All Categories - Miksch & Company, CPA PA

Disaster Loan Assistance for Covid19

3/23/2020

Federal Disaster Loans for Businesses, Private Nonprofits, Homeowners, and Renters
There is a dedicated site available for those eligible to apply for a loan due to Corona Virus hardship.

The site has all the information needed to see if you qualify and to apply online.

Please visit https://disasterloan.sba.gov/ela/

2019 IRS Tax Filing Extended Due to Corona Virus

3/20/2020

Extra time to pay and file your 2019 Tax Returns!

Today, March 20, 2020 the IRS announced the 2019 IRS filing deadline has been extended from
April 15, 2020 to July 15, 2020.

Due to the Corona Pandemic the time to file and pay your 2019 tax returns is now July 15, 2020.

All tax payers now have time to file and pay up to July 15, 2019 without any late penalties.

We will keep you undated as things change.

Edit 3/23/20: All estimated tax payments due April 15, 2020 have now also been extended to July 15, 2020

CoronaVirus Tax Payment Delay 2019 Tax Filing

3/18/2020

Due to the Corona virus there has been a relief for tax payments due on your 2019 tax return.

Tax returns are still due April 15th, 2020 however, payments that are due on April 15th, 2020 can now be delayed for 90 days.

This means you now have until July 15th, 2020 to pay your taxes due on your tax return without penalty or interest.

If the tax return is not timely filed or properly extended the 90 day relief will not apply.

Refunds are unaffected.

Things are changing fast and we will keep you updated.

Source: https://taxspeaker.com/

2020 Tax Refund - When Will I Get My Refund

2/20/2020

Where is my 2020 Tax Refund?

Where is my 2020 Tax Refund!

If the IRS accepts your return by:	Direct deposit could be sent as early as:	Or your check could be mailed as early as:
January 27	February 7th	February 14th
February 3rd	February 14th	February 21st
February 10th	February 21st	February 28th
February 18th	February 28th	March 6th
February 24th	March 6th	March 13th
March 2nd	March 13th	March 20th
March 9th	March 20th	March 27th
March 16th	March 27th	April 3rd
March 23rd	April 3rd	April 10th
March 30th	April 10th	April 17th
April 6th	April 17th	April 24th
April 13th	April 24th	May 1st
April 20th	May 1st	May 8th

Miksch & Co CPA PA

New IRA RMD Rules For 2020

2/4/2020

Below you will find the new IRA RMD rules for 2020 which changed from 70.5 to 72.
The table below explains which years your payment dates will be based on year born.

Source: Tax Speaker https://taxspeaker.com/

Birth Date	Normal 1st Required Payment Date	Special Extension 1st Payment Option	Future Payment Date Requirement	Comments
Before July 1, 1949	12/31 of year turning 70, so if turning 70 in 2019, 12/31/19	April 1 of year after turning 70.5, so if in 2019, delay until 4/1/2020	The year following 70.5, so if turning 70.5 in 2019, by 12/31/20	If using the special extension date, 2020 will require 2 payments: 1 for 2019 and the normal 2020 payment
After June 30, 1949	12/31 of year turning 72, so if born in 1949 by 12/31/2021	April 1 of year after turning 72, so if born in 1949 by 4/1/2022	The year following turning 72, so if born in 1949, by 12/31/2022	If using the special extension date, 2022 will require 2 payments: 1 for 2021 and the normal 2022 payment

Anyone turning 70.5 in 2020 will not be required to take an RMD in 2020 or until the year they turn 72.
If still working for a company with a 401-K at age 72, you may delay your RMD until the year after you stop working there. (Except for >5% owners of the company.)
You can continue making IRA contributions as long as you still have earned income beginning 2020. (Not 2020 for 2019 if over 70.5 years old by 12/31/19.)

Use this worksheet to figure this year's required withdrawal for your traditional IRA UNLESS your spouse is the sole beneficiary of your IRA and he or she is more than 10 years younger than you.

Deadline for receiving required minimum distribution:

Year you turn age 70.5 - by April 1 of the following year; 72 after 1/1/2020.
All subsequent year - by December 31 of that year.

IRA balance on December 31 of the previous year. $__________
Distribution period from the table below for your age on your birthday this year. ___________
Line 1 divided by number entered on line 2. This is your required minimum distribution for this year from this IRA $__________
Repeat steps 1 through 3 for each of your IRAs.

Age	Distribution Period	Age	Distribution Period	Age	Distribution Period	Age	Distribution Period
70	27.4	82	17.1	94	9.1	106	4.2
71	26.5	83	16.3	95	8.6	107	3.9
72	25.6	84	15.5	96	8.1	108	3.7
73	24.7	85	14.8	97	7.6	109	3.4
74	23.8	86	14.1	98	7.1	110	3.1
75	22.9	87	13.4	99	6.7	111	2.9
76	22.0	88	12.7	100	6.3	112	2.6
77	21.2	89	12.0	101	5.9	113	2.4
78	20.3	90	11.4	102	5.5	114	2.1
79	19.5	91	10.8	103	5.2	115 & over	1.9
80	18.7	92	10.2	104	4.9
81	17.9	93	9.6	105	4.5

Once you determine a separate required minimum distribution from each of your traditional IRAs, you can total these minimum amounts and take them from any one or more of your traditional IRAs.
Source: IRS.

Miksch & Company CPA PA
(727) 367-1040
mikschcpa@msn.com

Mileage Rate 2020

1/2/2020

The new 2020 mileage rates have been announced by the IRS

2020 Mileage rate = .57.5

2019 Mileage rate = .58

Please remember to keep a mileage log or use a mileage app.

Thank you

Miksch & Co CPA
Tel: 727-367-1040

Get Ready For Year End Bookkeeping 4 Tips

1/2/2020

Happy New Year!

January 2020 is already here and that means we will soon be working on your year end bookkeeping and getting it ready for preparing tax returns. Following are four tips for you to get ready for your Year End Bookkeeping.

Please make sure the following has been done before the end of the year and is turned in with your bookkeeping....

Mileage - If you use your own car and claim mileage please make sure you have paid all of 2019 mileage by check to yourself by 12/31/19. 2019 rate = .58c per mile.

Inventory - If you carry inventory please do an inventory count of each item at cost on 12/31/19.

Home Office - If you work from your home office and Diane gave you an accountable plan please have this filled in for 4th quarter.

Year End Bonus Checks - Those of you who take a year end bonus check to cover possible taxes owed please make sure you bring in your Nov and Dec bookkeeping ASAP.

Soon we will be sending out a letter to those with employees and self employed workers asking you to check or provide their names (per soc. Sec. card) SSN, and addresses. You will also get a letter showing your current Assets on our books. Please make any amendments, sign and return to us asap.

Wishing you all a very happy holiday!

Karen

Miksch & Company, CPA, PA
249 43rd Avenue
St. Pete Beach, FL 33706
727 367-1040
www.mikschcpa.com

Where Is My Huge Tax Refund?

2/12/2019

Where is my huge tax refund

Since the IRS changed the tax withholding tables for 2018, many people who normally receive a refund are now owing taxes when they file their tax return. You probably didn't notice the tax savings since you only saw a slight increase in your take home pay vs a large refund check when you filed your tax return. We're all wishing that the IRS left the withholding tax the same as 2017 and let us celebrate with a huge refund check. Unfortunately, the IRS never lets us have anything pleasant.

Please look over your withholding on your paychecks so you can enjoy the large refund check again in 2019. The refund is actually your own money paid to the IRS each paycheck, like a forced savings account. But many people count on that check for large purchases and much needed vacations.

The IRS charges an underpayment penalty if you didn't submit the lesser of the 90% of the current year's tax liability or 100% if the prior year's tax liability. Since the IRS played games with the refund checks and many people owe, the IRS graciously lowered this percentage to 85%.

Remember to check you withholding now so you can properly plan for next tax season so you don't have any surprises.

When Will I Get My 2019 Refund

2/11/2019

Below are the expected refund dates for the 2018 tax season in accordance with the IRS accepted dates of tax submissions.

Accepted By IRS                                                       Direct Deposit Sent
These Dates                                                               (Or Check Mailed)

01/21/19 - 01/25/19                                                 Friday 02/01/19
01/28/19 - 02/01/19                                                Friday 02/08/19

02/04/19 -02/08/19                                              Friday 02/15/19
02/11/19 - 02/15/19                                               Friday 02/22/19
02/18/19 - 02/22/19                                              Friday 03/01/19
02/25/19 - 03/01/19                                              Friday 03/08/19

03/04/19 - 03/08/19                                             Friday 03/23/19
03/11/19 - 03/15/19                                               Friday 03/30/19
03/18/19 - 03/22/19                                              Friday 04/05/19
03/25/19 - 03/29/19                                             Friday 04/12/19

04/01/19 - 04/05/19                                             Friday 04/19/19
04/08/19 - 04/12/19                                             Friday 04/26/19
04/15/19 - 04/19/19                                              Friday 05/03/19
04/22/19 - 04/26/19                                             Friday 05/10/19
04/29/19 - 05/03/19                                             Friday 05/17/19

05/06/19 - 05/10/19                                             Friday 05/24/19
05/13/19 - 05/17/19                                              Friday 05/31/19
05/20/19 - 05/24/19                                             Friday 05/07/19
05/27/19 - 05/31/19                                              Friday 06/14/19

06/03/19 - 06/07/19                                           Friday 06/21/19

2018 New Tax Law Changes

1/3/2019

2018 NEW TAX LAW CHANGES
Miksch & Co CPA, PA has put together the important tax law changes for your 2018 taxes.

Standard Deductions (Itemize if your deductions are greater than these amounts)
                                                                                       2017                  2018                 2019
Single                                                                          $6,350             $12,000           $12,200
Joint (Married)                                                            12,700             24,000             24,400
Head of Household (must have a dependent)      9,350             18,000            18,350
Elder/blind-single                                                       1,550                 1,600               1,650
Elder/blind-married                                                    1,250                 1,300                1,300

Personal Exemptions (Dependents)                       $4,050               NONE             NONE

Auto Mileage Rate                                                      $ 0.535           $ 0.545             $0.58

Social Security/IRA Contributions

Social Security Allowable earnings:                    2019                            2018
62-full retirement                                           $17,640/$1,470           $17,040/$1,420
Full retirement age                                          $46,920/$3,910           $45,360/$3,780
IRA Contribution (age >50)                         $6,000/$7000              $5,500/$6,500(over 50)
Roth IRA Income Limits                                $122,000/$193,000     $120,000/$189,000
401K                                                               $19,000/$25,000         $18,500/$24,500(over 50)

Estate & Gift Tax                                                 2019                                  2018
Estate tax applies/top rate                            $11,400,000 (40%)         $11,180,000 (40%)
Annual gift tax exclusion                                  $15,000                           $15,000

The 2018 Form 1040 looks a lot different this year. It’s now post card size but don’t get too excited because it’s actually gotten more complex. The current form has 23 lines instead of 79. The front is basically just the taxpayer information while the back contains the tax calculations. Form 1040A and 1040EZ were discontinued. If your tax return has items that weren’t on those forms, the IRS has developed 6 new schedules to report your income, tax credits and other items. So much for tax simplification.

FICA Wage base has increased from $128,700 to $132,900 for 2019

ACA Penalties: 2016-2018 higher of $695 or 2.5% of income. 2019 NO MORE PENALTIES.

There are so many changes in the 2018 tax law that I’ll only cover the changes that affect most of my clients. If you have questions about how other changes affect you, please call to make an appointment.

Children under 19 (24 if college students) will have to file a tax return if they have any unearned income (interest, dividends, & capital gains). They are now being taxed at the higher trust & estate tax return rates. Earned income (wages or self-employed income) is taxed at the single rate.

No more deductions for Alimony paid or income on Alimony received for divorces or settlement agreements after December 31, 2018.

All miscellaneous itemized deductions are no longer deductible. This includes your investment fees, safe deposit box, employee business expenses, union dues, tax prep fees not on a Schedule C or E, etc.

Entertainment expenses are NOT tax deductible beginning in 2018. Meals are still 50% deductible.

NO MORE PERSONAL EXEMPTIONS. Tax credits have been increased to $2,000 per client <17 and $500 per dependent over 17 years old. Credits will be phased out with income >$400,000 married and $200,000 all others. Previous phase outs were $110,000/$75,000 so more people will get to take the child/family tax credits in 2018.

No more residential energy tax credits for doors, windows, roofs, etc.

Income from a Schedule K-1, Schedule C, E & F will get a 20% tax deduction. These rules are complicated and cannot be discussed here. Please call me to review your situation if you’re a personal service corporation. There’s a phase out for taxable income < $315,000 married/$157,500 all others.

Mortgage interest will be limited to acquisition debt of $750,000 for mortgages taken out after 12/15/17, ($1 million if grandfathered in). Mortgage interest on equity loans will no longer be tax deductible in 2018. Mortgages on Schedule E are still deductible. Investment interest paid on borrowing for taxable investments are also still deductible on Schedule A.

Mortgage insurance premiums are no longer tax deductible in 2018. Check with your mortgage company if you’ve paid your principal down to see if you can stop paying for MIP coverage. The mortgage rules are very complex, please call if you took out a mortgage or refinanced after 12/15/17.

Moving expenses are no longer deductible except for the military.

Taxes are deductible up to $10,000 in 2018. This includes both sales tax & real estate tax on your residence. Please call and talk to me about taking a home office deduction under an accountable plan to lessen the burden of this if you work from home.

Casualty losses are no longer deductible unless the loss is attributable to a federal declared disaster area. If you withdrew for a 401K for IRMA, you could possibly avoid the 10% penalty.

There are big changes in depreciation expense that cannot be detailed here. Bonus depreciation, Section 179 and class lives all changed effective 9/28/17. You can no longer defer the gain on sale of business equipment & automobiles by trading them in for a newer model.

Net operating losses cannot be carried back 2 years beginning in 2018. Now carry forward for 20 yrs.

The alternative minimum tax was changed for individuals so most taxpayers will not incur this tax anymore. The AMT was eliminated for Corporation for 2018.

Capital gain/dividends are still taxed at 0% if you’re below the 15% tax bracket, 15% for others except 20% for those in the 37% tax bracket. The 3.8% surtax for income >$200K/$250K still apply.

In 2018 you cannot reclassify a Roth IRA that you previously converted back to a traditional IRA.

Medical expenses for 2017 & 2018 have to exceed 7.5% of AGI and increase to 10% beginning 2019.

Section 529 plans can now be used for elementary or secondary schools and not just higher education.