2017 & 2018 Tax Amounts

For 2017, the standard deduction for a single individual is $6,350 and for a married couple is $12,700. A person will benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include state and local income taxes (or...

IRS Announces Slightly Higher Standard Mileage Rates fr 2018

The IRS announced that the standard mileage rate will increase to 54.5 cents per business mile driven in 2018.  That is an increase of one cent from the 53.5 cents allowed in 2017.  According to the IRS, “Taxpayers always have the option of calculating the...

9 Ways to Minimize Your Taxes Under the New Tax Rules

On Friday, December 22nd, President Trump signed the Tax Cuts and Jobs Act of 2017 into law. Here are some 9 steps to consider taking prior to 12/31/17 and then during 2018 to minimize your federal tax liability. Prior to 12/31/17, pay all of your 2017 state taxes...

UPDATE: New Tax Act Details & What You Can Do

Just this week the House and Senate both voted on and passed the Tax Cuts and Job Act.  With President Trump’s signature, expected in the next week, this tax bill will be enacted into law.  Considered to be the largest tax reform in 30 years, this new tax law is...

Tax tip for GOP tax bill

Just want to give you this one quick recommendation as the year winds down to save some taxes.  Now that it appears there is a very good chance there will be tax law changes enacted into law for 2018, there is one deduction that is essentially being eliminated in 2018...

Can I pay for my child’s private school tuition using his 529 plan?

Recently, a client sent us the question “Can I pay for my child’s private school tuition using his 529 plan?”. Unfortunately, the answer is no. Tax free distributions from a 529 plan can only be used for post-secondary education expenses. However, there is...

Making Sense of the Tax Reform Proposals

With the year-end quickly approaching and time running out on whether or not a major tax overhaul will be enacted before December 31, year-end tax planning has become a big question mark in recent weeks.  However, with the Senate passing the “Tax Cuts and Job Act” by...

IRS Announces Higher Retirement Plan Limits for 2018

Most working professionals have access to a 401(k) plan or a 403(b) plan at work.  Amounts contributed to these plans generally reduce your taxable earnings and always grow tax deferred. You can contribute up to $18,500 into a 401(k) or 403(b) plan through salary...

Year End Projections Can Reduce Your Taxes

With the end of the 2017 calendar year quickly approaching, reviewing your specific tax situation may be tax-wise to help reduce your income taxes as well as possible underpayment of tax penalties. Year-end planning techniques to reduce your taxable income or increase...

Checklist To Cut Your 2017 Taxes

It’s not too late to cut your 2017 tax bill.  Prior to Dec. 31st:   Increase your 401(k) and 403(b) contributions if you haven’t been contributing at the maximum rate all year. This year you can put away up to $18,500 ($24,500 if 50 or older) into...

Roth or Regular?

These days, most 401k and 403b plans give their participants the option of contributing to the “traditional” version or the “Roth” version. With the traditional version, the amount you contribute reduces your taxable income in the current year,...

IRS Announces Higher Retirement Plan Limits for 2018

Contributing to a retirement plan is one of the best tax shelters available to you during your working years.  Recently, the IRS announced that some of the retirement savings limits will increase for 2018. Employer Sponsored Plans Most working professionals have...

Social Security Max Increase to $128,700 for 2018

Most years, the government bumps up the maximum Social Security taxes that you can pay.  For 2018, the maximum wage base jumps to $128,700, an increase of $1,500, or 1.2%, over the max of $127,200 that was in place for 2017. The Social Security Administration predicts...

Tax & Financial Planning Calendar for Nov. 2017

Month Income Taxes Saving and Investing November Need to make applicable elections in connection with employer’s flexible spending account Good time to make semi-annual donation of clothing and household items to charitable organizations.  Don’t forget to...

Equifax Data Breach – What Our Clients Should So

As you may have heard, Equifax, one of the nation’s three leading credit reporting agencies, announced last week that they had a major data breach from May through July. The hackers accessed over 143 million consumers’ information, including Social Security numbers,...

Tips For Teenagers With Summer Jobs

Students and teenagers often get summer jobs which can be a great way to earn extra spending money or to save for later. Here are some additional top tips from the IRS for people with summer jobs: New Employees. When a person gets a new job, they need to fill out...

Andrew’s Summer Reading Recommendations

It’s only August which means there is still plenty of time to do some reading before Labor Day.  Why not take this opportunity to read some business management books before life gets busy again in September? I’m pleased to share with you some of my...

IRS Withholdings

Many healthcare professionals are employed based on the academic calendar, and therefore, switch jobs or employers around July 1st.  No matter when you change jobs, you need to submit a W-4 form with your new employer to determine how much taxes will be withheld from...

It’s Time to Get Your Mid-Year Tax Projections

Want to make sure you’re taking steps to reduce your tax burden for 2017? Do you have self-employment income, multiple sources of income, a job change or unexpected income in 2017? If so, our Mid-Year Tax Projection Service will help! We’ll calculate a mid-year tax...

Save Yourself $125 or More Next Tax Season If You Have Working Kids

The IRS wants to help parents of working children avoid the headaches and costs of preparing tax returns for their kids who won’t earn enough to be taxed.  All you need to do is have your child write the word “Exempt” in Box 7 of the Form W-4 that is...

Buying a New Fuel-Efficient Car in 2017?

The IRS still offers tax credits up to $7,500 on all-electric and plug-in hybrid cars that you would claim on your 2017 tax return. The vehicle must: weigh less than 14,000 pounds, have at least four wheels, be propelled to a significant extent by an electric motor...

Maximize Tax Deductions During Your Summer Travels

With the summer travel season nearly upon us, here are some tips and rules about deducting business travel expenses: Travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. You are traveling away from...

This Year’s Most Interesting Tax Season Observations

by Andrew D. Schwartz, CPA, Founder of The MDTAXES Network At some point during each tax season, there is a moment when I notice a recurring trend or theme that is unique and fascinating to that specific tax season. So what is this year’s most interesting trend?...

Over 50? Your Savings Gets Better With Age

Wisdom isn’t the only benefit you get with age. Starting the year you turn 50, you can make these additional “catch-up” contributions towards your retirement accounts: Up to $6,000 more for 401(k), 403(b), SARSEP, or governmental 457(b) Up to $3,000 more for SIMPLE...

5 Myths Your Landlord Want You To Believe

It can be difficult to discern fact from fiction when dealing with landlords. A misunderstanding of these key issues can have serious consequences for your practice. The following information should help dispel some common myths and prevent costly mistakes in your...

2ndQ Est Due

Don’t forget! Second Quarter 2017 Estimated Tax Payments are due 12June 15.

Save $125 or More Next Tax Season If You Have Working Kids

The IRS wants to help parents of working children avoid the headaches and costs of preparing tax returns for their kids who won’t earn enough to be taxed.  All you need to do is have your child write the word “Exempt” in Box 7 of the Form W-4 that is...

Maximize Tax Deductions During Your Summer Travel

With the summer travel season nearly upon us, here are some tips and rules about deducting business travel expenses: Travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. You are traveling away from...

Big Tax Credits for Electric Cars

Considering the purchase of a new fuel-efficient car in 2017? If you are, the IRS still offers tax credits up to $7,500 on all-electric and plug-in hybrid cars that you would claim on your 2017 tax return. The IRS defines the vehicle requirements as follows: “This is...

Spring Savings Tip:

Before summer kicks in, take a look at your asset allocation of all your retirement and non-retirement accounts, and consider rebalancing your accounts.

This Year’s Most Interesting Tax-Season Observations

At some point during each tax season, there is a moment when I notice a recurring trend or theme that is unique and fascinating to that specific tax season. So what is this year’s most interesting trend? For the 2017 tax season, what I found most fascinating is...

Spring Clean Up: Clean Out Your Tax Files and Records

With the April 15th deadline still a recent memory, most of us probably still have our tax records piled up somewhere in our homes.  Why not take this opportunity to shred all the documents that you no longer need to keep? How long do you need to hold onto your tax...

Mike’s Tax Season Takes

By Mike Bohigian, CPA As we approach the final stretches of tax season and the looming April 18th filing deadline, we wanted to share some observations from the past couple months working with our clients. One general observation we’ve had as a firm is the interesting...

New Podcast: How to Keep Overhead from Bringing you Down

Dentistry is what you do, and money is what you make. But unless you keep an eye on overhead, just making ends meet might be hard enough. In this Yankee Dental Congress edition of the Dentist Money™ Show, Reese Harper welcomes CPA Andrew Schwartz who works with...

File Your Tax Returns or Extension Requests by April 18

Good news for procrastinators.  The IRS is giving everyone a few extra days to complete their 2016 federal income returns this year.  According to the IRS: The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15...

Where’s My Refund?

Want to know the status of your tax refund? Check out these helpful links: For your US return: use the “Where’s My Refund” on the IRS.gov website https://www.irs.gov/refunds For MA return: use the “Check your refund status” n the MA Dept....

Andrew Schwartz to Speak at This Year’s NEGASC Conference

Mark your calendars.  The New England Graduate Accounting Studies Conference, Inc. (NEGASC) has invited Andrew Schwartz CPA to present to other CPAs and accounting professionals at their annual conference.  NEGASC 2017 will be held at the University of St. Joseph,...

Savings Tip for March

March Savings Tip: Use your tax refund to pay off credit cards or other debts, fund an IRA, and/or invest.

Due Tomorrow!

Due tomorrow: 1065 Partnership and 1120S Corporate tax returns for 2016

Parents Can File Their Kids’ Tax Returns for Free Through IRS.gov

If your high school or college aged child needs to file a tax return only to have federal or state income taxes withheld from their pay refunded, then why not file for free?  For federal taxes, this applies to dependents who earned no more than $6,300 (in 2016) unless...

The $3 Reaction to Last Fall’s Elections

Following a historically crazy election season, more clients are checking the “Yes” box in our Tax Organizer to the question about contributing to the Presidential Election Campaign Fund than have done so during all of my prior 29+ years of practice...

The IRS Explains “The Tax Gap”

FROM: IRS News, Tax Gap Estimates for Tax Years 2008-2010 IRS Statement on the Tax Gap Update The IRS periodically estimates the tax gap, which gives a broad view of the nation’s compliance with federal tax laws. The new study covers tax years 2008-2010. The report...