Taxes Archives - Checked & Balanced, Inc.

21 01, 2021

2020 Tax Filing begins February 12th

2021-01-21T23:58:16+00:00

The 2021 tax season will start on Friday, Feb. 12, 2021, when the IRS will begin accepting and processing 2020 tax year returns. The Feb. 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the Dec. 27 tax law changes that provided a second round of Economic Impact Payments and other benefits. The additional programming work is critical to ensuring IRS systems run smoothly. These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return. “Planning for the nation’s [...]

2020 Tax Filing begins February 12th2021-01-21T23:58:16+00:00

21 01, 2021

What Tax Credits to Claim & What Deductions to Take

2021-01-21T23:43:21+00:00

When people get ready to file their federal tax return there are new things to consider when it comes to which credits to claim and what deductions to take. These things can affect the size of any refund the taxpayer may receive. Here are some new key things people should consider when filing their 2020 tax return. Recovery Rebate Credit Taxpayers may be able to claim the recovery rebate credit if they met the eligibility requirements in 2020 and one of the following applies to them: They didn't receive an Economic Impact Payment in 2020. They are single and their payment was less than $1,200. [...]

What Tax Credits to Claim & What Deductions to Take2021-01-21T23:43:21+00:00

2 12, 2019

2020 IRA and Pension Plan Limitations

2019-12-02T03:46:27+00:00

The 2020 IRA and pension plan limitations have been announced. Below are some of the more common amounts for 2020. The defined benefit plan limitation remains at $230,000 ($225,000 for 2019). The defined contribution plan maximum remains at $57,000 ($56,000 for 2019). The annual compensation limit for most employer contributions is $285,000 ($280,000 for 2019). The Retirement Savers Credit is completely phased out at: MFJ = $65,000, HH = 48,750, and all others = $32,500 (up from $64,000, $48,000, and $32,000 respectively for 2019). A year of service for SEP coverage remains at $600. The maximum elective deferral for §401(k), §403(b), §457, and SARSEPs is [...]

2020 IRA and Pension Plan Limitations2019-12-02T03:46:27+00:00

3 06, 2019

Year-End Tax Planning to Reduce Tax Liability

2020-07-27T21:33:49+00:00

Life Events. Life events can significantly impact your taxes. For example, if you are using head of household or surviving spouse filing status for 2018, but will change to a filing tax status of single for 2019, your tax rate will go up. Thus, accelerating income into 2018 and pushing deductions into 2019 may also yield tax savings. Retirement Plans Considerations. Fully funding your company 401(k) with pre-tax dollars will reduce your current year taxes, as well as increase your retirement nest egg. For 2018, the maximum 401(k) contribution you can make with pre-tax earnings is $18,500. For taxpayers 50 or older, that amount increases to $24,500. [...]

Year-End Tax Planning to Reduce Tax Liability2020-07-27T21:33:49+00:00

30 01, 2019

What do I need to bring to my tax appointment?

2019-01-30T23:04:19+00:00

Well tax season has begun and its off to a very rocky start. While the powers that be have voted and passed the new tax season updates with what is allowable and not allowable, they still left professional tax preparers and the American public hanging in the wind. Lets face it the simple tax returns are just that, no changes and you can file them out fine. Whereas the slightly to more complicated tax returns now have 6 more pages and a lot more questions for review. While the excitement for small business credits on 199A (QBI) is there but of course this is one [...]

What do I need to bring to my tax appointment?2019-01-30T23:04:19+00:00

8 01, 2019

Government Shutdown & Your Tax Returns

2019-01-08T19:55:18+00:00

Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled. “We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period,” said IRS Commissioner Chuck Rettig. Congress directed the payment of all tax refunds through a permanent, indefinite appropriation (31 U.S.C. 1324), and the IRS has consistently been of the view that it has authority to pay refunds despite a lapse in annual appropriations. Although in 2011 the [...]

Government Shutdown & Your Tax Returns2019-01-08T19:55:18+00:00

11 12, 2018

Year End Tax Planning

2018-12-11T22:13:36+00:00

Life Events: Life events can significantly impact your taxes. For example, if you are using head of household or surviving spouse filing status for 2018, but will change to a filing tax status of single for 2019, your tax rate will go up. Thus, accelerating income into 2018 and pushing deductions into 2019 may also yield tax savings. Retirement Plans/Considerations: Fully funding your company 401(k) with pre-tax dollars will reduce your current year taxes, as well as increase your retirement nest egg. For 2018, the maximum 401(k) contribution you can make with pre-tax earnings is $18,500. For taxpayers 50 or older, that amount increases to $24,500. If [...]

Year End Tax Planning2018-12-11T22:13:36+00:00

11 12, 2018

New Tax Rules for 2018 – Individuals

2018-12-11T21:25:16+00:00

A centerpiece of last year's legislation is the reduction in income tax rates. While the new law keeps the same number of tax brackets for individuals as there were in 2017, many tax rates are two to three percentage points lower than prior years. The top rate is reduced from 39.6 percent to 37 percent and kicks in at higher taxable income levels - $600,000 of taxable income for joint filers, $300,000 for married taxpayers filing separately, and $500,000 for all other individual taxpayers. The 2018 tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%, compared with the 2017 tax rates of 10%, [...]

New Tax Rules for 2018 – Individuals2018-12-11T21:25:16+00:00

14 02, 2018

Personal Tax Credits

2018-03-07T15:15:45+00:00

At Checked & Balanced Inc., we assist you in maximizing your personal tax deductions. There are two types of tax credits: A nonrefundable tax credit means you get a refund only up to the amount you owe. A refundable tax credit means you get a refund, even if it's more than what you owe. Family & Individual Tax Credits Earned Income Tax Credit Child and Dependent Care Credit Adoption Credit Child Tax Credit Credit for the Elderly or Disabled ____________ Income & Savings Tax Credits Earned Income Tax Credit Saver's Credit Foreign Tax Credit Excess Social Security and RRTA Tax Withheld [...]

Personal Tax Credits2018-03-07T15:15:45+00:00