Taxpayers change their names for several reasons (i.e. new marriage, recent adoption, divorce).
Regardless of the reason, taxpayers should notify the Social Security Administration (SSA) of any name changes as soon as possible. The IRS checks the SSA records to ensure that the names and social security numbers on the forms match.
Failing to notify the SSA of a name change can delay the processing of a taxpayer’s federal tax returns as well as any tax refunds.
The IRS suggests the following to safeguard your personal information:
• Do not routinely carry a Social Security card or other documents showing a Social Security number.
• Do not overshare personal information on social media. This includes information about past addresses, a new car, a new home and children.
• Keep old tax returns and tax records under lock and key.
• Safeguard electronic files by encrypting and properly disposing them.
• Shred tax documents before trashing.
This online tool by the IRS allows taxpayers to check the status of their refund anytime.
Taxpayers can start checking on the status of their return within 24 hours after the IRS received their e-filed return, or four weeks after they mail a paper return.
Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station.
For more details see Notice-2019-02.
As of January 1, 2019, the maximum wage base that is subject to the Social Security payroll tax will increase from $128,400 to $132,900.
There is no limit on earnings subjected to the Medicare payroll tax.
Congratulations to BYB’s Wiley Harrison on his recent appointment to Westchester County Executive George Latimer’s MWBE Task Force.
The task force was created to address the needs and challenges of Minority and Women-Owned Businesses (MWBE) in Westchester County in order to help them grow and succeed.
“The bottom line is this – we need to attract businesses and keep businesses here in Westchester County to keep our economy thriving. When our businesses thrive our County thrives, and we want to partner with those businesses, large and small, to meet their employment needs and technology needs.” – County Executive Latimer
For tax year 2017, student must receive Tuition Statement, form 1098-T, from an eligible institution to claim the tuition and fees deduction, American opportunity credit, or the lifetime learning credit,
There are certain reasons why institutions will not send you form 1098-T. For example having tuition waived or paid in full with scholarships, being a non-resident student, or having a formal separate financial and billing arrangement with an employer or government agency.
Keep records to prove enrollment, related expenses and tuition payments. This can be used to send to the IRS directly to claim the credit.
For more information and a test of questions to determine eligibility Click Here!
President Trump recently signed the tax reform bill into law which resulted into major changes to the code for both individuals and corporations. Here is a brief summary of the changes that will affect most of you.
| Filing Status | Old Law | New Law |
| Single | $6,500 | 12,000 |
| MFJ | 13,000 | 24,000 |
| MFS | 6,500 | 12,000 |
| HOH | 9,350 | 18,000 |
| Single | MFJ | HOH | MFS | |
| 0% up to: | $38,600 | $77,200 | $51,700 | $38,600 |
| 15% up to: | 425,000 | 479,000 | 452,400 | 239,500 |
| 20% over | 425,000 | 479,000 | 452,400 | 239,500 |
| Tax Status | Old Law | New Law |
| MFJ | $110,000 | $400,000 |
| Individuals | $75,000 | $200,000 |
| From | To | Rate |
| $0 | $50,000 | 15% |
| 50,000 | 75,000 | 25% |
| 75,000 | 100,000 | 34% |
| 100,000 | 335,000 | 39% |
From 12/31/2017 to 12/30/2018, the basic minimum wage is $10.40 per hour in most of New York State.
There are different minimum wage rates for: the fast food industry; Long Island; Westchester County; and large and small employers in New York City.
General Minimum Wage Rate Schedule
NYC – Large Employers (of 11 or more) $13.00
NYC – Small Employers (10 or less) $12.00
Long Island & Westchester $11.00
Remainder of New York State $10.40
For more information on the increased minimum wage specific to your industry, please visit the NYS Department of Labor.
Employers must post a Minimum Wage Information poster in their place of work.
This holiday season, if you’re in the spirit of giving, charitable contributions can be the gift that gives back!
Charitable contributions made to qualified organizations can help lower your tax bill. Record keeping of donations and contributions must be maintained no matter the amount. To properly back up your contributions please keep bank records, receipts, or payroll deductions reflecting the amount.
If you are receiving a benefit for your contribution, you can only deduct the amount that exceeds the fair market value (ex. gala tickets). Non-cash donations such as household items and clothing, must be in good used condition and valued at fair market price.
For more information, read these eight tips the IRS provides here!
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