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This week the IRS released inflation adjustments for the 2019 tax year. 

The standard deduction for married filing jointly taxpayers is increasing $400 to $24,400. It will be $12,200 ($200 increase) and $18,350 ($350 increase) for single and head of household taxpayers, respectively.
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Karyn Richardson, CPA •

Determining what to classify an individual who provides services to your business is sometimes a slippery slope. Business owners often prefer to have as many independent contractors as possible – no payroll taxes or benefits to pay, and no employment and labor laws to follow. Individuals may want to be considered an employee to have access to benefits and legal protection. Per the IRS, the general rule is “that an individual is an independent contractor if the payer has the right to control or direct only the result of the work, not what will be done and how it will be done”. Sounds clear and concise, but what does control really mean?
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Last week the IRS released Notice 2018-83 which provides cost of living adjustments for retirement plans for 2019. 
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Dana Bull, CPA •

Age 62. The magic age at which you become eligible to start receiving social security benefits. But should you? There are many complexities when it comes to Social Security and understanding the rules for collecting Social Security can help you take advantage of the retirement benefits to which you are entitled. I will outline some of the considerations for when to begin receiving Social Security benefits.
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Janet Choquette, EA •

In reading my blog heading, you may be thinking “Why would I bother to even read this? I have no need to know about Trusts.” Or do you? And my answer would be “YES!“ You should have some basic understanding of the uses of Trusts and whether or not there would be any benefit in creating a Trust at this point in your life. While there are many types of Trusts and several reasons for creating a Trust, a basic understanding of Trusts can be helpful to determine if you should speak to your accountant and/or attorney to assist in planning for the future. As Baby Boomers and early year Generation X’s are now in their 50’s and 60’s, a midlife plan should not only include a medical checkup but a financial one as well. This should include reviewing your future financial situation/needs during your retirement years and any estate planning you may want to consider. And this is where Trusts could come into play.
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Pollyanna King, CPA, MST •

The new tax law is all the buzz for tax advisors. And toddler education is on my mind.
 
That’s because one snip-it of the tax law change is the expanded coverage under 529 plans to help families with planned education expenses. Starting on January 1, 2018 you can have a 529 savings plan with qualified distributions for lower education, such at the elementary or middle school levels. It’s true. 

The Social Security Administration recently released their updated fact sheet for 2019.

The updates include: 

Have you heard about the changes to the kiddie tax as a result of the Tax Cuts and Jobs Act of 2017? If you have children age 24 or younger they could be subject to the kiddie tax if they have unearned income. 
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Today the IRS issued some highly anticipated guidance on the deductibility of business meals after the passing of the Tax Cuts and Jobs Act. The IRS still expects to publish proposed regulations but in the meantime, taxpayers can rely on Notice 2018-76.
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Last week the IRS issued questions and answers on the new general business credit to for employers who provide paid family and medical leave to their employees. This is a new credit that was formed as part of the Tax Cuts and Jobs Act of 2017.