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. Taxpayers are entitled to take a standard tax deduction amount, or they can itemize their deductions individually; they can deduct whichever amount is higher, resulting in a lower tax bill.
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 minimum exemption level has increased to $109,400 for joint filers, up from $84,500; and to $70,300 for individual filers, up from $54,300. The exemption begins to phase out at $500,000 for single filers and $1 million for joint filers.
If you itemize, you can deduct the interest paid on the first $750,000 in mortgage indebtedness on loans taken out after Dec. 15, 2017 (on first and second homes). Older loans are grandfathered: You can still generally deduct interest on up to $1 million in mortgage debt on loans taken out before Dec. 16, 2017.
Moving expenses (except for members of the military), unreimbursed employee expenses and even tax preparation fees are no longer deductible.
Under the previous law, families were able to claim a $4,050 exemption for each qualifying child, but that deduction has been eliminated. Instead, if you have children under the age of 17, you may qualify for the child tax credit, which was raised to $2,000 from $1,000 for each child. More people will qualify now that the credit begins to phase out at $400,000 in income for joint filers ($200,000 for individuals). There is a new $500 credit for other dependants, such as elderly parents or children over 17.