A Guide To Form 990 For Tax-Exempt Organizations

What is Form 990? Although many nonprofit organizations are exempt from paying federal taxes, the IRS requires tax-exempt organizations to file Form 990 for informational purposes. The IRS uses this informational return to determine whether you're still exempt from...

5 Critical Tax Tips For Nonprofits in 2019

No one enjoys filing taxes, but it can be especially problematic for nonprofits. Many nonprofits focus on their cause so much that they neglect proper organization. As a result, they deal with disorganized records and systems, and a lack of clarity around tax issues....


For a business owner, taxes can be overwhelming and cumbersome. Tax deductions allow you to save thousands of dollars each year on your taxes and make tax filing a much more bearable experience. In this post, we'll list some of the tax deductions you can use to...

The Smart Business Owner’s List Of Tax Credits

One of the best ways to cut costs as a business owner is to take advantage of all the tax deductions and tax credits for which you're eligible. As a business owner, you're concerned with the bottom line--increasing your net profits. That probably means you spend most...

PRESS RELEASE: Cassidy Jakovickas, CPA of Fresno, CA Appointed to Intuit’s Accountant Council

Select Panel Advises on Products and Services that Accountants and Their Clients Want Most             FRESNO, CALIFORNIA – June 4, 2019 –Today, Intuit, Inc (Nasdaq: INTU) announced that Cassidy...

Beyond The Numbers: What We’ve Been Reading

Although our team loves using numbers and spreadsheets to help our clients make the best financial decisions, we also enjoy reading great books. Staying well read on both fiction and non-fiction books helps us hone our imagination and introduces us to new, sometimes...

Looking Back At April

It’s hard to believe that we’re at the end of April, but it’s true! This month, we helped our clients wrap up another great (and busy) tax season. There was, as always, a lot of paperwork, emails, and nail-biting involved in the days preceding April 15, but that’s all...

5 Last-Minute Tips For Filing Taxes in 2019

Well, April 15 is almost here, and the tax-related panic is thick. If you haven’t filed your 2018 tax paperwork and are rushing to get your taxes in by the deadline, we’ve decided to give you some last-minute tax advice that will hopefully help ease your stress....

An Introduction To Cybersecurity for Business Owners

Keeping your sensitive business and customer data secure has never been more critical. Whether you are a small business or a national corporation, you can't relax your defenses against those criminals seeking to take advantage of lazy cybersecurity policies. Virtually...

March News Roundup

Wow! It seems like we just started March and we’re already moving into April! As we move into the final stretch of tax season, we’re recapping this month’s news for you, just in case you missed it amid the tax-related hubbub. MBS Accountancy: November Review This...

What You Need To know About the 2018 Tax Reform – Part I

Reading Time: 3 minutes

Introduced in November 2017, the Tax Cuts and Jobs Act has made many important changes and updates to existing tax law for areas like the individual mandate, medical expense deductions, miscellaneous tax deductions, and much more. Given that these changes will be going into effect the next time you do your taxes, it is important to recognize what changes have occurred with the passage of this tax overhaul and how they will affect both your business and personal taxes. Over the next few weeks, we will be discussing the specific changes that have occurred as a result of this new law.

The Individual Mandate

Starting January 1st 2019, you will no longer face a tax penalty for not having health insurance without a valid exemption. The individual mandate was a key provision of the Patient Protection and Affordable Care Act that was signed into law by former President Barack Obama. While the mandate is still in effect for the 2018 year, the individual mandate will no longer be enforced in 2019. While it is obviously a good thing to have health insurance due to the life’s (often undesirable) spontaneity, if you do decide to cut health insurance out of your budget, you won’t have to worry about being penalized by the IRS for your decision. While there are arguments for both the benefits and downsides of this repeal, the fact is that there will be no individual mandate for 2019.

Alimony Deductions

Under the existing tax law, when a person pays alimony, they are able to deduct those payments from their income. The recipients of the alimony payments are then required to count those payments as part of their income. However, beginning January 1st, 2019, alimony payments will no longer be a deductible and the recipients will no longer need to count them as part of their income. This will affect any separation or divorce that was either effective or modified on or after January 1st, 2019.

Child Tax Credit

Under the previous tax law, the child tax credit was $1,000 for each child under 17 years old. As you may already realize, this child tax credit began to decrease by $50 for every $1,000 that you earned over specific thresholds. For instance, this decrease began to occur for single and head of household taxpayers at $75,000 and for married couples at $110,000 (filing jointly) and $55,000 (filing separately). But beginning January 1st, 2018, the child tax credit is $2,000 per child. Also, the new threshold levels begin to decrease at an AGI amount of $200,000. For married couples, the decrease will now begin at AGI amounts of $400,000 and higher.

Corporate Tax Rate

Under the previous tax law, the corporate tax rate for individuals with a taxable income greater than 10 million was 35 percent. Effective January 1st, 2018, however, this top tier of the corporate tax rate is cut down to 21 percent.

Estate Taxes

Previously, estates with a value of $5.49 million or less were exempt from the estate tax (also known as the “death tax”), with a top tax rate of 40 percent. But beginning January 1st, 2018, estates up to $11.2 million are exempt from this estate tax.

In Conclusion

In this article, we discussed five of the specific changes that are occuring as a result of the Tax Cut & Job Act. Next week, we will discuss more of the specific provisions and updates that are occurring as a result of the 2018 Tax Reform. If you would like to know more about the specific details of these changes, or how they are applicable to your situation, feel free to contact MBS Accountancy. Our team of expert accountants and tax law professionals will assist you with any questions or concerns you may have as a result of the 2018 Tax Reform.



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