Tax Deductions: What’s New?

As many taxpayers discovered with the last tax season, it was more beneficial to take the standard deduction and forgo itemized deductions. Then again, you may feel that your expenses exceed standard deduction amounts.

You will have to take a hard look at your expenses every year to see whether itemization or the standard deduction is the better choice.

IRS Releases 2020 Retirement Contribution Limits

The employee contribution limit for 401(k) plans will be $19,500, up from $19,000 in 2019. The catch-up contribution limit for employees aged 50 and over will be $6,500, up from $6,000.

December 12 KRS Insights Breakfast to Discuss Business Transition Planning

You’ve built a successful business and now you’re thinking it’s time for you to move on. Where do you start? First, you need a solid transition strategy so your personal and financial future are not at risk.

You’ll learn the critical factors of business transition planning from business valuation expert and KRS partner Jerry Shanker, CPA/ABV/CFF, at the December 12 KRS Insights Breakfast.

Social Security: Note the Key Changes for 2020

Every year, the Social Security Administration takes a fresh look at its numbers and typically makes adjustments. First, the basic percentages have not changed:

• Employees and employers continue to pay 7.65% each, with the self-employed paying both halves.
• The Medicare portion remains 1.45% on all earnings, with high earners continuing to pay an additional 0.9% in Medicare taxes.
• The Social Security portion (OASDI) remains 6.20% on earnings up to the applicable taxable maximum amount — and that's what's changing.

Help Us Spread Holiday Cheer to Kids in Shelters!

This holiday season, KRS CPAs is once again participating in Frosty’s Friends. This program is organized by Jersey Cares and aims to spread holiday cheer to children in shelters or transitional housing facilities.

As a volunteer for Frosty's Friends, you will have the opportunity to provide a child between the ages of 3-16 with what may be the only gift they receive for the holidays this year. Please keep in mind that for each letter you are asked to purchase a gift between $25-$40.

What’s New With the Kiddie Tax?

The Tax Cuts and Jobs Act made some changes to the so-called kiddie tax.

The kiddie tax — around since 1986 — came about as an effort to close a tax loophole for the wealthy. The idea was that taxing children's passive income at the same rate as their parents would eliminate a sneaky reallocation of money just to avoid taxes.

It was difficult to calculate the kiddie tax when the parents had a different tax year than the child did. So, the good news is that these problems vanish with the TCJA's modifications.

IRS Warnings About Payroll Scams

The IRS has warned small businesses to be vigilant against the rising threat of identity theft and W-2 scams.

By the time these scams come to light, it's too late to start implementing controls. Indeed, last tax season saw a surge in phishing emails targeting payroll direct deposit and wire transfers.

Don't wait until next tax season to get yourself ready. Learn about the types of threats out there and how you can protect yourself and your employees.

Meet Kevin Taccad, KRS Staff Accountant

I became a part of the KRS family in January as a Staff Accountant after graduating this past December with my Masters in Accounting.

Since joining the firm shortly before tax season, I quickly gained exposure in learning how to prepare tax returns and compilations for individuals and small businesses. In addition, I have gradually transitioned to assisting our bookkeepers with duties such as routine write-ups and payroll for our business-owning clientele.

Equifax Breach Settlement Leads to Scams

The Equifax Data Breach resulted in a settlement and those affected have a choice between free credit monitoring or a $125 payment.

Now, bad actors are targeting victims of the Equifax breach with phishing attacks and spoofing Equifax’s settlement page.

Here's what you can do if you have a claim to file.