Tax Savings 101

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An introduction to the topic of tax planning in 6 easy points: Saving taxes doesn’t just happen by accident. It takes deliberate long-term financial planning with a goal, action plan and accountability. Everyone has the ability to legally reduce their taxes. The higher your taxes, the greater the potential to save money. Tax planning is […]

TAX TIP: Be ready to prove ‘Head of Household’ status

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The Tax Cuts and Jobs Act requires paid tax preparers to take additional steps to verify claims of Head of Household status. The new due diligence requirements are intended restrict an ineligible taxpayer from filing as a head of household. Under IRC §6695(g) a tax preparer who fails to meet these requirements results in a […]

Summary of Tax Reform for Individual Taxpayers

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This summary is an excerpt from “Understanding the Tax Cuts and Jobs Act”by Samuel A. Donaldson, Georgia State University College of Law, January 3, 2018. Individual Ordinary Income Tax Brackets Originally, Republican leadership sought to reduce both the number of individual income tax brackets and the tax rates. Under prior law, seven tax brackets ranging from 10% to […]

Qualified Small Employer Health Reimbursement Arrangements for 2018

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Last month the Internal Revenue Service released 59 page Notice 2017-67  which provides guidance on Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs).  QSEHRAs were first established as part of the 21st Century Cures Act enacted in late 2016 for effective for 2017 small business health plans.  This new type employer reimbursement plan offered a new option […]

Tax tip: Auto, travel, meals and entertainment

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Self-employed individuals should probably be more concerned with tax compliance problems with auto, travel, meals and entertainment expenses than anything else. I’ve blogged about it before including here and here. This annotated article in PDF document format is worth a read: documentation-of-business-miles-lessons-from-a-recent-tax-court-case