Category: NEWS

November 14th, 2019 by Oscar

Recordkeeping is an important part of running a small business. In fact, keeping good records helps business owners make sure their business stays successful.

Here are some things small business owners should remember about recordkeeping:

  1. Good records will help business owners to monitor the progress of their business, prepare financial statements, identify income source, keep track of expenses and prepare tax returns and support items reported on tax returns.
  2. Small business owners may choose any recordkeeping system that fits their business. They should choose one that clearly shows income and expenses. Except in a few cases, the law does not require special kinds of records.
  3. How long an owner should keep a document depends on several factors. These factors include the action, expense and event recorded in the document. The IRS generally suggests taxpayers keep records for three years.
  4. A good recordkeeping system includes a summary of all business transactions. Businesses usually record these transactions in books called journals and ledgers, which business owners can buy at an office supply store, or keep them electronically. All requirements that apply to hard copy books and records also apply to electronic business records.
  5. The responsibility to validate information on tax returns is known as the burden of proof. Small business owners must be able to prove expenses to deduct them.
  6. Business owners should keep all records of employment taxes for at least four years.
  7. Businesses that keep paper records should keep them in a secure location, preferably under lock and key, such as a desk drawer or a safe.
  8. Businesses that keep records electronically on a computer should always have an electronic back-up, in case the hard drive crashes.

Posted in NEWS

October 24th, 2019 by Oscar

El Crédito Tributario por Ingreso del Trabajo (EITC, por sus siglas en inglés) beneficia a personas trabajadoras con ingresos bajos a moderados. El año pasado, el crédito promedio fue de $2,455. El EITC no sólo reduce la cantidad de impuestos que una persona debe, sino que también puede darles un reembolso, incluso si no debe ningún impuesto.

A continuación, algunas cosas que las personas deben saber acerca de este crédito:

  1. Los contribuyentes pueden entrar y salir de la elegibilidad para el crédito durante todo el año. Esto puede suceder después de eventos mayores de vida. Debido a esto, es una buena idea que la gente averigüe si califica.
  2. Para calificar, las personas deben cumplir con ciertos requisitos y presentar una declaración federal de impuestos. Deben presentar una declaración incluso si no adeudan ningún impuesto o no están obligados a presenter.
  3. Los contribuyentes califican a base de sus ingresos, el número de hijos que tienen y el estado civil tributario que usan en su declaración de impuestos. Para que un niño califique, debe vivir con el contribuyente por más de seis meses del año.

A continuación, entregamos un resumen de los límites de ingresos para los diferentes estados civiles tributarios. Los que trabajan y ganan menos de estas cantidades pueden calificar.

Casado que declara en conjunto:

  • Sin hijos: $21,370
  • Un hijo: $46,884
  • Dos hijos: $52,493
  • Tres o más hijos: $55,952

Jefe de familia y soltero:

  • Sin hijos: $15,570
  • Un hijo: $41,094
  • Dos hijos: $46,703
  • Tres o más hijos: $50,162

El crédito máximo se basa en el número de hijos del contribuyente. Son los mismos para todos los estados civiles tributarios:

  • Sin hijos: $529
  • Un hijo: $3,526
  • Dos hijos: $5,828
  • Tres o más hijos: $6,557
  • Los contribuyentes que presentan con el estado casado presentando por separado no pueden reclamar el EITC.


October 10th, 2019 by Oscar

Taxpayers who requested the six-month filing extension should complete their tax returns and file on or before the Oct. 15 deadline.

Filing electronically is easy, safe and the most accurate way to file taxes. There are a variety of electronic filing options. Those options include having tax returns prepared at a Volunteer Income Tax Assistance or Tax Counseling for the Elderly site, purchasing commercial software or choosing a reputable tax professional who is also an authorized e-file provider.

About 15 million taxpayers filed for an extension this year. Although Oct. 15 is the last day for most people to file, some may have more time. They include:

  1. Members of the military and others serving in a combat zone. They typically have 180 days after they leave the combat zone to file returns and pay any taxes due.
  2. Taxpayers in federally-declared disaster areas who already had valid extensions.

Extension filers can file when they are ready and don’t have to wait until Oct. 15 to file. Taxpayers who did not request an extension and have yet to file a 2018 tax return can generally avoid additional penalties and interest by filing the return as soon as possible and paying any taxes owed.

New Form 1040
Form 1040 has been redesigned for tax year 2018. The revised form consolidates Forms 1040, 1040A and 1040-EZ into one form that all individual taxpayers will use to file their 2018 federal income tax return.

The new form uses a “building block” approach that can be supplemented with additional schedules as needed. Taxpayers with straightforward tax situations will only need to file the Form 1040 with no additional schedules. People who use tax software will still follow the steps they’re familiar with from previous years. Since nearly 90 percent of taxpayers now use tax software, the IRS expects the change to Form 1040 and its schedules to be seamless for those who file electronically.

Recordkeeping and adjusted gross income
As a reminder, taxpayers should keep a copy of their tax returns and supporting documents for a minimum of three years. Some taxpayers using a tax-filing software product for the first time may need their adjusted gross income amount from their prior-year tax return to verify their identity.

Taxpayers using the same tax software they used last year will not need to enter their prior year information to electronically sign their 2018 tax return.

Payment options
IRS Direct Pay offers taxpayers a fast way to pay what they owe. Direct Pay is free and allows individuals to securely pay their tax bills or make quarterly estimated tax payments online directly from checking or savings accounts without any fees or pre-registration.

Taxpayers can also pay by debit or credit card. While the IRS does not charge a fee for this service, the payment processer does. Other payment options include the Electronic Federal Tax Payment System (enrollment is required) and electronic funds withdrawal which is available when e-filing. Those choosing to pay by check or money order should make the payment out to the “United States Treasury.”

Eligible taxpayers can set up an online payment agreement in a matter of minutes to pay tax, interest and penalties they may owe. There is no application fee to setup payment plans lasting 120 days or less. In 2019, over 1 million agreements were set up by taxpayers online.

Prepare for next year − Do a ‘Paycheck Checkup’ now
The IRS also urges extension filers to do a “Paycheck Checkup” now. It helps make sure the right amount is being withheld from their checks following tax reform. If a change is needed, there’s still time to adjust withholding during the last quarter of the year.

Taxpayers can use the Tax Withholding Estimator to approximate their 2019 income taxes and proper withholding. The tool compares the estimate to current withholding to help taxpayers decide if they want to change that amount with their employer. Taxpayers should have their 2018 tax return available when using the tool to estimate income, deductions, adjustments and credits for 2019. They will also need their most recent pay stub to compute the amount of withholding so far this year.


October 3rd, 2019 by Oscar

Taxpayers with dependents may qualify to claim a few different tax credits. One of these is the child tax credit. The child tax credit benefits people whose dependent meets a series of tests. If the dependent doesn’t meet those qualifications, the taxpayer may be able to claim the credit for other dependents.

Here’s some info about the credit for other dependents. These details can help taxpayers find out if they can claim it when they file their taxes next year.

  1. A taxpayer can’t claim the credit for other dependents for a child who qualifies for the child tax credit or the additional child tax credit.
  2. A qualifying individual could be the taxpayer’s older child, parent or cousin. It could even be someone who is not related to the taxpayer. To qualify, the unrelated person must have lived with the taxpayer for the entire tax year.
  3. The maximum amount of the credit is $500 per qualifying dependent.
  4. The dependent must be a U.S. citizen, a U.S. national, or a U.S. resident alien.
  5. Taxpayers who are eligible to claim this credit must list the name and Social Security number or individual taxpayer identification number for each dependent they claim on their tax return.
  6. The credit begins to phase out at $200,000 of modified adjusted gross income. This amount is $400,000 for married couples filing jointly.


October 2nd, 2019 by Oscar

Starting in 2019, selected taxpayers don’t have to pay a penalty for not having health insurance and are free to buy plans with lower costs and no network restrictions.

Small businesses can provide tax free reimbursements to eligible employees to help with out of pocket expenses associated with high deductible health insurance plans. Reimbursements are not subject to payroll taxes. The business is eligible for a tax deduction and doesn’t need to offer a group health insurance plan.

For optimal results, assessments will need to start before open enrollment begins for ACA health insurance plans.

Jorge Enderica CLU ChFC , who has been assisting our clients in their needs for different coverage, can explain how these new provisions work and assess the best course of action for your business and your employees. Call 214-739-5610 by November 1st to request an assessment or click on the following link:

Posted in NEWS

September 5th, 2019 by Oscar

Millions of people have filed their 2018 tax return, making this a prime time to consider whether their tax situation came out as expected. If not, taxpayers can use their  finished 2018 return and, if needed, adjust their withholding. Having their 2018 return handy can make it easier for taxpayers to estimate deductions, credits and other amounts for 2019. Performing a Paycheck Checkup is a good idea for anyone who:

  1. Adjusted their withholding in 2018, especially those who did so later in the year.
  2. Owed additional tax when they filed their tax return this year.
  3. Had a refund that was larger or smaller than expected.
  4. Had life changes such as marriage, childbirth, adoption, buying a home or income changes.

Since most people are affected by the Tax Cuts and Jobs Act all taxpayers should check their withholding. They should do a checkup even if they did one in 2018. This especially includes taxpayers who:

  1. Have children and claim credits such as the Child Tax Credit.
  2. Have older dependents, including children age 17 or older.
  3. Experienced changes to itemized deductions this year.
  4. Itemized deductions in the past.
  5. Are a two-income family.
  6. Have two or more jobs at the same time.
  7. Only work part of the year.
  8. Have high income or a complex tax return.

This Tax Withholding Estimator works for most taxpayers. Those with more complex situations may need to use Tax Withholding and Estimated Tax, instead of the Tax Withholding Estimator. This includes taxpayers who owe alternative minimum tax or certain other taxes, and people with long-term capital gains or qualified dividends.

Taxpayers can use the results from the Tax Withholding Estimator to see if they need to complete a new Form W-4, Employee’s Withholding Allowance Certificate, and submit it to their employer. In some instances, the calculator may recommend they have an additional flat-dollar amount withheld each pay period. Taxpayers give this form to their employer and do not send this form to the IRS.


April 4th, 2019 by Oscar

Es posible que en algún momento, un contribuyente necesite hacer un retiro anticipado de fondos de su cuenta individual de jubilación. Sin embargo, esto puede costarle un impuesto adicional además de otros impuestos ya adeudados.  Aquí les presentamos algunos puntos para que tome en cuenta al hacer un retiro anticipado de fondos de jubilación:

  • Retiro anticipado de fondos. Normalmente, un retiro anticipado de fondos significa sacar dinero en efectivo de su plan de jubilación antes de cumplir los 59 ½ de edad requeridos.
  • Impuesto adicional. El IRS cobra una multa de 10 por ciento a los retiros anticipados en la mayoría de los planes de jubilación calificados. Existen algunas excepciones a esta regla.
  • Retiros no tributables. El impuesto adicional no aplica a retiros no tributables. Los retiros no tributables son aquellos en los que el contribuyente pagó el impuesto antes de depositar los fondos al plan de jubilación.
  • Reinversiones a otros planes se consideran retiros no tributables. Una reinversión sucede cuando el contribuyente retira dinero en efectivo u otros activos de un plan de jubilación y deposita esos fondos a otro plan dentro de 60 días. Una reinversión también sucede cuando se le dirige al administrador del plan de jubilación que haga depósitos directamente a otro plan de jubilación o a un IRA.
  • El Formulario 5329. Los contribuyentes que hicieron un retiro de fondos anticipado el año pasado quizá tengan que presentar el Formulario 5329 junto con la declaración federal de impuestos.

Posted in NEWS

March 8th, 2019 by Oscar

El Formulario 1040 del 2018 reemplaza los formularios: 1040, 1040A y 1040EZ del año anterior. El Formulario 1040 del 2018 usa un enfoque de “construcción” que permite a los contribuyentes presentar solo los anexos que necesitan con su declaración federal de impuestos. Algunas personas solo necesitarán presentar el Formulario 1040 sin anexos adicionales.

Las personas que presentan sus impuestos electrónicamente tal vez no notarán estos cambios, ya que los softwares de impuestos automáticamente usarán sus respuestas para completar el Formulario 1040 y los anexos necesarios. Para los contribuyentes que en el pasado presentaron en papel y están preocupados por los cambios de 2018, este podría ser el año para considerar la presentación electrónica.

Mientras que algunas de las líneas de uso frecuente en el formulario del año anterior aún se encuentran en el Formulario 1040 de 2018, otras líneas ahora son los anexos del 1 al 6 y organizados por categoría. Los seis nuevos anexos enumerados se añaden a los anexos existentes; tal como el Anexo A, Deducciones detalladas, o el Anexo C, Ganancias o pérdidas de un negocio.

Anexo 1, Impuestos adicionales y ajustes a los ingresos
Los contribuyentes usan este anexo para reportar ingresos o ajustes a los ingresos que no pueden ingresarse directamente en el Formulario 1040. Esto incluye ganancias de capital, pago por desempleo, y dinero de premios y ganancias de apuestas. Esto también incluye la deducción de intereses de préstamos estudiantiles, impuestos al ingreso de trabajo por cuenta propia o gastos de educador.

Anexo 2, Impuesto adicional
Este anexo lo usan los contribuyentes en situaciones específicas. Aquellos que adeudan el impuesto mínimo alternativo o necesitan hacer un pago por recibir un exceso del crédito tributario de prima presentarán este anexo.

Anexo 3, Créditos no reembolsables
Los contribuyentes usan este anexo para reportar créditos no reembolsables con excepción del crédito tributario por hijos o el crédito por otros dependientes. Esto incluye el crédito tributario extranjero, créditos de educación y el crédito general de negocios.

Anexo 4, Otros impuestos
Los contribuyentes usan este anexo para reportar ciertos impuestos. Estos incluyen el impuesto del trabajo por cuenta propia, impuestos del empleo doméstico, las cuentas favorecidas de impuestos y el impuesto adicional de los IRAs u otros planes de retiro.

Anexo 5, Otros pagos y créditos reembolsables
Los contribuyentes que reclaman créditos reembolsables específicos o tienen otros pagos retenidos usarán este formulario. Estos otros pagos incluyen:
o Pagos cuando el contribuyente solicita una prórroga.
o Exceso de pago de impuestos del los beneficios de seguro social.

Anexo 6, Domicilio extranjero y nombre de tercera persona
Los contribuyentes usan este anexo para ingresar una dirección extranjera. Cualquier persona que quiera permitir que otra persona además de su preparador de impuestos hable acerca de su declaración de impuestos también presentará el Anexo 6.

Posted in NEWS

February 12th, 2019 by Oscar

The IRS offers several payment options where taxpayers can pay immediately or arrange to pay in installments. Taxpayers can pay online, by phone, or with their mobile device and the IRS2Go app. Taxpayers should pay in full whenever possible to avoid interest and penalty charges.   

Here are some electronic payment options for taxpayers:

  • Electronic Funds Withdrawal. Taxpayers can pay using their bank account when they e-file their tax return. EFW is free and only available through e-File.
  • Direct Pay. Taxpayers can pay directly from a checking or savings account for free with IRS Direct Pay. Taxpayers receive instant confirmation after they submit a payment. With Direct Pay, taxpayers can schedule payments up to 30 days in advance. They can change or cancel their payment two business days before the scheduled payment date. Taxpayers can choose to receive email notifications each time they make a payment.
  • Credit or debit cards. Taxpayers can also pay their taxes by debit or credit card online, by phone, or with a mobile device. Card payment processing fees vary by service provider and no part of the service fee goes to the IRS.
  • Pay with cash. Taxpayers can make a cash payment at a participating retail partner. Taxpayers can do this at more than 7,000 locations nationwide. Taxpayers can visit for instructions on how to pay with cash.
  • Installment agreement. Taxpayers who are unable to pay their tax debt immediately may be able to make monthly payments. Before applying for any payment agreement, taxpayers must file all required tax returns. They can apply for an installment agreement with the Online Payment Agreement tool, which also has more information about who’s eligible to apply for a monthly installment agreement.

Posted in NEWS

February 2nd, 2019 by Oscar

As people prepare to file their taxes, there are things to consider. They will want to determine if they need to file and the best way to do so.

For tax year 2018, all individual taxpayers will file using the new Form 1040. Forms 1040A and 1040EZ are no longer available.  Taxpayers who previously filed these forms will now file Form 1040. The new Form 1040 uses a “building block” approach allowing individuals to add only the schedules they need to their 2018 federal tax return. Taxpayers with more complicated returns will need to complete one or more of the new Form 1040 Schedules. This group of taxpayers includes those who claim certain deductions or credits, or who owe additional taxes.

Individuals who filed their federal tax return electronically last year may not notice any changes, as the tax return preparation software will automatically use their answers to the tax questions to complete the Form 1040 and any needed schedules.

Here are three more things for people to keep in mind as they prepare to file their taxes:

Who is required to file.  In most cases, income, filing status and age determine if a taxpayer must file a tax return. Other rules may apply if the taxpayer is self-employed or if they are a dependent of another person. For example, if a taxpayer is single and younger than age 65, they must file if their income was at least $12,000. There are other instances when a taxpayer must file.

Filing to get a refund. Even if a taxpayer doesn’t have to file, they should consider filing a tax return if they can get money back. If a taxpayer answers “yes” to any of these questions, they could be due a refund:

  • Did my employer withhold federal income tax from my pay?
  • Did I make estimated tax payments?
  • Did I overpay on my 2017 tax return and have it applied to 2018?
  • Am I eligible for certain refundable credits such as the earned income tax credit