Christine Hradsky No Comments

Tax Cheer for Holiday Gifts to Employees

Employee Gifts

Before you decide on year-end gifts for your employees, know the potential tax consequences that may be associeted.

With the holidays fast approaching, you might want to reward your employees for all their hard work in 2018. Gift-giving ideas include gift cards, holiday turkeys and achievement awards.

Although your intent may be essentially the same in all these situations, the tax outcome for recipients of your goodwill may be quite different. Typically, it depends on the value and type of gift or award.  Read more

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Estate Tax Planning Tips for Married Couples

Estate Plan

Under the new tax law, it is important to review your estate plan before the end of the year.

For married people with large estates, the Tax Cuts and Jobs Act (TCJA) brings welcome relief from federal estate and gift taxes, as well as the generation-skipping transfer (GST) tax. Here’s what you need to know and how to take advantage of the favorable changes. Read more

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IRS Ups the Ante on Retirement Contributions

Retirement Contributions

The IRS recently published annual cost-of-living adjustments for 401(k), IRA, and other qualified retirement accounts.

Every year, the IRS releases cost-of-living adjustments to qualified retirement plan amounts. For the tax year 2019, many of the limits applicable to pensions and other retirement plans will increase. But some will remain unchanged from 2018. Read more

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2019 Cost-of-Living Adjustment for Qualified Retirement Plans

The table below summarizes key 2019 cost-of-living adjustments (COLA) for pension plans and selected other items announced by the Internal Revenue Service. In general, annual compensation amounts and limits for elective deferrals were increased, while catch-up contribution limits remain unchanged. The Social Security Administration separately announced the taxable wage base for 2019, which is also included below. Read more

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4 Year-End Strategies to Lower Your Personal Tax Bill

Personal Tax

There is still time to employ some tax-savvy moves that could potentially decrease your 2018 personal tax bill.

The countdown to year-end has begun. Have you positioned yourself to minimize your 2018 tax bill? The Tax Cuts and Jobs Act (TCJA) made sweeping changes to the federal tax laws that will affect virtually all individual taxpayers — and most of those changes went into effect for this tax year. Here are four tried-and-true tax planning strategies, tweaked to account for the TCJA. Read more

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Don’t Panic If You Receive a Benefit Audit Notice

audit

The IRS has provided tips to help your next benefit plan audit go smoothly.

Receiving a notice that the IRS is auditing an employee benefit plan is news that no employer wants to receive. If your company does get such a notice, knowing what to expect and preparing for the audit itself are the best ways to help the process go as smoothly as possible. In one IRS newsletter, the agency’s Director of Employer Plan Examinations advised plan sponsors of the audit process and gave readers a list of tips on how to best handle the situation. Read more

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Are You Eligible for the New Dependent Credit and HOH Filing Status?

HOH

The IRS has clarified a new $500 tax credit for dependents who are not qualifying children under the age of 17.

The IRS continues to publish guidance to clarify provisions of the Tax Cuts and Jobs Act (TCJA). Here’s what you need to know about qualifying for the new $500 tax credit for dependents and beneficial head of household (HOH) filing status based on having a non-qualifying-child dependent.  Read more

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Small Employers: Should You Jump on the MEP Bandwagon?

MEP

MEPs are expected to lower administrative costs, but do they offer the simplicity that employers want?

Today approximately 38 million private-sector employees in the United States lack access to a retirement savings plan through their employers. However, momentum is building in Washington, D.C. to remedy this situation by helping small employers take advantage of multiple employer defined contribution plans (MEPs).  Read more

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Vacation Homes Classified as Rentals See Little Impact from Tax Reform

Vacation home taxes

Vacation home taxes become complicated when the property is used for both personal and rental purposes.

There’s good news if you own a vacation home that you rent out: The Tax Cuts and Jobs Act (TCJA) didn’t have much effect on how your rental income and related expenses are treated under the tax rules. But those rules are still complicated. Here’s what you should know.  Read more