Bloomberg recently released projected tax rates, brackets and other numbers that apply to the 2019 tax year (the IRS will release the official numbers later this year). Note, these are NOT the numbers that apply to the 2018 taxes you file in 2019, but to the income and activity that occurs during the 2019 tax year that starts January 1, 2019.
Whether you prepare your tax return yourself or hire a professional, there are certain things you should know. Often it is not until a person reaches their mid- to late twenties that tax returns become more complex and they need to be more informed. Below are seven fundamental tax concepts that usually are not taught – but everyone should know
There are several major types of business entities, including S Corporations, C Corporations, Limited Liability Companies (LLCs) and being self-employed. Each type of structure has its own advantages and disadvantages when it comes to taxes, assets and liability protection.
Effective for divorce agreements executed after December 31, 2018 or for agreements before December 31, 2018 and modified after that date, alimony will no longer be deductible by the payor nor will it be includible in the taxable income of the recipient.
While the most prominent features of this piece of legislation centered on the reduction in the corporate tax rate to a flat 21% after 2017, there were a number of provisions affecting individuals/businesses that seemed to fly under the radar.
The Act includes a repeal of the ACA (Affordable Care Act) failure to have minimum essential health insurance penalty. While the ACT still requires minimum essential health coverage, the penalty is reduced to zero beginning in tax years after 2018.
Provisions affecting itemized deductions were also prominent in this legislation and along with an increase in the standard deduction, will serve to reduce a wide swath of taxpayers who would otherwise itemize deductions.