tax tips: Severn, MD: Key Tax Law Changes & Last-minute Tax Tips - 04/09/19 11:34 PM
You might be surprised to see you owe taxes this year when you were expecting to pay less taxes due to the tax law changes. Many Americans did pay less compared to 2017 taxes but less tax was taken out of their paycheck and the cumulated effect was they owed more when they filed.
Below are a few of the key changes to the tax law for this filing season:
1)    Tax Rates Dropped (& some income thresholds increased in higher brackets):
From 2017: 10% 15%, 25%, 28%, 33%, 35%, 39.6%
To   2018: 10%, 12%, 22%, 24%, 32%, 35%, 37%
 
2)    Standard Deduction increased:    
From … (0 comments)

tax tips: Severn, MD: First Quarter Estimated Payments are Due 4/15/19 - 04/07/19 08:46 PM
This is a gentle reminder that If you are making quarterly estimated tax payments to the IRS, the due date for the January 1 - March 31 quarter of the year is April 15th.
 
For payments made using IRS Direct Pay, you can make payments until 8PM EST, and for payments using a credit or debit card, payments can be made up to midnight on the due date.
 
If the due date for making an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time if you make it on the next day that's not … (0 comments)

tax tips: Severn, MD: 12 Tax Tips for Retirees & Elderly (Part 4 of 4) - 03/20/19 05:51 PM
This is the 4th part of a series of blogs on 12 Tax Tips for Retirees and the Elderly. Retirement can be a huge shock when retirees have to pay a significant tax due to retirement withdrawals and social security. Other than Roth IRAs, the money you withdraw from your retirement savings is most likely subject to ordinary income tax.
 
In Parts 1, 2, and 3 we covered the following topics to minimize the tax burden for retirees.
1) Prepare to be taxed and pay taxes on your investment withdrawals during the year
2) Open a Health Savings Account
3) Choose tax free … (0 comments)

tax tips: Severn, MD: 12 Tax Tips for Retirees & Elderly (Part 3 of 4) - 03/17/19 07:53 PM
This is part 3 of a series of blogs on tax tips for the retirees and the elderly. Retirement can be a huge shock when retirees have to pay a significant tax due to retirement withdrawals and social security. Other than Roth IRAs, the money you withdraw from your retirement savings is most likely subject to ordinary income tax.
 
In parts 1 and 2 we covered the following topics to minimize the tax burden for elderly and retirees.
 
1) Prepare to be taxed and pay taxes on your investment withdrawals during the year
2) Open a Health Savings Account
3) Choose tax free … (0 comments)

tax tips: Severn, MD: 12 Tax Tips for Retirees & Elderly (Part 2 of 4) - 03/14/19 08:59 PM
This is part 2 of a series of blogs on tax tips for the retirees and the elderly. As pointed out in my last blog the first year of retirement can be a huge shock when retirees have to pay a significant tax due to retirement withdrawals and social security. Other than Roth IRAs, the money you withdraw from your retirement savings is most likely subject to ordinary income tax.
 
In part 1 we covered the following topics to minimize the tax burden for elderly and retirees.
1) Prepare to be taxed and pay taxes on your investment withdrawals during the … (3 comments)

tax tips: Severn, MD: IRS Proc Returns 1/28/19, Qualifying Child for Tax Credit - 01/27/19 07:38 PM
The IRS will begin processing tax returns on January 28th, 2019, and provide refunds as scheduled. The recent government shut down did not delay this start date. 
The filing deadline for 2018 tax returns is Monday, April 15th, 2019. If you live in Maine or Massachusetts, you have until April 17th due to public holidays in those states.
 
 
More information on qualification requirements for my previous blog on the Child Tax Credit:
Under the Tax Cuts and Job Act (TCJA) for 2018, a qualifying child must have a Social Security Number in order to claim the Child Tax Credit.
To be a qualifying child, they … (0 comments)

tax tips: Severn, MD: Mileage Rate Increase for 2019 Taxes - 01/12/19 07:55 AM
Here is some good news. Starting on Jan. 1, 2019, the standard mileage rates for the use of a car, vans, pickups, or panel trucks will be:
- 58 cents for every mile of business travel you drive. (3.5 cent increase from the 2018 rate)
- 20 cents per mile driven for medical or moving purposes. (2 cent increase from the 2018 rate)
- 14 cents per mile driven for the service of charitable organizations.
You also have the option of using the actual costs of using your vehicle instead of the above standard mileage rates.


My practice is in Severn, MD.
I … (1 comments)

tax tips: Severn, MD: End of Year Tax Saving Ideas - 12/25/18 02:45 PM
With less than one week left in the year and taxes being a significant percent of where our income goes, consider the following to reduce your 2018 tax bill:
1) Estimate your Total Income. Update your accounting records; estimate your total income. Work with your CPA (or do it yourself) to do a quick estimate of your tax liability.
2) Business owners reduce Taxable Income to below 20% QBID Threshold of $157.5K ($315K married). If you can reduce your taxable income to below $157.5K ($315K married), your qualified business income will be eligible for the new 20% qualified business income deduction (QBID). Your … (0 comments)

 
Lisa Church, IRS tax representation in Anne Arundel County, MD (Lisa D Church CPA, EA, MBA, NTPI Fellow) Rainmaker large

Lisa Church

IRS tax representation in Anne Arundel County, MD

Severn, MD

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Lisa D Church CPA, EA, MBA, NTPI Fellow

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