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Tax Deadlines Postponed to July 15, 2020, due to Coronavirus

By Elder Law, Tax Law

In March 2020, in response to COVID-19, the IRS announced that taxpayers generally would have until July 15, 2020, to file and pay federal income taxes originally due on April 15, 2020. No late-filing penalty, late-payment penalty, or interest will be due.

On April 9, 2020, the Department of Treasury and the IRS expanded this relief to additional returns, tax payments, and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Individuals, trusts, estates, corporation and other non-corporate tax filers qualify for the extension. This means that anyone, including Americans who live and work abroad, can wait until July 15 to file their 2019 federal income tax return and pay any tax due.

The extensions are automatic and apply to all taxpayers. Taxpayers do not need to file other forms or contact the IRS to qualify.

Fred Jacobs is a Florida Board Certified Tax Lawyer.  Contact Fred at Bach, Jacobs & Byrne, P.A. to discuss tax planning for you and your family. Call (941) 906-1231 to schedule an appointment.

June 10, 2020
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How can I minimize estate taxes?

By Estate Planning, Tax Law

Florida does not collect state estate and inheritance taxes, but there are federal estate taxes to which one might be subject. In 2018, the federal estate tax exemption is $11.2 million per individual. There are several ways one can plan their estate so as to avoid estate taxes. One of the first steps would be to schedule an appointment with the tax law and trust & estate attorneys of Bach, Jacobs & Byrne, P.A. to review and update your estate plan based on current tax law. Call us today at (941) 906-1231 to set up a consultation.

July 19, 2019
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Should I adjust my federal income tax withholding?

By Tax Law

The IRS recommends regularly reviewing your withholding so that you can make sure you are paying neither too much nor too little federal income tax with each paycheck. This can help avoid having taxes owed or refunds due at the end of the year.

Significant life changes such as getting married necessitate that a new Employee’s Withholding Allowance Certificate be submitted to one’s employer. Especially in light of the recent Tax Cuts and Jobs Act, it is wise to at least check on one’s withholding amount based on the Treasury Department’s new income tax withholding tables, found here: https://www.irs.gov/pub/irs-pdf/n1036.pdf.

Attorney Fred Jacobs of Bach, Jacobs & Byrne, P.A. is a Florida Board Certified Tax Law Attorney who can advise you in the tax planning process. Call (941) 906-1231 to set up a consultation.

 

May 6, 2019
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Tax Cuts and Jobs Act of 2017: Estate Taxes

By Tax Law

The recent Tax Cuts and Jobs Act brought with it many changes to federal tax law. In this series of blog posts, we explore what’s new in taxes.

Federal estate taxes are now only applicable to individuals with a taxable estate exceeding $11.2 million and to married couples with a taxable estate exceeding $22.4 million. In 2025, the federal estate tax is set to revert back to the exclusion amounts applicable in 2017.

In Florida, there is no state inheritance tax, so persons with assets of up to $11.2 million or couples with assets of up to $22.4 million do not need to worry about the impact of death taxes on the inheritance they leave to their heirs. The “generation skipping tax” has now also been effectively eliminated for combined estates less than $22.4 million between husband and wife, so it is now possible to establish so-called “dynasty Trusts” in Florida without worrying about subsequent generations inheriting extra generation-skipping taxes.

Attorney Fred Jacobs of Bach, Jacobs & Byrne, P.A. is a Florida Board Certified Tax Law attorney who can advise you throughout the tax planning process. Call (941) 906-1231 to set up a consultation to review your situation.

October 30, 2018
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Tax Cuts and Jobs Act of 2017: Income Taxes

By Tax Law

The recent Tax Cuts and Jobs Act brought with it many changes to federal tax law. In this series of blog posts, we explore what’s new in taxes.

The seven-bracket structure for income taxes has been retained, but there are generally slightly lower tax rates. The marriage penalty is mostly gone, as married filing thresholds and tax rates are now exactly double the single thresholds for all but the two highest brackets.

In terms of personal exemptions: whereas the old system provided $4,150 personal exemptions plus $6,500 standard deductions (for a total of $10,650 per individual, or $21,300 per couple), the new system eliminates personal exemptions in favor of a $12,000 standard deduction per person, or $24,000 per couple.

Attorney Fred Jacobs of Bach, Jacobs & Byrne, P.A. is a Florida Board Certified Tax Law attorney who can advise you throughout the tax planning process. Call (941) 906-1231 to set up a consultation to review your situation.

October 26, 2018
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Tax Cuts and Jobs Act of 2017: Capital Gains Taxation

By Tax Law

The recent Tax Cuts and Jobs Act brought with it many changes to federal tax law. In this series of blog posts, we explore what’s new in taxes.

Capital gains taxes have remained basically the same. Short-term capital gains (assets held less than one year) are still taxed as ordinary income. However, long-term capital gains tax rates are now based on the following taxable income levels, instead of on the old marginal tax brackets:

Long-Term Capital Gains Rate Single Return Taxable Income Joint Return Taxable Income
0% for taxable income up to $38,600 $77,200
15% for taxable income up to $425,800 $479,000
20% for taxable income up to $425,800 $479,000

 

It is important to note that alternative minimum tax rates still apply to long-term capital gains. In 2018, an alternative minimum tax of 28% will apply to any alternative taxable income (including long-term capital gains) in excess of $95,750 for single returns and $191,500 for joint returns.

Attorney Fred Jacobs of Bach, Jacobs & Byrne, P.A. is a Florida Board Certified Tax Law attorney who can advise you throughout the tax planning process. Call (941) 906-1231 to set up a consultation to review your situation.

October 22, 2018
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Tax Cuts and Jobs Act of 2017: Expanded Child Tax Credit

By Tax Law

The recent Tax Cuts and Jobs Act brought with it many changes to federal tax law. In this series of blog posts, we explore what’s new in taxes.

            The child tax credit has been doubled from $1,000 to $2,000 for children under age 17. The refundable amount has also been increased up to $1,400. Finally, “phase-out” thresholds for the child tax credit have been increased to $200,000 of taxable income for individuals and $400,000 for joint returns.

            Attorney Fred Jacobs of Bach, Jacobs & Byrne, P.A. is a Florida Board Certified Tax Law attorney who can advise you throughout the tax planning process. Call (941) 906-1231 to set up a consultation to review your situation.

October 18, 2018
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