Let's Talk News Letter Updates

Exemptions are gone.

The $4,050  income reduction for each exemption is now 0.

Child tax credit :

Is now $2,000 with a qualified child under 17 years of age.

Standard Deductions for 2018

Single                                        $12,000

Joint or qualifying Window      24,000

Head of Household                  18,000

Married Filing Separate           12,000

Mileage rates for 2018

Business                   54.5 cents /mile

Medical /moving     18.0 cents / mile

Charitable                 14.0 cents / mile

Key Retirement Plan Limits

Traditional IRA, Roth IRA           $5,500

                                                                              (+ $1,000 50 or over)  401 (k), 403(b)                             18,500 

                                                                              (+$6,0000 50 or over)

Simple IRA                                    12,500

                                                                               (+ $3,000 50 or over)

Moving Expenses Gone now only those serving in military can deduct expenses. 

Elimination and reduction 

No longer allowed:

Miscellaneous deductions, including unreimbursed business expenses.(Union Dues, Supplies for work) 

Home equity interest for funds not used to build , buy or substantially improve youe home.

Casualty losses (unless in a federally declared disaster area.)

State income, property and other taxes greater than $10,000 in total.

Here’s how the IRS contacts taxpayers
 

Everyone should know how the IRS contacts taxpayers. This will help people avoid becoming a victim of scammers who pretend to be from the IRS with a goal of stealing personal information. 
Here are some facts about how the IRS communicates with taxpayers:

  • The IRS doesn't normally initiate contact with taxpayers by email.
     

  • The agency does not send text messages or contact people through social media.
     

  • When the IRS needs to contact a taxpayer, the first contact is normally by letter delivered by the U.S. Postal Service.  Fraudsters will send fake documents through the mail, and in some cases will claim they already notified a taxpayer by U.S. mail.
     

  • Depending on the situation, IRS employees may first call or visit with a taxpayer. In some instances, the IRS sends a letter or written notice to a taxpayer in advance, but not always.
     

  • IRS revenue agents or tax compliance officers may call a taxpayer or tax professional after mailing a notice to confirm an appointment or to discuss items for a scheduled audit.
     

  • Private debt collectors can call taxpayers for the collection of certain outstanding inactive tax liabilities, but only after the taxpayer and their representative have received written notice.
     

  • IRS revenue officers and agents routinely make unannounced visits to a taxpayer’s home or place of business to discuss taxes owed, delinquent tax returns or a business falling behind on payroll tax deposits. IRS revenue officers will request payment of taxes owed by the taxpayer. However, taxpayers should remember that payment will never be requested to a source other than the U.S. Treasury.
     

  • When visited by someone from the IRS, the taxpayers should always ask for credentials. IRS representatives can always provide two forms of official credentials: a pocket commission and a Personal Identity Verification Credential.

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