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Lessons with an Accountant – Taxes

I have cut back on blogging in order to re-organize my thoughts and the direction of Wine & Couture.  I have primarily blogged about Fashion.  This past year I included more Life Style posts like Recipes and Travel posts.  I know you are wondering what is going on.  Heck, even I want to know.  What is Wine & Couture?   Is it a Style Blog?  Is it a Food Blog?  Where will 2018 take Wine & Couture?
Let’s be honest…..I have pretty good style but not the budget that goes with my taste.  I have really loved sharing with you my outfits and what items I am purchasing.  Sadly in 2018 I have to stop spending.  I found I was shopping for new items out of envy.  Ever do that?  See someone else with something and you have to have it, no other reason than you want to be like them.  Well I’m not, I am me…..which is probably why I don’t earn hardly any money on my linked products and why companies typically collaborate with me 1 time.  I am not a sales person, I am an Accountant!  So that is where Wine & Couture is going to change.  I will share at least 1 outfit post a month (but who’s kidding who, I love sharing my clothes so it may be 2-3).  I will also work on sharing healthy recipes for the whole family at least 1 time a month.  What is new will be “Lessons with an Accountant”.  I hope to post at least 1 time a month something that I have learned in my 8+ years as an Accountant.

 Disclaimer: I am an Accountant but not a CPA, please consult your CPA before making any financial decisions.
Many of you have heard of the new tax law that was recently passed.  So what does that mean for you?  Well for the 2017 tax return 1040 (Individual) the standard deduction is doubled, from $6k to $12k.  The married filing joint standard deduction has also doubled, from $12k to $24k.  This means that fewer people will itemize their deductions.

Another change is the % of tax paid on pass through business income, which is lower (speak with your CPA if you have pass through business income).

The last item that is big is the “Obama Care” or Health Care Reform Act that states if you do not have health coverage for 12 months you will pay a penalty.  This penalty will be removed effective 2018 tax year.  There are a few other deductions that have been removed or lowered to accommodate the higher standard deduction, speak with your CPA to learn what those are.

Important dates
March 15 – Partnership and S Corp returns are due
April 15 – C Corp and Individual returns are due

In the past C Corp returns were due March 15 and Partnership returns were due April 15.

(I attended a training provided by Intuit to learn the new 2017 Tax law changes.  Please meet with your CPA in order to verify how changes will affect you directly.  I am not a CPA and this post is for information purposes only)
Vocabulary Lesson
Standard Deduction is the portion of income that is not subject to tax and that can be used to reduce a taxpayer’s tax bill.
Itemized Deduction are eligible expenses that individual tax payers can claim on federal income tax returns and which decrease their taxable income in place of a standard deduction.  In order to itemize your deductions must be higher than the standard deduction amount.
I know people have their opinion on the new tax law and many feel this will benefit the rich.  I can tell you these changes will affect everyone!  My parents who live on Social Security for instance will be affected in a positive manner.  I can not stress this enough, this is not a political discussion but an information understanding post.  Please consult your CPA.
I would love to know if you enjoyed this post and if you have questions or topics you would like me to cover.  Coming in January I will go over how to create a realistic budget and stick to it!