the Equifax breach in September. While it hasn’t impacted everyone, it’s leaving those not affected anxious and wanting to ensure their information remains safe. We posted previously about what to do if you were impacted and how you can protect yourself. Check it out here if you missed it! What might these scammers do? Unfortunately, the information they’ve gathered can do sizable damage. They have all the information they need to effectively be you. The most serious of these risks will occur around tax time. With the content obtained by these scammers, they are now equipped with the information they need to file taxes under your name. The Read More...
