B.A. Harris Blog

Recordkeeping Retention

Recordkeeping Retention You may be in the garage looking at boxes of tax records and wondering if you can finally shred some of them.  Although we often recommend six years, the answer is, it depends! So, how long do you have to keep your individual tax returns?  The usual answer from the IRS is at least three years after the filing date, but there might be extenuating circumstances.  Also, keep in mind the three-year limit only applies from the date the IRS has the document in its possession.

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Feeling Charitable?

With tax reform changes in effect in 2018, deductions for charitable giving just got a bit more complicated. The increase in the standard deduction to $24,000 for Married Filing Joint returns and $12,000 for Single filers means that charitable donations might not result in a taxable deduction as they have in the past. That is because the sum of all itemized deductions on Schedule A of Form 1040 will need to exceed the $24,000 threshold before any extra tax benefit is realized.

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Second Quarter Estimated Tax Payments

With summer knocking on the door we just wanted to remind estimated tax payers your second quarterly payment is due next Friday, June 15th. If you have any questions, don’t hesitate to contact our office. We hope you have a wonderful summer!

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Home Equity Interest - Deductible?

For many taxpayers, Home Equity Loans and HELOCs, are useful financial tools for easily accessible cash at interest rates that are typically lower than most commercially available credit cards.  Due to their low interest rates, Home Equity Loans have been an enticing option for taxpayers looking to consolidate debt into a single, low cost payment, while also reaping additional beneficial tax treatment. In previous years, similar to a home mortgage, any interest paid on a Home Equity Loan/HELOC during the current tax year was deductible up to a government-imposed limit.

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Informational Return Filing Requirements

W-2, W-3, and 1099-Misc information returns Beginning with the 2016 tax year, the due dates for filing Forms W-2, Wage and Tax Statement, W-3 transmittal forms and Forms 1099-Misc have been moved up. Previously, the federal filing due date of Copy A of these forms was the last day of February.  These federal filings are now due to the Internal Revenue Service on January 31st.  Additionally, all copies to recipients must be furnished by January 31st.

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