December 2019 Newsletter

Checklist to Cut Your 2019 Taxes

It's not too late to cut your 2019 tax bill.  Prior to Dec. 31st: Increase your 401(k) and 403(b) contributions if you haven't been contributing at the maximum rate all year. If you’re self-employed, consider setting up a Solo 401(k) by 12/31. Take a look at your withholdings and instruct your employer to withhold additional… Continue reading Checklist to Cut Your 2019 Taxes

December 2019 Newsletter

New SSN Scam

Scammers are at it again, this time calling up taxpayers, impersonating the IRS, and threatening to suspend or cancel social security numbers. According to the IRS, these calls can come in as “robocall” voicemails, requesting people to call back. The scammers may mention overdue taxes. If you receive a call threatening to suspend your SSN… Continue reading New SSN Scam

December 2019 Newsletter

IRS Gets Serious About Cryptocurrency

Have you been dabbling in cryptocurrency trading? The IRS is stepping up its efforts to provide guidance to taxpayers around cryptocurrency transactions and has enacted some new compliance measures. On 2019 tax returns, the IRS will require taxpayers to check off a box if they engaged in any virtual currency transactions during the year. The… Continue reading IRS Gets Serious About Cryptocurrency

December 2019 Newsletter

Benefits of small business owners of hiring family members Part II:

Consider adding your teenage children onto your company payroll. If you are self-employed and have children that are old enough to work, consider adding them onto your company payroll.  There are several tax benefits and opportunities for income shifting within the family when children become employees of your small business. Under the recently passed Tax… Continue reading Benefits of small business owners of hiring family members Part II:

December 2019 Newsletter

IRS Announces Higher Retirement Plan Limits for 2020

Most working professionals have access to a 401(k) plan or a 403(b) plan at work.  Amounts contributed to these plans generally reduce your taxable earnings and always grow tax deferred.  You can contribute up to $19,500 into a 401(k) or 403(b) plan through salary deferrals in 2020. Anyone 50 or older by December 31, 2020… Continue reading IRS Announces Higher Retirement Plan Limits for 2020

December 2019 Newsletter

Review of the 2019 Rules for Itemizing Your Deductions

Medical Expenses For 2019, medical expenses are deductible to the extent they exceed 10% of your Adjusted Gross income (AGI). The IRS also allows a deduction of 20 cents/medical miles driven so don’t forget to track your medical mileage. Planning Opportunity:  Check out IRS Publication 502, Medical and Dental Expenses.  If your allowable medical expenses… Continue reading Review of the 2019 Rules for Itemizing Your Deductions

November 2019 Newsletter

Benefits of small business owners of hiring family members – Part I:

Consider hiring your spouse as your company’s first employee.  For many taxpayers beginning a new business, there are always concerns and questions about decisions to be made.  How to finance the new endeavor, where to locate the office, and who to choose as the right advisors such as a CPA/attorney/IT consultant, etc.?  And being a… Continue reading Benefits of small business owners of hiring family members – Part I:

November 2019 Newsletter

Social Security Max Increases to $137,700 For 2020

by Andrew D. Schwartz CPA Most years, the government bumps up the maximum Social Security taxes that you can pay.  For 2020, the maximum wage base jumps to $137,700, an increase of $4,800, or 3.6%, over the max of $132,900 that was in place for 2019. At a rate of 6.2%, the maximum Social Security taxes… Continue reading Social Security Max Increases to $137,700 For 2020

November 2019 Newsletter

How to “FIRE”: Strategies for Becoming Financially Independent and Retiring Early

Last month, our firm hosted a live webinar in our Financial Boot Camp series titled "How to FIRE: Strategies for Becoming Financially Independent and Retiring Early"" which was recorded and is now available online. According to the presenter Alex Oliver from First National Corporation: “With the stock market on a record long run, the FIRE movement to… Continue reading How to “FIRE”: Strategies for Becoming Financially Independent and Retiring Early

November 2019 Newsletter

Defer and Possibly Reduce Taxes on Capital Gains By Investing in a Qualified Opportunity Fund

 One of the most interesting wrinkles of the Tax Cuts and Jobs Act was the creation of Opportunity Zones. According to the IRS, Opportunity Zones are particular distressed communities throughout the country in need of economic revitalization. Under a nomination process completed in June 2018, 8,761 communities in all 50 states, the District of Columbia, and… Continue reading Defer and Possibly Reduce Taxes on Capital Gains By Investing in a Qualified Opportunity Fund

November 2019 Newsletter

Tax and Financial Planning Calendar for November 2019

Month Income Taxes Saving and Investing NOVEMBER Need to make applicable elections in connection with employer's flexible spending account Good time to make semi-annual donation of clothing and household items to charitable organizations.  Don't forget to make a list, including each item's condition, since only items "good or better" qualify for deduction. Contact an MDTAXES… Continue reading Tax and Financial Planning Calendar for November 2019