While many of the new law’s provisions affect businesses, the reconciled tax reform bill, commonly called the “Tax Cuts and Jobs Act” (TCJA), also includes significant changes for individual taxpayers, most of which take effect for 2018 and expire after 2025. Here are some of the most notable changes.
Individual Tax Strategies
Here is a quick rundown of some of the key changes affecting individual taxpayers. Except where noted, these changes are effective for tax years beginning after December 31, 2017. Be sure to consult your tax professional for your specific situation.
Cross-Border Tax Planning: What U.S. Executives Should Consider When Relocating or Taking Residency in Canada
U.S. citizens who are relocating, expatriating or taking residency in Canada will need to consider various tax implications of the move to minimize the overall taxes owed on income earned. This article helps you understand the residency requirements and offers guidance for planning.
When determining whether to buy or sell a security, several factors may affect your decision: your goals, time frame, and risk tolerance, to name a few. One factor that should never be dismissed, however, is the tax consequence(s) of your purchase or sale. With proper tax planning, it’s possible to recognize a certain amount of capital gains tax-free. Here are a few tips to get started...
Moving to Another State but Keeping a Second Home in Minnesota? For many Minnesota residents and retirees, there may come a time when they decide to move to warmer climates or to states with low or no individual income tax. However, they also want a place to come back to throughout the year and decide … Continued
At the end of last year, the Protecting Americans from Tax Hikes Act of 2015 was signed into law. Known as the PATH Act, it does more than just extend expired and expiring tax provisions for another year. The new law makes many temporary tax breaks permanent. This provides some stability in planning. When it comes … Continued
In December, the House and Senate approved the “Protecting Americans from Tax Hikes” (PATH) Act of 2015. The President signed this legislation referred to by tax professionals as “The Tax Extenders Provision”, which extends or modifies many extensions/changes that tax payers should discuss with their CPA.
As we wind down 2015, it’s important to remember that identity thieves may be looking ahead to the upcoming 2016 tax season. Krebs on Security, an in-depth security news and investigation blog, presents a good article on the latest battle between the IRS and the criminals looking to file bogus tax refunds. And while the … Continued
Before you accept an assignment to work and earn income abroad, understand what needs to happen in order to achieve tax benefits that are available. In one such case, an individual was working in Russia for a number of years and was audited by the IRS.
Do you operate your business as an S corporation? If you work for the corporation, you generally must take a salary. An officer who performs more than minor services for a corporation, and who receives remuneration in any form, is considered an employee and is subject to employment taxes.
Self-employed individuals who buy health insurance for themselves and their eligible family members may be able to deduct 100% of their premium payments
Tax identity theft is a growing epidemic. Identity thieves typically engage two tax fraud scams: Refund fraud. The thief files a fraudulent tax return, reporting fictitious wages and withholdings, usually early in the year before companies are required to issue 1099s and W-2s.
You may think you have to pay tax on all income you receive but it’s not true. There are still ways to earn income that is free from federal income tax. With the various tax increases that took effect at the beginning of this year, tax-free income opportunities are more valuable than ever.
A recent Supreme Court decision now allows same-sex couples in states with same-sex marriage statutes to be treated as married for federal tax purposes. The U.S. Supreme Court’s Defense of Marriage Act (DOMA) ruling has important federal tax implications for same-sex couples who are legally married under applicable state law.
On June 26, 2013, the U.S. Supreme Court struck down in the Windsor case a critical section of the Federal Defense of Marriage Act (DOMA), thereby enabling married* same-sex couples to enjoy the same legal rights as opposite-sex married couples. These include income tax benefits, taxpayer friendly employee benefits, estate and gift tax benefits, and more.
As taxpayers were filing their returns in 2013, the IRS announced a national crackdown on identity theft schemes aimed at stealing taxpayers’ refunds. The tax agency expanded a program designed to help law enforcement obtain tax return information about victims, which is critical to efforts to investigate and prosecute cases of tax identity theft.
The omnibus tax bill passed by the legislature and signed by Governor Dayton on May 23, 2013 made sweeping changes that affected Minnesota taxpayers as well as entities and individuals doing business in Minnesota. The tax bill is projected to raise approximately $2.1 billion in additional revenue and would eliminate the state budget deficit.
Until this year, there was no tax-law limit on contributions to an employer’s healthcare flexible spending account (FSA) plan (although many plans impose their own limits). But the FSA situation has changed beginning in 2013.
The IRS announced a simplified option that many owners of home-based businesses, and some home-based workers, can use to figure their deductions for the business use of their homes. (IRS Revenue Procedure 2013-13)
After months of arguing about the “fiscal cliff,” Congress finally passed a law averting some of the tax increases that were set to take effect on January 1, 2013. The American Taxpayer Relief Act of 2012, also known as the “fiscal cliff legislation,” was signed into law by President Barack Obama on January 2, 2013.
Real estate sellers and investors may be facing higher taxes next year as a result of a new surtax and a bunch of tax breaks that are scheduled to expire. The “Bush tax cuts” are scheduled to expire at the end of this year (see right-hand box). If that happens, tax rates will go up for everyone next year.
As we have done for our clients since 1950, we can help you understand these important changes and make the right decisions. DS&B employs the right strategy with the right people for your business, individual and financial situation – whether you operate locally, regionally or internationally.