|There are a lot of new things to get used to when you change jobs, from new responsibilities to adjusting to a new company culture. One thing you may not have considered are the tax issues created when you change jobs. Here are tips to reduce any potential tax problems related to making a job change this coming year.
Finding a new job can be an exciting experience, and one that can create tax consequences if not handled correctly. Feel free to call for a discussion of your situation.
- New Year, New Job
- Five tax tips for job changers
- Save More in 2018
- Retirement contribution and Social Security limits on the rise.
- A Happy Holiday Traditions Quiz
- Credit Card Transactions Could Pose Audit Risk
- What small businesses need to know
After an eventful year, we all deserve a happy holiday season and hopefully some well-needed relaxation. While tax reform will continue to be debated, many preliminary figures for 2018 are set. Check out the details inside. The economy and job market have continued to improve, which means you may be considering a new job. If you are planning on a change, look at the tax checklist for job changers. Or, if you work for yourself and take credit cards as payment, learn about the new IRS focus on those small business payments.
Looking for something to talk about at the next family gathering? Consider sharing the quiz regarding the sometimes strange origins of popular holiday traditions.
As always, should you know of someone who may benefit from this information please feel free to forward this newsletter to them.
New Year, New Job
Save More in 2018
|The maximum contribution to 401(k) accounts rises by $500 in 2018, the first increase in three years. If you have not already done so, now is the time to plan for contributions into your retirement accounts in 2018.
Don’t forget to account for any matching programs offered by your employer as you determine your various funding levels for next year.
A Happy Holiday Traditions Quiz
|While there are many holiday traditions, some of the most popular ones have strange and surprising origins. Get into the festive spirit with a smile by guessing the origins of these traditions:|
Credit Card Transactions Could Pose Audit Risk
|Small business owners beware: the IRS may more closely scrutinize reporting of credit card transactions after it was criticized for lax enforcement.
The IRS’ overseer, the Treasury Inspector General for Tax Administration (TIGTA), recently said the IRS had been missing opportunities to audit tax returns that had large discrepancies between income and the card payments reported on Forms 1099-K.
Who is impacted
If you have a business that accepts payment cards like debit cards or credit cards, you will probably receive a Form 1099-K from your payment processor. The form is also required for anyone who has $20,000 in card payments and 200 transactions or more per year. Examples of those who would receive Forms 1099-K include users of PayPal, sellers on Ebay and Etsy, cab drivers and any small business that accepts card transactions as a form of payment.
Here’s how you can prepare
Receiving a Form 1099-K and reporting it in such a way that the IRS is satisfied can be complicated. You could easily double-report your revenue from 1099-Ks out of an excess of caution. Or, you may not be disclosing your correct reporting of card income in a way that IRS audit programs are able to identify. It’s often best to get professional guidance to ensure your return does not stick out when the IRS tries to comply with the TIGTA request for more oversight.