How the 2018 Tax Law Changes Affect You
Effective for 2018, Congress approved the largest tax reform legislation changes to our tax system in over three decades. Under the new Tax Cuts & Jobs Act (TCJA) legislation, substantial changes have been made to both individual and corporate tax rates. These changes will affect individual and business taxpayers and will include both pros and cons. The one aspect sure to stay the same is the tax planning services we will continue to provide to you here at Eilts & Associates
Seven Reasons to File Your Tax Return ASAP
Although the deadlines for filing tax returns for corporations, March 15, and individuals, April 15, are still several weeks away, there are plenty of good reasons why you should get your tax information to your accountant sooner rather than later. By now you should have received all of the tax documents you need to file your 2015 tax return, including your W-2 (wages from an employer), 1098 (mortgage interest and other items), and 1099 (investment income from dividends, inte
File Your Return Early to Beat the Tax Crooks
There have always been many good reasons to file your taxes well before the April 15 deadline. But with identify theft becoming an increasingly serious problem for taxpayers, filing early has become an important strategy for protecting yourself from tax-refund fraud. The Government Accountability Office estimates that the IRS paid out $11 billion in refunds in 2013 and 2014 to criminals who filed returns under a stolen identity. This amount is in addition to the estimated $24
Top 10 Tips for Organizing Your Tax Information
When it comes to getting ready for tax season, organization is more than half the battle. By taking a few easy steps in now, you can make your life much simpler come April. 1) Put tax documents in a folder Get a folder and write “Taxes – 2014” on it. Whenever an important tax document (e.g., 1099, 1098, W-2, giving statement from a charity) shows up in the mail, put it in this folder. This way, when it is time to compile your tax return, all the necessary documents will be
Simple Steps for Protecting Yourself from Identity Theft
You don’t have to follow the news very closely to know that identity theft and cyberattacks are becoming bigger and bigger threats each year. Remember what happened to Target? In late 2013, hackers stole credit card data from more than 40 million of its shoppers. Target is hardly alone. Home Depot, Apple, Wal-Mart, Neiman Marcus, and, of course, Sony, are all household names that have been hit by cyberattacks. These massive breaches have demonstrated that criminals are employ
IRS Phone Scams: Be On Alert for Fraudulent Calls
Typically the scammers–who often use fake IRS badge numbers and may have the taxpayer’s Social Security number, home address, or other personal information–attempt to frighten the taxpayer into revealing personal information or sending money. At Eilts & Associates, we have heard from several clients in the past week who were targeted by one of these scam attempts. In each case, the taxpayer received an automated voicemail from someone claiming to be from the IRS. The “agent”
Avoiding (and Understanding) the Underpayment Penalty
Like Ben Franklin said, taxes are one of the two things in life that can’t be avoided. While Franklin’s adage definitely applies to most types of taxes, an underpayment penalty is one tax that you can easily eliminate with some quick planning and simple math. Let’s take a look at how you can take advantage of the IRS’s “safe harbor” rules to make sure you don’t get hit with an underpayment penalty next April. What is the underpayment penalty? Uncle Sam (and state governments)
Illinois Education Tax Credit for K-thru-12
Illinois residents can receive a tax credit of up to $500 for expenses relating to kindergarten through 12th grade. The state income tax credit equals 25% of expenses in excess of $250 for tuition, books, and lab fees for a child or dependent. The student must be younger than 21 at the end of the school year and may attend either public or private school in Illinois. Claim Illinois education tax credits for 2013 using Schedule ICR from the Illinois Department of Revenue. Some
Six Reasons to File Your Tax Return ASAP
Although the deadline for filing tax returns for individuals, April 15, is still seven weeks away, there are plenty of good reasons why you should get your tax information to your accountant sooner rather than later. Although the deadline for filing tax returns for individuals, April 15, is still seven weeks away, there are plenty of good reasons why you should get your tax information to your accountant sooner rather than later. By now you should have received all of the tax
Small Tax Changes for 2013 Could Cost You Big
The Affordable Care Act of 2010 and the American Taxpayer Relief Act of 2012 created several small taxes on high-income taxpayers that went into effect for 2013. When you first learned about the laws that created Obamacare three years ago and averted the fiscal cliff in January, respectively, you might recall hearing a laundry list of seemingly “small” tax changes that were parts of these landmark laws. While these taxes might not have seemed like much individually, there is
