Category: Taxation-Individuals

In an era of uncertainty, you can count on one thing: Time marches on. While you can’t beat Father Time, you can prepare for these age-related tax and financial planning milestones as you and your loved ones grow older. Age 0-23: Beware of the Kiddie Tax The so-called “kiddie tax” rules can potentially apply to your child’s (or grandchild’s) investment income until the year he or she reaches age 24. Specifically, a child’s or young adult’s investment income in excess… Read more ›

2020 is a presidential election year. You’ll have an opportunity to cast a vote for your favored presidential candidate in November, but you can make several other key “elections” this year when filing your 2019 tax return. These elections may be influenced by the Tax Cuts and Jobs Act (TCJA), as well as the year-end spending package that was signed late last year. Here are ten important choices that individuals and small business owners can make this tax season. 1…. Read more ›

The Setting Every Community Up for Retirement Enhancement (SECURE) Act is the first significant retirement-related legislation in more than a dozen years. It brings many changes that affect employers of all sizes, including some that could be particularly beneficial for smaller employers that sponsor retirement plans. Some of the changes, however, may increase the burden on employers. Here are some of the most important developments for employers, many of which took effect for plan years beginning after December 31, 2019…. Read more ›

Councilor Buchanan & Mitchell (CBM)’s tax calendar below is current as of March 24, 2020.  To ensure you don’t miss any important 2020 dates, CBM offers the following summary of important upcoming tax-related payments and deadlines. Please review the calendar and reach out to CBM Tax Practice Director Richard Morris (click here to fill out our online form) if you have any questions about the deadlines or would like assistance in meeting them. Date Deadline for January 31 Individuals: Filing… Read more ›

With its winter recess looming before it, Congress has engaged in a flurry of activity. Most notably, it reached agreement on a massive governmentwide spending package titled the Further Consolidated Appropriations Act, 2020. The legislation extends certain income tax provisions that had expired, as well as some that were due to expire at the end of 2019. Congress traditionally passes so-called “extenders” annually, but it neglected to do so for 2018. As a result, several popular breaks for both individuals… Read more ›

On May 23, the House of Representatives passed the Setting Every Community Up For Retirement Enhancement (SECURE) Act, a bill endorsed by both Republicans and Democrats designed to improve the retirement system of our nation. Approximately one out of five working Americans has no savings for retirement. According to a survey conducted by Bankrate.com, not saving enough for retirement is Americans’ top financial regret. The proposed bill would bring significant changes to retirement plans. The bill includes 29 provisions, many… Read more ›

Some individuals may have received an alert regarding new filing requirements for the 2020 DC personal property tax return. Washington, DC has now required this return to be filed online. To do so, taxpayers will need to log into or create an online account on the MyTax DC website at https://mytax.dc.gov. Taxpayers will need to enter a notice number under the account validation section, which is the number starting with “L” that should appear on a notice received from the… Read more ›

Electric Vehicles: The Good News and the Bad News As of March 26, 2019, General Motors, LLC (GM) crossed their appointed electric car (EV) threshold of 200,000 EVs sold, marking their official entry into the race to the tax credit finish line. The GM tax credit, issued through the Energy Improvement and Extension Act of 2008, started at its peak value of $7,500. Hitting the 200k threshold signals a year-long phase-out, dropping to $3,750 for every EV sold from April… Read more ›

Congress has yet to tackle several outstanding uncertainties frustrating both businesses and individual taxpayers. The Tax Cuts and Jobs Act (TCJA), for example, contains several “glitches” requiring legislative fixes. Congress also has neglected to pass the traditional “extenders” legislation that retroactively extends certain tax relief provisions that expired at the end of an earlier year, in this case 2017. Tax Cuts and Jobs Act Glitches The sprawling TCJA signed into law in late 2017 contains some inadvertent glitches that range… Read more ›

The Trump administration has released its long-awaited proposed rule to update the overtime exemptions for so-called white-collar workers under the Fair Labor Standards Act. The rule increases the minimum weekly standard salary level for both regular workers and highly compensated employees (HCEs). It also increases the total annual compensation requirement for HCEs that’s required to qualify them as exempt. In addition, it retains the often confusing “duties test.” The Trump administration rule generally is more favorable to employers than the… Read more ›