“Nanny Tax” Threshold Increases
Posted October 20, 2017 / No comments
“Nanny tax” threshold increases to $2,100 for 2018. The Social Security Administration (SSA) announced that, if a household worker’s cash wages exceed the domestic employee coverage threshold of $2,100 in 2018, you must pay Social Security and Medicare taxes. This amount, which is adjusted for inflation, is up from $2,000 for 2017. The dollar threshold
Read MoreSocial Security “Wage Base” Increases for 2018
Posted October 20, 2017 / No comments
Social Security “wage base” increases for 2018. The Social Security Administration has announced that the wage base for computing the Social Security tax in 2018 will increase to $128,700. This is up from $127,200 for 2017. For 2018, an employee will pay 6.2% Social Security tax on the first $128,700 of wages. In addition, an
Read MoreCharitable Deduction Limitations: Suspended
Posted October 9, 2017 / No comments
Charitable deduction limitations are suspended under a hurricane relief bill. An individual generally can deduct charitable donations up to 50%, 30% or 20% of adjusted gross income, depending on the type of property contributed and the type of charity. The Disaster Tax Relief and Airport and Airway Extension Act of 2017 temporarily suspends most charitable
Read MoreFederal Tax News Post for September 29
Posted October 3, 2017 / No comments
Critics see flaws in Trump tax plan. After the release of a “framework” for tax reform by the Trump administration, some critics voiced concerns about how the changes would affect the deficit. Senator Bob Corker (R-TN) said, “I’m not about to vote for any bill that increases our deficit, period.” Critics also cautioned that the
Read MoreLate-filing Partnerships Catch a Break
Posted September 19, 2017 / No comments
Late-filing partnerships catch a break. Penalties generally apply when tax returns are filed late. Prior to 2016, calendar-year partnerships were required to file by April 15. A new due date (now March 15) resulted in late filing of returns and extension requests by many partnerships. The IRS has granted relief from late penalties for eligible
Read MoreNew Senior Audit Manager Announcement
Posted September 18, 2017 / No comments
Tighe, Kress & Orr, P.C. Hires New Senior Audit Manager ELGIN, IL (Thursday, September 14, 2017) – Tighe, Kress & Orr, P.C., a certified public accounting firm, is proud to announce Stephen Leazzo has joined the team in the role of Senior Audit Manager. Steve joins the firm with over 11 years of public accounting
Read MoreAre You Prepared for a Disaster?
Posted September 12, 2017 / No comments
After the devastation of Hurricane Harvey and with the looming threat of Hurricane Irma, the IRS has issued a list of ways that taxpayers should prepare for hurricanes, floods and other disasters. Specifically, the IRS recommends that taxpayers keep a duplicate set of key documents in a safe, waterproof place. Also, photograph or videotape the
Read MoreBeware of Fake Charity Scams
Posted September 5, 2017 / No comments
Beware of fake charity scams. The IRS is warning that fake charity schemes are emerging due to Hurricane Harvey and advised taxpayers to find recognized charitable groups for their donations. Some criminals impersonate charities to get money or private information from well-meaning taxpayers, the IRS stated. The scams may involve telephone calls, social media and
Read MoreFederal Tax News Post
Posted August 30, 2017 / No comments
How does living abroad change your tax picture? As Americans become increasingly mobile, many more taxpayers are living outside the United States or holding foreign investments. Globetrotters may not be aware that their worldwide income is subject not only to U.S. tax, but also to extensive reporting requirements related to their foreign assets. If you’re
Read MoreTax News Post for August 23 2017
Posted August 23, 2017 / No comments
A “qualified small business” with eligible research expenses can choose to apply up to $250,000 of its research credit against its payroll tax liability. New IRS guidance discusses: (1) how the payroll tax credit for increasing research activities should be reported on Form 941, Schedule B, and (2) when the credit should be reported on
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