Harless Tax Blog

Harless Tax Blog

Tool on IRS.gov helps taxpayers

Tuesday, December 11, 2018

Source from irs.gov | When people are done giving thanks at the dinner table, many start another kind of giving. The annual Giving Tuesday happens the week after Thanksgiving to kick off the season of charitable giving. This year, Giving Tuesday falls on Tuesday, November 27.

Taxpayers may be able to deduct donations to tax-exempt organizations on their tax return. As people are deciding where to make their donations, the IRS has a tool that may help. Tax Exempt Organization Search on IRS.gov is a tool that allows users to search for charities. It provides information about an organization’s federal tax status and filings.  See More

Safekeeping tax records

Friday, December 07, 2018

Source from irs.gov | WASHINGTON — With the tax filing season quickly approaching, the Internal Revenue Service wants taxpayers to understand how long to keep tax returns and other documents.

This is the seventh in a series of reminders to help taxpayers Get Ready for the upcoming tax filing season. The IRS has recently updated its Get Ready page with steps to take now for the 2019 filing season.  See More

Whats new with the child tax credit

Wednesday, December 05, 2018

Source from irs.gov | Many people claim the child tax credit to help offset the cost of raising children. Tax reform legislation enacted last year made changes to that credit. Here are some important things for taxpayers to know about the changes to the credit.

Credit amount. The new law increases the child tax credit from $1,000 to $2,000. Eligibility for the credit has not changed. As in past years, the credit applies if all of these apply:  See More

e-News for Small Business

Wednesday, November 28, 2018

Source from irs.gov | e-News for Small Business, Issue 37.
1)  Here’s how tax reform changed accounting methods for small businesses
The Tax Cuts and Jobs Act — better known simply as tax reform — allows more small business taxpayers to use the cash method of accounting. The new law defines a small business taxpayer as a taxpayer who has average annual gross receipts of $25 million or less for the three prior tax years and is not a tax shelter.  See More

Tips for taxpayers who need to reconstruct records after disaster strikes

Wednesday, October 24, 2018

Source from irs.gov
Tips for taxpayers who need to reconstruct records after disaster strikes

After a disaster, taxpayers might need to reconstruct records. This could help them prove their losses, which may be essential for tax purposes, getting federal assistance or insurance reimbursement. See More

Several tax law changes may affect bottom line of many business owners

Friday, October 19, 2018

Source from irs.gov
WASHINGTON — The Internal Revenue Service today reminded business owners that tax reform legislation passed last December affects nearly every business.

With just a few months left in the year, the IRS is highlighting important information for small businesses and self-employed individuals to help them understand and meet their tax obligations. See More

Tax facts for seasonal job seekers

Thursday, September 20, 2018

Source from irs.gov
Small business owners and self-employed taxpayers often get seasonal jobs to earn extra spending money or to save for later. But many don't realize that they need to report income from a part-time or temporary job to the IRS.

The IRS offers this fact sheet for those working seasonal jobs and other part-time employment to help them correctly file and pay their taxes. See also:

Tax Reform
Publication 505, Tax Withholding and Estimated Tax
Understanding Employment Tax  See More

IRS launches new easy-to-use webpages on tax reform

Wednesday, September 19, 2018

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Clarification for business taxpayers: Payments under state or local tax credit programs may be deductible as business expenses

Tuesday, September 18, 2018

Source from irs.gov
WASHINGTON — Business taxpayers who make business-related payments to charities or government entities for which the taxpayers receive state or local tax credits can generally deduct the payments as business expenses, the Internal Revenue Service said today.

Responding to taxpayer inquiries, the IRS clarified that this general deductibility rule is unaffected by the recent notice of proposed rulemaking concerning the availability of a charitable contribution deduction for contributions pursuant to such programs. The business expense deduction is available to any business taxpayer, regardless of whether it is doing business as a sole proprietor, partnership or corporation, as long as the payment qualifies as an ordinary and necessary business expense. Therefore, businesses generally can still deduct business-related payments in full as a business expense on their federal income tax return.  See More

An estimated tax payment in 2018 could help avoid a penalty in 2019

Monday, September 17, 2018

Source from irs.gov
Taxes must be paid as you earn or receive income during the year, either through withholding, estimated tax payments or a combination of both. A Paycheck Checkup using the IRS Withholding Calculator can help you see if you need to make an additional payment to avoid an unexpected tax bill or underpayment penalty when you file your tax return next year.

You may need to make estimated payments if you:

— have multiple jobs—especially if you don’t have each employer withhold taxes
— are self-employed or an independent contractor
— are a representative of a direct-sales or in-home-sales company
— participate in sharing economy activities where you are not working as an employee
— receive pension income

IRS.gov to learn more. See More