Category Archives: Personal Accounting

Articles and tips related to personal accounting by James. E. George, CPA

Many changes to 2019 tax forms!

Many changes to 2019 tax forms!

I recently previewed the initial release of the 2019 income tax forms. Many of the forms have undergone design changes. There are new lines on existing forms, as well as several new forms that taxpayers may need to complete. For example:

  • The most obvious change taxpayers will notice is the form 1040 no longer fits on one page. The 2019 version is now 2 pages.
  • The 2018 schedule 2 and schedule 4 have now been combined into a revised 2019 schedule 2.
  • The 2018 schedule 3 has been merged with the 2018 schedule 5 into a new 2019 schedule 3.
  • The form 8867 has been expanded even more for taxpayers claiming the Earned Income Credit, the Child Tax Credit or the College Tuition credits.
  • There is a new tax form for senior taxpayers 65 years and older. It is the form 1040-SR. It is optional if you are a senior. You certainly may continue to file the form 1040 instead.

Some forms have been discontinued:

  • The 2018 Schedule 6 is no longer included in the 2019 tax returns.
  • The Schedule C-EZ has been eliminated for self employed individuals.

There are many other new lines and changes to existing tax forms. What started as a tax simplification process has evolved into anything but. At our office, we are in the process of attending seminars, viewing tax-related webinars, and educating ourselves regarding this year’s changes. It is a challenging process, but we will be ready to guide our clients through the maze of forms and law changes when preparing this year’s income tax returns.

New Tax Laws for 2019!

New Tax Laws for 2019!

This week I attended a two-day seminar on the new tax laws taking effect for 2019. The sheer number of changes is a little overwhelming. There are new reporting requirements for anyone who files Head of Household status. There is also an expanded due diligence checklist for any taxpayer that claims college expenses, the child… Continue Reading

The IRS does not care what your Divorce Decree says!

The IRS does not care what your Divorce Decree says!

Every year at tax time, we encounter a variety of situations relating to divorced spouses claiming their children. In prior years, there were various ways used to justify who claimed which child. Sometimes the spouses agreed who claimed who and sometimes they didn’t. For years, the state court systems would approve divorce agreements that specified… Continue Reading

Employing your child could be a win-win strategy

Employing your child could be a win-win strategy

I met with one of my higher income clients this morning to discuss tax saving ideas. She operates a business out of her home to keep the overhead low. This year her income has increased about 20 percent and it looks like the growth will continue for the foreseeable future. We discussed a number of… Continue Reading

Tax-Related Telephone Scams

Tax-Related Telephone Scams

This week our area has been hit with an increased number of tax-related scam telephone calls. They are starting to sound much more realistic than similar scams in prior years. Usually the caller will identify themselves as a member of an enforcement division of either the IRS or Maryland State Police. They will inform you… Continue Reading

Many New Tax Law Changes are Just Around the Corner!

Many New Tax Law Changes are Just Around the Corner!

Last week I spent three fantastic days at the IRS Nationwide Tax Forum! Many new tax laws and changes to the tax forms are slated for the next filing season. The amount of new information, procedural changes and tax form modifications discussed was at times, overwhelming. The increasing number and types of new tax scams… Continue Reading

Casual gamblers may lose big under new tax code

Casual gamblers may lose big under new tax code

The new tax law will cause many casual gamblers to incur bigger losses than before! Prior to 2018 you could deduct your losses up to the amount of your winnings. You did this by claiming your losses as itemized deductions. The new tax law for 2018 doubles the standard deduction. This will cause many taxpayers… Continue Reading

Potomac Edison customers get increased recycling incentive thru July

Potomac Edison customers get increased recycling incentive thru July

Do you read the “junk mail” inserts included with your electric bill? If not, you may have missed an opportunity to be paid for recycling your old refrigerator or freezer. From now until July 31, 2018 Potomac Edison is offering a $75 credit for any working refrigerator or freezer recycled through their Appliance Recycling Program.… Continue Reading

New Tax Laws and your Home Equity Loan or Credit Line

New Tax Laws and your Home Equity Loan or Credit Line

The 2018 Tax Cuts and Jobs Act limits the deduction for home equity loans and home equity credit lines. The media has done a poor job of informing the public about this issue. Many of the newspaper and radio accounts have indicated there is no provision for deducting interest paid on equity loans and credit… Continue Reading

New Tax Warning to Employees

New Tax Warning to Employees

Employees beware! The new withholding tax tables that have been published may cause your employers to under withhold the federal tax from your paychecks. If your employer utilizes these new tables, they are doing nothing wrong. However, the tables incorporate the tax cuts under the new law by lowering the withholding amounts. While this gives… Continue Reading

Alimony Payments Under the New Tax Law

Alimony Payments Under the New Tax Law

For any divorce decree that becomes final after 12/31/18, the alimony payments will no longer be deductible by the payor or taxed as income to the recipient. This only applies to new divorce decrees. Any alimony arrangement that exists prior to 2019 will be grandfathered into the new provisions. As a tax planning move, if… Continue Reading

Health Insurance is Still Required!

Health Insurance is Still Required!

Many clients I have spoken with since tax season have incorrectly assumed the requirement to have health insurance coverage has been repealed. This is only partially correct. The requirement to carry health insurance on one’s self and every dependent in their household has been repealed, but not until 2019! For 2018, you still must have… Continue Reading

Can you afford to retire?

Can you afford to retire?

Since the end of tax season, I have met with two new clients who are considering starting their own businesses. We discussed the benefits and disadvantages of many aspects of self-employment. I found it interesting that neither considered having a pension to be of high importance. More and more people seem to be retiring early… Continue Reading

Hired Guns

Hired Guns

When you operate a seasonal business, your workload is concentrated into a few months out of the year. The very nature of this beast makes it difficult to assemble a talented workforce. Most experienced employees desire year-round income. This limits the business to finding seasonal help. Every year we experience a backlog at the review… Continue Reading

Employees’ Business Expenses Must be Documented

Employees’ Business Expenses Must be Documented

A deduction is available for money an employee spends to perform their duties in the course of their employment if they are unreimbursed by their employer. This includes mileage, licenses, union dues, education and out of pocket expenses. The expenses must be incurred as a condition of employment or utilized in the performance of the… Continue Reading

Business Tip: Customers Don’t Want Equal Treatment

Business Tip: Customers Don’t Want Equal Treatment

The advice we give our clients is personalized to their situation and circumstances. No two clients are the same. We may recommend one course of action for you and the opposite for your neighbor. The key is to listen to your client. Learn their goals and question any limitations to achieving them. Customers don’t want… Continue Reading

Beware of Tax-Related Identity Theft Scams

Beware of Tax-Related Identity Theft Scams

Deceitful communications come via phone, email, postal mail, and sometimes even a knock on your door. It’s important to know that the IRS does occasionally contact taxpayers, but when they do, it’s most often by mail. Sometimes the IRS needs to verify a taxpayer’s identity and will do so by sending a Letter 5071C. This… Continue Reading

Make 2018 Your Business’ Best Year

Make 2018 Your Business’ Best Year

All of us here at James E. George, CPA would like to wish you and yours a very happy and prosperous new year! At this time of reflecting on the past and planning for the future, I’d like to suggest making 2018 the year you get your business finances in order. Not just for your… Continue Reading

How Do I Handle My Mother’s Estate?

QUESTION: Dear Taxman – I am the administrator of my Mother’s estate. All she owned at the time of her death was her car, her house and a few investments which were all sold at a loss. Am I required to file an estate income tax return? ANSWER: Dear Reader – An estate tax return, form… Continue Reading

Claiming Dependents

QUESTION: Dear Taxman – My Daughter graduated from college in May of this year. She started working in September and expects to make about eleven thousand dollars this year. Can we still claim her as a dependent for this year? ANSWER: Dear Reader: To claim her as a dependent in any year, she must have been a… Continue Reading