UPBlack & Associates CPA

Did not file your 2015 Federal Income Tax Return and you are due a refund? In cases where a federal income tax return was not filed, the law provides most taxpayers with a three-year window of opportunity to claim a tax refund. If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. For 2015 tax returns, the window closes April 15, 2019, for most taxpayers. That means you need to file that return on or before that date. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by that date. Were you a student or a part-time worker and overlooked filing for 2015? Had taxes withheld and is due a refund of those taxes? Will not get it back unless you file a return. There is no penalty for filing a late return if you're due a refund.

OWE TAXES? READ THIS. The IRS continues to warn taxpayers who need to resolve tax debt, that they may not be able to renew a current passport or obtain a new passport. A taxpayer with a seriously delinquent tax debt is generally someone who owes the IRS more than $52,000 in back taxes, penalties and interest, for which the IRS has filed a Notice of Federal Tax Lien and, the period to challenge it has expired or the IRS has issued a levy.

TREATMENT OF 529 DISTRIBUTIONS FOR K-12 DISTRIBUTIONS The Tax Cuts and Jobs Act of 2017 was signed into law in December 2017. The Act included provisions that allow 529 Plan account owners to withdraw Plan assets to pay for K-12 tuition expenses up to $10,000 per year, per beneficiary, beginning in 2018. These withdrawals will have no federal tax impact, just as 529 contributions do not. Under New York State law contributions to the New York State 529 plans are tax-deductible on New York Returns. Distributions for K-12 tuition expenses are considered nonqualified withdrawals and will require the recapture of any New York State tax benefits that have accrued on contributions.

New York opted not to follow many of the federal itemized deduction changes made by the TCJA for tax years 2018 and after, so you may be able to claim some deductions on your New York personal income tax return that are no longer available for federal purposes. For example, you may be able to claim deductions for: state and local real estate taxes paid, including amounts over the $10,000 federal limit; casualty and theft losses, including those incurred outside a federally declared disaster area; unreimbursed employee business expenses; and certain miscellaneous deductions that are no longer allowed federally (e.g. tax preparation fees, investment expenses, and safe deposit box fees).

Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018, 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018, and 14 cents per mile driven in service of charitable organizations. The business mileage rate increased 3.5 cents for business travel driven and 2 cents for medical and certain ...moving expense from the rates for 2018. The charitable rate is set by statute and remains unchanged. It is important to note that under the Tax Cuts and Jobs Act, taxpayers can no longer claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. See more

2016 Standard Mileage Rates for Business, Medical and Moving The Internal Revenue Service issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 54 cents per mile for business miles driven, down from 57.5 cents for 2015 19 cents per mile driven... for medical or moving purposes, down from 23 cents for 2015 14 cents per mile driven in service of charitable organizations The business mileage rate decreased 3.5 cents per mile and the medical, and moving expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is based on statute. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously. This is for general information purposes only and should not be construed as tax advice. Contact our office for information specific to your tax situation. See more

Want to Lower your 2015 Tax Liability? Here is 1 way: Make sure you have adequate health insurance coverage. If you and your family don’t have adequate medical coverage or minimum essential coverage, you may be subject to a penalty on your 2015 income tax return. Medical insurance provided by your employer or through an individual plan purchased through a state insurance marketplace generally qualifies for adequate coverage. The penalty amount varies based on 1. The numb...er of uninsured members of your household and 2. Your household income. If you have three or more uninsured household members, the penalty could be $975 or more for 2015, depending on the household income. This is for general information purposes only. It is not intended to be interpreted as tax advice. Contact our office for information specific to your tax situation.

It is so important to whom one makes charitable contributions!

Tips on Travel While Giving Your Services to Charity Do you plan to donate your services to charity this summer? Will you travel as part of the service? If so, some travel expenses may help lower your taxes when you file your tax return next year. Here are several tax tips that you should know if you travel while giving your services to charity. Qualified Charities. In order to deduct your costs, your volunteer work must be for a qualified charity. Most groups must apply to... the IRS to become qualified. Churches and governments are qualified, and do not need to apply to the IRS. Ask the group about its IRS status before you donate. Out-of-Pocket Expenses. You may be able to deduct some costs you pay to give your services. This can include the cost of travel. The costs must be necessary while you are away from home giving your services for a qualified charity. All costs must be: 1. Unreimbursed, 2. Directly connected with the services, 3. Expenses you had only because of the services you gave, and 4. Not personal, living or family expenses. Genuine and Substantial Duty. Your charity work has to be real and substantial throughout the trip. You can’t deduct expenses if you only have nominal duties or do not have any duties for significant parts of the trip. Value of Time or Service. You can’t deduct the value of your services that you give to charity. This includes income lost while you work as an unpaid volunteer for a qualified charity. Deductible travel. The types of expenses that you may be able to deduct include: 1. Air, rail and bus transportation, 2. Car expenses, 3. Lodging costs, 4. The cost of meals, and 5. Taxi or other transportation costs between the airport or station and your hotel. Nondeductible Travel. Some types of travel do not qualify for a tax deduction. For example, you can’t deduct your costs if a significant part of the trip involves recreation or a vacation. This is for general information purposes only. It is not intended to be interpreted as tax advice. See more

Tax Tips for Starting a Business When you start a business, a key to your success is to know your tax obligations. You may not only need to know about income tax rules, but also about payroll tax rules. Here are five tax tips that can help you get your business off to a good start. 1. Business Structure. An early choice you need to make is to decide on the type of structure for your business. The most common types are sole proprietor, partnership and corporation. The type of... business you choose will determine which tax forms you will file. 2. Business Taxes. There are four general types of business taxes. They are income tax, self-employment tax, employment tax and excise tax. In most cases, the types of tax your business pays depends on the type of business structure you set up. You may need to make estimated tax payments. 3. Employer Identification Number. You need to get an EIN for federal tax purposes. 4. Accounting Method. An accounting method is a set of rules that you use to determine when to report income and expenses. You must use a consistent method. The two that are most common are the cash and accrual methods. Under the cash method, you normally report income and deduct expenses in the year that you receive or pay them. Under the accrual method, you generally report income and deduct expenses in the year that you earn or incur them. This is true even if you get the income or pay the expense in a later year. 5. Employee Health Care. The Small Business Health Care Tax Credit helps small businesses and tax-exempt organizations pay for health care coverage they offer their employees. A small employer is eligible for the credit if it has fewer than 25 employees who work full-time, or a combination of full-time and part-time. The maximum credit is 50 percent of premiums paid for small business employers and 35 percent of premiums paid for small tax-exempt employers, such as charities. This is for general information purposes only. Contact our office for information specific to your tax situation. See more

City of Yonkers, NY Increases Sales and Use Tax Rate Beginning September 1, 2015, the city of Yonkers, in Westchester County, is increasing its local sales and use tax rate. The combined state and local tax rate in the city of Yonkers increases from 8.375% to 8.875%. This new tax rate applies to all taxable sales, services, deliveries, and uses in the city of Yonkers.

Keep Track of Miscellaneous Deductions Miscellaneous deductions can cut taxes. These may include certain expenses you paid for in your work if you are an employee for which you were not reimbursed by your employer. You must itemize deductions when you file to claim these costs. So if you usually claim the standard deduction, think about itemizing instead. You might pay less tax if you itemize. Here are some IRS tax tips you should know that may help you reduce your taxes: De...ductions Subject to the Limit. You can deduct most miscellaneous costs only if their sum is more than two percent of your adjusted gross income. These include expenses such as: Unreimbursed employee expenses. Job search costs for a new job in the same line of work. Some work clothes and uniforms. Tools for your job. Union dues. Work-related travel and transportation (does not include commuting costs). The cost you paid to prepare your tax return. These fees include the cost you paid for tax preparation, tax preparation software and any fee you paid for e-filing of your return. Deductions Not Subject to the Limit. Some deductions are not subject to the two percent limit. They include: Certain casualty and theft losses (which exceed 7.5% of your adjusted gross income). In most cases, this rule applies to damaged or stolen property you held for investment. This may include property such as stocks, bonds and works of art. Gambling losses up to the total of your gambling winnings. Losses from Ponzi-type investment schemes. There are many expenses that you can’t deduct. For example, you can’t deduct personal living or family expenses. This is for general information purposes only. Contact our office for information specific to your tax situation.

Is Your Gift Taxable? If you gave money or property to someone as a gift, you may wonder about the federal gift tax. Many gifts are not subject to the gift tax. Nontaxable Gifts: *Gifts that do not exceed the annual exclusion for the calendar year (currently $14,000 per year), *Tuition or medical expenses you paid directly to a medical or educational institution for someone, *Gifts to your spouse.... *Gifts to a political organization for its use. *Gifts to charities. Annual Exclusion. Most gifts are not subject to the gift tax. For example, there is usually no tax if you make a gift to your spouse or to a charity. If you give a gift to someone else, the gift tax usually does not apply until the value of the gift exceeds the annual exclusion for the year. For 2014 and 2015, the annual exclusion is $14,000. Generally, the person who receives your gift will not have to pay a federal gift tax. That person also does not pay income tax on the value of the gift received. Making a gift does not ordinarily affect your federal income tax. You cannot deduct the value of gifts you make (other than deductible charitable contributions). Gift-Splitting: You and your spouse can give a gift up to $28,000 to a third party without making it a taxable gift. You can consider that one-half of the gift be given by you and one-half by your spouse. Filing Requirement. You must file a Gift Tax Return if you gave gifts to at least one person ( not your spouse) that amount to more than the annual exclusion for the year. See more