Larry Hahka
 HFG Financial

Tax Tips and Current Legislative Action
Tax law can be complex. There's much to know to be sure you're doing all you can to get what you deserve. Here are some personal and business tax tips to get you started.

The 2019 Tax Filing Season opens January 28, 2019.
The IRS has announced that it will begin accepting tax returns for the 2018 tax year on January 28, 2019.

Tax Cuts and Jobs Act
The Tax cuts and Jobs Act Bill signed into law on December22, 2017 will have an impact on individuals and business. Key points of impact are: 1 - tax rate changes
2 - Increased Standard deduction for individuals
3 - Increased child tax credit to $2,000 per qualifying child
4 - $10,000 limit for tax deduction (individuals) 5 - Elimination of the Unreimbursed Employee expenses (and all duductions in the 2% category)
6 - QBI (Qualified Business Income) deduction for business owners
Maximize Retirement Plan Contributions

If your employer offers a 401(k) or other type of deferred pension plan, make every effort to contribute the maximu amout allowable - expecially if your employer matches your contribution.

IRS Reminds Taxpayers of Refund Delays in 2018 and Future Years

In 2017 Congress passed a law that requires the IRS to hold refunds on tax returns claiming the EITC or the ACTC (Additional Child Tax Credit) until mid-February. The IRS must hold the entire refund – even the portion not associated with the EITC and ACTC -- until at least Feb. 15 or even later. 

Patient Protection and Affordable Care Act
You will need to report to the IRS that you have health insurance. The shared responsibility provision requires that you and your family have minimum essential coverage or qualify for a health coverage expemption. Watch for  your form 1095-A, 1095-B and/or 1095-C and report them on your tax return. 

Letters From the Taxing Authority (Tax Resolution Issues)

If you receive a letter from the Federal or State taxing authority, open it and respond. The letter is just the first step of that agencys attempt to clear up any issues they deem require attention. 

Foreign Bank Accounts, Know the Rules

IF you have a foreign bank account and the balance in the account(s) greater than $10,000 then you need to file what is referred to as an "FBAR,". This filing is done through the Financial Crimes Enforcement  Network (FinCEN Repoart 114). This return is due April 16, 2018.

Same Sex Marriage

The Internal Revenue Service issued Revenue Ruling 2013-17. This ruling concerns same-sex marriages and how they affect the filing of federal income tax returns. According to the IRS, individuals who are lawfully married under state law should file their federal tax return as married.

Personal Tax Tips

  • Charitable Donations

    As a donor, you may not deduct labor or time, but you may deduct expenses such as mileage, uniforms, and even the cost of taking underprivileged youth to sports events or movies.

  • Medical Expenses

    It's difficult to reach the percentage (10%) of adjusted gross income you need to spend on medical expenses to be eligible. But if you qualify, you shouldn't overlook all possible expenses. Sometimes, it's even best for married couples to consider filing separately if one partner has high medical bills.

  • Moving Expenses

    If you moved more than 50 miles for work and stayed employed, you might be able to deduct reasonable moving expenses. No itemization is necessary.

  • Domestic Production Deduction

    This generous benefit for having a qualified business in the U.S. can be claimed by sole proprietors, partnerships, and corporations. It can even apply to farmers.

  • Mortgage Interest Points

    Points paid on a home mortgage are usually deductible as interest. If the mortgage is for the purchase or improvement of your principal residence, you can either deduct the full amount of the points in the year of payment or, if you're not itemizing your deductions that year, pay back the points over the loan term.

  • Retirement Plan

    One of the most powerful tax shelters available is a qualified retirement plan. Within certain limits, contributions to fund the plan are immediately tax deductible, plan investment earnings are tax deferred, and plan participants do not have to pay income taxes on benefits until they receive their distributions.

Business Tax Tips

  • Business Automobiles

    You can claim deductions for the business-related use of an auto using either the standard mileage rate method or the actual expense method. You should use the method that will yield the largest deduction. Standard mileage rate for 2015 is 57.5 cents per mile.

  • Hiring Your Children

    If you have your own business, consider hiring your child to work after school or on vacations. The wages you pay your child for bona-fide work are tax deductible.

  • Home office expenses

    To qualify for a deduction related to an office in the home, you must have an area of your home used exclusively as your principal place of business. This includes a place of business where you meet or deal with patients, clients, or customers.

  • Profit-sharing plans

    Unlike other plans, a profit-sharing plan is flexible. It can be designed so that the employer is not required to make an annual contribution.

This list is far from exhaustive. Call us today (612)872-4719 to set up a time to discuss your specific situation and needs.

Convenient Minneapolis Uptown Tax Preparation office locaton.
Larry Hahka, E.A.

(612) 872-4719            Office

2736 Lyndale Ave South
Suite 208
Minneapolis, MN 55408

Do You need to File?
Based on:

-Filing Status
-How much Income

-What type of Income
- Self employed Income

-If you can be claimed as by someone else as a dependent

You Must File:
-If you received the Premium Tax Credit or wish to claim the PTC purchased on either the federal or state exchange. (Form 1095-B)

Your Minneapolis tax preparation and representation expert.
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