Tax Tip Tuesday: 2019 Inflation Adjusted Tax Changes
Today we will address some inflation adjusted tax changes for 2019. For gifts made and estates of decedents dying in 2019, the exclusion amount will be $11,400,000 up from $11,200,000 for gifts made and estates of decedents dying in 2018. For gifts made in 2019, the gift tax annual exclusion will be $15,000 unchanged from 2018. For 2019, the credit allowed for an adoption of a child with special needs will be $14,080 (up from $13,840 for 2018). The maximum credit allowed for
Tax Tip Tuesday: What You Need to Know About Iowa Withholding
Today we will look at two items related to Iowa withholding. Beginning in 2019, for tax year 2018, all withholding agents are required to electronically file W-2 and W-2G forms with the department by the last day of January following the tax year. You will not be able to paper file a W-2 with Iowa. Also, the Iowa Department of Revenue is issuing new income tax withholding tables for 2019 to better align with recent changes in state tax laws. For individuals, this means that
Tax Tip Tuesday: Retirement Plan Dollar Limits for 2019
The IRS has announced the 2019 cost of living adjustments for retirement plans. The limitation on the annual benefit under a defined benefit plan increases from $220,000 for 2018 to $225,000 for 2019. The limit on the annual additions to a participant's defined contribution account increases from $55,000 for 2018 to $56,000 for 2019. The maximum amount of annual compensation that can be taken into account for various qualified plan purposes increases from $275,000 for 2018 to
Tax Tip Tuesday: Tax Cuts and Jobs Act Review Part Two
This week we will continue to review some of the changes from the Tax Cuts and Jobs Act (TCJA) passed last December. Prior to 2018, a business could deduct up to 50 percent of entertainment expenses directly related to the active conduct of a trade or business. This also applied if the entertainment incurred immediately before or after a bona fide business discussion, associated with the active conduct of a trade or business. The TCJA eliminated the deduction for all expenses
