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6419 Letter – This is your Advance Child Tax payments.   The amount that is reported from the Internal Revenue Service MUST match what is on your return or your refund can be delayed for at least six months.   1095-A – This form is used if you have health insurance through the health care marketplace. … Read More

In 2021 the IRS changed the child to credit for taxpayers who make under $150,000.  The new law reads that for children under the age of (6) the taxpayer will receive a credit of $3,600, for children from 6 to including 17 the taxpayer will receive a credit of $3,000.  Please note the credit goers … Read More

Starting for Tax Year 2021 the Internal Revenue Service has changed how the Child and Dependent Care Credit is calculated and the impact of this change on your return. The new calculation for the credit is that for one child you receive a 50% credit of the first $8,000 spent on child care.  For two … Read More

Example:  Mom and Dad have an AGI (Adjusted Gross Income) of $120,000, they also have one college age child (age 20).  This child has wages of $3,000 and Unemployment of $12,000. If mom and dad claim their child and use the education credit their federal tax would be $9,530.  If they don’t claim their child … Read More

It is true that the forms 1040EZ and 1040A have disappeared from our tax vernacular, but the new form 1040 has added some true game changers.  One of the biggest shows up on line 9 of the new form 1040 and is called the “Qualified Business Income Decution”.  Better know as the QBI decuction or … Read More

The change in claiming of alimony on your 2018 Federal tax return is not the only “divorce” that has taken place in 2018.  We have been discussing the changes in the Federal tax code under the TCJA of 2018 that includes changes in the tax brackets, elimination of exemptions and adjustments to income and much more impacting … Read More