Tuition Help

We all know that college can be expensive. Whether you’re having to pay for education for yourself or for a child, you should know, however, that you’re not completely stuck doing it all on your own. If you’re “in the know,” there are actually many things you can do to get some tuition help, including these little-known but highly-effective tips.  

Go for Scholarships that Aren’t “Run of the Mill”

First of all, there are the big, well-known scholarships that everyone applies for. There is nothing wrong with such scholarships. Indeed, they help a great many people. The only problem is that so many people apply for them that your chances of actually being selected as a recipient are not so great.

When you seek out those lesser-known, less popular scholarships, however, you greatly increase your chances of getting selected as a recipient.

Look for scholarships that may be offered for those with special talents or skills that you have. Look for scholarships related to workplaces or parents’ line of work. The key word in all of this is “look.” Research, research, and then research some more to find those obscure scholarships that you or your child have a really great chance of qualifying for.

Use Your Home Equity

If you’re fortunate enough to own your own home, you may be able to dip into your home equity line of credit to help pay for college.

The good news about this is that interest rates tend to be good on home equity lines. You can find out more about this option and whether it’s available to you by speaking with your mortgage lender.

As you can see, there are lots of great options out there for paying for college, whether it’s for yourself or a child. Talk to your accountant to learn about other options out there, as well as to learn how to maximize your tax returns for the most money-saving options. After all, every cent you save on taxes can be applied to education costs.

What you Need to Know about Estimated Taxes

Being self-employed has a lot of amazing benefits. However, there are also some things about it that can be a little on the annoying side. One of those things is having to pay quarterly estimated taxes. Of course, not every self-employed person has to pay these taxes, but it’s important to know what they’re all about and whether or not you’re required to pay them.   

Who Has to Pay Estimated Taxes?

If you are self-employed and do not have any kind of taxes withheld from your pay, then it’s your job to make quarterly estimated tax payments each year. The general rule is that you if you are going to owe over $1,000 in taxes each year, you’re going to have to make these quarterly payments.

When are Quarterly Tax Payments Due?

As the name “quarterly” implies, these payments are due four times a year. For the year 2018, the due dates were:

·        April 18, 2018

·        June 15, 2018

·        September 17, 2018

·        January 15, 2019

What if You Missed a Payment?

If you’re new to being self-employed and found yourself confused about these estimated tax payments or if life got crazy and you missed an estimated tax payment, it’s a good idea to adjust any remaining payments to try and help reduce what you will owe come tax time.

Unfortunately, you may have to pay a penalty for missing the payment, which is why it’s best to get and stay on a payment schedule, preferably with the expert help of a skilled accountant.

As you can see, there’s a lot to know and think about when you become self-employed. Estimated taxes are really just the tip of the iceberg. Thus, if you are going to be self-employed, strongly consider hiring an accountant and/or financial adviser to assist you in filing all taxes correctly and making sure you get everything taken care of as required by the IRS.

Dogs and Tax Refunds

Are you a dog lover? If so, it might surprise you to learn that your love of and care for dogs could translate to some major financial help come tax time. Read on to learn more about how your “puppy love” could positively impact your tax refund.     

Donations to Animal Shelters

To start with, if you donate to animal shelters, whether you do it regularly or just here and there, you could count your donation as a tax deduction.

This is true whether you’re giving a cash gift or you’re donating goods, such as dog food, with a monetary value. Just keep track of the dollar amount related to your donation and keep your receipts for accurate accounting.

Dogs who Protect or Work for Your Business

If you have a dog whose main purpose is to protect and guard your business or to do other work around the business, such as serving as a guide dog, expenses related to that dog are deductible. It’s important to know the exact hours your special dog worked and how much you spent on food, vet bills, and other necessities. However, with some accurate record keeping, you could write these costs off as fully legitimate business expenses.

Can You Count a Dog as a Dependent?

The biggest question pet owners often ask is whether or not they can count their dogs as dependents. Unfortunately, in the eyes of the IRS, no matter how much you love your furry friend, he or she can’t be counted as a dependent.

However, by working closely with an accountant and taking advantage of all of the other ways your dog can benefit you, it’s almost as good as being able to claim your dog as a dependent!

Are Student Loans Tax Deductible?

Student loans provide many people with the opportunity to go to college. On the flip side, though, they also saddle people with debt, sometimes for a lifetime. The good news is that you can enjoy at least a little relief if you know how to get it.   

For starters, if you have a loan that you took out only for college, and you are making payments on that loan, you can usually deduct the interest on that loan. The deduction is limited though, only up to $2,500 or the amount of interest that you paid, whichever one is less.

Also, bear in mind that there are some limits in place. In order to qualify for the deduction, you have to meet the following criteria:

l  You’ve paid interest on a qualified student loan during the tax year

l  You are a single filer or a married filing jointly filer with an income below $65,000 or $135,000 if married

l  You are legally required to pay for your loan and its interest

l  You are not claimed as a dependent on anyone else’s return

l  You are not filing as married filing separately

If you qualify, you’ll also be glad to know that you don’t have to itemize deductions in order to get the deduction.

Also, bear in mind that your lender should send you a 1098E form, which shows how much interest you paid. This form should come to you automatically if you paid over $600 to the lender. If you don’t get it for whatever reason, contact the lender directly to get it.

If you have questions about whether or not you are entitled to this deduction or how to ensure you take full advantage of it, remember that your best bet is always to turn to a professional accountant.

Investing for the First Time?

Investing is something that every taxpayer should do. If you’re just now getting started with investing, it is an exciting and beneficial journey. However, it can also be tricky, especially when it comes to taxes, so it’s a good idea to have an accountant and/or investment adviser to help you through the process.   

In the meantime, though, here’s some solid advice to keep in mind.

Keep Detailed Records

First things first, you’ll want to keep detailed records of every transaction related to your investing.

Keep track of what you’ve bought, when, how many shares, the cost basis, commission, and anything else. You’ll need a lot of this information when it comes tax time.

Plus, having good records can also help you to ensure you’re making smart investments by keeping track of your gains and losses. It’s good for staying organized too.

Understand the Different Types of Gains

Something else to understand is that there are two types of gains in terms of taxation. There are short term capital gains and long term capital gains.

Basically, when you sell a gain after having it for less than a year, you pay the short term capital gains tax rate. You pay the long-term rate if you’ve held the gain for over a year.

The short term capital gains rate is based on your income and the tax bracket you fall into. The long term capital gains rate, on the other hand, is lower than ordinary income rates and is not tied to your income bracket.

Thus, holding onto your investments can often be beneficial in terms of taxation.

Don’t Forget to Pay Your Net Investment Income Tax

One final thing to know is that there’s a net investment income tax you may have to pay. This tax applies to single or head of household individuals who make over $200,000 or married filing jointly couples making over$250,000. If you are required to pay it, make sure that you do in order to avoid penalties.

These are just some basic tips that can prove helpful. For even more help and advice, however, be sure to turn to a professional.

Thinking of Paying Your Rent with Bitcoin?

Bitcoin is a popular form of cryptocurrency that more and more people are using these days. In fact, there’s even an option to pay your rent with Bitcoin. There are several apps that make this possible.

But, before you rush out and start paying rent with Bitcoin or using the currency in general, you need to understand how Bitcoin can affect your taxes.   

Reporting Bitcoin

First of all, there seems to be a major misconception that you don’t have to report Bitcoin income to the IRS. While that would certainly be nice, it’s definitely not true. Bitcoin income has to be reported to the IRS just like any other income.

The IRS considers Bitcoin to be an asset, so you report it as such. Also, keep in mind that how long you keep your Bitcoin will determine whether it’s a short-term gain or a long-term gain

With this in mind, when you use Bitcoin to pay for your rent or for anything else, you need to report it appropriately. Using your Bitcoin to buy something is the same as selling it, and if you make a profit in the process, it will be taxable as a gain.

If You’re Feeling Confused

Dealing with a new currency or, as the IRS sees it, a new asset, can be tricky. Thus, if you’re confused about reporting Bitcoin to the IRS, don’t feel bad. A lot of people feel confused when dealing with this new currency. The IRS even seems a little confused itself!

The key is to handle your confusion the right way by seeking help from a qualified professional accountant. They understand all the tax laws and can help to ensure you report your Bitcoin accurately and correctly.

Did You Know Some Medical Expenses are Deductible?

Did you know that some of your medical expenses are tax deductible? Deducting the applicable ones is a smart move since it can reduce your tax liability.   

The basic rule is that if your medical bills are over 7.5% of your income, you can claim your medical expenses for a deduction.

What is Eligible?

If you pass the above requirement, you’ll be glad to know that there are lots of costs you’re allowed to deduct. You can deduct fees associated with dental care, vision care, and general medical expenses. Thus, if you have to buy glasses or dentures, for example, you could deduct the cost of those items.

You can also deduct your monthly insurance payments as long as they are not paid pre-tax. Other things you can deduct include:

l  Travel expenses related to visiting the doctor or receiving other healthcare

l  Preventative care

l  Surgeries

l  Psychological treatment or counseling

l  Prescription medication

l  Medical devices

What Doesn’t Count?

Unfortunately, not every single medical or health related expense can legally be deducted.

For example, you can not claim a deduction for any expense that you were reimbursed for

Also, cosmetic surgery doesn’t count as a deductible expense either, unless it was involved in a life-saving procedure or was related to a health condition.

You also can’t get away with deducting every-day basics, such as aspirin, vitamins, or toothpaste.

If you have questions about what you can and can’t deduct or about how to claim deductions, a professional accountant is a great resource. These experts can help to ensure you’re deducting all the right expenses and getting the maximum benefit possible as a result. Be sure to contact an accountant before filing for medical related deductions.

Win Big at the Casino?

We all dream of winning big at the casino, the lottery, or some other contest or gambling exploit.  However, while winning big is nice, it can actually affect your tax liability in major ways. So, before you take a chance at gambling, keep the tax laws related to gambling winnings in mind.  

You Don’t Have to Report EVERY Win

There’s a little solace for gambling lovers in that you don’t necessarily have to report every penny you earn from gambling. In fact, whether or not you need to report varies based on how much you win and at what activity.

If you’re betting at a horse track, you only have to report it if you win $600 or more in cases where that is three times your bet.

For poker tournament participants, you only have to report $5,000 and over in winnings.

Slot machine and bingo enthusiasts only have to report winning $1,200 or more, and keno lovers only have to report winning $1,500 in more.

Taxes on Gambling Winnings

Paying taxes on your winnings probably doesn’t sound like much fun. Fortunately, though, you can often itemize your deductions and claim your losses, as well as use other “legal tricks” to reduce your tax liability.

A good accountant can be a great help to you with this, especially if you are someone who gambles and wins regularly.

Keep in mind, too, that, in addition to federal taxes, your state may tax your gambling income. The rules on this vary from state to state, so make sure you know what is required of you based on where you live. A good accountant can help you with paying and understanding state taxes too.

As long as you’re paying your taxes like you should and reporting your gambling income appropriately, you should be able to continue enjoying gambling for years to come.

Taxes so Crazy You Won't Believe They Exist

No one likes paying taxes or following tax laws. However, if all you’re having to follow are basic tax laws, count yourself lucky. You could be following one of the craziest tax laws to ever exist. And, trust us, there are some really bizarre ones!  

The Jock Tax

Did you know that many states have what is referred to as a “jock tax?” That’ s just a nickname, but this tax goes against athletes, performers, and entertainers.  And, while those who have to pay it may hate it, the money earned brings in a lot of money to the states that enforce it.

California was the very first to impose this tax in 1991. Michael Jordan was famously subjected to this tax, which is still in existence in many states today.

The Cow Gas Tax

If you live in Ireland or Denmark, you’ll have to pay a tax for your cow’s gas. The reasoning behind this tax is that cow flatulence can lead to global warming, and the countries seem to think it’s the cow owners’ responsibility to make up for it.

The Blueberry Tax

Do you like blueberries? You might not if you live in Maine and have to pay a blueberry tax!

The production of wild blueberries comes with a tax, keeping them from being overharvested. While paying the tax might not be fun, it’s actually a smart move on the state’s part since it helps protect its lucrative blueberry industry.

The Online Ad Tax

In France, some online ads get taxed, which can earn huge sums for the country. Right now, ads that appear on Google, Digg, Facebook, Microsoft, Yahoo!, and AOL, among others, are all taxed.  

What’s more is that there’s a lot of speculation that these taxes could one day exist worldwide.

Looking at these crazy taxes, those average everyday taxes you have to pay don’ t seem so bad now, do they?

Changes to the Moving Expense Tax Deduction

Are you planning a move in the near future? If so, you should know that a new tax reform law passed. This law made changes to the moving expense tax deduction that so many people enjoyed in the past.   

What Changes were Made?

One big change to be aware of is that many things related to your move that were once tax deductible no longer are. You won’t be able to deduct the cost of moving boxes, movers, or a moving van.

The good news, though, is that you can still be reimbursed for your moving expenses by your employer. However, your employer doesn’t have to reimburse you for these expenses, so make sure you know where your employer stands on this issue. Don’t assume anything.

If your employer does pay for your move, that amount will be included on your W-2 and reported as income. However, taxes will not be withheld from that income. Unfortunately, your reimbursement, however, could affect your tax liability, so make sure you are aware of and okay with any changes the money might make to your tax status.

An Exception for Military Personnel

While civilians are subject to the new law, it is important to remember that it does not apply to military personnel who are relocating for their job.

Any active duty military employee can deduct moving expenses if the government does not reimburse them for these expenses.

Also, military employees don’t have to pay taxes on these reimbursements if the move is the result of a  military order.

Getting Help

If you’re not military and are having trouble understanding the new laws, how they might affect you, or other matters related to moving and your taxes, don’t worry. You can work with a professional accountant to ensure your move is handled, tax-wise, in the best possible way.

The IRS Makes Important Announcement

The IRS recently made an important new announcement, one that took many people by surprise. It announced that it is currently working on some changes to the popular 1040 tax forms. The goal of the changes, according to the IRS, is to simplify the form to allow all taxpayers to use the same one.

One change taxpayers can expect to see is a change in the size of the tax form. Now, it will be no bigger than a postcard.   

Plus, some forms will be going away altogether. This includes Form 1040EZ and 1040A.

While people have all kinds of different feelings about these changes, they’re surprising to all. This is the first time in decades that the 1040 forms have changed at all. Many tax services, as a result, are scrambling around, working with the IRS to get everything up to date for next year’s tax season and the new form.

When to Use the New Form

Taxpayers are doing some “scrambling” of their own. They’re all wondering if they’ll be able to use the new form. Generally, though, anyone who has a basic tax situation and can claim the standard deduction will be able to use the new Form 1040.

Those who have itemized deductions can include them on Schedule A just as they did before.

The Value of an Accountant

For special tax situations, however, or if you find yourself feeling confused about the new forms and whether or not you should be using them, don’t hesitate to speak with a professional accountant. These experts understand the new tax laws and changes and will be able to guide you in the right direction.

Keep in mind too that tax changes pop up all the time and having a qualified accountant on your side can ensure that you are always prepared to face any change.

Are You a Seasonal Worker

Everyone should check their tax withholdings on a fairly regular basis to make sure they are correct. This is especially true for taxpayers who work seasonal jobs or who are only employed for part of the year.  

While that advice is good to follow all the time, it is especially important right now since the Tax Cuts and Jobs Act has enacted tax law changes. These changes involve an increased standard deduction, an increased child tax credit, the elimination of personal exemptions, the elimination of some deductions, and a change in tax brackets.

Since seasonal or part year workers often get a bulk of their money in a short period of time, withholding too much or too little can end up affecting them in a huge way, especially with the new tax laws. For this reason, these employees need to perform a “withholdings checkup” as soon as possible.

They can do this by speaking with human resources at their job, consulting with a professional tax adviser, or by using the withholding calculator, a tool provided by the IRS. The calculator, which can be accessed on IRS.gov, helps people to estimate their income, adjustments, credits, and deductions and, from there, determine the correct withholding amount. The calculator can be used for part year or seasonal employees since it asks specific questions about employment length.

If it turns out, based on your calculations, that you do need to make a withholding change, a visit to human resources will be in order. You will need to fill out a new form W-4 and submit it to your employer. Fortunately, this process is quick, easy, and it can save you a whole lot of trouble and hassle come tax time.

New 5 Year Plan Issued by IRS

The IRS recently issued a new five year strategic plan. The purpose of the plan is to list goals that could help improve taxpayer services and tax administration. The plan is also designed to guide the programs and overall operations of the IRS and to meet the changing needs of modern day taxpayers.

The plan was developed both among IRS officials and with the help of external agencies too. The plan outlines six unique goals for the IRS.   

These goals include the following:

l  Enabling all taxpayers to meet their tax obligations by adding and enhancing tools and general support services

l  Protecting the integrity of the tax system by encouraging compliance and working harder to uncover noncompliance

l  Collaborating with external partners to improve tax administration

l  Cultivating a better, stronger, more diverse workforce

l  Advancing data to the point where it is the IRS’ most effective resource

l  Improving IRS operations overall

This new plan should bring about many positive changes for the IRS and how it interacts with people. People are encouraged to remember that under this plan and all IRS plans, they still have rights when interacting with the IRS.

If you would like more information on what your rights are, how to deal with the IRS, or on if and how this new plan will affect you, don’t hesitate to speak with a tax professional.

Financial Advice for Two Income Families

The IRS has recently advised two income families to make sure they are withholding the correct amount of taxes from their checks each month.   

One reason it is so important to do this now is because of the passage of the Tax Cuts and Jobs Act, which is going to affect 2018’s tax returns . The act will change many things about taxes, including:

l  The standard deduction, which will be increased

l  Tax rates and tax brackets

l  Personal exemptions, which will be eliminated

l  The child tax credit, which will be increase

l  Certain deductions, which will be limited or discontinued

Because of all of these changes and because of the complex nature of taxes for two income families, people who fall into this category are a lot more likely to have too much or not enough withheld from their paychecks, especially after all of these changes to tax law.

For this reason, it is very smart to check over your paycheck set-up and make sure you are withholding the right amount. If you do need to adjust it, the sooner you do it, the better. That way, it is more likely you can get your withholding balanced out or at least mostly balanced out before tax time.

If you’re not sure whether you’re withholding the right amount, use the IRS’s withholding calculator, talk to the human resources department at your job, or visit with a tax professional.

And, to put the change in action, complete a new W-4 and submit it to your employer. Bear in mind, when you do, that the fewer withholding allowances you have on this form, the higher your withholding.

And, if you find all of this confusing or need help ensuring you’re doing everything right, do not underestimate the help and expertise that a tax professional can bring to the table.

What Do Tax Cuts Mean for the United States

Many people view the fact that Congress and the president have cut taxes as a giant mistake. They point out that we owe $21 trillion in debt, with some of that money being owed to Americans who bought government securities. There is also money owed to foreigners. 

Because of this fact and because it is never smart, from a national security standpoint, to add more debt, many people feel that cutting taxes was a bad move. Many people believe that, from here, are debt is just going to grow and hurt our economy in the process.

In fact, estimates point to the United States reaching a fiscal year deficit of over $1 trillion. Plus, as interest rates rise and the appeal of bonds lessens, this is only going to worsen the problem.

So, if raising taxes isn’t the answer, what is? Some people think, instead of tax reforms, there should be an opportunity for Americans to dip into the money they have in retirement accounts. Many believe that the real answer lies in allowing people to withdraw some of their retirement money without paying the full tax rate. If they then use that money to invest in real estate, this would boost tax revenue.

The above idea is not a bad one, and it is worth considering. Unfortunately, though, it’s a bit late in the game to resurrect this tax year. However, the suggestion could come in handy in the future.

Of course, this is just one proposed solution to a very real problem. It might work if implemented, but the real issue is that, in the eyes of many, tax cuts have created financial problems for the United States, and those problems need to be remedied soon.

Tips for Increasing Your Tax Refund

For many people, tax time is the best time of the year. It is a time when they get huge refunds due to having overpaid their taxes throughout the year. And, while getting that big refund check is certainly wonderful, you should know that there are ways to make it even bigger and better.  

Increase Your Withholdings

If you would like to see a bigger tax refund than you currently are, take yourself down to the human resources department of your employer. Once there, ask to see and edit your W-4 tax form, the same form that you filled out when you first got hired.

By opting to reduce your exemptions on that form, you can increase the amount that is withheld from your check each pay period, thereby leading to a bigger refund come tax time.

If you’re not sure where to cut exemptions or how, don’t worry. A tax professional can give you solid advice to follow before you head to human resources.

Consider Adopting a Different Filing Status

Once you are married, you might think that you will catch a lot of tax benefits by filing jointly. However, in some cases, you will actually be better off if you file separately.

This can take more time and effort than filing a joint return, but it’s often worth the extra effort due to the benefits.

If you think this could be a smart option for you and your spouse, talk to a tax professional to see if, in the long run, it would be the best choice for you and your family.

Consider the Dependent Care Credit

Finally, if you are not taking advantage of the dependent care credit, take a moment to see if you may be eligible for it.

If this credit is applicable to you, then you could claim up to $3000 for dependent care expenses for one dependent or up to $6000 for two or more dependents.

There are, of course, some eligibility requirements to meet, but if you work with a tax professional to ensure that you meet them, there shouldn’t be a problem.

As you can see, there are all kinds of ways (these are just a few of many) to boost your income tax refund. To learn more about how refunds work or how you can improve yours, don’t be afraid to contact the experts at Lewis CPA.

Tax Return Identity Theft: Big Concern for Small Business

Most people who own a small business are well aware that they have to be careful about identity theft and other threats to their security. This has never been more true than it is right now. In fact, the IRS recently issued a warning to small businesses that fraudsters are working overtime to try and get sensitive information from small businesses and then use that information to open credit cards and file fraudulent tax returns.   

While criminals are likely to file all kinds of tax forms with the fraudulent information they obtain, the most commonly filed fraudulent forms include:

l  Form 1120

l  Form 1120S

l  Form 1041

l  Schedule K-1

Typically, what criminals will do is obtain stolen employer identification numbers. From there, they will often use those numbers to fill out falsified W-2 forms and other forms, all in an effort to obtain refunds and open lines of credit.

While small businesses should do everything within their power to protect themselves against identity theft, they should also be aware of the warning signs that identify theft has already occurred. That way, they can report suspicious happenings to the IRS.

Some signs to look out for include:

l  A rejection of an extension to file request due to already having a return on file even though no return has been submitted

l  A rejection of an e-filed return due to a return already being on file, when no return has been filed

l  Receipt of a Letter 5263C or 6042C, a warning of possible identity theft

l  Receipt of tax transcripts that are not in line with submitted returns

l  Not receiving regular correspondence from the IRS due to a falsely changed address or other contact information

Sadly, identity theft is alive and well, but by following these tips and working hard to protect your business, you can keep yourself from becoming a victim.

Recnt Changes to Healthcare Savings Accounts

As you may have heard, the IRS has made a lot of changes to tax laws this year. In fact, it recently issued inflation-adjusted amounts for the annual contribution limits for healthcare savings accounts, as well as for minimum deductible amounts and out of pocket expense amounts for high deductible health plans. 

Under the new laws, anyone who participates in a high deductible health plan is entitled to a deduction for any contributions made to a healthcare savings account.

Under the new rules, the 2019 limit for deductible contributions is $3,500 for single people with self coverage. For families, the limit on deductible contributions is $7,000.

For many people, these increases are great news. In fact, they are so great that they may just encourage others to sign up for a healthcare savings account. However, if you are interested in opening one for yourself, you should be aware that there are some eligibility requirements.
In order to be able to contribute, you must participate in a specialized health plan with an annual deductible over a certain set amount. For the 2019 tax year, that “set amount” is $1,350 for self coverage and $2,700 for family coverage.  

If you are interested in opening one of these accounts for yourself or your family, contact a tax professional. They can help to ensure that you qualify. Plus, they can give you tips and pointers for making the most out of your healthcare savings account.

Changes Related to Charitable Giving

You have probably heard that most charitable contributions to nonprofit organizations are a good way to receive a tax break. Maybe you have even received tax breaks for this in the past.   

Fortunately, it is still true that you can deduct charitable contributions from your taxes. It’s also true, however, that there is now a new revenue procedure, Rev.Proc 2018-32, that features all the information you need to know about charitable giving in one convenient place. This is much better than, in the past, when you had to find information across several different documents.

Easy to Use Databases

The smart change of a new revenue procedure is not the only change. Now, there are also five searchable databases that people can use to help them find the information they need.

These include:

l  The Tax Exempt Organization Search

l  The Automatic Revocation of Exemption List

l  A database of of images of Forms 990, Return of Organization Exempt from Income Tax

l  A database of images of IRS determination letters issued after January 1, 2014

l  A database of information reported by tax exempt organizations only required to file Form 990-N

By using these databases carefully, you can easily get information on different charitable organizations and then make an informed decision about whether or not you wish to donate to them.

Reliance Rules

Another recent change is that the reliance rules for donors have changed somewhat as well.

To start with, under the new rules, contributors can rely on or believe in determination letters or ruling information that they found in the Tax Exempt Organization Search database.

Of course, there are some exceptions tot he reliance rule, such as when the donor was aware of revocation of tax deductible status, took part in revocation of the status, and other select situations.

If you have questions about the reliance rules, other changes made during the updating of the revenue procedure, or general concerns about an organization you are thinking of donating to, remember that you can always call on the advice of a tax professional.

Phishing on Tax Professionals

There’s a new phishing scam going around, and this time it’s targeting tax professionals.

How this dangerous scam works is that a scammer pretends to be affiliated with a state accounting association. The scammer then emails the tax professional, trying to get that person to disclose his username and password. Usually, the scammer provides a link where the person can “sign in,” but really, the victim will, in actuality, be providing private and sensitive information to a scammer.     

Protecting Yourself

To keep yourself from falling victim to a scammer, be aware of the latest scams, such as this one. Keeping up with the news, like you’re doing right now, and educating yourself is the first step in self-protection.

Also, if you do get an email like the one described above, do not click on the link, do not open any attachments, and do not reply. Instead, report the matter to the IRS by forwarding the email to phishing@irs.gov.

If you’d like to check to see if the email was legitimate, you can always email the actual professional organization you are a part of. In fact, it is a good idea to let that organization know it is being used as part of the scam.

Other steps you can take to protect yourself and your information include:

l  Being aware that the IRS does not contact people via email

l  Having a data security plan in place

l  Having anti-malware and anti-virus programs on all work computers and mobile devices

l  Having complex passwords that are not easy to guess

l  Using encryption for sensitive files and emails

l  Regularly backing up sensitive information in a secure external place

l  Destroying old hard drives, printers, and other devices that could contain sensitive information

l  Reporting any data theft or suspected data theft to the IRS immediately

A Widespread Scam

So far, reports of this specific scam have popped up in Illinois, new Jersey, Iowa, and North Carolina. Thus, you will want to be particularly careful if you live in one of these states.

However, phishing and scamming can and do happen everywhere, so protect yourself no matter where you live.

Where to be if You are Self Employed

Being self-employed is a wonderful thing. It comes with many great advantages, like setting your own hours and determining your rates. With that said, though, there are some cities in the United States in which you’ll have better luck being self-employed than others.   

Amarillo, Texas

Amarillo is one of the absolute best places to be self-employed. That’s because, here, self-employed residents earn, on average, a whopping $89,000 per year. Wow! Plus, Amarillo is one of the more affordable places to live given low average housing costs.

Shreveport, Louisiana

If you’re looking for another great place to live in the South, consider Shreveport, Louisiana, where the average self-employed worker earns a more-than-comfortable $77,000 each year. Like in Amarillo, housing costs are lower than average here, making for a very decent wage for most self-employed individuals.

Dallas, Texas

We had to go back to Texas for our next pick. But, you know what they say, everything is bigger in Texas. Apparently, that includes the salaries of the self-employed since they earn a smooth $85,000 here on average. And, yes, housing costs are lower than average here too.

Other Great Spots for the Self-Employed

As you can imagine, there are many great cities for the self employed and they include:

l  Lubbock, Texas

l  Scottsdale, Arizona

l  Overland Park, Kansas

l  Salt Lake City, Utah

l  Lexington, Kentucky

l  Little Rock, Arkansas

l  Knoxville, Tennessee

Whether you live in one of these great cities for the self-employed or not, you still have plenty of opportunities to earn big money and make the most of your status. By taking advantage of tax breaks and more, you can end up saving big come tax-time. Just hire an accountant in your area, no matter where that may be, to help you out.

Nation's Most Charitable States

As children, we are all taught that it’s better to give than to receive. Of course, what we do with this teaching and how true we take it to be varies from person to person.   

It would seem, however, that most people in the United States take this teaching to heart since America consistently ranks as the second most giving country in the world.

With that said, though, some states are more giving than others.

The District of Columbia

As of 2017, the most giving state in the nation is also our country’s capitol, Washington, D.C. The state has more non-profits than any other, as well as more volunteers giving more time than anywhere else in the nation. On average, a Washington, D.C. resident will donate more than $1,400 per year to reputable charities.

Wyoming

Wyoming is yet another very charitable state. Like Washington, D.C., it has a large number of non-profit organizations. Plus, the average Wyoming resident gives a little under $1,000 to charity each year.

Utah

Apparently, your state’s name doesn’t have to start with a “W” to be considered super-charitable, but it does need to start with a letter near the end of the alphabet. We say that in jest because Utah is also one of the nation’s most generous states, with over 43% of residents regularly volunteering. On top of that metric, the average Utahan will donate $1,200 to charity each year.

Other States

These three are, of course, not the only states where charitable giving is high. Other very giving states include:

l  Minnesota

l  Nebraska

l  South Dakota

l  Oregon

l  Virginia

l  Connecticut

l  Washington

Whether you happen to be from one of these states or not, giving is still a smart thing to do, especially since you can deduct many charitable donations from your taxes. No matter where you live, you can learn more about this opportunity to give and save at the same time by contacting a qualified tax professional.