FIRST RESPONDERS
FIRST RESPONDERS
First Responders are certainly community advocates, but there are no direct tax benefits afforded them under the Tax Code because of job title or classification. Any refund opportunities will most likely depend on the characteristics of their household, and all verifiable expenses that pertain to their craft such as training, uniforms, and mileage. Perhaps you have a side hustle on off days.
CONTRACTORS
CONTRACTORS
Contractors keep critical systems up and running, but the Tax Code can wreak Almighty Hell on them without intelligent guidance. Contractors not organized as a Corporation or an LLC, should turn to Schedule C to report their business activity. The quality and detail of business records will factor into the ultimate tax consequence a contractor will face at the end of the year. The home-office, vehicles, suppliers, professional services, and all sub-contractors need to be reflected properly in the tax returns.
DISABLED
DISABLED
The contributions of our neighbors who overcome obstacles with class and dignity to benefit the greater society are unfortunately subject to taxation. The Tax Code does provide some meaningful opportunities to these taxpayers. The earned income credit, standard deduction, medical expenses, and dependent care costs, may be a source of relief. Many variables are in play for these taxpayers, but items such as impairment costs provide tax planning opportunities.
DIVORCED
DIVORCED
In the United States a significant number of taxpayers deal with the consequences of dissolving a marriage. The Tax Code is transitioning how items such as alimony and maintenance are treated, so seek post-marital tax guidance. When children are involved it may get murkier, so the question is ultimately what’s in the best interest of the kid(s). Therefore, organizing the tax attributes tied to the children are best settled before a pending divorce is finalized.
EDUCATORS
EDUCATORS
One day the $1,000,000 school teacher will be commonplace, but until that day comes a tax tutor to guide them is near. Determining whether to itemize is an important decision for an educator. If the taxpayer has qualifying expenses related to their home or personal education, then the Long 1040 package may be more advantageous than the 1040 A package. Moreover, subscriptions, mileage for activities, training, and other incidental costs may provide tax benefits.
FREELANCERS
FREELANCERS
Freelancers sacrifice security to own our most valuable commodity. Priceless time cannot be recouped once it has been wasted, so power to the freelancer who keeps the best records. Keeping track of project expenses and billable time can make a big difference during tax season. Freelancers with detailed records may enjoy tax benefits in conjunction with their home, vehicles, suppliers, and third-party services. Visit the Contractors guide, they’re the Freelancer’s tax cousin! In 1986 did you have an app to hail a ride in a car?
HOMEOWNERS
HOMEOWNERS
The cost of homeownership has shifted for taxpayers accustomed to lucrative deductions for property taxes, and the interest paid on home loans. The new code places new regulations on this historic tax benefit intended to promote home ownership. The dynamic in home ownership has changed a lot over the last decade, so we suggest all taxpayers in high property tax jurisdictions revisit the cost basis of their homes. Second to property location is valuation, so state and local tax issues are vital.
JOB CREATORS
JOB CREATORS
The new tax law has provided business entities with lower tax rates and new capital expensing rules. There are a host of new tax laws targeted at “job-creating” entities. Sole proprietorships should investigate whether a business entity in the form of a corporation or partnership would be beneficial for their business interests. If you already file 1120 or 1065 packages and your current guide fails to view your tax situation from a total return perspective, then you should click, or call us now!
LANDLORDS
LANDLORDS
Collecting rent is a common practice among landlords, but the associated tax ramifications are not always straightforward. Understanding how items like interest expense, depreciation, and property taxes at the household level have changed may impact the after-tax yield on your income properties. Passive loss limitations and your ownership structure may have tax consequences way beyond 2018 if you still approach your tax preparation like it’s 1986.
NEWLYWEDS
NEWLYWEDS
United States v. Windsor, a federal tax case that went to the Supreme Court, settled the marriage debate in this country. Marriage is a big deal, so make tax planning a priority at the beginning and throughout the years. In the short-run, review different filing scenarios. Most couples don’t get married on the first day of the tax year! Furthermore, no one thinks that some solid vows and a solid kiss actually triggers tax issues like residency, healthcare costs, retirement plans, new dependents etcetera. Finally, the new tax laws also favor married couples over single-parents. Cheers and best wishes!
STUDENTS
STUDENTS
Congress recently considered imposing taxes on students who received tuition grants, proposing to characterize this type of benefit as income. For a moment 535 “smart people” (435 in the house and 100 in the Senate) forgot students barely have enough money for beer and pot. That sinister plan was thwarted and students should explore if they qualify for the refundable American Opportunity or Lifetime Learning Credit. Furthermore, the education deduction may also be available, but qualifying may hinge on whether the student is claimed as a dependent by a parent or guardian. Study hard, because the new “smart people” will drive new innovations then pay taxes.
DEATH & CATASTROPHE
DEATH & CATASTROPHE
When a death or catastrophic event happens, it seems natural for taxpayers to be overcome with the emotional toll that may arise. Recent changes in US tax policy has limited the impact estate taxes have on most households, but widows and widowers should seek advice in handling the final returns of their love ones and plan ahead. Transitioning to a new filing status may lead to tax consequences for assets that will no longer be deemed marital property. As for a catastrophic event, property losses and recovery costs can flow through the tax returns of affected households even if you enjoy the benefit of robust insurance coverage. The shocks families receive from death and catastrophe often result in tax opportunities and threats.

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