Keep saving receipts for Itemized Deductions

Even though the Federal Standard Deduction doubled and most people will not be taking Itemized Deductions on their Federal Tax return this year, some states did not follow the Federal lead. States such as California and New York did not conform.

That means that if you used to itemize, you better continue to track those same expenses because you can still use them to save state taxes

New Reporting Requirements for Business

Businesses are now required to report to the IRS whenever there are changes to contact info – responsible party, address etc.

This from the Form 8822-B instructions:

Beginning January 1, 2014, any entity with an EIN must file Form 8822-B to report the latest change to its responsible party. Form 8822-B must be filed within 60 days of the change. If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. Complete Form 8822-B as appropriate; use applicable boxes 8a through 9b to report any changes to the identity of your responsible party. 

For more check out the form and instructions here.

How to get your Wage Withholding Tax just right

The IRS recently released a helpful video on their YouTube channel.

This video explains how to use their Withholding calculator to get your withholding just right.

If you are a wage earner this video and the calculator will help you understand how it all works.

The IRS removed this video. It is pretty old after all.

Business Record-keeping – Everything you ever wanted to know but were afraid to ask

What kind of Bookkeping system do you need?

Do you need to use a Double Entry system?

Is a set of books enough to satisfy the IRS or do you need more?

The answers might surprise you:

You don’t need any specific type of system.  But you do need to be sure to keep supporting documentation. 

Have you always wanted to know what kind of record keeping system the IRS requires? If so Take a look at this guide and for more detailed info this IRS guide to the subject