To the best of my knowledge, contributing to a Health Savings Account (HSA) is the only investment opportunity that allows for tax-deductible contributions and tax-free withdrawals. Please note that only individuals with a qualifying high-deductible health insurance in place are allowed to contribute to an H.S.A. You can ask your health insurance provider if the… Continue reading It’s Open Enrollment Season. Time to Take a Good Look at HSAs
Author: Andrew Schwartz, CPA
Andrew D. Schwartz, CPA, is a partner with Schwartz & Schwartz, PC, and the founder of The MDTAXES Network.
Social Security Max Increases to $132,900 for 2019
Most years, the government bumps up the maximum Social Security taxes that you can pay. For 2019, the maximum wage base jumps to $132,900, an increase of $4,500, or 3.5%, over the max of $128,400 that was in place for 2017. At a rate of 6.2%, the maximum Social Security taxes that your employer will… Continue reading Social Security Max Increases to $132,900 for 2019
IRS Announces Higher Retirement Plan Limits for 2019
Contributing to a retirement plan is one of the best tax shelters available to you during your working years. Recently, the IRS announced that many of the retirement savings limits will increase for 2019. Employer Sponsored Plans Most working professionals have access to a 401(k) plan or a 403(b) plan at work. Amounts contributed to… Continue reading IRS Announces Higher Retirement Plan Limits for 2019
How the New Tax Law May Impact Taxpayers with High Incomes, Dependents, or Complex Returns
The Tax Cuts and Jobs Act, the tax reform legislation passed last December, made major changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the Child Tax Credit, limiting or discontinuing certain deductions and changing tax rates and tax brackets. Any of these far-reaching changes could have a big impact… Continue reading How the New Tax Law May Impact Taxpayers with High Incomes, Dependents, or Complex Returns
IRS Introduces New Tax Transcript to Better Protect Taxpayer Data
The IRS has recently launched a new format for individual tax transcripts to protect taxpayer data from unauthorized disclosure and theft. The new format will redact personally identifiable information from the Form 1040 series. Financial entries will remain visible, which will give taxpayers and third-parties the data they need for tax preparation and income verification.… Continue reading IRS Introduces New Tax Transcript to Better Protect Taxpayer Data
Are Scholarships and Fellowships Taxable?
We recently received an interesting question from a client that we know many of you may have as well: “My daughter-in-law is doing a PhD and has an NSF Fellowship from the government. Interestingly, the government does not take out taxes nor provide a W2 or 1099 form. I presume that the income is taxable… Continue reading Are Scholarships and Fellowships Taxable?
Are You Prepared for a Disaster?
A natural disaster can strike at any time. Take time now to: Document valuables – including by photographing or videotaping the contents of your home. Review and update your emergency plans annually. Visit Ready.Gov for help with planning. Create electronic copies of key documents such as bank statements, tax returns, identification documents and insurance policies.… Continue reading Are You Prepared for a Disaster?
The New Section 199A Qualified Business Income Deductions
What is qualified business income deduction? Section 199A qualified business income deduction is available from 2018 to 2025. Taxpayers may deduct 20% of Qualified Business Income from Partnerships, S Corporations, Sole Proprietorships (Schedule C’s) and Real Estate Rental Activities (Schedule E’s). This deduction was enacted to help pass-through entities who didn’t receive the benefit of… Continue reading The New Section 199A Qualified Business Income Deductions
Tax Benefits of Establishing a Donor Advised Fund (DAF)
Are you a Trump Tax Bill “tweener”, a taxpayer making sizable charitable contributions each year but with the new tax law recently enacted at the end of 2017, no longer being able to itemize your deductions nor claiming a tax deduction for those charitable contributions you will be making in the next year. With the… Continue reading Tax Benefits of Establishing a Donor Advised Fund (DAF)
HSAs Make a Great Buy and Hold Proposition
Are you aware that there is an investment option available that allows for tax-deductible contributions and also for tax-free distributions? First introduced back in 2004, Health Savings Accounts offer individuals that unique winning combination. The favorable tax advantages of HSAs have caused them to become increasingly more popular in recent years. To be eligible to… Continue reading HSAs Make a Great Buy and Hold Proposition
This Year’s Most Interesting Tax Season Observations
by Andrew D. Schwartz, CPA, Founder of The MDTAXES Network This year’s most interesting observation actually has more to do with next year’s taxes. The tax software we use comes with a Tax Projection option, and I prepared a 2018 tax projection for many of the clients I met with during the winter to see how… Continue reading This Year’s Most Interesting Tax Season Observations
IRS Explains Deducting Mortgage & Equity Loan Interest
From IRS NEWS – Issue IR-2018-32 The Internal Revenue Service advised taxpayers that in many cases they can continue to deduct interest paid on home equity loans. Responding to many questions received from taxpayers and tax professionals, the IRS said that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a… Continue reading IRS Explains Deducting Mortgage & Equity Loan Interest