Blog
Five Strategies to Reduce Your Tax Liability – and Increase Your Refund in 2020!
1. Keep donating to charity – but alternate years to increase your total tax deductions. For those who typically donate thousands of dollars to 501(c)(3) charities each year, it makes sense to consider doubling those typical donation amounts for 2020. This strategy...
Tax Tips for Teachers
Deducting Educator Expenses With the 2017 Tax Cuts and Jobs Act came a massive increase in the standard deduction. In 2019 and 2020, Forbes magazine estimates that over 90% of taxpayers will take the standard deduction rather than itemize on Schedule A. That’s good...
Tax Tips for Pastors and Missionaries
Tax Cuts and Job Act of 2017: What Does It Mean for Clergy and Missionaries? A brief summary on the TCJA and how it might affect your ministry budget and your personal tax returns as a pastor or missionary. Did you relocate to a new congregation in 2019? The IRS no...
What is “RITA Tax”
If you recently moved to Ohio, you may have heard a neighbor lament about the “RITA Tax.” But what is the “RITA Tax?” You may be surprised to learn that the “RITA Tax” does not exist. RITA, simply put, is a method that some Ohio municipalities use to collect taxes....
Business Startup Costs
If you started a business in 2019, the IRS will allow you to deduct up to $5000 of your start-up costs when you file your first tax return. Generally speaking, start-up costs are those expenses incurred while investigating, creating, or engaging in for-profit...
Taking the Foreign Income Exclusion
Taking the Foreign Earned Income Exclusion in 2019 Every week or so during tax season, I receive an email from an American citizen living abroad that goes something like this: "I was told I didn't have to file US taxes while living in [Thailand]. I don't make much...
Ohio Tax Update for Individuals
Ohio will begin accepting e-filed returns this Monday, January 27. There is some good news for Ohio taxpayers this year. A couple of highlights: · Ohioans will enjoy a 4% reduction in the income tax rates. · Low- to moderate-income residents will receive further cuts....
Five Reasons Not to Wait to File your Tax Return
More and more taxpayers are waiting until the last minute to file their tax returns. The IRS has contributed to this phenomena, postponing e-file acceptance until the end of January. Taxpayers who claim the Earned Income Tax Credit and certain other credits will have...
Gambling Winnings
Gambling winnings must be reported to the I.R.S. as income. In most cases, the payer will issue the winner a W-2G. Prizes, however, must be reported regardless of whether the payer issues a report of winnings. In other words, the taxpayer must report ALL gambling...
Canceled Debt
A taxpayer recently settled a large credit card debt with his lender. The question he then asked is “Do I need to declare the canceled debt as “income” on my tax return. The short answer is yes, but there are exceptions. A bank or other lending institution that...