FAQ

Frequently asked questions

2018 TAX REFORM SUMMARY


There are some big changes for tax year 2018 (taxes due in 2019)! Tax Rate Changes: Both individual and corporate rates have changed. The maximum individual rate is reduced to 37% and the corporate rate is now a flat 21%. The rate change could benefit you — or in some cases cause your tax liability to go up. Standard Deduction Increases: $12,000 for Single and $24,000 for Married Filing Jointly taxpayers. However, there are no more personal exemption deductions allowed. So this may help you — or hurt you. Increased Child Tax Credit and New Dependent Credit: The credit is increased for each child to $2,000 (up to $1,400 of which is refundable for each child) and each non-child dependent can now receive a new credit of $500. But you will have no exemption credit or deduction for yourself, your spouse, or your dependents. The phaseout thresholds for these credits are drastically increased. Married taxpayers filing a joint return can claim the full credits if their Adjusted Gross Income (AGI) is $400,000 or less ($200,000 for all others). The credits are fully phased out for married taxpayers filing a joint return when their AGI reaches $440,000 ($240,000 for all others). This means that many more taxpayers will be able to claim these credits in 2018 and beyond. Disappearing Deductions: Beginning with the 2018 tax year, you will no longer be able to deduct:

  • Schedule A taxes (state income tax, real estate tax, and property taxes, combined) above $10,000 per year;
  • Moving expenses (with an exception for certain military);
  • Employee business expenses such as mileage, travel, entertainment, home office expenses, union dues, tax preparation fees, and investment fees, among others;
  • Mortgage interest beyond $750,000 of new acquisition debt if you purchase a home (purchased on or after Dec 16, 2017); and
  • Mortgage interest paid on equity debt unless the loan is used to "buy, build, or substantially improve" the home.
Some New Benefits for Individuals: These new benefits include:
  • The medical expense AGI threshold is now 7.5% for all ages for tax years 2017 & 2018. Note that for tax year 2019 (taxes paid in 2020) it increases to 10%.
  • The AMT phase-out threshold is significantly increased, so fewer middle-income taxpayers will be subject to AMT;
  • The estate tax exclusion has nearly doubled, to $10 million (adjusted for inflation); and
  • The annual gift tax exclusion remains the same ($14,000 for 2017 and $15,000 for 2018), but the maximum rate on gifts is reduced to 35%.
Small Business Benefit: Beginning in tax year 2018, there will be up to a 20% deduction from net business income for a sole proprietorship, LLC (excluding those taxed as a C corporation), partnership, S corporation, and rental activity. The rules are incredibly complex but we can work to maximize this deduction for you.




2019 TAX DUE DATES


For reporting 2018 tax information that is due in 2019 Form....................................................................................... 2019 Filing Due Date Form W-2 (electronic or mail)........................................................January 31st Form 1065 – Partnerships............................................................ March 15th Form 1120S – S Corporations...................................................... March 15th Form 1040 – Individuals................................................................ April 15th FinCEN 114 – FBAR (will be allowed to extend)............................. April 15th Form 1041 – Trusts and Estates................................................... April 15th Form 1120 – C Corporations......................................................... April 15th Form 990 Series – Tax Exempt Org............................................... May 15th Form 5500 Series – Employee Benefit Plan................................... July 31st Form......................................................................................... 2019 Extended Due Dates Form 1065 Extended Return........................................................... September 16th Form 1120S Extended Return......................................................... September 16th Form 1041 Extended Return............................................................October 1st Form 1120 Extended Return............................................................October 15th Form 1040 Extended Return............................................................October 15th FinCEN 114 (Extended with Form 1040)...........................................October 15th Form 990 Series Extended Return....................................................November 15th Form 5500 Series Extended Return..................................................November 15th




MAKE TAX PAYMENTS ELECTRONICALLY


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