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Breunig CPA, LLC provides full-service tax preparation and accounting services to individuals and small businesses. We help you identify goals and help you achieve them. With a long-term relationship, we can assist in increasing your income and improve your quality of life.

 

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Tax relief for victims of severe storms in wisconsin

Tax Relief for Victims of Severe Storms in WisconsinWI-2018-07, October 19, 2018WISCONSIN — Victims of severe storms, tornadoes, straight-line winds, flooding, and landslides that took place beginning on Aug. 17, 2018 in Wisconsin may qualify for tax relief from the Internal Revenue Service.The President has declared that a major disaster exists in the State of Wisconsin. Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in certain counties will receive tax relief.Individuals who reside or have a business in Crawford, Dane, Juneau, La Crosse, Monroe, Richland, Sauk, and Vernon counties may qualify for tax relief.The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 17, 2018 and before Dec. 17, 2018, are granted additional time to file through Dec. 17, 2018. This includes taxpayers who had a valid extension to file their 2017 return due to run out on Oct. 15, 2018. It also includes the quarterly estimated income tax payments due on Sept. 17, 2018 and the quarterly payroll and excise tax returns normally due on Oct. 31, 2018. It also includes tax-exempt organizations that operate on a calendar-year basis and had an automatic extension due to run out on Nov. 15, 2018.In addition, penalties on payroll and excise tax deposits due on or after Aug. 17, 2018, and before Sept. 3, 2018, will be abated as long as the deposits were made by Sept. 3, 2018.If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty. The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.Full Article

Taxpayers can follow these steps for Using the Withholding Calculator on IRS.gov​

​The IRS encourages everyone to use the Withholding Calculator to do a Paycheck Checkup, which is even more important this year because of tax law changes. Taxpayers who haven’t yet done this can follow the steps below for using the calculator. Results from the calculator will include a recommendation of whether they should consider submitting a new Form W-4, Employee’s Withholding Allowance Certificate, to their employers. Before beginning, taxpayers should have a copy of their most recent pay stub and tax return. First, taxpayers should go to the main Withholding Calculator page on IRS.gov. Carefully read all information and click the blue Withholding Calculator button. Use the buttons at the bottom of each page to navigate through the calculator. The buttons allow users to continue inputting their information, reset the information on that page, or start over from the beginning. Input general tax situation information, including:Filing status.Whether anyone can claim the users as dependents.Total number of jobs held during the year.Contributions to a tax-deferred retirement, cafeteria or other pre-tax plan.Scholarships or fellowship grants received that are included in gross income.Number of dependents. Input information about credits, including:Child and dependent care credit.Child tax credit.Earned income tax credit. Enter the total estimated taxable income expected during the year. Amounts the user will enter include wages, bonuses, military retirement, taxable pensions, and unemployment compensation. Users should enter a "0" on lines asking for amounts that don’t apply to them. Enter an estimate of adjustments to income, including deductible IRA contributions and education loan interest. Indicate standard deduction or itemized deductions. Users who plan to itemize will enter estimates of these deductions. Print out the summary of results. The calculator will provide a summary of the taxpayer's information. Taxpayers use the results to determine if they need to complete a new Form W-4, which they submit to their employer. Taxpayers can follow these steps for Using the Withholding Calculator on IRS.gov. https://go.usa.gov/xPQd8

Top five TCJA tax planning opportunities for individuals in 2018​

As we enter into the tax planning stage of the year, the focus shifts to helping clients understand the impact of the Tax Cuts and Jobs Act and optimize their tax positions. That is no small task, given that there are over 130 new tax provisions.Here are the top five TCJA tax planning opportunities for individuals in 2018:No. 5 — Itemized deductions versus the standard deductionNo. 4 — Revisit your qualified tuition plansNo. 3 — Watch out for home equity debt interest No. 2 — Bunch charitable contributionsNo. 1 — Maximize the qualified business income deduction Read More​

Key tax change affects taxpayers with dependents; IRS urges workers to check withholding​

IR-2018-166, Aug. 15, 2018 WASHINGTON — The Internal Revenue Service urges taxpayers who support dependents who can’t be claimed for the Child Tax Credit to do a paycheck checkup soon. The IRS Withholding Calculator can help these taxpayers make sure they have the right amount of tax taken out of their pay. The Tax Cuts and Jobs Act, enacted in December 2017, added a new tax credit – Credit for Other Dependents. It is a non-refundable credit of up to $500 per qualifying person. Taxpayers may be able to claim the new credit for dependents that these taxpayers claimed a dependency exemption for in the past.  This change, along with others, can affect a family’s tax situation in 2018. Checking and adjusting withholding now can prevent an unexpected tax bill and even penalties next year at tax time. The Credit for Other Dependents is available for dependents for whom taxpayers cannot claim the newly expanded Child Tax Credit. These dependents may include dependent children who are age 17 or older at the end of 2018, or parents or other qualifying relatives supported by the taxpayer. Families with qualifying children under the age of 17 should first review their eligibility for the expanded Child Tax Credit, which is larger. The Credit for Other Dependents and the Child Tax Credit begin to phase out at $400,000 of modified adjusted gross income for joint filers and $200,000 for other taxpayers. For more information about these credits, visit Steps to Take Now to Get a Jump on Next Year’s Taxes on IRS.gov. These credits are among the many changes in the new law that will affect 2018 tax returns that people will file in 2019. The IRS Withholding Calculator, available on IRS.gov, can help people with dependents – and others – apply the new law correctly. The IRS urges all taxpayers to complete their “paycheck checkup” as early as possible so that if a withholding amount adjustment is necessary, there’s more time for withholding to take place evenly throughout the year. Waiting means there are fewer pay periods to withhold the necessary federal tax – so more tax will have to be withheld from each remaining paycheck.  Taxpayers who change their withholding for 2018 should recheck their withholding at the start of 2019, especially taxpayers who reduce their withholding sometime during 2018. A mid-year withholding change in 2018 may have a different full-year impact in 2019. If taxpayers don’t submit a new Form W-4 for 2019, their withholding might be higher or lower than intended. Using the Withholding Calculator To use the Withholding Calculator, taxpayers should have their 2017 tax returns and most recent paystubs available to determine their proper withholding for 2018.    Calculator results depend on the accuracy of information entered. If a taxpayer’s personal circumstances change during the year, they should return to the calculator to check whether their withholding should be changed.  Employees can use the results from the Withholding Calculator to determine if they should complete a new Form W-4 and, if so, what information to enter on that form. The Withholding Calculator does not request personally-identifiable information, such as name, Social Security number, address or bank account number. The IRS does not save or record the information entered on the calculator. As always, taxpayers should watch out for tax scams, especially via email or phone and be alert to cybercriminals impersonating the IRS. The IRS does not send emails related to the Withholding Calculator or the information entered on it. Adjusting withholding The Withholding Calculator will recommend how to complete new Forms W-4. If a taxpayer is at risk of being under-withheld, the calculator will recommend an additional amount of tax withholding for each job. The taxpayer can enter these amounts on their respective Forms W-4.  Employees who need to complete a new Form W-4 should submit it to their employers as soon as possible. Employees with a change in personal circumstances that reduce the number of withholding allowances must submit a new Form W-4 with corrected withholding allowances to their employer within 10 days of the change. Certain taxpayers – including those who don’t have enough income tax withheld by their employer – may have to pay estimated taxes. For additional information, refer to Publication 505, Tax Withholding and Estimated Tax. Taxpayers may also need to determine if they should make adjustments to their state or local withholding. They can contact their state’s department of revenueto learn more. For information about steps taxpayers can take now to get a head start on next year’s taxes, including how the new tax law may affect them, visit IRS.gov/get ready.  From IRS Website 

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