2019

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FTB Notices Regarding 2019 Tax Return Change

We will likely see an increase of FTB notices over the next few weeks for individuals that made 2019 CA extension payments after 4/15/2020.  Our firm recently called on two notices and per the FTB representative, 2019 extension payments received after 4/15/20 automatically got applied to 2020 due to a system limitation. This will result in a difference between tax paid per the return filed and FTB records equal to the extension payment (and a notice indicating this). The FTB is in the process of applying 2019 extension payments received after 4/15 to 2019 and no action is needed. If you have questions, please contact your Linkenheimer CPA.

By |2020-12-30T22:24:09+00:00December 30th, 2020|CA tax, estimated tax payments, extension, extensions, ftb|0 Comments

Medical Expenses: What It Takes to Qualify for a Tax Deduction

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As we all know, medical services and prescription drugs are expensive. You may be able to deduct some of your expenses on your tax return but the rules make it difficult for many people to qualify. However, with proper planning, you may be able to time discretionary medical expenses to your advantage for tax purposes.

The basic rules

For 2019, the medical expense deduction can only be claimed to the extent your unreimbursed costs exceed 10% of your adjusted gross income (AGI). You also must itemize deductions on your return.

If your total itemized deductions for 2019 will exceed your standard deduction, moving or “bunching” non-urgent medical procedures and other controllable expenses into 2019 may allow you to exceed the 10% floor and benefit from the medical expense deduction. Controllable expenses include refilling prescription drugs, buying eyeglasses and contact lenses, going to the dentist and getting elective surgery.

In addition to hospital and […]

By |2020-09-03T20:03:25+00:00December 6th, 2019|deduction, deductions, expensing, medical deduction|0 Comments

Wishing All a Happy Thanksgiving

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Here at Linkenheimer, we want to say thank you to our clients and community, who have given the opportunity to serve you over the past year. We say that “we want to change lives locally and abroad through the work we do, the relationships we develop and the charities we support” and we couldn’t do that without your help. We are grateful for the trust you’ve placed in us, the friendships that have developed and grown and we consider each of you part of the Linkenheimer team. So from all of us at Linkenheimer, we hope this season is filled with lots of happiness, joy, health, and prosperity. May your home be filled with love on this wonderful occasion. Happy Thanksgiving.

Using Your 401(k) Plan to Save This Year and Next

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You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a taxwise way to build a nest egg.

If you’re not already contributing the maximum allowed, consider increasing your contribution rate between now and year end. Because of tax-deferred compounding (tax-free in the case of Roth accounts), boosting contributions sooner rather than later can have a significant impact on the size of your nest egg at retirement.

With a 401(k), an employee elects to have a certain amount of pay deferred and contributed by an employer on his or her behalf to the plan. The contribution limit for 2019 is $19,000. Employees age 50 or older by year end are also permitted to make additional “catch-up” contributions of $6,000, for a total limit of $25,000 in 2019.

The IRS just announced that the 401(k) contribution limit for 2020 will increase to $19,500 (plus the $6,500 catch-up contribution).

A traditional 401(k)

A traditional 401(k) offers many benefits, including these:

  • Contributions are pretax, reducing your modified adjusted gross income (MAGI), which can also help you reduce or avoid exposure […]
By |2020-09-03T20:03:30+00:00November 13th, 2019|401k, retirement|0 Comments

Small Businesses: Get Ready for Your 1099-MISC Reporting Requirements

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A month after the new year begins, your business may be required to comply with rules to report amounts paid to independent contractors, vendors and others. You may have to send 1099-MISC forms to those whom you pay non-employee compensation, as well as file copies with the IRS. This task can be time consuming and there are penalties for not complying, so it’s a good idea to begin gathering information early to help ensure smooth filing.

Deadline

There are many types of 1099 forms. For example, 1099-INT is sent out to report interest income and 1099-B is used to report broker transactions and barter exchanges. Employers must provide a Form 1099-MISC for non-employee compensation by January 31, 2020, to each non-corporate service provider who was paid at least $600 for services during 2019. (1099-MISC forms generally don’t have to be provided to corporate service providers, although there are exceptions.)

A copy of each Form 1099-MISC with payments listed in box […]

By |2020-09-03T20:03:30+00:00November 11th, 2019|1099, business, employer|0 Comments
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