tax tip: Severn, MD: 'Tis the Season for Important Tax Paperwork - 01/11/20 01:11 PM
The IRS has confirmed that the individual tax filing season will start on Monday, January 27, 2020 and the deadline to file 2019 tax returns and pay any taxes owed is Wednesday, April 15, 2020.
Although the IRS systems open for processing on January 27, you do not have to wait until then to begin preparing for your tax return.
 
Keeping your records organized will help make sure you don't miss out on valuable deductions when it is time to file.
 
Some documents to be on the lookout for are:
*Wage and income statements (like W-2 or 1099-MISC)
*Health Insurance statements (like Form 1095)
*Proof of qualifying … (0 comments)

tax tip: Severn, MD: Estimated Tax Payment vs Alternatives - 08/03/19 11:04 AM
The IRS states that federal taxes must be paid on a "pay as you go" basis, not just at the end of the tax year. This means that if you receive significant income that is not subject to withholding, it is likely necessary for you to make estimated tax payments throughout the year. In addition to those who officially classify themselves as self-employed, many people who participate in the "gig" and/or "sharing" economy must also make these payments.
 
For example, if you drive for a rideshare service, rent out a spare room to travelers, or work for a few hours a week … (0 comments)

tax tip: Severn, MD: Education Tax Tip - 06/02/19 10:43 PM
A big tax benefit of the 2017 Tax Cuts and Jobs Act (TCJA) was to expanded eligibility for 529 savings plans. The 529 education savings plan was previously limited to only post-secondary education (i.e., college). However, the TCJA expanded it so that it can now be used for Kindergarten through Grade 12 education (public, private, or religious schools).
 
529 tax free investment growth: If you put money in a 529 account for education, the withdrawal of earnings are federal tax-free if used for qualified educational expenses. Qualified educational expenses include tuition, fees, housing, meals and books. Many states offer a full or … (1 comments)