WK Tax Service

03/11/2024

A caveat for all of us:

IR-2024-65, March 6, 2024 — Amid concerns about people being misled, the Internal Revenue Service today reminded taxpayers and heath spending plan administrators that personal expenses for general health and wellness are not considered medical expenses under the tax law.

03/11/2024

Let's take a look at what has changed for 2023 income tax return reporting.

For the 2023 tax year, several new federal tax laws and adjustments went into effect. Here are some key changes: 1. Tax Inflation Adjustments: The IRS announced annual inflation adjustments for more than 60 tax provisions, including tax rate schedules and other tax changes. (Refer to: https://ww ...

01/11/2019

Filing Season Start - Did You Know?

The IRS has confirmed that it will begin processing returns on January 28th, 2019, and provide refunds as scheduled despite the government shutdown.

The filing deadline for 2018 tax returns is Monday, April 15th, 2019. If you live in Maine or Massachusetts, you have until April 17th due to public holidays in those states.

01/04/2019

Quarterly Estimated Tax Payments - Reminder

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

12/28/2018

FSA Grace Period or $500 Carryover – Did You Know?

If you are having difficulty using up the funds in your medical flexible spending account (FSA) before the end of the year, your employer might offer you relief from the “use it or lose it rule” through a grace period or carryover.

Under IRS regulations, employers that offer FSA plans can offer one (not both) of the following options for unused FSA funds:

• A 2.5-month grace period, which means you will have until March 15, 2019 to use up your 2018 FSA funds.
– OR –
• A carryover of up to $500 of your 2018 FSA funds into your 2019 FSA. The carried over amount will not count toward your maximum allowed contribution for 2019, and can be spent anytime during 2019.

Although the law does not require employers to offer either option, most employers do offer one or the other. Check with your employer's benefits expert to find out if an FSA grace period or carryover is available to you.

12/16/2018

2019 Mileage Rate Increase

Starting on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

- 58 cents for every mile of business travel driven, an increase of 3.5 cents from the rate for 2018.
- 20 cents per mile driven for medical or moving purposes, an increase of 2 cents from the rate for 2018.
- 14 cents per mile driven in service of charitable organizations.

You also have the option of calculating the actual costs of using your vehicle rather than using the standard mileage rates.

12/10/2018

FINAL NOTICE: Healthcare Open Enrollment Deadline 12/15

This week is the last week to register for the HealthCare.gov open enrollment period with the deadline being Saturday, December 15th, 2018. 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.

12/07/2018

Reporting ACA Changes - Did You Know?

The open enrollment period for 2019 health insurance under the Affordable Care Act (ACA) is from November 1, 2018 to December 15, 2018. Even if you're keeping a current insurance plan that you purchased through the Exchange in your state, you should still report major life changes to the Exchange. Changes that should be reported include:

- Increase or decrease in family size, including children turning 26 so they can no longer be covered on your health insurance plan
- Change in tax filing status (single, married filing jointly, married filing separately)
- Change in income, including an expected increase or decrease in 2019
- Change of address (If you moved to a different state, you will need to re-apply for coverage.)
- Anyone in your household gaining or losing access to health insurance plans offered by an employer (whether or not they signed up for one of those plans)

You should also report these and similar changes to your state Exchange if they occur at any time during 2019.

Any changes reported may affect the amount of your Advanced Premium Tax Credit (APTC), and therefore the monthly insurance premiums. Not reporting life changes may result in losing your eligibility for the APTC.

11/26/2018

Giving Tuesday and Charitable Donations - Did You Know?

Giving Tuesday is an annual event that highlights charitable giving after Thanksgiving.

If you are considering charitable donations, you may be able to donate to a Donor-Advised Fund (DAF) every two or three years instead of every year. This may qualify you to receive tax benefits now, allow the amount to grow tax-free, and the decision on which qualified charity to fund can be made later.

If you are 70.5 years or older, you may be able to make a qualified charitable distribution (QCD) from your IRA this year, and this may satisfy all or part of the required minimum distribution (RMD) each year.

The IRS has released a tool to make it easier to get information about qualified charitable organizations. The Exempt Organizations Select Check tool can be found at: https://www.irs.gov/charities-non-profits/tax-exempt-organization-search.

11/21/2018

IRA Phase-Outs - Did You Know?

If you or your spouse is covered by a workplace retirement plan, the IRS has increased the phase-out ranges for making contributions to Individual Retirement Arrangements (IRAs):

- Single: $64,000-$74,000 from $63,000-$73,000
- Married filing jointly (with one spouse making the contribution and covered by a workplace retirement plan): $103,000-$123,000 from $101,000-$121,000

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.