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Posts by Kevin Foster

IRA's and taxes 2018 tax laws arizona

2018 Year-End Planning: Roth Conversions

What are the benefits of moving from a traditional IRA to a Roth IRA? Benefits of Roth IRAs include: tax-free withdrawals in retirement (as long as they are qualified), no required minimum distributions, and the option to leave an income-tax-free…

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filing status taxes 2018

Filing Status in 2018

Single A taxpayer is unmarried in 2018 if: • The taxpayer has never married, • The taxpayer was legally separated, according to state law, under a decree of divorce or separate maintenance. • The taxpayer’s spouse died before January 1,…

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crowdfunding and taxes

Crowdfunding

Crowdfunding Crowdfunding is used to solicit financial contributions from a large number of people, referred to as backers, over the internet. The financial contributions are used for a wide variety of projects including business ventures, social causes, and support for…

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social security and medicare arizona

Social Security and Medicare

Social Security Full Retirement Age If you were born in 1942 or earlier, you are already eligible for full Social Security benefits. The following chart will guide you in determining your full retirement age. Year of Birth   Full Retirement Age…

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business taxes chandler az

New Business Income Deduction

The Tax Cuts and Jobs Act is the biggest federal tax law change in over 30 years. Below is a significant change affecting qualified business income from a partnership, S corporation, LLC, or sole proprietorship. Note: Except where noted, the…

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Early Retirement Distributions—SEPP

Early Retirement Distributions A taxpayer may choose, or be forced into choosing, early retirement. A retirement before age 59½ creates income challenges for the retiree. The retiree is not yet eligible to receive retirement benefits from Social Security. The retiree…

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tax preparation chandler az

Identity Theft and Your Taxes

Identity Theft and Your Taxes Your identity and money can be stolen in a tax-related scam via email (“phishing”), fax, phone, or letters. Some recent examples of identity theft scams are: Refund scam. A bogus email, claiming to come from…

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Tax Cuts and Jobs Act: Individuals

The Tax Cuts and Jobs Act is the biggest federal tax law change in over 30 years. Below are some significant changes affecting individuals. Note: Except where noted, the changes are effective for tax years 2018– 2025. Tax Rates Income…

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tax law changes arizona 2018

What does the New Tax Law Mean to You?

The new tax law, commonly called the “Tax Cuts and Jobs Act,” is the biggest federal tax law change in over 30 years. Below are some significant changes affecting individuals and businesses. Note: Except where noted, the changes are effective…

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business tax preparation chandler arizona

Business Owners—Taking Money Out of a Business

Business Owners—Taking Money Out of a Business When taking money out of a business, transactions must be carefully structured to avoid unwanted tax consequences or damage to the business entity. Business owners should follow the advice of a tax professional…

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personal tax preparation chandler az

Stock Options— Same Day Sales

Employee Stock Options A stock option allows (but does not obligate) an employee to buy a specified number of shares of stock from a company for a specified price during a specified period of time. There are two categories of…

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reverse mortgage and taxes arizona

Reverse Mortgages & Your Taxes

Reverse Mortgages Individuals who are unwilling or unable to sell their home, and need additional income during retirement, may benefit from a reverse mortgage. Payments received on a reverse mortgage are not taxable to the individual. Tax-free income. A reverse…

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rental property taxes arizona

Short-Term Rentals & Taxes

Short-Term Rentals Income received for the rental of your home, a room in your home, or a vacation home, must generally be reported on your federal income tax return. Related expenses may have to be divided between rental and personal…

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medical expenses tax preparation

Itemized Deductions: Medical Expenses

Itemized Deductions—Medical Expenses Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. Medical expenses include the costs of equipment, supplies, and diagnostic…

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education deductions and taxes

Itemized Deductions: Education Expenses

Expenses for education are deductible even if the education leads to a degree, if it meets at least one of the following tests. 1) The education maintains or improves skills required for the taxpayer’s present work. 2) The education is…

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small business tax preparation

Hobby or Business?

If an individual, partnership, estate, trust, or an S corporation engages in an activity that is not conducted as a for-profit business, deductions are limited to the amount of income from the activity. This rule does not apply to corporations,…

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Newlyweds tax tips in arizona

Newlyweds Tax Tips

Tips for Newlyweds Updating your status from single to married may bring about some unanticipated changes, including changes relating to your taxes. While wedding planners don’t typically use an IRS checklist, here are a few things to keep in mind…

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can't pay your taxes

What To Do if You Can’t Pay Your Taxes

What To Do if You Can’t Pay Your Taxes So, you have realized you can’t pay your taxes…. now what! Don’t panic! Here are some ideas for getting your tax bill paid and minimizing interest and penalties. File your tax…

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education tax benefits in Arizona

Education Tax Benefits

Education Tax Benefits If you pay tuition, fees, and other costs for attendance at an eligible educational institution for yourself, your spouse, or your dependent, you may be able to take advantage of one or more of the education tax…

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death of a taxpayer

Death of a Taxpayer

Death of a Taxpayer When a taxpayer dies, there are certain returns that still need to be filed, a responsibility that falls onto the per­sonal representative. Personal Representative Under state law, a personal representative is the person appointed by a…

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multi state taxation

Multi-State Taxation

Tax Patterns for State Returns Resident Returns States that have an individual income tax follow one of four basic patterns for calculating tax liability on income tax returns for residents. 1) Federal AGI. The first, and most common, 1) Federal…

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child tax credit Arizona

Families With Children: Child Tax Credit

Child Tax Credit Maximum credit: $1,000 per qualifying child. Adjusted Gross Income (AGI) Phaseout The credit is reduced by $50 for each $1,000 of modified AGI above: $110,000 Married Filing Jointly. $75,000 Single, Head of Household, or Qualifying Widow(er). $55,000…

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health savings account Arizona

Health Savings Accounts and Tax Advantages

A majority of Americans are aware of 401(k) plans, 529 college savings and individual retirement accounts plans. However, a good tax accountant will point you to another effective instrument – the almost unknown health savings account (HSA).   Use of…

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