Tuesday, July 9, 2024

SPECIAL SUMMER OFFER

 A new special summer offer!

I will send you a copy of my book THE JOY OF AVOIDING NEW JERSEY TAXES - the only book I am aware of that provides in detail tax planning and preparation advice, information, and resources for the NJ-1040 – as a pdf email attachment for ONLY $7.00!

Your order must be postmarked by July 31, 2024.

Send your check or money order for $7.00, payable to TAXES AND ACCOUNTING INC, and your email address, to –

TAXES AND ACCOUNTING INC
THE JOY OF AVOIDING TAXES SPECIAL OFFER
POST OFFICE BOX A
HAWLEY PA 18428

Go here to find out what is in this book -

http://robertdflach.blogspot.com/p/the-joy-of-avoiding-new-jersey-taxes.html

TTFN

 

Thursday, July 4, 2024

PRESERVING AMERICAN DEMOCRACY

 


As I join my neighbors across the nation today in celebrating America, and American freedoms, democracy, and true American values I realize that these freedoms, rights, and values are in great danger.

Nothing is more important for the future of American and American freedom, democracy, and true American values than defeating our greatest enemy – Donald Trump and the ignorant racists of the Religious Right that controls today’s Republican Party - in the 2024 elections.

It is vital that you vote against EVERY Republican candidate in EVERY election at EVERY level in 2024.

If Trump is returned to the White House and today’s Republican Party gains control of Congress and state legislatures, I very sincerely believe it will be the beginning of the end of America as we know it.

The 2024 elections are not about progressive vs conservative but about freedom and democracy vs racism, repression, and fascism.  

TTFN









Friday, June 28, 2024

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 * The IRS has issued a “Statement on balance due notices (CP14)” -

The IRS is aware that some taxpayers are receiving CP14 (Balance Due, No Math Error) notices indicating a balance due even though payments were made with their 2023 tax return.”

And –

“Taxpayers who receive a notice but paid the tax they owed in full and on time, electronically or by check, should not respond to the notice at this time.”

* Erica York of THE TAX FOUNDATION provides more proof Trump doesn’t know his arse from a hole in the ground about anything – “Five Things to Know about Trump’s Tariff and Income Tax Proposals

* New Jersey provides a “Sales Tax Holiday for Certain Retail Sales” -

P.L. 2022, c.21, establishes a Sales Tax Holiday for certain retail sales of computers, school supplies, and sport or recreational equipment when sold to an individual purchaser for non-business use. The Sales Tax Holiday takes place between August 24, 2024 - September 2, 2024. Sellers should not charge Sales Tax on eligible items when purchased during the Sales Tax Holiday.”

* More disaster relief – “IRS provides tax relief for taxpayers impacted by severe storms, straight-line winds, tornadoes and flooding in Mississippi; various deadlines postponed to Nov. 1, 2024”.

TTFN











Thursday, June 20, 2024

THE EXPIRING GOP TAX ACT

 


The GOP Tax Act (aka “Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018” or “Tax Cuts and Jobs Act”) expires on December 31, 2025.  Unless Congress does something, the US Tax Code will revert to what it was on December 31, 2017, for tax years beginning with 2026.

I think it is obvious that Congress will pass substantial tax legislation in 2025.  What it will look like depends on who controls the House and Senate.  (aside - If American freedom and democracy is to survive it is vital that the Democrats win control of both houses and the White House in the 2024 election.)

As I posted when the Act was first past, it contains good, bad, and ugly.  Here is a look at the major tax provisions of the Act affecting Form 1040 that are expiring, and my thoughts on whether they should be renewed.

ABOVE THE LINE:

1. Reduced tax rates.

I would support keeping the lower tax rates and revised brackets of the Act.

2. Replacement of the deduction for Personal Exemptions with an increased Standard Deduction and Child Tax Credit.

I personally preferred the “old” personal exemption deduction, but I would not object to continuing without it and keeping the increased Standard Deduction amounts and the increased Child Tax Credit.  However, while I have no problem with a carryover of excess credits, I strongly oppose all refundable credits, and therefore oppose any unused portion of the Child Tax Credit being refundable.

3 The higher exemption amounts and phase-out ranges of the dreaded Alternative Minimum Tax (AMT).

I support keeping these increases.  I oppose the existence of the AMT and would like to see it totally repealed.

4. The larger lifetime Estate and Gift Tax exemption.

I support keeping these increases.  I am not really a fan of the Estate or Gift Tax – however I support keeping it if it maintains the step-up in basis for inherited assets.

5. Limiting the deduction for job-related moving expenses to members of the military.

I oppose this limit and would welcome the return of the adjustment to income for all job-related moving expenses.  I would not object if this deduction was moved to Schedule A.

6. The Section 199A 20% Qualified Business Income deduction.

I see no reason for this deduction and would not continue it.  I do not believe QBI (basically self-employment income) should be taxed any less or differently than wages, pensions, or other “ordinary” sources of income.

BELOW THE LINE:

1. The $10,000 SALT (state and local tax) cap.

I strongly oppose this limitation on the deduction of state and local income or sales tax and property tax.  This deduction is one way of “geographically equalizing” the income tax (see my commentary “The SALT limitation from a different perspective).  If it must be continued, the $10,000 limit should be increased to $20,000 on joint returns (and $10,000 for each spouse on separate returns) to make it fair.  

2. The limitation of the deduction of mortgage interest to acquisition debt.

I do not oppose the elimination of the deduction for up to $100,000 of “home equity” debt and would not object to keeping the mortgage interest deduction limited to “acquisition” debt.  I also have no problem with keeping the lower $750,000 principal limit on the deduction.

3. The elimination of the deduction for theft losses and the limitation of the deduction for casualty losses to those occurring as the result of a federally declared disaster.

I really do not care if this elimination and limitation remains or goes away, although if forced to provide an opinion I think I would support reinstating the casualty loss deduction for all casualties.

4. The elimination of Miscellaneous Itemized Deductions that were previously subject to the 2% of AGI exclusion – employee business expenses, investment expenses, tax preparation costs, etc.

I support allowing these types of itemized deductions and would want this deduction reinstated.  I oppose the 2% of AGI exclusion on these deductions.

5. The elimination of the reduction of total itemized deductions based on AGI.

I oppose reducing total allowable itemized deductions based on AGI (a “back door” tax increase) and would want to keep this provision of the Act.

Your thoughts?

If you would like to see how I would totally rewrite the US Tax Code to make it fairer and simpler, email me at rdftaxpro@yahoo.com with “Tax Reform Book” in the subject line and I will email you a pdf copy of my book THE TAX CODE MUST BE DESTROYED.

TTFN














 

Wednesday, June 12, 2024

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 A mid-week BUZZ.

* At a new blog to me – the TAX SCHOOL BLOG of the University of Illinois at Urbana-Champaign - Tom O’Saben, EA and Chris Korban, CPA explain "Saving For Retirement Through Backdoor Roths”.

* And the TAX SCHOOL BLOG also reviews “Tax Credits For Higher Education”.

* Good news from Michael Cohn at ACCOUNTING TODAY – “IRS plans to make free tax prep permanent”.

"’The IRS will make Direct File a permanent option to file federal tax returns, and we will work to expand the service and make it available to more taxpayers starting with the next filing season,’ said IRS Commissioner Danny Werfel during a press call Thursday.”

* More disaster relief from the IRS - “West Virginia storm victims qualify for tax relief; various deadlines postponed to Nov. 1” and “Kentucky storm victims qualify for tax relief; various deadlines postponed to Nov. 1”.

* Kay Bell provides “A mini tax primer for students with summer jobs” at DON’T MESS WITH TAXES.

* The IRS website has a “Newlyweds tax checklist”.

Pay special attention to the first item – “Report any name changes to the Social Security Administration. The name on a person's tax return must match what’s on file at the SSA. If it doesn't, it could delay any tax refund.”

TTFN 









Monday, May 27, 2024

Friday, May 24, 2024

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* TaxGirl Kelly Phillips Erb wants you to subscribe to the weekly FORBES.COM “Forbes Tax Breaks” email newsletter.  

* Russ Fox discusses an issue that I, too, have dealt with (in my case concerning separate returns) in “The ‘Joy’ of 1959 Technology” at TAXABLE TALK.

* At ACCOUNTING TODAY Michael Cohn reports good news for tax pros – “IRS cuts PTIN fees” -

“ . . . the application and renewal fee would be reduced to $11, plus an extra $8.75 for payment to a third-party contractor. That was considerably lower than the 2023 fee of $30.75 for renewing or obtaining a PTIN. The move came after a federal district court ruled last year in the case of Steele v. United States that the IRS was charging excessive PTIN fees from fiscal years 2011 to 2017.”  

I still do not understand the need the need for a payment to a third-party contractor.

* More disaster relief – “IRS announces tax relief for taxpayers impacted by tornadoesin Ohio; various deadlines postponed to Sept. 3, 2024”.

* And Kay Bell reports “Iowans hit by April 26 tornadoes get disaster tax relief”.

TTFN