Blog | WM. F. Horne & Company, PLLC

02Jun2017

Deductions Eliminated Under Trump’s Tax Reform Proposal

 

tax reform

Article Highlights:

  • Deductions the Proposal Retains
  • Itemized Deductions the Proposal Eliminates
  • Other Deductions the Proposal Eliminates

One of President Trump’s key tax reforms is to eliminate all individual tax deductions except for those that incentivize home ownership, charitable contributions and retirement contributions. Although the administration’s one-page outline of the proposed tax reforms provides little detail, if all of the deductions except those noted are eliminated, the reform will impact both itemized deductions and…

  • 2 Jun, 2017
  • Jacqueline Cran
  • 0 Comments
Read more
01Jun2017

June Tax Due Dates

 

june

 

June 2017 Individual Due Dates

 

June 12 – Report Tips to Employer

 

If you are an employee who works for tips and received more than $20 in tips during May, you are required to report them to your employer on IRS Form 4070 no later than June 12. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are…

  • 1 Jun, 2017
  • Jacqueline Cran
  • 0 Comments
Read more
24May2017

Tempted to Tap Into Your Retirement Savings? Read This First

 

retirement savings

 

Article Highlights:

  • Early-Withdrawal Penalties
  • Reduction in Retirement Savings
  • Exceptions from the Early-Withdrawal Penalty

If you are looking for cash for a specific purpose, your retirement savings may be a tempting source. However, if you are under age 59½ and plan to withdraw money from a traditional IRA or qualified retirement account, you will likely pay both income tax and a 10% early-distribution tax (also referred to as a penalty) on any previously untaxed…

  • 24 May, 2017
  • Jacqueline Cran
  • 0 Comments
Read more
22May2017

Big Tax Breaks for Adoptive Parents

 

blogs.adopt

 

Article Highlights:

  • Qualifying Adoptions
  • Credit Amount
  • Credit Carryover
  • Qualifying Expenses
  • High-Income Credit Phase-out
  • Employer Adoption-Assistance Program

If you are an adoptive parent or are planning to adopt a child, you may qualify for a substantial income-tax credit. The amount of the credit is based on any expenses incurred that are directly related to the adoption of a child under the age of 18 or a person who is physically or mentally incapable of self-care.

This is a 1:1…

  • 22 May, 2017
  • Jacqueline Cran
  • 0 Comments
Read more
19May2017

Who Controls the Funds in a Section 529 Plan?

 

blogs.Education plan

Article Highlights:

  • Qualified Tuition Accounts
  • Custodial Accounts
  • Who Can Contribute?
  • Who Controls the Account?
  • Changing the Account Beneficiary

This question frequently arises: Who controls the funds held in a Section 529 qualified tuition account? These accounts can become quite large, as they are limited only by the projected cost of a college education, and those costs will vary between state plans. Some states base their maximums on the cost of an in-state, four-year education, but…

  • 19 May, 2017
  • Jacqueline Cran
  • 0 Comments
Read more
11May2017

Consequences of Filing Married Separate

 

blogs.MFS

 

Article Highlights:

 

  • Joint & Several Liability
  • Exemptions
  • Itemizing Deductions
  • Social Security Income
  • Section 179 Deduction
  • Special Passive Loss Allowance
  • Traditional IRA Deduction Phase-Out
  • Roth IRA Contribution Phase-Out
  • Coverdell Education Accounts
  • Education Tax Credits
  • Higher Education Interest
  • Education Exclusion for U.S. Savings Bond Interest
  • Premium Tax Credit
  • Earned Income Tax Credit
  • Child Care Credit
  • Halved Deductions & Credits
  • Head of Household Filing Status

If you are married and thinking about not filing a joint return with your spouse, you will most likely use the married filing separate (MFS) filing…

  • 11 May, 2017
  • Jacqueline Cran
  • 0 Comments
Read more
08May2017

Naming Your IRA Beneficiary

 

blog april

Article Highlights:

  • How Naming Beneficiaries Impacts Traditional IRA Distributions
  • The Impact of Naming Your Trust as a Beneficiary
  • IRA Beneficiary Taxation

The decision concerning whom you wish to designate as the beneficiary of your traditional IRA is critically important. This decision affects:

  • The minimum amounts you must withdraw from the IRA when you reach age 70 ½;
  • Who will get what remains in the account after your death; and
  • How that IRA balance can be paid…
  • 8 May, 2017
  • Jacqueline Cran
  • 0 Comments
Read more
01May2017

May 2017 Tax Due Dates

 

MayDueDates

 

May 2017 Individual Due Dates

 

May 10 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during April, you are required to report them to your employer on IRS Form 4070 no later than May 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient…

  • 1 May, 2017
  • Jacqueline Cran
  • 0 Comments
Read more
27Apr2017

Deducting Convention Expenses

 

ConventionExpenses

 

Article Highlights:

 

  • Trade or Business Requirement
  • North American Area Travel
  • Travel Outside the North American Area
  • Expense Limitations Outside of the North American Area
  • Cruise Ships

Generally, an individual can deduct travel expenses from attending conventions, seminars or similar types of meetings within the North American area, provided that attendance benefits the taxpayer’s trade or business. However, family members’ travel expenses are not deductible, and neither are expenses from attending investment, political, social or other types…

  • 27 Apr, 2017
  • Jacqueline Cran
  • 0 Comments
Read more
23Feb2017

Maximizing Your Affordable Care Act Insurance Supplement

 

ACA

 

Article Highlight: 

  • Financial Assistance for Health Insurance
  • Federal Poverty Level
  • Modified Adjusted Gross Income
  • Household Income
  • Gambling Income
  • Children’s Income
  • Hobby Income
  • IRA Contributions

If you are getting your health insurance through a government Marketplace, you should be aware of several issues that can adversely affect the amount of financial assistance you receive to help pay for the insurance.

Background: Generally, individuals whose household income is between 100 and 400% of the federal poverty level will receive financial assistance…

  • 23 Feb, 2017
  • Jacqueline Cran
  • 0 Comments
Read more