IN February 2018, the IRS started certification of individuals with delinquent tax debt to the State Department. How will the IRS certification impact you? • Upon receipt of certification. The State Department will either deny application or revoke current passport or both. • You are overseas. Limited validity passport for direct return to the US…

1. TAX identity theft is a significant threat. Fraudsters are more sophisticated and large breaches happening so frequently like the 2017 Equifax incident which affected many Americans, so beware if you: 1) Receive a notice or letter from the IRS regarding a tax return, tax bill or income that you are unaware or not familiar….

YOU have not filed your income tax returns for the current year and previous years because: 1) you decided you are not required to file? 2) You are a victim of identity theft and therefore excused? 3) You know you will owe taxes and you will have to pay when you file, decided not to…

HOW you will benefit from standard deduction versus itemized deduction. To maximize your deduction, you take the larger of standard deduction or total amount of itemized deductions by bunching itemized deductions in 2018 and taking standard deduction in 2019, and so on. • Standard deduction: $12,000 for single or married filing separate; $24,000 for married…

IN February 2018, the IRS started certification of individuals with delinquent tax debt to the State Department.  How will the IRS certification impact you? • Upon receipt of certification. The State Department will either deny application or revoke current passport or both. • You are overseas. Limited validity passport for direct return to the US…

IN part 1: we defined 1) who are resident aliens, nonresident aliens or both, 2) who are exempt individuals, and 3) closer connection exception. In part 2: we defined 1) how resident aliens and nonresident aliens are taxed, 2) when is income considered U.S. sourced, 3) withholding requirement and employee issues. In part 3: we…

AMOUNTS for tax returns in 2018 are compared with amounts in 2017. Exemption credits: a. $118 from $114 – Single, Married filing separately, Head of Household. b. $236 from $228 – Married filing jointly. c. $367 from $353 – Dependent. d. $118 from $114 – Age 65 or older. You are considered to be 65…

• YOU may need to pay quarterly estimated taxes unless tax owed is less than $1,000 upon filing of the tax return or you do not owe any taxes in prior year if you have income from business as sole proprietor, or receiving K-1 as a partner or shareholder of S-corporation. Refer to IRS Publication…

YOU have not filed your income tax returns for the current year and previous years because: 1) you decided you are not required to file? 2) You are a victim of identity theft and therefore excused? 3) You know you will owe taxes and you will have to pay when you file, decided not to…

(Part 3) 1. Amusement, recreation, and entertainment are now non-deductible under the new act. Businesses may still claim 50% deduction on meals if 1) provided to potential customer or client 2) not extravagant 3) the employer or employee is present 4) purchased separately from entertainment events. You may rely on Notice 2018-76 until the Department…

U.S. citizens are generally taxed on their worldwide income regardless of where the income is earned or received. A U.S. citizen who earns income in a foreign country may also be taxed on that income by a foreign host country thereby leading to double taxation. Below are the three tax provisions alleviating potential inequity: •…

Part 2 THE US tax system is on a pay-as-you-go basis. Taxpayers are required to pay most of the tax liabilities during the same year they earn the income. If you pay less than 90 percent of your taxable income for the current year, you will be assessed with estimated tax penalty plus interest for…

THE new tax law could have an impact on how much your employer should withhold from your paycheck. Too little withholding from your paycheck could mean large unexpected tax bill as you file your tax return in 2019 for Tax Year 2018. If you have not done so, it is time to have a paycheck…

IN February 2018, the IRS started certification of individuals with delinquent tax debt to the State Department.  How will the IRS certification impact you? • Upon receipt of certification. The State Department will either deny application or revoke current passport or both. • You are overseas. Limited validity passport for direct return to the US…

1. BLENDED Federal Income Tax Rate: For Corporations tax elected to use a fiscal year will pay a blended tax rate and not the 21% flat rate. The new rate 21% is effective after December 31, 2017. You may want to consider amending your corporate tax return fiscal year ending January 31, 2018 to reflect…

• PERSONAL exemptions: the personal exemptions for you, your spouse, and dependents are suspended. This line item may not even show on your 2018 Form 1040. • Credits for child and dependent • Child tax credit increased to $2,000 for each qualifying child and $1,400 for additional tax credit and is subject to phase out…

(Part 4) IN part 1: we defined 1) who are resident aliens, nonresident aliens or both, 2) who are exempt individuals, and 3) closer connection exception. In part 2: we defined 1) how resident aliens and nonresident aliens are taxed, 2) when is income considered U.S. sourced, 3) withholding requirement and employee issues. In part…

YOU have not filed your income tax returns for the current year and previous years because: 1) you decided you are not required to file? 2) You are a victim of identity theft and therefore excused? 3) You know you will owe taxes and you will have to pay when you file, decided not to…

YOU may exclude from gross income gain from sale of principal residence under Internal Revenue Code Section 121. 1. You may be able to exclude gain of $250,000 or $500,000 if you are married filing a joint return. 2. To be eligible for the bigger $500,000 exclusion for joint filers, must meet the three requirement:…

(Part 2) IN part 1: We defined 1) who are resident aliens, nonresident aliens or both, 2) who are exempt individuals, and 3) closer connection exception. In part 2: We defined 1) how resident alien and nonresident alien are taxed, 2) when is income considered U.S. sourced, 3) withholding requirement and employee issues. Taxation and…

IN February 2018, the IRS will start certification of individuals with delinquent tax debt to the State Department.  How will the IRS certification impacts you? • Upon receipt of certification. The State Department will either deny application or revoke current passport or both. • You are overseas. Limited validity passport for direct return to the…

THE solar investment tax credit is available to both commercial under section 48 and to residential under section 25D for both solar water heating systems and photovoltaics property to generate electricity from sunlight. To benefit from the credit, you must have a federal tax liability. You may be able to carry forward or carry back…

A SOLAR electric residential property to be qualified for the credit must meet the following requirements: 1. Costs paid must be for qualified for solar electric property. 2. Qualified solar electric property costs: These costs must be for use of solar energy to generate electricity. You may rely on the manufacturer’s certification in writing that…

THE tax laws refer only to two controlling principles whether you are a resident alien or nonresident alien while the immigration laws of the US refer to aliens as immigrant, nonimmigrant, and undocumented or illegal aliens. Who are resident aliens and nonresident aliens or both? For tax purposes unless you are an exempt individual, you…

U.S. citizens are generally taxed on their worldwide income regardless of where the income is earned or received. A U.S. citizen who earns income in a foreign country may also be taxed on that income by a foreign host country thereby leading to double taxation. Below are the three tax provisions alleviating potential inequity: •…

THE only means an employer can offer employees between taxable and nontaxable benefits is through section 125 plan. What are a section 125 plan, a cafeteria plan, and the IRS requirements for this plan? 1. Cafeteria Plan: Cafeteria plan is a written plan maintained by employer for employees that meets the requirements and regulations of…

IN February 2018, the IRS will start certification of individuals with delinquent tax debt to the State Department.  How will the IRS certification impacts you? • Upon receipt of certification. The State Department will either deny application or revoke current passport or both. • You are overseas. Limited validity passport for direct return to the…

THE Foreign Account Tax Compliance Act (FATCA) requires foreign financial Institutions and other non-financial foreign entities to report on the foreign assets held by their U.S. account holders or be subject to withholding on certain payments. 1. Form 8938 Statement of Specified Foreign Financial Assets: U.S. taxpayers holding financial assets outside the United States must…