Category: Tax News

Get up to date on all tax news from the IRS. The IRS is constantly updating us with law changes and new rules. Sometimes, it’s too much to keep up with. We’ll decipher the confusing lingo while you focus on staying current  on what’s really important.

If you have more questions about staying up to date with the IRS, leave a comment. Our tax team is ready to help!

Archive for the ‘Tax News’ Category

What is a 1098-T Form?

Posted by Manisha Hansraj on February 27, 2019
Last modified: February 28, 2019

1098-t

Unfortunately, education isn’t free for some students.

If you’re a college student, parent, guardian or anyone paying out-of-pocket for tuition, fees, and required course materials needed for enrollment, you will receive a Form 1098-T. This tuition statement form reports all of your transactions, which means the payments you make to your school.

What does a 1098-T statement look like?

(more…)

Time to E-file Your 2018 Taxes!

Posted by Manisha Hansraj on December 28, 2018
Last modified: February 7, 2019

taxes 2018

Are you preparing for the 2019 tax season?

The new 2018 tax return is circulating the web so now we know what it looks like.

Here’s how to be ahead of the game.

Here’s what you need to know

Mark your calendar or set a reminder on your phone because there are some important dates to remember. (more…)

Instructions for Filing the New 2018 Form 1040!

Posted by Manisha Hansraj on December 24, 2018
Last modified: January 8, 2019

2018 form 1040

The IRS finally released the new 2018 tax return.

You’ll see some obvious changes in the new tax return. But first, here’s a breakdown of how to report your tax information.

Keep reading to find out how filing this upcoming tax season will be different.

Introducing Schedules 1 – 6

Form 1040 will be shorter than the previous form because the IRS consolidated tax information into separate schedules. That being said, all additional income and adjustments to income have moved to Schedule 1, taxes moved to Schedule 2, nonrefundable credits moved to Schedule 3, other taxes moved to Schedule 4, other payments and refundable credits moved to Schedule 5, and foreign addresses/third party designee’s moved to Schedule 6.

Here’s how you will be reporting this information. (more…)

How are Charitable Deductions Affected by the TCJA?

Posted by Manisha Hansraj on November 27, 2018
Last modified: November 27, 2018

Generosity has its perks, or rather its tax benefits.

Keep in mind, taxpayers are able to easily itemize once they exceed their standard deduction. This typically happens by taxpayers claiming charitable donations along with any expenses they have. It then becomes greater than their standard deduction. However, the standard deduction is twice the amount for 2017.

Due to the Tax Cuts and Jobs Act (TCJA), taxpayers who itemize may face some difficulties next year.

Read on to find out what you can do to be prepared for next year!

“Bunching,” a word that people can’t stop talking about.

If you’re surfing the web for information on charitable donations, you might run into the term, “bunching.” It may be confusing, so we’re here to clear it up for you. (more…)

Cyber Monday is HERE, with some sales tax…

Posted by Manisha Hansraj on November 26, 2018
Last modified: November 26, 2018

online sales tax

We’ll surf through crowds to get our hands on the newest flatscreen tv.

Like most Americans, we rush to get deals on Black Friday, or even better Cyber Monday. However, taxpayers rely heavily on Cyber Monday to buy the items they have on their wishlist because if an online retailer doesn’t have a physical presence in our state, we’re not required to pay any sales tax.

Nonetheless, consumers might notice a difference in the amount in their sales tax (depending on where they live) because of a Supreme Court ruling passed in June 2018.

E-commerce retailers are now required to collect sales tax from online purchases.

Prior to this, online retailers did not have to collect sales tax if they did not have a physical presence in your specific state. (more…)

When is the Deadline to File Taxes for 2018?

Posted by Manisha Hansraj on September 19, 2018
Last modified: November 28, 2018

deadline to file taxes 2018

Am I too late to file my 2017 taxes?

For taxpayers who are receiving a refund, there’s absolutely nothing to worry about! The IRS does not attach penalties to late returns that have refunds. On the other hand, if you had a tax due to the IRS, you must have paid your taxes to the IRS by the tax deadline which was April 17, 2018 or you will be subject to penalties.

Read on to find out the steps you need to take in order to file your return.

Can I still E-file?

(more…)

Obamacare VS. Trumpcare: 3 Ways Taxes Will Be Affected

Posted by admin on April 14, 2017
Last modified: May 31, 2017

Obamacare made it through the election. Will it stay on your tax return?

Every new president brings on a new aura for Americans to bask in, and while emotions run high, opinions begin to surface. Suddenly, cheerful holiday dinners turn into political debates. Some chime in while the rest of us are just trying to decide between pecan pie or pumpkin. One debate is the replacement of Obamacare, or the American Health Care Act. Lately, we’ve introduced a new word into our vocabulary that will likely stick; TrumpCare

 

Flexible Spending Account (FSA) for Over-the-Counter Medicine

According to the IRS in 2011, under the Affordable Care Act (aka Obamacare), “Distributions from health FSAs and HRAs will be allowed to reimburse the cost of over-the-counter medicines or drugs if they are purchased with a prescription.” This will remain accurate until Obamacare is no longer in effect. However, there are limits to the Flexible Spending Account. For example, the pre-tax dollars you can have contributed to your account adjusts each year depending on inflation. The FSA limit is currently $2,500. (more…)

PriorTax Partners With Trustpilot to Spread the Word

Posted by Michelle O'Brien on April 14, 2016
Last modified: November 2, 2016

This tax season, PriorTax has joined forces with Trustpilot to show just how much our customers enjoy working with us!

We know how important customer reviews are. From vacation spots to the next restaurant we plan to dine at, we’re constantly researching to find the best. The same goes for filing your taxes.

That’s why we’ve partnered with Trustpilot, an online customer review website. With the Trustpilot platform, you’ll be able to get down to the nitty gritty about what our customers think about their experience with us. Turns out, our customers have been loving us!

Here are some of the thoughtful words our customers have been sharing about us.

 

“I’ve never done my taxes THIS fast with the least amount of questions and as a bonus when entering the W2 amounts, it fills in 95% of the amounts for me!!! WOW! Where have these guys been all my life?”  

-Miguel

 

“Prior to finding Prior Tax, it was really painful with OLT, TaxACT, and Turbotax when trying to file past taxes. These folks reviews your input, sends you an email verifying if an item is validated with backup, and they give you advice. If I had a word to describe them, I would use “Caring”. They understand that you are stressing trying to catch up. Good work Prior Tax!”  

-Sulu

 

“I have used PriorTax for 5 years. Each year I share with family and friends how happy I am with them. Each year more and more join me with tax season and using PriotTax. Very happy customer.”

-Mary

(more…)

2016 Tax Rates and Standard Deduction

Posted by Michelle O'Brien on January 27, 2016
Last modified: December 21, 2016

Time to reflect on the new 2016 tax rates.

Once the new year comes around, we tend to reevaluate ourselves and reflect on our accomplishments (and setbacks) from the past year. This is also a time when we think about how we can better ourselves for the year to come. For many of us, that means following through with a career move, proposing to that special someone, having a baby, or buying a new house.

All of these life events come with a price tag that are likely to affect your tax situation. You’ll want to take a look at the following tables as a reference to adjust your W-4 withholdings accordingly. Look at it as one more save-the-date or housewarming invite you need to send out to share the good news!

 

2016 Standard Deduction Amounts

If your Filing Status is: Your Standard Deduction is:
Single$6,300
Married Filing Jointly$12,600
Married Filing Separately$6,300
Head of Household$9,300
Surviving Spouse$12,600

(more…)

7 Tax Updates for 2016

Posted by Michelle O'Brien on December 11, 2015
Last modified: December 21, 2016

5…4…3…2…1….. Happy Tax Season 2016!

With the new year comes promises to lose weight, shiny new engagement rings, and of course…annual tax updates. While most tax laws remain consistent from one year to the next, there are some that change.

We are here to share a sneak peek of 7 tax updates coming your way for 2016. Let’s get started.

 

1. Tax Day is April 18th this year.

Since April 15th falls on Washington D.C. Emancipation Day, the tax deadline date will extend to the following Monday, April 18th. Are you among the lucky ones living in a New England state? Extend that deadline one more day to April 19th.

 

2. Tax penalties related to Obamacare are increasing yet AGAIN.

If you’ve reached the ripe ol’ age of 26, then you’re familiar with health insurance and the recent changes to it via Obama. For those without coverage last year, a penalty of $285 (or 2% of income above the filing limit) was billed to them. Still don’t have coverage for 2016? If you don’t apply for an eligible health care plan, then the tax penalty could hit an all-time high of $695 per adult (or 2.5% of income).

 

3. The Earned Income Credit is increasing.

2016 brings a small but modest increase to the EIC. If you are a taxpayer with three or more qualifying dependent children, then the maximum credit will be increasing by $27 to $6,269. For those with two dependent children, your maximum will be increasing by $24 to $5,572. For those taxpayers with an only child, you can receive a maximum of $3,373 which is up $14 from 2015. No kids to worry about? You’ll still get an increase of $3 from last year which will leave you with $506 for 2016. (more…)