How to Protect Your Information Online
The New York Times
By Brian X. Chen, Jonah Engel Bromwich and Ron Lieber. Illustrations by Minh Uong
September 7, 2017
There are more reasons than ever to understand how to protect your personal information, as major website breaches become ever more frequent. ...More>>
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The following article comes from IRS Summertime Tax Tip 2017-23
Inside This Issue
Divorce or Separation May Affect Taxes
Taxpayers who are divorcing or recently divorced need to consider the impact divorce or separation may have on their taxes. Alimony payments paid under a divorce or separation instrument are deductible by the payer, and the recipient must include it in income. Name or address changes and individual retirement account deductions are other items to consider.
IRS.gov has resources that can help along with these key tax tips:
- Child Support Payments are not Alimony. Child support payments are neither deductible nor taxable income for either parent.
- Deduct Alimony Paid. Taxpayers can deduct alimony paid under a divorce or separation decree, whether or not they itemize deductions on their return. Taxpayers must file Form 1040; enter the amount of alimony paid and their former spouse's Social Security number or Individual Taxpayer Identification Number.
- Report Alimony Received. Taxpayers should report alimony received as income on Form 1040 in the year received. Alimony is not subject to tax withholding so it may be necessary to increase the tax paid during the year to avoid a penalty. To do this, it is possible to make estimated tax payments or increase the amount of tax withheld from wages.
- IRA Considerations. A final decree of divorce or separate maintenance agreement by the end of the tax year means taxpayers can’t deduct contributions made to a former spouse's traditional IRA. They can only deduct contributions made to their own traditional IRA. For more information about IRAs, see Publications 590-A and 590-B.
- Report Name Changes. Notify the Social Security Administration (SSA) of any name changes after a divorce. Go to SSA.gov for more information. The name on a tax return must match SSA records. A name mismatch can cause problems in the processing of a return and may delay a refund.
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IRS YouTube Videos:
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The following article comes from IRS Summertime Tax Tip 2017-08
Inside This Issue
Summer Newlyweds Should Also Think About Taxes
Spring showers bring summer flowers and weddings typically aren’t far behind. Newlyweds have a lot to think about and taxes might not be on the list. However, there is good reason for a new couple to consider how the nuptials may affect their tax situation.
The IRS has some tips to help in the planning:
- Report changes in:
- Name. When a name changes through marriage, it is important to report that change to the Social Security Administration. The name on a person’s tax return must match what is on file at SSA. If it doesn’t, it could delay any refund. To update information, file Form SS-5, Application for a Social Security Card. It is available on SSA.gov, by calling 800-772-1213 or at a local SSA office.
- Address. If marriage means a change of address, the IRS and U.S. Postal Service need to know. To do that, send the IRS Form 8822, Change of Address. Notify the postal service to forward mail by going online at USPS.com or at a local post office.
- Consider changing withholding. Newly married couples must give their employers a new Form W-4, Employee's Withholding Allowance Certificate, within 10 days. If both spouses work, they may move into a higher tax bracket or be affected by the Additional Medicare Tax. Use the IRS Withholding Calculator at IRS.gov to help complete a new Form W-4. See Publication 505, Tax Withholding and Estimated Tax, for more information.
- Decide on a new filing status. Married people can choose to file their federal income taxes jointly or separately each year. While filing jointly is usually more beneficial, it’s best to figure the tax both ways to find out which works best. Remember, if a couple is married as of Dec. 31, the law says they’re married for the whole year for tax purposes.
- Select the right tax form. Choosing the right income tax form can help save money. Newly married taxpayers may find they now have enough deductions to itemize them on their tax returns. Newlyweds can claim itemized deductions on Form 1040, but not on Form 1040A or Form 1040EZ.
- Avoid scams. The IRS will never initiate contact using social media or text message. First contact generally comes in the mail. Those wondering if they owe money to the IRS can view their tax account information on IRS.gov to find out.
Additional Resources:
- Topic 157, Change Your Address – How to Notify the IRS
IRS YouTube Videos:
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How to Protect Yourself From Ransomware Attacks
The New Yourk Times
Tech Fix
By Brian X. Chen
MAY 15, 2017
In a recent ransomware attack, cybercriminals hijacked hundreds of thousands of computers worldwide, locking up data and threatening to destroy it if a ransom was not paid.
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Wow! What an overwhelming success for the 2017 Moon Accounting Food Drive
Thanks to the generosity of our clients, Moon Accounting reached an all time record for their annual food drive during the 2017 tax season. Thank you all for your overwhelming response to help make this another successful food drive!
