Posts Tagged "IRS"

Don’t get hooked by a phishing scam

Posted on May 11, 2018

This year, the IRS ranked email phishing schemes as a top tax scam to make the yearly Dirty Dozen list. This type of scam targets taxpayers as well as tax professionals by using fake emails and bogus websites to collect sensitive taxpayer information. The best way to avoid scams now and throughout the year is to keep in mind that the IRS doesn’t initiate contact with taxpayers via email, phone or text to request personal or financial information. If you get unsolicited email from what appears to be the IRS or an organization related to the IRS, report it by sending it to phishing@irs.gov. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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Additional refunds result from fiscal year 2017 audits

Posted on May 7, 2018

Even though your chance to be audited may be slim, there’s still a bright side if you do. You could get an additional refund. Of the approximately 1.1 million audits performed in fiscal year (FY) 2017, nearly 34,000 resulted in extra refunds for taxpayers. Those additional refunds totaled more than $6 billion. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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Home equity loan interest deductibility has changed

Posted on May 4, 2018

Congress cracked the whip on home equity interest tax deductions in 2018. Now, only loans used to buy, build or improve your home will be deductible. That means if you used a home equity loan to consolidate debt or fund a purchase that was not related to your home, you can no longer deduct the interest. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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Update on the Tax Cuts and Jobs Act (TCJA)

Posted on May 2, 2018

The Tax Cuts and Jobs Act (TCJA) was passed by Congress in a hurry late last year, and the IRS and tax preparers have been working to digest some of the more thorny issues created by the tax overhaul. Here are the latest answers to some of the most common questions: Is home equity interest still deductible? The short answer is: Not unless you’ve used the money to buy, build or substantially improve your home. Before the TCJA, homeowners were able to take out a home equity loan and spend it on things other than their residence, such as to pay off credit card debt or to finance large consumer purchases. Under the old tax code, they could deduct interest on up to $100,000 of such home equity debt. The TCJA effectively writes the concept of home equity indebtedness out of the tax code. Now you can only deduct interest on “acquisition indebtedness,” meaning a loan secured by a qualified residence that is used to buy, build or substantially improve it. If you have taken out a home equity loan before 2018 and used it for any other purpose, interest on it is no longer deductible. I’m a small business owner. How do I use the new 20 percent qualified business expense deduction? Short answer: It’s complicated and you should get help. Certain small businesses structured as sole proprietors, S corporations and partnerships can deduct up to 20 percent of their qualified business income. But that percentage can be reduced after your taxable income reaches $157,500 (or $315,000 as a married couple filing jointly). The amount of the reduction depends partly on the amount of wages paid and property acquired by your business during the year. Another complicating factor is that certain service industries including health, law, consulting, athletics, financial services and accounting are treated slightly differently. The IRS is expected to issue more clarification on how these rules are applied, such as when your business is a mix of one of those service industries and some other kind of business. What are the new rules about dependents and caregiving? There are a few things that have changed regarding dependents and caregiving: Deductions. Standard deductions are nearly doubled to $12,000 for single filers and $24,000 for married joint filers. The code still says dependents can claim a standard deduction limited to the greater of $1,050 or $350 plus unearned income. Kiddie Tax. Unearned income of children under age 19 (or 24 for full-time students) above a threshold of $2,100 is now taxed at a special rate for estates and trusts, rather than the parents’ top tax rate. Family credit. If you have dependents who aren’t children under age 17 (and thus eligible for the Child Tax Credit), you can now claim $500 for each qualified dependent member of your household for whom you provide more than half of their financial support. Medical expenses. You can now deduct medical expenses higher than 7.5 percent of your adjusted gross income. You can claim this for medical expenses you pay for a relative even if they aren’t a dependent (i.e., they live outside your household) as long as you provide more than half of their financial support. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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Your refund check is coming — Watch out

Posted on Apr 30, 2018

Tax Day has passed, which means you’re likely waiting for your refund to arrive. This typically takes about three weeks if you filed electronically. Keep in mind that now is the time scammers try to steal tax refunds from taxpayers. They often do this by pretending to be IRS agents calling and demanding refunds be sent to them because it’s supposedly in error. Luckily, you can track your refund using the IRS refund status tool. As a reminder, the IRS will never call and demand that you send back a refund. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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