Supertax, Inc. - Paula Chao

12/21/2017

We're sorry to report that the *smart* idea of prepaying next year's state taxes in an effort to receive a full deduction for them in 2017 has been headed off at the pass in the tax bill. You will NOT be allowed to deduct 2018 prepayments when you file this year's return. (But thankfully you will be able to deduct up to $10,000 next year. Not all the relief is gone!)

Keep checking back here with us for relevant commentary on the pieces of the tax reform that will affect YOUR wallet.

12/20/2017

We're digging and diving into the tax reform bill that Congress passed today, which will become the law of the land in 2018 (and until 2024 or so -- or if another Congress changes it! Again. They love doing that).

There looks to be MANY ways that taxpayers with smart advice in their pocket will be able to find ways to save on their taxes. We will be digging and diving throughout the next few weeks and months to offer you those kinds of tips, right here.

But here's a very quick (and possibly easy) one that many will be able to pull off RIGHT NOW:

Because tax rates are changing -- decreasing -- for many tax brackets and situations in 2018, it would be beneficial for almost everyone reading this, who is able, to defer any income they might receive in the next couple weeks until 2018. That way, that income will be classified under the new, lower rates (and not under 2017 rates).

Business owners (though there are MANY ways in the new bill to reduce your load in a variety of appetizing ways), you will also want to defer income if at all possible into 2018. Which means that you might be incentivized to put certain expenses in 2017, instead of 2018. However, as I mentioned, there are many ways to further offset revenue in 2018 which we will get into in future weeks and months.

Stay tuned right here for the good stuff.

12/19/2017

You can't put too high a value on human connection. When it comes to handing someone your life's most personal details, you need to know you can trust them. This is our conviction regarding your taxes - big box corporations and impersonal computer software just can't replace a LOCAL professional who can meet you face to face, earning AND keeping your trust. Call the most trusted tax professionals in your area (that's us) to know your information is in good hands.

12/18/2017

The new tax bill is expected to pass in the first half of this week. With so many changes to the minutiae of what tax rates it affects, you're probably wondering about the effect it will have on YOUR pocketbook. The New York Times created a handy calculator to get an estimate of its personal impact on you, using a few simple questions.

Of course these are not final numbers; as we work through your specific situation together, we'll be able to tell you more about how to navigate this *potential* new tax world.

This simple calculator describes a range of tax scenarios under the Republican tax plan. Find households like yours in five steps or fewer.

12/15/2017

Well folks, as promised, we are keeping an eye on the unfolding events in Washington so that we can provide you quality insider info here.

TAX BILL UPDATE: As of last night, members of Congress agreed to allow deductions of state and local taxes back into the tax bill. The deduction amount is capped at $10,000, so this is still a major reduction for some taxpayers, but it's looking like the savings will stick around.

Keep checking back here for more relevant commentary as this tax reform evolves. We're looking forward to unpacking what all this means for our clients.

12/14/2017

You can find lots of advice floating around on handling your finances, but not all of it is valid for everyone. That's why it's always helpful to have someone who can speak into your specific situation. There just aren't one-size-fits-all money answers.

12/13/2017

If you stick to the IRS' guidelines, your twinkling staff Christmas party can be deducted on your taxes. Just be sure not to invite your customers (and a few other details, but we can talk about those when you call for your end-of-year consultation). :)

12/12/2017

*Tax Insider Tip* It looks pretty certain that you're not going to be able to deduct your state and local income taxes in 2018. Both the House and Senate bills kill this deduction. This means that if you can find a way to pay (or even overpay) your state and local income taxes NOW, before the end of 2017, you will be able to deduct them from this year's taxes.

This issue is actually becoming a major hold up for representatives from higher-income-tax states (CA, NY, NJ in particular). It would still be wise to make this move, but the tax bill -- as of this posting -- is still very much under debate.

Stay tuned.
(For more of our advice on how to grab often-missed deductions and save you and yours $$$, make sure you follow us right here. We're putting out daily insider tax knowledge.)

12/11/2017

There is so much chatter about what the tax bill will and won't affect, it can be dizzying. One clarification we wanted to pass on is great news: in its current form the bill does NOT take away small business owners' ability to take business expenses as deductions. There have been some rumors that mistook one of the bills' provisions as doing such, but thankfully that is not the case.

12/08/2017

As we get further into the holiday season, we'd like to hear from you. What are your favorite parts of this time of year?

12/07/2017

"It does not do to leave a live dragon out of your calculations, if you live near him." - quote from J.R.R. Tolkien's "The Hobbit."

While the IRS may not exactly be a "live dragon," the truth is that taxes come for everyone, there's no getting around it. You can (we want to say *must*) plan for how they will affect your pocketbook. Call us today to talk through year-end moves that can affect this Spring's return.

12/06/2017

There's a chance that medical deductions may be a thing of the past after this tax reform bill is finalized. If you have any major medical expenses coming up, you may want to try to get those appointments in before the end of the year. (Remember, to be used as a deduction, the expenses must be worth more than 10% of your income).