The adventures & musings of an Enrolled Agent representing clients in Tax Controversy cases at the Neighborhood Christian legal clinic - Low Income Taxpayer Clinic.

Indianapolis, Indiana

Achieving a Better Life Experience (ABLE) accounts

Achieving a Better Life Experience (ABLE) accounts

The Tax Cuts and Jobs Act (2017) made major changes to Achieving a Better Life Experience (ABLE) accounts. Eligible individuals may now put more money into their ABLE account and also roll money from their qualified tuition programs (529 plans) into their ABLE accounts. And certain contributions made to ABLE accounts by low- and moderate-incomeRead more about Achieving a Better Life Experience (ABLE) accounts[…]

How Long Should I Keep Tax Returns and Documents?

How Long Should I Keep Tax Returns and Documents?

Safekeeping tax records helps for future filing, amended returns, audits With the tax filing season quickly approaching, taxpayers should understand how long to keep tax returns and other documents. The Internal Revenue Service generally recommends keeping copies of tax returns and supporting documents at least three years. Employment tax records should be kept at leastRead more about How Long Should I Keep Tax Returns and Documents?[…]

You May Be Eligible for the Child Tax Credit for Tax Year 2018

You May Be Eligible for the Child Tax Credit for Tax Year 2018

Child Tax Credit Beginning with Tax Year 2018, you may able to claim the Child Tax Credit if you have a qualifying child under the age of 17 and meet other qualifications. The maximum amount per qualifying child is $2,000. Up to $1,400 of the credit can be refundable for each qualifying child as theRead more about You May Be Eligible for the Child Tax Credit for Tax Year 2018[…]

Taxpayers with expiring ITINs need to renew as soon as possible!

Taxpayers with expiring ITINs need to renew as soon as possible!

Taxpayers with expiring Individual Taxpayer Identification Numbers (ITINs) to submit their renewal applications as soon as possible. Failing to renew them by the end of this year will cause refund and processing delays in 2019. The IRS mailed more than 1.3 million letters to taxpayer households that include an ITIN holder with middle digits 73,Read more about Taxpayers with expiring ITINs need to renew as soon as possible![…]

Will I get a refund on my 2018 tax return because of tax reform?

Will I get a refund on my 2018 tax return because of tax reform?

What is tax reform? Major tax reform that affects both individuals and businesses was enacted in December 2017. It’s commonly referred to as the Tax Cuts and Jobs Act, TCJA or tax reform. What changed? For 2018, most tax rates have been reduced. This means most people will pay less tax starting this year. TheRead more about Will I get a refund on my 2018 tax return because of tax reform?[…]

Reconstructing Tax Records After a Disaster

Reconstructing Tax Records After a Disaster

After a disaster, you might need to reconstruct records. This could help you prove your losses, which may be essential for tax purposes, getting federal assistance or insurance reimbursement. Here are several things you can do to help reconstruct or get copies of specific types of records after a disaster: Tax Return Transcripts You canRead more about Reconstructing Tax Records After a Disaster[…]

The Business Expense Deduction for Meals and Entertainment Has Changed

The Business Expense Deduction for Meals and Entertainment Has Changed

The Internal Revenue Service has issued guidance on the business expense deduction for meals and entertainment following law changes in the Tax Cuts and Jobs Act (TCJA). The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. Taxpayers may continue to deduct 50 percent of the costRead more about The Business Expense Deduction for Meals and Entertainment Has Changed[…]

Did Your Filing Status Change This Year?

Did Your Filing Status Change This Year?

Taxpayers don’t typically think about their filing status until they file their taxes. However, a taxpayer’s status could change during the year, so it’s always a good time for a taxpayer to learn about the different filing statuses and which one they should use. It’s important a taxpayer uses the right filing status because it canRead more about Did Your Filing Status Change This Year?[…]

If You Filed a Federal Tax Return Extension for 2017 Your Return is Due by October 15th

If You Filed a Federal Tax Return Extension for 2017 Your Return is Due by October 15th

If you filed an Application for Automatic Extension of Time To File U.S. Individual Income Tax Return (Form 4868) to file your 2017 Federal tax return the deadline to file your return is October 15, 2018. While taxpayers may file a Form 4868 requesting a 6-month filing extension, it is important to remember that theRead more about If You Filed a Federal Tax Return Extension for 2017 Your Return is Due by October 15th[…]