Preparing your own income tax return can leave you with more questions than answers. Incorrectly filed returns, missed deduction opportunities, late filing and ignorance of the new tax laws could put you at risk. Let Accounting Solutions maximize your deductions and virtually eliminate the risk of an IRS audit.
We specialize in personal income tax form preparation. We help resolve IRS and NYS personal income tax problems and will respond to tax notices on your behalf.
Detailed knowledge of state and federal tax laws can overwhelm any business. We can work with your accounting staff to assemble the documents required to file your return.
We can help prepare and submit your amended tax return. Overlooked deductions, windfalls, recharacterizing a Roth Conversion could require you to update your return.
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The standard deduction is increased to $24,000 for married filing jointly; $18,000 for head of household and $12,000 for all other taxpayers. These amounts will be indexed for inflation. Personal exemptions are suspended through tax year 2025. With this increase in the standard deduction, many taxpayers will no longer itemize deductions causing a simplification in the preparation of their income tax returns.
An extension will keep you from getting hit with a late-filing penalty of 5% of the unpaid taxes for each month or part of a month you’re late, up to 25%. That’s in addition to a late-payment penalty of 0.5% of the unpaid taxes for each month or part of a month—plus interest at a rate of the federal short-term interest rate plus 3%. If you expect a refund, you obviously have an incentive to get your return in as soon as possible to get those dollars in your pocket. If you file for an extension thinking you’ll get a refund and instead find that you owe, you’ll have to tack on the late-payment charges..
Three-year time limit. You usually have three years from the date you filed your original tax return to file Form 1040X to claim a refund. You can file it within two years from the date you paid the tax, if that date is later.
The exemption amount has been increased. With the increased exemption amount and due to the new limit on the deduction of state and local taxes and suspension of the deduction on miscellaneous itemized deductions, fewer individuals will be subject to the alternative minimum tax.
The IRS said that people may be able to deduct their 2018 state and local property taxes only if they were assessed and paid during 2017. People can only deduct prepaid property taxes that have already been assessed by local governments.
The bill has a myriad of changes for business. The biggest includes a reduction in the top corporate rate to 21%, a new 20% deduction for incomes from certain type of “pass-through” entities (partnerships, S Corps, sole proprietorships), limits on expensing of interest from borrowing, almost doubling of the amount small businesses can expense from the 2017 Section 179 amount of $510,000 to $1,000,000, and eliminates the corporate alternative minimum tax (AMT).
The bill eliminates the tax penalty for not having health insurance after December 31, 2018. It also temporarily lowers the floor above which out-of-pocket medical expenses can be deducted from the current law floor of 10% to 7.5% for 2017 and 2018 So for 2018, you can deduct medical expenses that are more than 7.5% of your adjusted gross income as opposed to the higher 10%.