Taxpayers should be alert to potential fake emails or websites looking to steal personal information. The IRS will never initiate contact with taxpayers via email about a bill or tax refund. Don’t click on one claiming to be from the IRS. Be wary of emails and websites that may be nothing more than scams to steal personal information. (IR-2018-39)
If you have been providing a home for an adult child or children who are not students, tax law changes this year may not permit you to use the Head of Household filing status. Make an appointment at Queen Tax Service today to find out how these changes may affect you.
Be on the lookout for people peddling tax shelters that sound too good to be true. Abusive tax structures are sometimes used to avoid paying taxes. The IRS is committed to stopping complex tax avoidance schemes and the people who create and sell them. The vast majority of taxpayers pay their fair share. When in doubt, taxpayers should seek an independent opinion regarding complex products they are offered. (IR-2018-62)
The loss of personal exemptions could increase taxes for families with children, but the child tax credit has been doubled to $2000, and $1400 is refundable.
In 2018, there are significant changes that will impact every taxpayer. First, all personal exemptions have been eliminated and the standard deduction nearly doubles to $12,000 for single filers and $24,000 for married couples filing jointly. Stay tuned for more updates this week.
Taxpayers should avoid the temptation to falsely inflate deductions or expenses on their tax returns to pay less than what they owe or potentially receive larger refunds. Think twice before overstating deductions, such as charitable contributions and business expenses, or improperly claiming credits, such as the Earned Income Tax Credit or Child Tax Credit. (IR-2018-54)