TFA Income Tax Services, Inc.

TFA Income Tax Services, Inc. Income Tax Services in Jersey City, NJ.

401(k) and IRA Contribution Limits - Did You Know?The IRS has announced cost-of-living adjustments that increase the con...
11/07/2018

401(k) and IRA Contribution Limits - Did You Know?

The IRS has announced cost-of-living adjustments that increase the contribution limits for 2019. The limit for 401(k), 403(b), most 457 plans as well as the Thrift Savings Plan is increased from $18,500 to $19,000.

For IRAs and Roth IRAs, the limit on annual contributions is increased from $5,500 to $6,000. If you are aged 50 or older, the catch-up contribution limit remained at $1,000 meaning you may now be able to contribute up to $7,000.

2019 Healthcare Open Enrollment Starts TodayThe 2019 Open Enrollment period for Marketplace health insurance starts toda...
11/01/2018

2019 Healthcare Open Enrollment Starts Today

The 2019 Open Enrollment period for Marketplace health insurance starts today, November 1, 2018, and ends December 15, 2018. Plans will start January 1, 2019.

Once the Open Enrollment period is over, you will only be able to enroll if there's a qualifying life event for the Special Enrollment Period.

Enrollment can be done at https://Healthcare.gov, and a simple checklist of documents you'll need can be found here: https://marketplace.cms.gov/outreach-and-education/marketplace-application-checklist.pdf.

2018 Personal Exemptions – Did You Know?The Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction for most...
10/17/2018

2018 Personal Exemptions – Did You Know?

The Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction for most taxpayers, but eliminated personal exemptions for yourself, your spouse, and/or your dependents for at least the years 2018 through 2025.

The higher standard deduction may or may not make up for the loss of personal and dependent exemptions.

We recommend scheduling an appointment to go over your specific situation.

Six Month Filing Extension DeadlinesIf you requested an extra six-month extension in April to file your 2017 personal in...
10/08/2018

Six Month Filing Extension Deadlines

If you requested an extra six-month extension in April to file your 2017 personal income tax return, that deadline to file is coming up on Monday, October 15th.

If you are an employer that makes contributions into employee Simplified Employee Pension IRA accounts, October 15th is also the six-month extension deadline to make those deposits.

HSA Accounts - Did You Know? Health savings accounts or HSAs are often referred to as another form of retirement plan fo...
10/03/2018

HSA Accounts - Did You Know?

Health savings accounts or HSAs are often referred to as another form of retirement plan for those with access to them. An HSA is a medical savings account that may offer triple tax advantages. Contributions are pre-tax, the money can be withdrawn tax-free to pay for qualified medical and related expenses and any interest earned is tax-free as well.

For those who can afford to allow their HSA to accumulate for retirement, they can be used to pay for Medicare premiums and other healthcare costs in retirement as unused funds can be carried over year-to-year. If you are over age 65, withdrawals for non-qualified expenses can be made without penalty, but subject to taxes just like an IRA

An HSA can only be opened in connection with a high deductible health insurance plan as defined by the IRS. Contribution limits for 2018 are $3,450 for single people and $6,900 (this was reduced to $6,850 in March but has since been restored) for families, with an extra $1,000 for anyone age 55 or over.

Employer Family and Medical Leave Credit - Did You Know?If you are an employer who provided family and medical leave to ...
09/28/2018

Employer Family and Medical Leave Credit - Did You Know?

If you are an employer who provided family and medical leave to your employees during 2018 and 2019, you may qualify for a new business tax credit.

To be eligible, you must:

- Have a written policy that meets certain IRS requirements
- Provide at least two weeks of paid family and medical leave to full-time employees, and a prorated amount of paid leave for part-time employees

The credit may be available for wages paid during taxable years after Dec. 31, 2017, and before Jan. 1, 2020, and is generally 12.5 to 25 percent of paid family and medical leave for those employees that qualify.

Military Contractors and Employees – Did You Know? If you perform services for the U.S. Military in a combat zone and me...
09/22/2018

Military Contractors and Employees – Did You Know?

If you perform services for the U.S. Military in a combat zone and meet eligibility requirements, you may now be able to exclude as much as $103,900 in earnings from the gross income you report on your tax return. In the past, to qualify for the Foreign Earned Income Exclusion, you had to live in a foreign country and not "maintain an abode" in the U.S. However, in February 2018, Congress removed this requirement for military contractors and their employees working in registered combat zones.

You can only exclude foreign income that you earned while working in support of the U.S. Armed Forces, and you can't claim any deductions or credits related to that income, such as business travel expenses. Still, if you've worked in a combat zone, this law change could save you a lot at tax time.

The foreign earned income exclusion is not automatic. Please contact us to learn more about filing for this exclusion.

Quarterly Estimated Tax Payments - ReminderIf you are making quarterly estimated tax payments to the IRS, the due date f...
09/10/2018

Quarterly Estimated Tax Payments - Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the June 1st - August 31st quarter of the year is September 15th.

For payments made using IRS Direct Pay, you can make payments until 8PM EST, and for payments using a credit or debit card, payments can be made up to midnight on the due date.

If the due date for making an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time if you make it on the next day that's not a Saturday, Sunday, or legal holiday.

Paycheck Checkup - Did You Know?With the major tax law changes, the IRS has issued several press releases urging taxpaye...
09/07/2018

Paycheck Checkup - Did You Know?

With the major tax law changes, the IRS has issued several press releases urging taxpayers to use the IRS Withholding Calculator to double-check their tax withholding.

The Tax Cuts and Jobs Act passed in December, 2017 made significant changes including:

- Increased standard deduction
- Eliminated personal exemptions
- Increased Child Tax Credit
- Limited or discontinued certain deductions
- Changed the tax rates and brackets

Checking your withholding amount can help protect against having too little tax withheld and getting unexpected tax bills and penalties at tax time next year. You may also prefer to have less tax withheld up front and receive more in your paychecks.

The IRS Withholding Calculator can be found at: https://www.irs.gov/individuals/irs-withholding-calculator.

Flexible Spending Accounts - Did You Know?Flexible spending accounts (FSAs) are a way to pay for medical expenses and ge...
08/31/2018

Flexible Spending Accounts - Did You Know?

Flexible spending accounts (FSAs) are a way to pay for medical expenses and get a tax break at the same time. You decide how much to contribute to the FSA before the start of the year and then that amount is deducted from each paycheck. The contributions are pre-tax and the reimbursements for the expenses come out tax-free.

FSAs are generally "use it or lose it", however. If you don't use all the money, it will be lost. Unused dollars cannot be carried over from year-to-year. Make sure you are on track to use all of the funds. If not, they can be used for a variety of expenses, such as eye glasses and other items. Be sure to review your FSA spending to make sure you don't lose this tax-free benefit.

Section 179 Deduction Limits - Did You Know?If you are a business owner, the new tax law not only retained the section 1...
08/22/2018

Section 179 Deduction Limits - Did You Know?

If you are a business owner, the new tax law not only retained the section 179 deduction for certain types of equipment and other business purchases, but the limit was also expanded to $1 million for 2018. This rule allows the amount of these purchases to be expensed right away versus depreciated over a number of years. This can be a significant tax benefit for a company.

In order to qualify, the equipment or software purchase must be used for business use more than 50% of the time.

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Jersey City, NJ
07306

Telephone

+12019638888

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