How will you take advantage of all of your options during tax time this year? These are some things you may want to consider as you schedule your 2020 individual tax planning meeting: The IRS has launched an improved tool to help taxpayers check their withholding by doing a “Paycheck Checkup.” You will need your most recent paystubs and your most recent income tax return. Visit the IRS website to learn more. Maximize contributions to Health Savings Accounts. 2020 contribution limits are $3,550 for individuals and $7,100 for families. 2021 limits will be $3,600 for individuals and $7,200 for families. Individuals 55 and older can make an additional $1,000 catch up contribution. You can maximize your HSA contributions even if you did Read More...
Minnesota Conforms to Federal Section 179 Rules – Big Section 179 changes coming for Minnesota!
10/27/2020: The $1.36 billion bonding and tax bill signed by Gov Walz on October 21st includes full section 179 expensing conformity to the federal tax law as well as a provision to retroactively fix tax increases for like-kind exchanges in tax years 2018 and 2019. The Tax Cuts and Jobs Act (TCJA) signed into law in December 2017 was the most sweeping tax legislation since 1986. The law included the ability to expense up to $1 million with an investment limit of $2.5 million (adjusted each year for inflation). The law also eliminated the ability to utilize the like kind-exchange rules for equipment thus requiring a taxpayer to add to taxable income the gain from a trade of equipment. The taxpayer could then offset the gain by utilizing 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...
There’s a New Employer Tax Credit for Paid Family and Medical Leave
There's a New Employer Tax Credit for Paid Family and Medical Leave Available for 2018 and 2019. The IRS announced today that they have published detailed guidance regarding the new Employer Credit for Paid Family and Medical Leave for tax years 2018 and 2019 enacted by the 2017 Tax Cuts and Jobs Act. Eligible employers who provide paid family and medical leave to their employees may qualify for the credit. In addition, eligible employers who set up a qualifying paid family leave program or amend an existing program by December 31, 2018 will be eligible to claim the credit retroactive to the beginning of the employer’s 2018 tax year for qualifying leave already provided. Wages paid by third party payers such as insurance companies Read More...