ASAP: Taxpayers should check withholding

NSTPInternal Revenue Service (IRS), Paycheck Checkup

ASAP: Taxpayers Should Check Withholding

ASAP: Taxpayers should check withholding All taxpayers should check their withholding – also known as doing a Paycheck Checkup – as soon as possible. They should do a checkup even if they did one last year. By checking their withholding, taxpayers can make sure enough is being taken out of their paychecks or other income to cover the tax owed. Here are some things taxpayers should know about withholding and why checking it is important: Taxpayers should check their withholding as early in the year as possible. If someone still has not done a Paycheck Checkup, there’s still time to get their withholding on track. They should do a checkup ASAP. Taxpayers should also check their withholding when life changes occur. These changes include things like: Marriage or divorce Birth or adoption of a child Purchase of a home Retirement Chapter 11 bankruptcy New job or loss of job Some taxable income is not subject to withholding. People with this income who also have income from a job may want to adjust the amount of tax their employer withholds from their paycheck. This includes income from things like: Interest Dividends Capital gains Self-employment and gig economy income IRA distributions, including … Read More

Great webinars from NSTP!

NSTPInternal Revenue Service (IRS), Webinars

Great webinars from NSTP!

Great webinars from NSTP! NSTP’s webinars are created with you in mind. Top tax educators provide exclusive material that you won’t find anywhere else! Check out these upcoming webinars: TT. Passive Activity Losses: Complexity Untangled Part III & Part IV    4CE    June 14   10am-2pm PDT Instructor: Kelly H. Myers, MBA, Tax Consultant This course takes the Tax Professional with a basic understanding of the Passive Activity Loss (PAL) rules under IRC 469 into the advanced aspects including related Code sections that often coexist. While PAL has been around since 1986 it is often minimally understood and misapplied. There are additional components added over the years that will be addressed including Real Estate Professional (RE Pro), grouping, Net Investment Income Tax, and the Pass-through Deduction. To register or for more course details, please visit the NSTP website. OO. The Ugly 1040   4CE    June 18   10am-2pm PDT Instructor: Paul La Monaca, CPA, MST This course reviews federal income tax issues pertaining to individual taxpayers. It discusses the 3 main goals of good tax planning dealing with exclusion and deferral provisions and preferential rates for long term capital gain transactions. This course also addresses various individual tax provisions changed as a result … Read More

IRS Expands §199A FAQs

NSTP199A, Internal Revenue Service (IRS)

IRS Expands Section 199A FAQs

IRS expands §199A FAQs. The IRS has published an updated set of frequently asked questions (FAQs) on their website related to the §199A qualified business income deduction. The April 11, 2019 update expanded the FAQ from 12 questions to 33 and saved what many will see as the bombshell for the last question. Many of the answers will not be surprising at all to most practitioners. One will likely cause some who had elected to use the proposed regulations to question whether that accomplished what they though it did, but the IRS position is one that many commentators had already suggested might be the position. And one update may affect a large number of taxpayers, as the author of the FAQ has written that the language of §199A(c)(3)(A) allows the IRS to force a double deduction for an S corporation shareholder’s self-employed health insurance deduction. The most surprising answer for many is found in question and answer 33, which provides: Q33. Health insurance premiums paid by an S-Corporation for greater than 2% shareholders reduce qualified business income (QBI) at the entity level by reducing the ordinary income used to compute allocable QBI. If I take the self-employed health insurance deduction … Read More

IRS Issues Revenue Procedure 2019-26

NSTPInternal Revenue Service (IRS), IRS Revenue Procedure

IRS Issues Revenue Procedure 2019-26

IRS Issues Revenue Procedure 2019-26 Which Provides Depreciation Tables for Passenger Vehicles Revenue Procedure 2019-26  provides the following tables of limitations on depreciation deductions for owners of passenger vehicles first placed in service by the taxpayer during calendar year 2019. For purposes of this revenue procedure, the term “passenger automobiles” includes trucks and vans. Tables 1 through 3 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service during calendar year 2019: Use Table 1 for a passenger automobile to which the §168(k) additional first year depreciation deduction applies that is acquired before September 28, 2017, and placed in service during calendar year 2019; Use Table 2 for a passenger automobile to which the §168(k) additional first year depreciation deduction applies that is acquired after September 27, 2017, and placed in service during calendar year 2019; and Use Table 3 for a passenger automobile for which no §168(k) additional first year depreciation deduction applies. REV. PROC. 2019-26 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES ACQUIRED BEFORE SEPTEMBER 28, 2017, AND PLACED IN SERVICE DURING CALENDAR YEAR 2019 FOR WHICH THE §168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES   Tax Year … Read More

2020 Form W-4 Draft has been Issued by IRS and Treasury

NSTPInternal Revenue Service (IRS), W-4 form

2020 Draft of Form W-4 Issued

The first draft of 2020 Form W-4 has been issued and is now available for viewing and comments You can view the IRS’ early proposed design here. Comments about the 2020 Form W-4 draft are welcome and must be submitted by July 1, 2019. The agency can’t respond individually to all comments due to the large volume expected, but we do appreciate the feedback and will consider all comments received. Submit all comments to: WI.W4.Comments@IRS.gov. The IRS cannot respond to all comments due to the high volume we receive. “The new draft Form W-4 reflects important feedback from the payroll community and others in the tax community,” said IRS Commissioner Chuck Rettig. “The primary goals of the new design are to provide simplicity, accuracy and privacy for employees while minimizing burden for employers and payroll processors.” A near-final draft is expected to be released mid-to-late July. The summer release will give employers and payroll processors what they need to make system updates before the final form is released in November. The W-4 Instructions for employees are a part of this release and a separate set of instructions for employers will be available soon. The new W-4 form will better incorporate … Read More