[Sticky] Useful Tax info courtesy of Yumbo  

 

The Evil Genius
Admin
Joined: 1 year ago
Posts: 1477
05/12/2018 6:21 pm  

Our Brother Yumbo sent me this compilation of Tax info; I found it pretty darn useful.

Timing Is Everything When It Comes to Taxes

Good record-keeping can help avoid headaches if the taxman comes knocking on your door.

Here are suggestions from the IRS on what you should keep and for how long, either in a file cabinet or electronic storage.

1. Keep all tax returns. They’ll help when preparing future tax returns and making computations if you file an amended return.

2. Records relating to your home or other long-term assets should be kept at least three years after you sell the asset. You’ll need those receipts to calculate your total gain or loss when you sell.

3. Keep records, such as medical and charitable expenses, for three years from the date you filed your original return or two years from the date you paid the tax, whichever is later.

4. Keep records for seven years if you file a claim for a loss from worthless securities or bad debt deduction.

5. Keep records indefinitely if you don’t file a return. It could be very satisfying to tell the IRS, “Sorry fellows, you’re too late.”

   But before tossing records, check to see if you have to keep them longer for any other reason.
   For instance, your insurance company or state taxing authority may require you to hang onto them longer than the IRS does

Tax Brackets

There are still seven brackets. However, the income range within each has increased from 2018.

For married filing jointly and surviving spouses

If taxable income is between:       The tax due is:

0 - $19,400                                   10% of taxable income

$19,401 - $78,950                        $1,940 + 12% of the excess over $19,400

$78,951 - $168,400                      $9,086 + 22% of the excess over $78,950

$168,401 - $321,450                    $28,765 + 24% of the excess over $168,400

$321,451 - $408,200                    $65,497 + 32% of the excess over $321,450

$408,201 - $612,350                    $93,257 + 35% of the excess over $408,200

$612,351 or more                         $164,709.50 + 37% of the excess over $612,350

Filing individually…

0 - $9,700                                      10% of taxable income

$9,701 - $39,475                            $970 + 12% of the excess over $9,700

$39,476 - $84,200                          $4,543 + 22% of the excess over $39,475

$84,201 - $160,725                        $14,382.50 + 24% of the excess over $84,200

$160,726 - $204,100                      $32,748.50 + 32% of the excess over $160,725

$204,101 - $510,300                      $46,628.50 + 35% of the excess over $204,100

$510,301 or more                           $153,798.50 + 37% of the excess over $510,300

Heads of household…

0 - $13,850                                     10% of taxable income

$13,851 - $52,850                          $1,385 + 12% of the excess over $13,850

$52,851 - $84,200                          $6,065 + 22% of the excess over $52,850

$84,201 - $160,700                        $12,962 + 24% of the excess over $84,200

$160,701 - $204,100                      $31,322 + 32% of the excess over $160,700

$204,001 - $510,300                      $45,210 + 35% of the excess over $204,100

$510,301 or more                           $152,380 + 37% of the excess over $510,300

Married filing separately…

0 - $9,700

10% of taxable income

$9,701 - $39,475                            $970 + 12% of the excess over $9,700

$39,476 - $84,200                          $4,543 + 22% of the excess over $39,475

$84,201 - $160,725                        $14,382.50 + 24% of the excess over $84,200

$160,726 - $204,100                      $32,748.50 + 32% of the excess over $160,725

$204,101 - $306,175                      $46,628.50 + 35% of the excess over $204,100

$306,175 or more                           $82,354.75 + 37% of the excess over $306,175

Trusts and estates

0 - $2,600                                       10% of taxable income

$2,601 - $9,300                              $260 + 24% of the excess over $2,600

$9.301 - $12,750                            $1,868 + 35% of the excess over $9,300

$12,751 or more                             $3,075.50 + 37% of the excess over $12,750

Standard Deductions

The standard deduction has increased:

· Married filing jointly — up $400 to $24,400

· Single taxpayers and married filing separately — up $200 to $12,200

· Heads of households — up $350 to $18,350

Itemized Deductions

In 2014, around 30% of taxpayers itemized their deductions. A recent estimate puts that number at 6% for 2019.

Here’s why more Americans will opt for the standard deduction:

1. Medical and Dental — Beginning Jan. 1, 2019, you may deduct only the amount of the total unreimbursed allowable medical care expenses that exceeds 10% of your adjusted gross income. That’s up from 7.5% in 2018.

2. State and Local taxes (SALT deduction) — Limited to $10,000; the same as in 2018

3. Home mortgage interest — Deductible on principal balances up to $750,000. That’s a cut from the $1 million limit for 2018.

4. Miscellaneous deductions — Many have been eliminated for 2019. They include unreimbursed employee expenses, tax preparation fees, and most casualty and theft losses.

Maximum Capital Gains Rate

Long-term capital gains have their own brackets and have been indexed for inflation for 2019

Single       Joint           Married Filing Separately        Head of  Household

0% tax bracket      $39,375    $78,750      $39,350                                  $52,750

15% tax bracket    $434,550  $488,850    $244,425                                $461,700

For instance, a married couple filing jointly pays no capital gains tax
if their total taxable income is no more than $78,750.

If their income is between $78,751 and $488,850,
they’ll pay 15% on any capital gains

Eligible Long-term Care Premiums

The amount of long-term premiums you can include as “medical care” has increased for most age brackets.

If you are:

40 or younger                                       — no change, $420

Older than 40 but not more than 50     — up $10 to $790

Older than 50 but not more than 60     — up $20 to $1,580

Older than 60 but not more than 70     — up $60 to $4,220

Older than 70                                       — up $70 to $5,270

Interest On Education Loans

The $2,500 maximum amount you can deduct remains, but the phaseouts have increased by $5,000.

The phaseouts apply to taxpayers with modified adjusted gross income above $70,000 ($140,000 for joint filers),
and is completely phased out for taxpayers with income of $85,000 or more ($170,000 for joint filers).

Kiddie Tax

A child’s unearned income, such as from dividends and interest, is taxed at the same rates as trusts and estates.
The deduction used to reduce the net unearned income reported on the child’s return has been increased by $50 to $1,100

Obamacare Tax Penalty Is Dead

For 2019, the amount used to determine the penalty for not maintaining minimum health coverage is 0,
per the Tax Cuts and Jobs act.

For 2018 it was $695 per adult, $347.50 per child, with a maximum of $2,085 per family
or 2.5% of household income, whichever was greater.

Alternative Minimum Tax (AMT)

The exemption amount for the AMT has been adjusted for inflation:

1. Married filing jointly              — up $2,300 to $111,700

2. Married filing separately        — up $1,150 to $55,850

3. Single taxpayers                    — up $1,400 to $71,700

The above updates apply to your 2019 tax - what you’ll use to calculate your estimated quarterly payments or payroll withholdings,
and the 1040 you’ll file in 2020.

You can find additional adjustments here.
https://www.irs.gov/pub/irs-drop/rp-18-57.pdf

More changes expected throughout the coming year...


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Xanthine
Founder .
Joined: 1 year ago
Posts: 172
06/12/2018 6:06 pm  

Awesome, thank you for this! This is going to be very handy really soon...


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uoSʎWodɹɐH
Founder.
Joined: 1 year ago
Posts: 685
07/12/2018 10:44 am  

What if I have not filed in 12 years?   HA! HA! HA!  There is not a single return to audit.

Income?  That is a dirty word. 

 

L&R

I was bound to be misunderstood, and I laugh at the idiots who misunderstand me! Kind mockery toward the well-intentioned and unfettered cruelty toward all would-be prison guards of my creative possibilities. In this way I learn to revel as much in misunderstanding as in understanding and take pleasure in worthy opponents. Making language fluid, flowing like a river, yet precise and pointed as a dirk, contradicts the socialistic purpose of language and makes for a wonderful verbal dance—a linguistic martial art with constant parries that hone the weapon that is the two edged sword of my mouth.


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MG-ɹǝʍo┴
Founder..
Joined: 1 year ago
Posts: 2924
07/12/2018 11:48 am  
Posted by: uoSʎWodɹɐH

What if I have not filed in 12 years?   HA! HA! HA!  There is not a single return to audit.

Income?  That is a dirty word. 

 

L&R

Let the beneficiaries of TAXES PAY TAXES! 

Harpomason, I SALUTE YOU! 

WE  OWE THIS NATION NOTHING! LET IT PERISH! 

P.S. I've been unlawfully incarcerated to LIFE in a 1974 Massachusetts condemned family campground.

Silly Government, PRISONERS OF A JUDICIAL DEATH TRAP DON'T PAY TAXES!

The law's still in black and white, only now it's in REVERSE! 


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