Author - SFS Tax & Accounting

Hiring a Tax Preparer? Here are some tips…

Tax season is here, and you may be seeking someone new to prepare your tax return. Remember that you, the taxpayer, are ultimately responsible for all the information on your income tax return. Back in July 2019, the IRS reminded tax practitioners that all "professional tax preparers" must create a written data security plan to protect clients. It's federal law. Do not hesitate to ask your preparer or a potential tax pro how your information is protected. Choose your tax professional...

2020 Mileage Rates Announced

Dear Fellow Taxpayers, Better late than never. On December 31, 2019, the IRS issued the standard mileage rates for 2020. The Internal Revenue Service issued the 2020 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 57.5 cents per mile driven for business use, down one half...

Tax Law Changes That Affect Your Taxes

  Dear Fellow Taxpayers, Tax law changes that can affect your 2018 0r 2019 taxes - On Friday, December 20th, a new bill was signed into law. There are some retroactive tax law changes to current and expired tax laws buried in the 1770 pages of the tax bill. These new law extenders are in place for both 2019 and 2020. Here are some highlights in the Tax Law Changes: Mortgage forgiveness is not income. If a bank forgives mortgage indebtedness, it...

Unfiled Tax Returns – What to do?

I have unfiled tax returns. What should I do? 7 million taxpayers failed to file their taxes in 2014. Are you one of those individuals? No one is keen on filing their taxes, but not filing them at all is never a wise move. The Internal Revenue Service is a powerful collection agency. They are also relentless in their pursuit of what is owed to them. Getting on the wrong side of the IRS and having years of unfiled...

IRS Increases Tax Deductions for 2020

The IRS recently announced the list of increased tax deductions for 2020. The Internal Revenue Service recently issued its annual inflation adjustments for dozens of tax items for the tax year 2020. The IRS increased tax deductions for 2020.  The taxman is letting you keep more of your income. The IRS increased the standard deduction to $12,400 for single filers and $24,800 for married couples filing jointly. An individual can transfer up to $11.58 million without being subject to the...

IRS Increases 401K Contribution Limits for 2020

The IRS Increases 401K Contribution Limits for 2020. As part of its annual inflation adjustments, the Internal Revenue Service announced that employees who invest in 401(k) retirement plans would be able to contribute up to $19,500 next year: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's own Thrift Savings Plan is increasing from $19,000 to $19,500 next year. Meanwhile, the catch-up contribution limit for employees ages 50 and older who...

Is the Charity You are Donating to Legit?

One of the positive effects of donating (money) to a charity is simply feeling good about giving. Your ability to give back to those in need helps you achieve a sense of satisfaction, it just feels good to help others.  And, it can also reduce your tax bill — but only if the charity qualifies as a tax-exempt organization. Checking for qualified status: If you plan on itemizing your deductions on your tax return, make sure the organization you're donating to...

The 2020 tax filing season is almost here

Hello fellow taxpayers, October 25, 2019 - SFS is gearing up for the 2020 tax filing season. The 2020 tax filing season is almost here and we are readying ourselves for the onslaught. Now is also the time that you should start looking at your tax situation for 2019. Once December 31st is done and gone, it is too late (in most cases) to do anything to improve your 2019 taxes. Two weeks ago, was the last of our major deadlines for...

Social Security Annual Update and Increase

Hello, Fellow Taxpayers, October 18, 2019 - The Social Security Administration has announced the following changes for 2020. Please feel free to share the information with folks that you know that are on Social Security, contemplating taking it or is making close to the SS wage limit. The data is important. Social Security Annual Update and Increase The gross Social Security benefits are increasing by 1.6% for 2020. Some of the other limits change by different percentages. Here is the information...

Resolve Your Back Taxes… 8 Reasons to Work with a Certified Tax Resolution Professional

Resolve Your Back Taxes…8 Reasons to Work with a Certified Tax Resolution Professional When you owe money to the IRS, it is hard to think about anything else. While being in debt is never fun, no matter who the creditor is, the IRS enjoys almost unlimited power to collect the money they are due. Unlike your mortgage lender or credit card company, the Internal Revenue Service has the power to attach your wages, raid your bank account and even take your...