Alpha Professional Services, LLC, Certified Public Accountants

Trump's Tax Plan - Impact on Real Estate Investors

We're now on Twitter as @alphaquicktax and we need people to follow! Comment your twitter handle in the comments and we'll be sure to give you a follow!

Is your Child's summer income taxable? For 2017, your child can earn as much as $6,350 and not pay federal income tax. If your child's earnings won't exceed this amount, consider having the child claim "student-exempt" when completing the "Federal Withholding Allowance Certificate" (Form W-4). Don't overlook the fact Social Security and Medicare taxes will be withheld from your child's paycheck. While these payments are not income taxes, let your new worker know they will b...e withheld from his or her paycheck. Keep in mind that self-employment income, tips, interest, dividends, and stock sales may impact your child's tax return filing requirement. If you need more details about the tax implications of your child's summer job, please call us (215) 706-0800.

Quarterly Estimated Tax Payments for businesses are due June 15! If your business' income is greatly different than you originally projected, give Alpha a call so we can prepare more accurate tax estimates for you.

Take time to review your beneficiary designations Who have you designated as beneficiaries for your insurance policies and retirement accounts? If you can't remember, it's worth checking. If you make the wrong decision, it could affect who inherits those assets. Here are some key facts about beneficiary designations:... -When you designate a beneficiary for an account, you are naming the person you want to inherit that account. Your designation determines who will inherit the assets in the account, regardless of what your will might say.Simply changing your will won't change the beneficiaries on your accounts. -There can be tax implications to be aware of as well. With a traditional IRA, your choice of beneficiary can affect how quickly withdrawals must be made and taxes paid. That can change the value of the IRA to your beneficiary. -Review your designations regularly. If you need to make changes, give us a call so we can go over them together. You will then need to send your updated designations to the account trustees. Make sure you receive confirmations and keep copies in your records.-

Alpha's tax blog is now live! Visit http://www.alphaprofessional.com/blog/ to stay up to date with the latest tax news and tips. Thanks again to Brian Griffiths with Strong Point Graphics who helped set up the blog and came into our office to provide all our employees with training

Know the tax rules before gifting Gift giving can be an important tax planning strategy. But before you write checks, learn the rules. Here are two of them: -The person receiving your gift does not have to file a return, no matter the amount.... -When you give gifts up to $14,000 ($28,000 for a married couple) to any one person within a calendar year, you don't have to file a return either. -Other non-reportable gifts include amounts you pay for anyone's tuition or medical bills, as long as you write the checks directly to the school or health care facility. That's true even if the cost exceeds $14,000. -When a return is required, you may not owe gift tax. Under present tax law, up to $5.49 million of gifts made during your lifetime can be shielded from tax. This is in addition to the $14,000 per donee annual exclusion. Call us at (215) 706-0800 about other rules that apply to your situation. We'll be happy to discuss tax-wise strategies and help you make the most of your gift giving.

Pennsylvania Tax Amnesty Program starts April 21, 2017 Taxpayers can get relief from penalties, collection and lien fees, as well as one-half of the interest due on the unpaid Pennsylvania taxes. The Program applies to all taxes administered by the PA Department of Revenue and for delinquencies existing as of December 31, 2015.... A 5% non-participation penalty will be imposed on all eligible taxes, penalties and interest which go unpaid during the Amnesty Period. Contact us at (215) 706-0800 to see if you are eligible for the program or need help applying.

Do's and don'ts of amending your tax return What happens when you discover you made a mistake on your 2016 return that you just filed? First, don't panic, and second, don't ignore the error.... Do file an amended return if you need to change your tax filing status or dependency exemptions, or you overlooked available deductions or credits. Don't file an amended return to correct simple mathematical miscalculations or forms you forgot to attach. The IRS corrects those types of mistakes and sends you a notice. Do file the amended return as soon as you discover your error. However, if the change will result in a larger refund, wait until you receive the refund shown on your original return. Don't wait too long. Amended returns must generally be filed within three years from the date you filed your original return. Call us at (215) 706-0800 if you discover an error or missing information on a return you already filed.

We're proud to announce the re-launch of our website: alphaprofessional.com A huge thank you to Brian Griffiths from Strong Point Graphics for guiding and working with us to create it.

Checking your withholding could be a smart move If you received a large tax refund or owed a large balance on your 2016 income tax return, it may be time for you to check your withholdings. Try to calculate your tax withholding to be as close to the actual amount of your tax liability at the end of the year. This will prevent you from being penalized for underpayment through accurate withholdings and from giving the IRS interest-free use of your money during the year.... For most taxpayers, your withholdings must equal either the prior year's tax or 90 percent of the current year's tax liability. If your income is more than $150,000 ($75,000 if married filing separate), you must pay 110 percent of last year's tax obligation to be safe from an underpayment penalty.