Tag Archive for Tax Blog

Explanation And 10 Examples Of The Rules For Determining An Alien’s Period Of Residency In The United States

An alien’s period of residency in the United States must have an official starting date and ending date. The rules for determining these dates are as follows.

Residency Starting Date Under The Green Card Test

If you meet the green card test at any time during a calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day in the calendar year on which you are present in the United States as a lawful permanent resident (the date on which the United States Citizenship and Immigration Services (USCIS) has officially approved your petition to become an Immigrant). Read More

Written by | Posted in US Residency

Tax Cuts And Jobs Act (TCJA): Changes For American Expatriates

Many American citizens who live outside the US have for years raised concerns about the United States’ Citizen-Based-Taxation System. They may have been hopeful when tax reform was being proposed but have been disappointed that their concerns have been ignored. The new tax reform bill Tax Cuts and Jobs Act called TCJA (pronounced tick-jah) has brought about massive changes in the way individuals are going to be taxed but not much has changed for American Expatriates.

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Written by | Posted in Expatriate Taxes • Tax Cuts Jobs Act

IRS Publishes New Notice Explaining Passport Revocation Rule For Unpaid Taxes

We’ve written previously about the newly-enacted Code Section 7345 of the Internal Revenue Code, which authorizes the denial, revocation, or limiting of a delinquent taxpayer’s U.S. passport. We’ve noted that the statutory language contained in the new law offers few details about how exactly the penalty will be administered and to what extent exceptions would apply.

The IRS has since provided some additional details relating to the passport revocation rule on its website, but more formal guidance was expected to further flesh out the revocation penalty. Read More

Written by | Posted in IRS • Passport Revocation Rule

Will The IRS Turn Your Contractors Into Employees?

One of the big red flags with the IRS these days happens when you have independent contractors or subcontractors.

If you do not properly prepare Form 1099s for them, the IRS may deny the deduction for amounts you pay them. They may even decide they should be employees instead of independent contractors (ICs).  Note: Most businesses do not prepare 1099s properly. Read More

Written by | Posted in TaxConnections

Five Things To Remember About Exemptions And Dependents For Tax Year 2017

Most taxpayers can claim one personal exemption for themselves and, if married, one for their spouse. This helps reduce their taxable income on their 2017 tax return. They may also be able to claim an exemption for each of their dependents. Each exemption normally allows them to deduct $4,050 on their 2017 tax return. While each is worth the same amount, different rules apply to each type.

Here are five key points for taxpayers to keep in mind on exemptions and dependents when filing their 2017 tax return: Read More

Written by | Posted in Exemptions

Tax On Cash Donations, Non-Cash Donations, Charity Expenses

A donation in any form can give you immense pleasure and harmony of sharing stuff with others who do not have access to such things. More people are interested in such noble causes than ever before. Apart from helping some people in need, you can help yourself as well. A donation is one of the known ways of reducing your tax liability. Unfortunately, a lot of people started to misuse same and in turn forced the government to push for stricter regulations. The following are some important points that you need to consider when it comes to tax on donations or charity. Read More

Written by | Posted in Charity • Donations

Tax Planning Considerations For Privately Held Business Under The “TCJA”

On December 22, 2017 the United States passed a new tax law referred to as the Tax Cuts and Jobs Act (“TCJA”).

Given certain changes made to the federal income tax laws by the TCJA (the “Act”), privately held businesses should reconsider their tax structure to determine whether it is more advantageous to conduct their businesses as pass through entities or sole proprietorships or, alternatively, as C corporations. Read More

Written by | Posted in Private Business • Tax Cuts Jobs Act

FASB Receives Support For Proposed Tax Reform Guidance

Numerous banking institutions, insurers, and financial trade organizations support the Financial Accounting Standards Board’s (“FASB”) proposed response to the Tax Cuts and Jobs Act. In comment letters on Proposed Accounting Standards Update (“ASU”) No. 2018-210, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, groups like the American Bankers Association urged the FASB to approve its proposed amendment. Proposed ASU No. 2018-210 aims to reduce the accounting effects of complying with the new tax law and simplify financial statements for investors. Read More

Written by | Posted in Tax Cuts Jobs Act

Tax Advisors – Answer Tax Question

TaxConnections Members are able to connect with a steady stream of prospective clients by answering tax questions. Answering visitors’ tax questions is a great way to begin the conversation. Each Friday we post a question we ask our community members to comment in order to help our site visitors.

How would you advise a client given this scenario? 

We are a married couple and we both have W2 jobs from stable large corporations. Wife also has 1099 income (physician practice + moonlighting). How should we organize her business so that we can maximize tax avoidance while taking our combined situation into account? These numbers are for 2018.
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Written by | Posted in Tax Questions

Tax Deductions Vs. Tax Credits

Tax Credits and Deductions are probably the most exciting part when preparing your tax return. They both help you save money by reducing your overall income tax liability. So, you should take a full advantage of all the tax credits and deductions you qualify for.

Tax Credits and Deductions are probably the most exciting part when preparing your tax return. They both help you save money by reducing your overall income tax liability. So, you should take a full advantage of all the tax credits and deductions you qualify for.
As many still get confused about the difference between tax credits and tax deductions, here’s a simple introduction to the these two in the light of the New Tax Reform that just has been approved.  Read More

Written by | Posted in Tax Credit • Tax Deductions • Traveling Tax Digi-Nomad

Focus On New Hampshire Tax

This month, we travel to the New England region of United States to New Hampshire. Known as the Granite State, it is defined by its quaint towns and large expanses of wilderness.

New Hampshire is a state with some mighty history. In January 1776, it became the first of the British North American Colonies to establish a government independent of the Kingdom of Great Britain’s authority, and it was the first to establish its own constitution. Six months later, it became one of the original 13 states that founded the United States of America, and in June 1788 it was the ninth state to ratify the Constitution, bringing that document into effect. Read More

Written by | Posted in New Hampshire

What You Should Know About Your Form W-2

It’s tax time, and you need your Form W-2, Wage and Tax Statement from your employer(s) to file an accurate federal tax return. You should have received this form by January 31.

If you did not get it by now check with your employer to make sure they have your correct address.

If the employer(s) in question have your correct address and the W-2’s have not arrived by the end of February you must still file your income tax forms and pay any income taxes due on time. Not to worry. Read More

Written by | Posted in Form W-2
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