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Tax Tips & Updates

100% Depreciation Deduction For Businesses

One of the changes brought about by Tax Reform legislation passed in December 2017 allows businesses to write off most depreciable business assets in the year they place them in service.

The 100% depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances and furniture generally qualify.

NEW TAX LAW: Do You Usually Itemize Deductions? Check Your Withholding To Avoid Surprises

If you have been itemizing deductions on your 1040, you may be affected by changes from the Tax Cuts and Jobs Act. You should take a few minutes to use the IRS Withholding Calculator to make sure your employer is withholding the appropriate amount of tax from your paychecks for your financial situation.

New Tax Credit For Paid Employee Leave

A new provision of the Tax Cuts and Jobs Act (TCJA) creates a new tax credit for employers who pay wages for family and medical leave. The new credit, which takes effect in 2018, only lasts through 2019. However, there is a chance it could be extended by future legislation. Eligible employers can claim a credit equal to a percentage of wages paid to qualifying employees on leave under the Family and Medical Leave Act (FMLA).

The IRS has not yet fully described some of the provisions, but here are the highlights:

New 2018 Form W-4 And Employee Calculator

On Wednesday the IRS posted a NEW W-4 Form for 2018; the Employee's Withholding Allowance Certificate and Personal Allowances Worksheet . It is recommended that employees consider re-doing this form and worksheet each year as life situations may have changed and you may want to consider instructing your employer to change your withholding.  

The IRS also has a new Online Calculator.  If you are an employee, the Withholding Calculator helps you determine whether you need to give your employer a new Form W-4. You can use your results from the Calculator to help fill out the form and adjust your income tax withholding.  

The IRS encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.”  This is even more important this year because of recent changes to the tax law for 2018.

Selecting And Working With A Tax Preparer

It's tax time again. Taxpayers should choose their tax return preparer wisely.  This is because taxpayers are responsible for all the information on their income tax return. That’s true no matter who prepares the return.

Here are several tips for taxpayers to remember when selecting a tax preparer:

Check the Preparer’s History. Ask the Better Business Bureau about the preparer. Check for disciplinary actions and the license status for credentialed preparers.

Ask about Service Fees. Avoid preparers who base fees on a percentage of the refund or who boast bigger refunds than their competition. When asking about a preparer’s services and fees, don’t give them tax documents, Social Security numbers or other information.

Charitable Contributions: What Can You Deduct On Your Tax Return?

During the holiday season many people make donations to benefit charitable organizations. It's great to help others, and your contributions make a difference in people's lives. There is another benefit . . . you may be able to claim a deduction for the donation on your federal tax return.

Here are five facts about charitable donations:

1. In order to qualify for a deduction, you must donate to a 'qualified' charity. Gifts to individuals, political organizations, or candidates are not deductible. Use Exempt Organizations Select Check to check the status of a charity to see if it qualifies.

Proposed Bill Would Eliminate Ohio's 'Marriage Penalty'

State Representatives John Becker and David Leland are sponsoring a bi-partisan bill to eliminate the 'marriage penalty' in Ohio.

Married Ohioans have to figure out every year what filing status they are going to use — married filing separately or married filing jointly. Often the best option for the couple on their federal return is not the same as it would be on their state return. Because Ohio forces couples to file with the same status on both state and federal returns, they could be hit with what some call a marriage penalty for filing jointly. Filing jointly on their federal return could net them a break on taxes, but here in Ohio it pushes them into a tax bracket that forces them to pay more than if they filed separate returns.

You May Be Able To Get Tax Benefits To Help Pay For Education

It's that time of year again . . . back to school!  This is a good time to learn about tax benefits that can help offset qualifying education costs. Here is information about two tax credits available to those who pay higher education costs for themselves, a spouse or a dependent.

The American Opportunity Tax Credit (AOTC)

The AOTC is worth a maximum benefit up to $2,500 per eligible student. It is only available for the first four years at an eligible educational or vocational school for students pursuing a degree or other recognized education credential. Eligible taxpayers can get up to $1,000 of the credit as a refund, even if they do not owe any tax.

How Divorce or Separation May Affect Your Taxes

There are lots of things to consider when divorcing or separating, and it is a difficult time emotionally and financially for most people. Big changes are taking place in your life, and you should be aware of how these changes may affect your taxes.

Here are some things you should know about alimony, child support, IRA's, and name changes:

TAX TIPS: Renting Residential or Vacation Property

Are you planning to rent out your residential property or vacation home?  If so, there are many things you need to consider other than the logistics of cleaning, maintenance, and service to the renter.

Receiving money for the use of a dwelling also used as your personal residence generally requires reporting the rental income on your tax return. Certain expenses related to renting your property become deductible to reduce the total amount of rental income that's subject to tax.

Contact

  • Address:DJL Accounting & Consulting Group, Inc.
    Cider Mill Professional Center, Building C-102
    1570 S Canfield Niles Road
    Youngstown, Ohio 44515 
  • Phone:330 779 0781