UPBlack & Associates CPA

10/02/2019

Teachers may deduct out-of-pocket classroom expenses
Now that fall is here and school has started, many teachers are dipping into their own pockets to buy classroom supplies. Doing this throughout the year can add up fast. Fortunately, eligible educators may be able to defray qualified expenses they paid in 2019 when they file their tax return in 2020.
Educators who work in schools may qualify to deduct up to $250 of unreimbursed expenses. That amount goes up to $500 if two qualified educators are married and file a joint return. However, neither spouse can deduct more than $250 of his or her qualified expenses when they file.
Taxpayers qualify for this deduction if they:
• Teach any grade from kindergarten through twelfth grade
• Are a teacher, instructor, counselor, principal or aide.
• Work at least 900 hours during the school year.
• Work in a school that provides elementary or secondary
Qualified expenses include:
• Professional development courses.
• Books.
• Supplies.
• Computer equipment incl related software & services.
• Supplementary materials.
• Athletic supplies only for health and physical education.
Eligible taxpayers can claim this deduction when they file their taxes.

03/20/2019

Did not file your 2015 Federal Income Tax Return and you are due a refund?
In cases where a federal income tax return was not filed, the law provides most taxpayers with a three-year window of opportunity to claim a tax refund. If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. For 2015 tax returns, the window closes April 15, 2019, for most taxpayers. That means you need to file that return on or before that date. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by that date.
Were you a student or a part-time worker and overlooked filing for 2015? Had taxes withheld and is due a refund of those taxes? Will not get it back unless you file a return. There is no penalty for filing a late return if you're due a refund.

02/28/2019

OWE TAXES? READ THIS.
The IRS continues to warn taxpayers who need to resolve tax debt, that they may not be able to renew a current passport or obtain a new passport.
A taxpayer with a seriously delinquent tax debt is generally someone who owes the IRS more than $52,000 in back taxes, penalties and interest, for which the IRS has filed a Notice of Federal Tax Lien and, the period to challenge it has expired or the IRS has issued a levy.

01/27/2019

TREATMENT OF 529 DISTRIBUTIONS FOR K-12 DISTRIBUTIONS
The Tax Cuts and Jobs Act of 2017 was signed into law in December 2017. The Act included provisions that allow 529 Plan account owners to withdraw Plan assets to pay for K-12 tuition expenses up to $10,000 per year, per beneficiary, beginning in 2018. These withdrawals will have no federal tax impact, just as 529 contributions do not.
Under New York State law contributions to the New York State 529 plans are tax-deductible on New York Returns. Distributions for K-12 tuition expenses are considered nonqualified withdrawals and will require the recapture of any New York State tax benefits that have accrued on contributions.

12/28/2018

New York opted not to follow many of the federal itemized deduction changes made by the TCJA for tax years 2018 and after, so you may be able to claim some deductions on your New York personal income tax return that are no longer available for federal purposes. For example, you may be able to claim deductions for:
• state and local real estate taxes paid, including amounts over the $10,000 federal limit;
• casualty and theft losses, including those incurred outside a federally declared disaster area;
• unreimbursed employee business expenses; and
• certain miscellaneous deductions that are no longer allowed federally (e.g. tax preparation fees, investment expenses, and safe deposit box fees).

12/17/2018

Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
• 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018,
• 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018, and
• 14 cents per mile driven in service of charitable organizations.
The business mileage rate increased 3.5 cents for business travel driven and 2 cents for medical and certain moving expense from the rates for 2018. The charitable rate is set by statute and remains unchanged.
It is important to note that under the Tax Cuts and Jobs Act, taxpayers can no longer claim a miscellaneous itemized deduction for unreimbursed employee travel expenses.

12/20/2015

2016 Standard Mileage Rates for Business, Medical and Moving
The Internal Revenue Service issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
54 cents per mile for business miles driven, down from 57.5 cents for 2015
19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
14 cents per mile driven in service of charitable organizations
The business mileage rate decreased 3.5 cents per mile and the medical, and moving expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is based on statute.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
This is for general information purposes only and should not be construed as tax advice. Contact our office for information specific to your tax situation.

11/24/2015

Want to Lower your 2015 Tax Liability?
Here is 1 way: Make sure you have adequate health insurance coverage.
If you and your family don’t have adequate medical coverage or “minimum essential coverage”, you may be subject to a penalty on your 2015 income tax return. Medical insurance provided by your employer or through an individual plan purchased through a state insurance marketplace generally qualifies for adequate coverage. The penalty amount varies based on 1. The number of uninsured members of your household and 2. Your household income. If you have three or more uninsured household members, the penalty could be $975 or more for 2015, depending on the household income.

This is for general information purposes only. It is not intended to be interpreted as tax advice. Contact our office for information specific to your tax situation.

10/29/2015

It is so important to whom one makes charitable contributions!

Charities named on Thrift Land's clothing donation bins received only a small monthly fee for the use of their logos.