Getting Schooled – Maximizing Education Tax Credits

Pay tuition. Get tax credits. $2,500 here; $2,000 there. Education credits are seemingly straightforward but are they as straightforward as they seem? Not really and not always. Shameless plug. We just make it look straightforward.

REINFORCING THE BASICS.
The American Opportunity Tax Credit (AOTC) offers a 100% credit of the first $2,000 in qualified education expenses and an additional 25% on the next $2,000, for a maximum tax credit of $2,500. The available credit is 40% or $1,000 refundable, meaning you might get some cash back after the tax liability is reduced away to $0. This is for 2018 and 2019. The AOTC is limited to a student’s first four years of higher education provided the student is enrolled at least half-time for at least one academic period during the tax year and is learning towards a degree, certificate, or other recognized educational credential. If you haven’t picked a major yet: Bagpiping (Carnegie Mellon), and Citrus (Florida Southern College).

The Lifetime Learning Credit (LLC) offers a credit for 20% of up to $10,000 in qualified education expenses. Thus, a maximum credit of $2,000 is available to qualifying students. This is for 2018 and 2019. The credit is non-refundable, meaning it only reduced tax liability. Eligible students enrolled in courses at an eligible college, university, vocational school, or other postsecondary institution can claim the LLC. There is no limit on the number of years the student can claim the credit and no restrictions on what classes you can take. This is a per-student, per-year credit. How about a course on politicizing Beyoncé or Advanced Producing: Script to Screen taught by Matthew McConaughey? America’s Next Top Professor teaches a course at Stanford about building a personal brand.

WHAT QUALIFIES FOR A CREDIT?
Tuition and qualified related expenses qualify. Tuition and student activity fees are qualified expenses when paid to an eligible educational institution as a condition of enrollment or attendance. But what are qualified related expenses? Books, supplies, computers, software and the like. For AOTC these items can be purchased from the school or elsewhere, like Amazon Prime.  The LLC requires these otherwise qualified expenses be bought from the school.

What are NOT expenses? Examples of nonqualified expenses include: dorm living; insurance; medical expenses; transportation; personal living or family expenses; education that involves sports, games or hobbies; and, any non-credit course unless it is part of the student’s degree program.

Even after the TCJA, students can claim the credit only if they provide more than half of their own support. And the credit can be claimed by the parent only if the parent claims the student as a dependent (there are no more dependency exemptions).

NOT SO STRAIGHTFORWARD.
Tax-free distributions from a Coverdell ESA or qualified tuition program (Section 529 plan) can be applied to either qualified education expenses or certain other expenses (such as room and board) without creating a tax liability for the student. An education credit can be claimed in the same year the beneficiary takes a tax-free distribution from a Coverdell ESA or qualified tuition program, as long as the same expenses aren’t used for both benefits.

It isn’t as simple as 1 + 1 when scholarships (merit-based) and grants (need-based) come into play. Some can only be used (restricted) for qualifying expenses and others can be used for both (unrestricted) qualified and non-qualified expenses. It is extremely important to know if the scholarship or grant is restricted or unrestricted. For a scholarship (education or athletic) to be completely tax-free, the whole amount of money must be used for qualified expenses. Congress brags that Veterans Benefits and need-based education grants like Pell Grants are tax-free but the same tax laws apply, so that isn’t necessarily always the case.

What usually happens is taxpayers’ look at the 1098-T and subtract the scholarship amount from the tuition paid amount and then claim a credit for remaining tuition on their return. Or the college arbitrarily applies scholarships and grants against tuition and related expenses. So, it appears there is no credit to be had when scholarships and grants received exceed tuition paid. Even worse, that excess is considered income. Schools are not required to issue 1098-Ts when this occurs.

The goal is to maximize the credit by determining the more beneficial credit, AOTC or LLC, and optimizing the scholarship and grant allocation between qualified and nonqualified expenses. Once the credit is maximized, has there been an adverse effect on other credits such as the Earned Income, Other Dependent, or Savers’ Credits? If income is increased does the increased tax credit exceed any increase in federal and state income taxes? To really complicate things, it’s not just a 1040 number’s game. Anytime scholarships and grants are included in income, regardless of whose, future need-based educational assistance could be affected.

WRAPPING IT UP.                                                                                                                              AOTC is partially refundable and phases out between $80,000/$160,000 and $90,000/$180,000 (Single/MFJ).

LLC is not refundable and phases out between $57,000/$114,000 and $67,000/$134,000 (Single/MFJ).

WHAT ELSE SHOULD I KNOW?

 √ The LLC can be used for courses to acquire or improve job skills.
 √ Bagpipes aren’t just for funerals and parades. The Chainsmokers.
 √ Both credits cannot be taken for the same student.
 √ If the IRS finds you incorrectly claimed the AOTC, you will have to pay it back with interest. And that’s not all, you could get an accuracy penalty or a fraud penalty. Then they might ban you from claiming it for two to ten years.
 √ America’s Next Top Professor is……. Tyra Banks!

Shameless Plug. Straight Forward! McAtee & Associates can optimize a 1098-T (or lack of) into maximum Education Credits. Speaking of maximizing, if you spent some money in 2019 for energy improvements, Getting Paid to Reduce Your Carbon Footprint – Residential Energy Credits, we can optimize that as well.

info@accpas.com OR 727-327-1999.

Be sure to check back here next when we will have blogged about something else. And like us on Facebook and follow us on Twitter; for whatever it is we’ll be posting.

McAtee and Associates’ Disclaimer:
Our blog is intended for educational and awareness purposes. The general information provided about taxes, accounting, and business-related topics is by no means intended to provide or constitute professional advice. Reading our blog does not create a Client/CPA relationship between you and us. The blog, including all contents posted by the author(s) as well as comments posted by visitors, should not be used as a substitute for professional advice or as a substitute for communicating with a competent, human professional.

Our blog posts are written using current information and current or proposed rules and regulations. Information becomes old and outdated. Rules and regulations are frequently changed, added, amended, and/or left to expire. This is extremely true with most things tax and to a lesser and slower extent, most things accounting. We do not go back and update posted blogs. Always check with your CPA or accountant regarding not only rules and regulations but available options and how it all applies to your fact pattern and you.

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Getting Paid to Reduce Your Carbon Footprint – Residential Energy Credits.

Getting Paid to Reduce Your Carbon Footprint – Residential Energy Credits.

REINFORCING THE BASICS!

Nuclear, bad. Fossil fuels, bad. Big carbon footprints, bad.  Our government encourages renewable or sustainable energy as a means for energy security, job creation, climate control, and planet preservation.  Encouragement doesn’t go very far without incentives. Incentives = tax credits.  One of the first energy incentives dates back to 1789 when George Washington signed off on a tariff on British coal.

What is renewable energy?  It is energy that is collected from naturally replenishing resources, such as sunlight, wind, rain, tides, waves, and geothermal heat.  Think of it, wind has been used to generate power since the beginning of time!  Hydroelectric power, 71% of the Earth’s surface is water!  And in 2019 less than 12% of US energy production is from these renewable sources.

Remember credits reduce tax liability $ for $.  Basically, government pays your taxes for you.  Residential Energy Credits are nonrefundable meaning if you still have credit left after wiping out your 2019 tax liability, that credit will pay down your 2020 tax bill, and so on through at least the 2021 tax year.

The ultimate goal would be to replace non-renewable resources: nuclear energy and fossil fuels -“The Big Three”; coal, petroleum, and natural gas.  And yes, cows and planes could possibly go by the wayside.  Cows because renewable energy sources require a heck of a lot of land and planes because they don’t fly on wind alone.  Oh, and farting cows are really bad for the environment.

HOW LONG HAVE THESE CREDITS BEEN AROUND?

These particular credits were first established in the Energy Policy Act of 2005 as government’s way of boosting renewable energy and were initially capped at $2,000.  In 2009, The American Recovery and Reinvestment Act uncapped it, meaning with the exception of qualified fuel cell property there is no limit on what you can spend on installation and get a credit for.  There have been several extensions, the most recent in December 2015, this time extended through 2021.

HOW DOES IT WORK?

Tax Year % of Installed Cost
2019 30
2020 26
2021 22
2022 0

Your home located in the United States.  Your home is what you owned and where you lived most of the time.  Houses, houseboats, mobile homes, manufactured homes, coops, and condos.  With the exception of qualified fuel cell property, the home does NOT have to be your primary residence/main home.  If you have a vacation home or rental property, you can prorate the credit for the amount of time you lived there in the year of installation.

You claim the credit for costs of Qualified Energy Efficient Property in the year the energy efficient system is completely up and running.  As you can see from above – 2019 is the best year to get any energy improvement done.

What is Qualified Energy Efficient Property?  Qualified Energy Efficient Property can be solar electric property, solar water heating property, small wind energy property, geothermal heat pump property, and fuel cell property.

Qualified solar electric (photovoltaic) property uses solar energy to generate electricity for use in your home.  Panels on the roof count because structural components of a structure are not disqualified just because they are a piece of a whole.  You must own the property. Leases and power purchase agreements (PPA) are not eligible for a tax credit. A power purchase agreement is basically paying the solar panel provider a discounted rate for what you use and they sell what you don’t use.  Leases and PPAs are typically 20- 25 years in duration.

Qualified solar water heating property heats water for use with at least half of the energy used by coming from the sun. Again, panels and other such installed property are not disqualified just because they are a piece of a whole. To qualify for the credit, the property must be certified for performance by the nonprofit Solar Rating Certification Corporation or a comparable entity endorsed by the government of the state in which the property is installed.

Qualified small wind energy property uses a wind turbine to generate electricity.

Qualified geothermal heat pump property is any equipment that uses the ground or ground water as a thermal energy source to either heat your home or as a thermal energy sink to cool your home. The completely installed geothermal heat pump property must meet the requirements of the Energy Star program that are in effect at the time of purchase.

Qualified fuel cell property is an integrated system comprised of a fuel cell stack assembly and associated balance of plant components that converts a fuel into electricity by changing chemicals. Blahblahblah. To qualify for the credit, the fuel cell property must have a nameplate capacity of at least one-half kilowatt of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%. Blahblahblah. The home has to be your main home. The maximum tax credit for fuel cells is $500 for each half-kilowatt of power. For example, a fuel cell with a 5 kW capacity would qualify for 5 x 2 x $500 = $5000 tax credit.

What are costs? Costs are what we would normally assume they are: the equipment itself; building supplies like wiring and screws, nuts, and bolts; permits; debris removal; professional fees like architect, engineer, and electrician; tools; shipping; and, labor. Your own labor doesn’t count. Scan or shoebox these receipts!

WHAT OTHER THINGS SHOULD I KNOW ABOUT RESIDENTIAL ENERGY CREDITS?

 √  Costs to heat up the swimming pool and hot tub are not qualified costs.
 √  Energy storage for residential is eligible for the credit, as long as the battery is charged by the onsite solar energy system.
 √  Applicable electrical and fire code requirements must be met.
 √  The system must be placed into service — up and running — after 01/01/2006 and on, or before, 12/31/2021.
 √  Some states offer perks and bonuses as well.

WRAPPING IT UP.

If you’re contemplating embracing renewable energy for your home and have any questions about the dollar aspect reach out to McAtee and Associates for answers and guidance.  CallCarolFirst!

info@accpas.com OR 727-327-1999.

Be sure to check back here next week for info on maximizing Education Credits and check us out on Facebook and Twitter for our (almost) daily fun and informative posts.

McAtee and Associates’ Disclaimer:

Our blog is intended for educational and awareness purposes.  The general information provided about taxes, accounting, and business-related topics is by no means intended to provide or constitute professional advice.  Reading our blog does not create a Client/CPA relationship between you and us.  The blog, including all contents posted by the author(s) as well as comments posted by visitors, should not be used as a substitute for professional advice or as a substitute for communicating with a competent, human professional.

Our blog posts are written using current information and current or proposed rules and regulations.  Information becomes old and outdated and rules and regulations are frequently changed, added, amended, and/or left to expire.  This is extremely true with most things tax and to a lesser and slower extent, most things accounting. We do not go back and update previously posted blogs.  Always check with your CPA or accountant regarding not only rules and regulations but available options and how it all applies to your fact pattern and you.

 

 

 

 

 

 

 

 

 

 

 

Posted in Individual Taxes, Taxes | Tagged , , , , | Leave a comment

Getting To That 20%

Perhaps the biggest change to your business and individual taxes is the Section 199A, Qualified Business Income Deduction (QBID). Your complimentary trip down Memory Lane (aka link to a Carol McAtee archived blog) –  TCJA and What in the World is Section 199A

Today we are going a bit in depth on figuring out how much the QBD will be worth to you as a deduction on your 1040.

REINFORCING THE BASICS.

The Deduction. The gist of it is you may be able to deduct up to 20% of the qualified income of EACH AND EVERY of your qualified business(es) (QBI) earned depending on what your business is and how much taxable income (TI) you have sitting on your “Building Block” 1040 (last week’s blog). We highly recommend refreshing your memory of our blog from 10/31/18 by clicking the above link. Are you below the TI amount, in between TI amounts, or over the TI amount? You could get all, or some, or none of that 20%. Below the TI amount gets you a full 20% deduction. In between and over the amount requires calculating W-2 wages and qualified property.

THE AMOUNTS.

Full Deduction. If you’re married Filing Joint (MFJ) with TI less than $315,000 or All Other Taxpayers (AOT) with TI less than $157,500, you will be able to deduct the full 20% of qualified business income. When TI is below the Floor Amount it does not matter if you are a Specified Service or Trade Business (SSTB) or not.

Partial Deduction. The partial deduction comes in to play if you have TI BETWEEN $315,000 and $415,000 MFJ (Note the $100K range for TO BE FINISHED UP LATER section) and BETWEEN $157,500 and $207,500 (Note the $50K range for TO BE FINISHED UP LATER section) All Other Taxpayers (AOT). When TI is between the Floor and Ceiling amount it does not matter if you are a Specified Service or Trade Business (SSTB) or not. To be finished up later.

Limited Deduction. The subject to limitation comes in to play if you have taxable income MORE THAN the Ceiling amounts of $415,000 MFJ and $207,500 AOT. If you are an SSTB, no deduction for you. If you are not an SSTB, a limited deduction for you. To be finished up later.

THE QBID CALCULATIONS.

Both the partial deduction and the limited deduction require calculating THE GREATER OF: A. 50% of W-2 wages of the qualified trade/business OR B. 25% of those same W-2 wages + 2.5% of the unadjusted basis after acquisition of all qualified property.

A. 50% of W-2 wages of the qualified trade/business. After calculating wages IAW IRS Rev. Proc. 2019-11, IRS Rev. Proc. 2019-11, Determination of W-2 Wages, the calculated W-2 wage amount must be property allocable to the qualified business (or portion). W-2 wage amounts consist of the below and as filed with the Social Security Administration:

Box Description
1            Wages
5            Medicare Wages and Tips
12-D      Elective deferral to 401(k) and SIMPLE 401(k)
12-E      Elective deferral to 403(b) salary reduction agreement
12-F      Elective deferral to 408 (k) (6) salary reduction Simplified Employee Pension
12-G      Elective deferral & Employer contributions to any 457 (b0 plan
12-S       Employee salary reduction to 408 (p) SIMPLE
12-AA    Designated Roth contributions to a 401 (k)
12-BB    Designated Roth Contributions to a 403 (b) salary reduction agreement

The three methods of calculating wages are:

1. Unmodified Box Method. Straight off the W-3, Transmittal of Wage and Tax Statements, the lesser of Box 1 or Box 5.
2. Modified Box 1 Method. Total amount in Box 1 less those amounts in Box 1 that are not wages for Federal income tax withholding purposes. Examples include: employee business expense reimbursements under an accountable plan, insurance for employees, some annuity payments, any amounts paid to an employee of sick pay, salary-reduction contributions to retirement plans, and supplemental unemployment benefits. And then add Boxes 12-D, Box 12-E, Box 12-F, Box 12-G and Box 12-S. In most cases this gets you to Box 5.
3. Tracking Wages Method. Is practically exactly the same as the Modified Box 1 Method. We don’t anticipate many, if any, scenarios that would warrant using this method.

B. 25% of those same W-2 wages +2.5% of the unadjusted basis after acquisition of all qualified property. Basically, this is the day you start using it and how much it cost you.

Qualified property. Is things you can touch AND depreciate and whose depreciation period has not ended prior to the last day of the applicable tax year. The depreciation period begins the day the property is place in service and ends the LATER of 10 years OR the last day of the last year of the asset’s regular depreciation period. If you normally depreciate a vehicle for five years, you can QBID calculate it for 10 years. If you have that vehicle in year 11, it won’t count anymore. If you depreciate a piece of equipment for 15 years, you can QBID calculate it for 15 years.

FINISHED UP LATER.

Partial Deduction. For this range of TI between the Floor and Ceiling amounts, you first determine the “excess amount” and second, reduce that (excess) amount by a percentage. Excess amount: Calculate the tentative deduction which is QBI x 20% and then, do THE QBID CALCULATIONS. And remember to select THE GREATER OF A OR B for subtraction from the tentative QBID. You now have the excess amount.
Percentage: TI less the low end of the range divided by the range. For MFJ: ((taxable income – $315,000)/$100,000). For AOT: ((taxable income – $157,500)/$50,000).
Times the Excess Amount by the Percentage and subtract from the tentative QBID.

You’re single and had taxable income of $190,000 and QBI of $175,000. Your calculated amount of A. business W2 wages is 30,000. Your calculated amount of B. 25% wages and 2.5% property is $10,000.

Tentative QBID = $175,000 x 20% = $50,000
GREATER of A or B calculation = $30,000
Excess Amount = $50,000-$30,000 = $20,000
Percentage = $190,000 – $157,500 = $32,500; $32,500/$50,000 = 65%
Excess Amount x Percentage = $20,000 x 65% = $13,000
QBID = $50,000 – $13,000 = $37,000

Limited Deduction.

If you are an SSTB just stop here, you’re done; no deduction at all for you. Taxed on every penny of business income.
If you are NOT an SSTB, do THE QBID CALCULATIONS. QBID = quite simply THE GREATER OF A OR B.

WHAT ELSE SHOULD I KNOW?

1. If you have an S-Corp(s) or rental property(ies). Call Carol First and Soon.
2. For 2018, any asset that was fully depreciated prior to 2018 and placed in service before 2009 doesn’t count as qualified property.
3. It might be a good time to spring clean the fixed asset list.
4. If you were like WTH at the “EACH AND EVERY”, call Carol and ask about “aggregation.”

Reach out to McAtee & Associates for answers and guidance all things tax and accounting. Carol would enjoy doing some tax planning and advising with you and assisting you with tax preparation and filing.

info@accpas.com OR 727-327-1999.

Check back here next week for a new and entertaining blog. And be sure to like us on Facebook and follow us on Twitter; for whatever it is we’ll be posting.

Posted in Business Taxes, Section 199 A, Taxes, TCJA | Tagged , , , | Leave a comment

Playing With Building Blocks

HERE’S WHAT’S UP! The “Post Card 1040” is here! Except it’s not a post card. It is a “building block”. It’s smaller. But not much smaller. Because it’s only on half the page. It’s shorter. But not so much. Because there’s all the old familiar schedules plus half a dozen or so new ones. This is one of those times when a picture is really worth a thousand words. The Building Block 1040.  The Building Block 1040.It’s simpler. But not really. This year has 117 pages of instructions; last year there were 107 pages.

REINFORCING THE BASICS.

Where to begin? There is no more Form 1040A and no more 1040EZ. We guess that’s good. We never used them anyways. And we’re pretty sure those were the only two forms eliminated. Well, there used to be Form 8917, Tuition and Fees Deduction. No deduction anymore, no form anymore. Basically, a lot of the stuff that was (reported) on the old 1040 will now still be calculated on the same old worksheets and same old schedules but instead be reported on new schedules that supplement the new 1040.

THE 1040.

As you saw, new page 1 is the taxpayer info from the old page 1 and two tiny sections from the old page 2. It is all word information. And the new page 2 sort of lumps some income, some taxes, some credits, the deduction(s), and the refund info all together; all number information. Take comfort in that at least the Refund and Amount You Owe parts are the exact same and the (nondeductible) donation to the “Presidential Election Campaign” is still present begging for money. And the much talked about and yet to be fully figured out “Qualified Business Income Deduction” is on page 2, line 9. Shameless Plug – We must admit we do have it figured out. AGI is no longer line 37. It is now line 7 and begins on page 2. That is good to know because AGI is still a very important number in all those calculations that you don’t see.

AND THE NEW SCHEDULES ARE.

Schedule 1, Additional Income and Adjustments to Income. Additional income is other than wages, interest, dividends, pensions, IRAs, and social security. All income used to be on the old page 1. Use this schedule for capital gains, 1099-Gs from states, Sched C and farming income, rents and royalties, unemployment, and other income. The adjustments are just about the same, with the exceptions of the tuition and fees deduction which no longer exists and the Domestic Production Activities Deduction which appears not to have its own line yet. Take a look.

Schedule 2, Tax. Has two whole things on it: AMT and Excess Advance Premium Tax Credit Repayment, which were both on the old page 2. Take a look.

Schedule 3, Nonrefundable Credits. These half-a-dozen or so items used to be on the old page 2 under Tax and Credits. Nonrefundable credits are the cash government gives you that lowers your tax liability to zero dollars. And that’s it; unlike refundable credits. Take a look.

Schedule 4, Other Taxes. Same exact thing as Other taxes on the old page 2. Except there’s this new and nasty Section 965 transition tax thing. No worries, as long as you are not a U.S. shareholder in a specified foreign corporation. Take a look.

Schedule 5, Other Payments and Refundable Credits. You’re going to remember these from the old page 2, Payments; except for Federal Withholding, Earned Income Credit, Additional Child Tax Credit, and American Opportunity Credit. The latter are all on the new page 2 now. Take a look.

Schedule 6, Foreign Address and Third-Party Designee. Why isn’t this on Form 1040 Page 1? Which is where it used to be. Take a look. Last one !

WHAT ELSE SHOULD I KNOW?

 ⇒ Last year for both the “Full-year health care coverage or exempt” box (new page 1) and the “Health care: individual responsibility” tax (Schedule 4).

 ⇒ You didn’t even have to read this if you use over the counter software. Maybe we should have said that in the beginning.

 ⇒ Nothing, if Carol prepares your tax return.

The tax forms did not get lesser nor easier and neither has the tax preparation and planning. But McAtee & Associates is here for you. Carol would enjoy doing some tax planning and advising with you and assisting you with tax preparation and filing.

info@accpas.com OR 727-327-1999.

Check back here next week when we tackle another topic. Qualified Business Income Deduction calculations, where bigger is truly better. If there is anything you would like to know more about, leave a comment and we’ll blog it. And be sure to like us on Facebook and follow us on Twitter ; for whatever it is we’ll be posting.

ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

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Make That Kid Work For You. Part 2 of 2. No Kidding, The Kiddie Tax

Last week we broke the news that according to the Department of Agriculture, with middle-class income of $59,200-$107,000, it is going to cost you a whopping $233,610! to raise that kid until the age of 17. Families with lower incomes are expected to spend $174,690, while families with higher incomes will likely spend $372,210. We talked a little about what you get when you have a kid or two or three or four. Specifically, we talked about what makes a dependent, and what the government gives you when you have a kid(s): Child Tax Credit, Child and Dependent Care Credit, and Earned Income Credit.   Click here, if you missed it last week.

Get Credit Where Credit’s Due.

AND NOW THERE’S THE KIDDIE TAX   

REINFORCING THE BASICS

Kiddie Tax. What is it? The kiddie tax was invented in 1986 to take away advantages to parents shifting unearned/investment income to their children. It was a complicated tax calculation for sure. Up until last year there were two calculations and the second calculation had sub-calculations and bifurcations. (Bifurcating is kind of like sharing your fries.) Then divorce and MFS made it even worse. Basically, Congress’ intent, in the TCJA, was to enable taxpayers to figure out the tax without consideration of the parent’s tax situation.

Net Investment Income Tax (NIIT). What is it? In the case of an estate or trust, the NIIT is 3.8 percent on the lesser of: the undistributed net investment income, OR the excess (if any) of: the adjusted gross income over the dollar amount at which the highest tax bracket begins for an estate or trust for the tax year. (For estates and trusts, the 2018 threshold is $12,500).

Net Investment Income Tax. What isn’t it? It isn’t applied to certain income types that aren’t subject to regular income tax. Some examples are tax-exempt state or municipal bond interest, gain from the sale of a principal residence, and certain VA benefits.

Investment Income. Examples are: interest, dividends, certain annuities, royalties, and some rents (unless derived in a trade or business in which the NIIT doesn’t apply); income derived in a trade or business which is a passive activity or trading in financial instruments or commodities; and, net gains from the disposition of property (to the extent taken into account in computing taxable income), other than property held in a trade or business to which NIIT doesn’t apply.

TCJA AND THE KIDDIE TAX

Let’s look at 2018 to 2025, years in which the TCJA has supposedly simplified the original Kiddie Tax. Most children under 19 and full-time college students under 24 who pay less than half of their own support are subject to this tax on their net unearned income (NUI) as if it was held in a trust. Yes, even though 18 and 24-year-olds are hardly “kiddies” anymore.

Parent’s tax rates are now irrelevant as the children will be taxed applying trust and estate tax rates to unearned income exceeding $2,100. Although simpler to calculate and providing more privacy for parental tax data, higher taxes may ultimately be paid because trusts have higher tax rates on lower income limits.

Note: The tax rate for MFJ taxpayers in the $600,000 range is 35%, see below the income limit for the 35% trust/estate rate is $12,500. Definitely a huge difference.
Note: The 0% tax rate is attributable to a $1,050 standard deduction.

 

 

 

Kids will be taxed on capital gains and qualified dividend rates are 0% up to $2,600; 20% over $12,700 and 15% for everything in between. Pre-TCJA, the 20% rate didn’t kick in until individual taxable income hit $400,000.

Additionally, kiddie tax keeps company with the net investment income tax (NIIT). This NIIT is an additional 3.8% surtax on AGI exceeding $12,500. That could make the tax nearly 41 cents of every dollar. You may think of this as adding insult to injury.

Despite Congress’s intent to make the kiddie tax easier, the TCJA has actually complicated it even more. The concept of “earned taxable income” (ETI) while relating only to the computation of the kiddie tax, it has the potential to create confusion in at least two ways. First, the term “earned taxable income” is very similar to the term “earned income” but these items are computed in different ways. ETI is taxable income less NUI while earned income is the total of all the child’s compensation received for services provided during the year and taxable distributions to the child from a qualified disability trust. Next, if a child only has unearned income in a given tax year, the child has ETI because ETI = TI – NUI. Shameless Plug. Don’t worry, we totally understand all this new stuff.

KIDDIE TAX PLANNING TIPS FOR 2019

1. Consider transferring income-producing property to your children when they are too old for the kiddie tax but young enough to have a lower tax rate than you.
2. Or consider transferring property that defers income recognition until the child is past the kiddie tax. For example: growth stocks, mutual funds, remainder interests in property/land, tax exempt bonds, closely held stock and market discount obligations.
3. Evaluate including your child’s investment income on your return because more investment interest expense may be deductible and/or your individual tax rate may be lower than the tax rate applied to your dependent child’s unearned income.

WHAT ELSE SHOULD I KNOW?

 ⇒ Irony. Top-bracket parents and grandparents are probably able to transfer more money to kids before triggering a higher tax than parents and grandparents in the lower-bracket adults. The top tax rate of 37% begins at $600,000 of taxable income (TI) for married taxpayers filing jointly and at $12,500 for trusts. That means a top-bracket family can transfer up to $12,500 of gains or other unearned income to a child or grandchild before the 37% rate is triggered on the child. But an adult in a lower tax bracket has to transfer less than $12,500 before the child begins paying a higher rate than the adult would pay.
 ⇒ Consider bequeathing kids subject to the Kiddie Tax a ROTH IRA instead of a Traditional IRA.
 ⇒ Remember investment fees and expenses are no longer tax deductible but investment interest expense may be.
 ⇒ You can still opt to report your child’s dividends, interest income, and capital gain distributions up to $10,500 on your tax return by filing Form 8814, Parents’ Election to Report Child’s Interest and Dividends.
 ⇒ Shameless Plug. We like taxes and kids and we sure can help you with the calculating and tax planning for the kiddie tax.

Reach out to McAtee & Associates for answers and guidance all things Kiddie Tax and more. Carol would enjoy doing some tax planning and advising with you and assisting you with tax preparation and filing.

info@accpas.com OR 727-327-1999.

Check back here next week for a new and entertaining blog. And be sure to like us on Facebook and follow us on Twitter; for whatever it is we’ll be posting.

ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

Posted in Individual Taxes, Tax Planning, Taxes | Tagged , , , | Leave a comment

Make That Kid Work For You. Part 1of 2. Get Credit Where Credit’s Due.

HERE’S WHAT’S UP! With middle-class income of $59,200-$107,000, it is going to cost you a whopping $233,610! to raise that kid until the age of 17, says the Department of Agriculture. Families with lower incomes are expected to spend $174,690, while families with higher incomes will likely spend $372,210. This is by definition a long-term investment. After TCJA, the little bundle of joy, doing double duty as a tax deduction still brings government gifts in the form of cash.

‘Of course we love you. You’re our tax deduction…’

REINFORCING THE BASICS.

The kid is no longer counted as an exemption worth a couple of hundred dollars because personal exemptions are long gone. Instead the standard deduction increased to $12,000 for those filing Single and Married Filing Separate; 18,000 for Head of Household; and, $24,000 for Married Filing Jointly and Surviving Spouse. And surviving does not mean you survived another year with him or her! So what tax benefits do you get for the little creatures in the era of TCJA?

FIRST THINGS FIRST.

To be your dependent, a person must be a qualifying child (or qualifying relative). Since we’re talking about the TCJA and Kids, to be a qualifying child, a child MUST:

1. Be your son, daughter, step-child, foster child, brother, sister, half-brother, half-sister, step brother, step sister or a descendant of any of these;
2. Be under age 19 at year-end or under age 24 and a full-time student. These age limits do NOT apply to disabled children;
3. Live with you for more than half the year and must not have provided more than half their own support; and,
4. Not file a joint tax return – unless solely for getting a refund.

WHAT YOU GET.

Child Tax Credit. Now requires the dependent child have a social security number. And it doubles from one thousand to two thousand dollars (through 2025). Twice as much buck for the bang. That’s practically another year of diapers or almost eight pairs of Nike kicks. What if you have a qualifying child (under age 17) but no tax liability or the credit is more than your liability? You can still get free money (refundable credit) and even more of it, $1,400 from $1,000. The phaseout limit more than doubled; it now starts at $200,000 (S) and $400,000 (MFJ). More families with (qualifying) child(ren) will get the Child Tax Credit in 2018 than ever before.

Child & Dependent Care Credit. The TCJA did not change this non-refundable credit. It can reduce your tax bill to zero but you won’t get a refund on anything left over from the credit. If you have some earned income and paid a provider who isn’t you or your spouse, who isn’t a dependent on your return, and who isn’t another of your kids under 18, to take care of child(ren) under age 13, go for it. If you’re married, to get the credit you must file MFJ. $3,000 paid out for one kid, can get anywhere between $600 and $1,050. $6,000 paid out for two or more kids will double those amounts.

Be sure that a provider provides you the all-important Taxpayer Identification Number unless it is a tax-exempt organization for which only name and address need be provided.

Earned Income Credit. This credit has been helping working people with low to moderate income for 45 years and probably isn’t going anywhere anytime soon.

 

 

 

To see what you could possibly be receiving this year.   Calculate My Earned Income Credit

PLANNING TIPS FOR 2019

1. Consider paying a relative to watch your kids. You can get the credit and they get a little cash.
2. If your employer offers a dependent-care assistance program, jump on it. The reimbursement is usually better savings than the credit. And it is exempt from social security. Additionally, up to $5,000 can be excluded from taxable income.

Reach out to McAtee & Associates for answers and guidance all things tax. Carol would enjoy doing some tax planning and advising with you, as well as assisting you with tax preparation and filing.

info@accpas.com OR 727-327-1999.

Check back here next week where we continue with Part 2 talking about kids and the Kiddie Tax. And be sure to like us on FaceBook and follow us on Twitter; for whatever it is we’ll be posting.

ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

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New Year Resolution.

HERE’S WHAT’S UP! Conventional wisdom: It’s never too late to do financial planning. Carol’s wisdom: It’s never too early to take care of your money.

2019 Withholding Calculator

REINFORCING THE BASICS.

What is Retirement? Retirement is the withdrawal from an active working life, and for most retirees, for the rest of their lives. Retirement is in no way the same for any two people. No two Retirement Plans will ever be the same. A Retirement Plan requires a Financial Plan and a Financial Plan requires attention and development. We have put a few ideas together that you make an annual New Year Resolution.

FIRST THINGS FIRST.

Have you visited our website lately? We have quite a few Retirement Calculators that are really, really cool. Take a look:   Carol’s Calculators

THE NEW YEAR RESOLUTION.

Start Fresh. You don’t have to be a business to have a balance sheet. We have checking and savings accounts and credit card bills. We have cars and car payments; houses and mortgages. Some may have an extra house or two and maybe a 401K and the like. Others may have some medical expenses or college tuition. Update this balance sheet. It’s important to know where you are and where you want to be. Make a plan to reduce debts and increase assets and then achieve The Plan.

How much will you spend in 2019? Take a look back at 2018; it’s the best place to start. Throw out one-time expenses like a home improvement or buying an Alexa. Add in reasonably foreseen expenses: an emergency room visit or two; a car repair or two or three; the vet bill when your dog spars with the neighborhood alley cat. You can even budget commuting; the 2019 average gas price is predicted to be $2.70/gallon.

Subscriptions and stuff. Review bank and credit card statements for all the automatic payments and subscription renewals. Are they all current and correct? Are you using all six lines on that cell phone bill? It’s okay to choose between NetFlix and Hulu and Amazon Prime and Tubi and Sling. Check what’s in your phone plan: Sprint has Basic Hulu but AT&T has 30 stations of live streaming.

Update 2019 Form W-4. We are betting a lot of folks didn’t do this in 2018. There’s a good chance that this year’s tax return will let you know whether to increase or decrease withholding.

2019 Withholding Calculator

Workplace Retirement Plan Contributions. We should always be pushing to put more into our retirement. If you pay off a debt or ditch the gym, put the “new” cash in your retirement account. Think about splitting your next raise; keeping some for yourself now and saving some for yourself later. These portfolio(s) are the bulk of your Retirement Plan.

Analyze the Portfolio(s). If you aren’t constantly on your phone checking the portfolio, an annual maintenance check is a good idea. Is the asset allocation still in check with your Financial Plan: rebalancing for market volatility and material shifts is fundamental to diversification. Super stereotypical pic, we know.

IRA and HSA Contributions. If you missed these in December, no worries. Eligible 2018 IRA contributions can be made up to April 15, 2019. The lesser of $5,500 or taxable compensation and add a $1,000 if you’re over age 50 and want to catch-up. If you are jumpstarting 2019, the lesser of $6,000 or taxable compensation and add a $1,000 if you’re over age 50 and want to catch-up. If married filing joint and only one income, consider a spousal contribution.

Eligible 2018 HSA contributions can also be made up to April 15, 2019. HSAs have a 2019 contribution limit of $3,450 for single-serve high deductible health plan (HDHP) and $6,900 for a Family-size HDHP. 2018 contributions were limited to $3,425 and $6,850. If you missed our blogs about IRAs, see WHAT ELSE SHOULD I KNOW?

Knock on Roth’s Back Door. Married couples with modified adjusted gross income over $203,000, cannot make direct Roth contributions; single folks, if over $137,000. You don’t have to make a grand entrance, roll on in through the back door. You need to be participating in a 401K that allows, 1: after-tax contributions and 2: an in-service withdrawal of after-tax contributions. Keep in mind that the 2019 limit for 401K contributions is $19,000 for the under 50 crowd and $25,000 for the over 50 crowd. If you still need to make a 2018 contribution: do sore before April 15, 2019 and the limits are $18,500 and $24,500, respectively. Make a non-deductible contribution of the six or seven thousand into a Traditional IRA and then immediately turn around and roll it over into a Roth IRA.

Annual Gift Exclusion. If you missed this in December. Don’t fret. You’re late for 2018 but you can be early for 2019. You can gift up to $15,000 to unlimited people per year without using the Lifetime Estate Tax Exclusion. You won’t even have to pay gift tax.

WHAT ELSE SHOULD I KNOW?

 ⇒ Individual Retirement Accounts: Traditional & Roth

⇒ Employer-provided Plans

 Self-employed Plans

Reach out to McAtee and Associates for answers and guidance all things tax. Carol would enjoy doing some tax planning and advising with you and assisting you with tax preparation and filing.

info@accpas.com OR 727-327-1999.

Check back here next week for a new and entertaining blog. And be sure to like us on FaceBook and follow us on Twitter; for whatever it is we’ll be posting.

ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

Posted in Uncategorized | Leave a comment

Government Doesn’t Run on Dunkin’!

Here’s what’s up!  The longest ever paid vacation for 380,000 furloughed government employees.  The longest ever indentured servitude for 420,000 government employees and the Coast Guard as they work without pay.  All courtesy of the longest-ever partial government shutdown.  By the time you read this the shutdown will be in its 26th day far surpassing the eight-day average.  And government doesn’t run on ….. 

REINFORCING THE BASICS.

Government is partially shutdown when nonessential offices close because they didn’t get their fiscal year budget approved by Congress. Congress has to pass all twelve spending bills in the budget before October 1st and to date they have only passed five.  Us everyday folks are musing aloud – would we get paid for a job only 42% finished?

Congress had until December 21st to finish the job by either passing the remaining spending bills or pushing through continuing resolutions (CRs).  CRs provide for temporary funding by usually just throwing FY19 on last year’s budget and government stays open.  Congress still didn’t finish the job; nine of fifteen cabinet-level departments remain unfunded; and, here we are.

A furlough is a leave of absence without pay.  Furloughs are remedied by Congressional authorization for back pay.  The House has already passed legislation.  No one has never not gotten paid after a partial government shutdown.

FIRST THINGS FIRST.

Monday, January 28th is still the official start of tax season.  This is the first day that both paper and electronic returns will be accepted.  That being said.

The Internal Revenue Service and What’s Happening.

 9,946 employees are still working.  These are computer system operators, criminal investigators, and protectors of federal property because our tax dollars are government property which must be safeguarded.

Apparently computers are working too.  Computer-generated delinquency letters and their news of asset seizures are going out.  But the live assistance telephone number tells callers: “Welcome to the Internal Revenue Service. Live telephone assistance is not available at this time. Normal operations will resume as soon as possible. … We apologize for any inconvenience.”  And apparently, none of the 9,946 employees still working are answering phones.

Criminal law enforcement operations are continuing;

Upcoming filing year programs are being completed and tested;

Paper returns are being batch-processed;

Electronic returns are being processed;

Taxpayer electronic payments are being processed;

Implementation of the TCJA is running smoothly, as it is funded through September 2019.

 The Internal Revenue Service and What’s Not Happening.

 79,868 of employees are not at work and hopefully not watching The View.  They will be even more angrier and more bitter when they return to work.

The IRS’ contingency plan was only good for five days so, they ain’t got a plan no more;

Refunds are not being issued;

Form 1040X amended returns are not being processed;

Tax returns are neither being audited nor examined;

Paper returns with payments are not being processed;

Collections aren’t being collected;

Taxpayer services are not being provided.  No one will answer your call, open or read your letter, and no one will be opening the IRS office doors;  

Income isn’t being verified.  Income verification affects SBA, farm, and home purchase loans and home closings.

Shameless plug:  At Carol McAtee & Associates we are answering your phone calls, opening your mail to us, and our doors are open to you.  So make your appointment today!

The Internal Revenue Service and What Will Happen.

When the IRS gets funded, furloughed employees have four hours to get to work;

Refunds will be issued as determined by the Office of Management and Budget;

The National Treasury Employees Union and the American Federation of Government Employees, representing over 850,000 workers are suing the White House for requiring federal employees to work without pay which violates the Fair Labor Standards Act;

The Treasury Secretary anticipates 60 to 70% of taxpayer phone calls will be answered this filing season;

Payouts are expected to be 21 days for e-filed returns and 42 days for paper-file returns.  This is no different from previous years.  But last year, at the end of week one, 18.3 million returns were received; 136,359,149 were received by season end; and 95,451,404 refunds were issued for tax year 2017.   We wouldn’t be surprised by delayed refunds and suggest we all have reasonable expectations.  The earlier you file, the better.

The Internal Revenue Service and Who Knows What’s Happening. 

Since both the IRS and the Treasury Department are partially shut down, how are Advance Premium Tax Credits (APTC) going to be paid?  It is possible that delayed payment of APTC can result in increased premium costs or loss of coverage.  Some taxpayers may have to decide between paying the unsubsidized premium and dropping coverage.  We think that MarketPlace applications and plan year 2020 will also be affected because required maintenance and updating are not being done now.  To keep up on this development and more, follow us and like us on Social Media.

FaceBook           Twitter          LinkedIn

WHAT ELSE SHOULD I KNOW?

⇒ Refer to our December 5, 2018 blog:  We Are, After All, IRS Customers

⇒ Social Security checks are going out.

⇒ Medicare and Medicaid are open.

⇒ Veterans are unaffected; as the VA is funded through September 2019.

⇒ Robert Mueller’s Russia investigation marches onward.  It is not funded by Congressional appropriation.

Reach out to McAtee and Associates for answers and guidance all things tax.  Carol would enjoy doing some tax planning and advising with you and assisting you with tax preparation and filing.

info@accpas.com  OR   727-327-1999.

Check back here next week for a new and entertaining blog.  And be sure to like us on   FaceBook and follow us on Twitter; for whatever it is we’ll be posting.

ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

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“Voluntary Compliance” My (fill in the blank)!

Here’s what’s up! America needs tax compliance to pay government’s bills. In all seriousness, voluntary compliance is a principle that we will cooperate with the tax system by filing honest and accurate annual returns and receive excellent customer service along the way.

REINFORCING THE BASICS.

Frivolous. Not having any serious purpose or value.

Frivolous Tax Argument. You’re a special kind of stupid if you still think this will work.

Internal Revenue Code. Federal statutory tax LAW.

Paradox. An absurd or self-contradictory statement that when investigated or explained may be true. Examples: Filing a tax return is voluntary. Paying income tax is voluntary.

FIRST THINGS FIRST.

Snopes fact check. Claim – Payment of U.S. federal income taxes is voluntary. Rating – False.
IRS fact check. Frivolous tax argument.

Frivolous tax arguments are divided into categories, one of which is: The Voluntary Nature of the Federal Income Tax System. That being said, let’s move on to why these popular arguments are really false and frivolous and NOT voluntary.

In the beginning, (a future blog), way back in 1914 the Commissioner of Internal Revenue had to examine each and every tax return. Eventually, by 1954, this got to be a little much and some commissioner had to figure out a better way to get the bills paid. Literally and figuratively, “more bang for the buck.” And the solution was to get businesses and individuals to do these examinations themselves thus making the tax system “voluntary”.

IS IT LEGAL? Why yes; yes, it is.

The Internal Revenue Code is all the laws Congress has passed to get us to fund America. There is a little section in the Internal Revenue Code (IRC) that according to the IRS “clearly imposes” tax on individual, estate, and trust income. In 1938, the Supreme Court upheld Congressional impositions of sanctions to ensure full and honest taxpayer disclosure and to discourage tax evasion. There is another little section in the IRC that according to the IRS, “the obligation to pay tax is described in section 6151, which requires taxpayers to submit payment with their tax returns”.

THEN WHAT EXACTLY IS MEANT BY VOLUNTARY?

The IRS perspective, if you pay, without being audited – that is voluntary. Voluntary means – without government involvement or compulsion. As far as government involvement, the government is neither calculating the tax liability nor completing the return. But what about compulsion? The government looks at this as persuasion. Laws have valid reasons that inspire persuasive, intrinsic motivations to abide by them. Therefore, actual payment of the tax is voluntary. The filing of a tax return is voluntary. And there you have what is meant by voluntary compliance. But what about the taxpayer perspective? From our perspective, we have no choice, so voluntary is, “comply or else”. We don’t pay taxes because we want to; we pay because we are convinced that we have to. We have to because of the “or else”.

AND WHAT IS THE “OR ELSE”?

The “or else” is compliance by enforcement.

The penalty for filing a frivolous tax return is $5,000.
Additional penalties are accuracy-related; civil fraud; erroneous refund claim; failure to file; and, failure to pay.
Tax Court can even slap a penalty on you for making a frivolous argument in court.
There is criminal prosecution for attempting to evade tax.
Filing a false return is a felony as is promoting frivolous arguments.
Then there are fines, interest charges, levies, garnishments, liens, prison.

A famous guy, Thomas Aquina, intellectualized this in the 12th century. A voluntary act is born of will and led down its path by knowledge of the end result. Problematic things such as ignorance, passion, and rational fear can reduce the level of voluntariness, but not make an act involuntary. Paradox-Point IRS.

A famous firm, McAtee & Associates, intellectualizes voluntary compliance, in essence, as fear of the “or else”. Paradox-Point IRS.

WHAT ARE THE OTHER FRIVOLOUS TAX ARGUMENTS?

First there are several other arguments in the Voluntary Nature category:

1. Taxpayers can reduce their federal income tax liability by filing a “zero return”;
2. The IRS must prepare federal tax returns for a person who fails to file; and,
3. Compliance with an administrative summons issued by the IRS is voluntary.

Then there are quite a few more in some categories. And the categories are:

The Meaning of Income: Taxable and Gross;
The Meaning of Certain Terms Used in the Internal Revenue Code;
Constitutional Amendment Claims;
Fictional Legal Bases; and,
Collection Due Process Cases.

We think that some of these arguments are pretty interesting and have a certain logic so we are definitely going to do future blogs highlighting one or two arguments from each category, except for maybe Collection Due Process Cases, which sounds horribly boring.

WHAT ELSE SHOULD I KNOW?

 ⇒ Frivolous Tax Arguments is a recurring scam on the IRS’ “Dirty Dozen” list of tax scams.
 ⇒ We’ll cover the rest of the “Dirty Dozen” in a future blog.
 ⇒ Shameless Plug. Voluntarily have McAtee & Associates assist you in the preparation and filing of your individual and business tax returns.

Reach out to McAtee and Associates for answers and guidance all things tax. CallCarolFirst! Carol would enjoy doing some tax planning and advising with you and assisting you with tax preparation and filing.

info@accpas.com OR 727-327-1999.

Check back here next week for a new and entertaining blog. And be sure to like us on FaceBook and follow us on Twitter; for whatever it is we’ll be posting.

ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

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Happy New Year

The Holidays are officially over. Welcome to this week’s blog: Happy New Year

REINFORCING THE BASICS.

All of us at McAtee & Associates wish all of you a Happy New Year filled with all the joys and successes, fun and good times that make the Memories of a Lifetime.

WHAT ELSE SHOULD I KNOW?

⇒ A classic.                  New Year’s Day

⇒ Shameless Plug. Our New Year is Happy when you make an appointment. Our New Year is Happy when you email us all your pdf’d tax info (especially the organizer). Our New Year is Happy when you drop stuff off and say hello. Make our New Year Happy!

info@accpas.com OR 727-327-1999.

Check back here next week when we write real blogs again. If there is anything you would like to know more about, leave a comment and we’ll blog it. And be sure to like us on and follow us on Twitter ; for whatever it is we’ll be posting.

ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

Posted in General Interest, Holiday | Tagged , | Leave a comment