Ahart & Cardon CPAs

Eight Tax Breaks for Parents If you have children, you may be able to reduce your tax bill using these tax credits and deductions. Child Tax Credit: You may be able to take this credit on your tax return for each of your children under age 17. Qualifying dependents must have a valid Social Security Number. This credit is refundable, which means you may a refund even if you don’t owe any tax.... Credit for Other Dependents: This is a new tax credit under tax reform and is available for dependents for whom taxpayers cannot claim the Child Tax Credit. These dependents may include dependent children who are age 17 or older at the end of 2018 or parents or other qualifying relatives supported by the taxpayer. This credit is nonrefundable. Child and Dependent Care Credit: You may be able to claim this credit if you pay someone to care for your child under age 13 while you work or look for work. To claim this credit you will need to accurately track your child care expenses. Earned Income Tax Credit: The EITC is a benefit for certain people who work and have earned income from wages, self-employment, or farming. EITC reduces the amount of tax you owe and may also give you a refund. Adoption Credit: You may be able to take a tax credit for qualifying expenses paid to adopt a child. Coverdell Education Savings Account: This savings account is used to pay qualified expenses at an eligible educational institution, which starting in 2018, includes primary and secondary schools as well as colleges and vocational schools. Contributions are not deductible; however, qualified distributions generally are tax-free. Higher Education Tax Credits: Education tax credits can help offset the costs of education. The American Opportunity and the Lifetime Learning Credits are education tax credits that reduce your federal income tax dollar for dollar, unlike a deduction, which reduces your taxable income. Student Loan Interest: You may be able to deduct interest you pay on a qualified student loan. The deduction is claimed as an adjustment to income, so you do not need to itemize your deductions. As you can see, having children can impact your tax situation in multiple ways. Make sure that you're taking advantage of credits and deductions you're entitled to by speaking to a tax professional today.

Retirement Contributions Limits Announced for 2019 Dollar limitations for pension plans and other retirement-related items for 2019 are as follows: In general, income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the saver's credit all increased for 2019. The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal...Continue reading

Depreciating Farming Business Property Farmers and ranchers should be aware of changes in how they depreciate their farming business property. These changes took effect in 2018 as a result of tax reform legislation passed in December 2017. Depreciation is an annual income tax deduction that allows a taxpayer to recover the cost or other basis of certain property over the time that they use it. When figuring depreciation, there are a number of factors that should be taken into...Continue reading

New Depreciation Deduction Benefits Business Tax reform legislation passed in December 2017 included numerous changes that affect businesses this year. One of them allows businesses to write off most depreciable business assets in the year they place them in service. Here are five facts to help businesses better understand this deduction: 1. The 100-percent depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and c...ertain other property. 2. Machinery, equipment, computers, appliances, and furniture generally qualify. 3. The 100-percent depreciation deduction applies to qualifying property acquired and placed in service after September 27, 2017. 4. Taxpayers who elect out of the 100-percent depreciation deduction for a class of property must do so on a timely filed return. 5. The IRS has issued proposed regulations with guidance on what property qualifies and rules for qualified film, television and live theatrical productions, and certain plants. For more details about the 100-percent depreciation deduction or electing out of claiming it, please call.

Don't forget that the tax deadlines are just around the corner! See link for more details. https://www.ahartcardon.com/newsletter.php#6