Sunday, March 18, 2018

Colorado DR1317 Child Care Contribution Tax Credit Certification

This is a document used when certifying that a contribution has been made to a child care center. Often this would be used by a parent who contributes money to their daycare or pre-school. The DR1317 is prepared by the child care provider. Most people would have to ask their provider to do so.

SOURCES:
https://www.colorado.gov/pacific/sites/default/files/Income35.pdf
https://www.colorado.gov/pacific/sites/default/files/DR1317.pdf

Tuesday, March 13, 2018

What Is The 2017 Maximum Social Security Tax Amount? What to do with Overpayment?

The max amount of earnings for social security tax (6.2%) is $127,200 which equals a max amount of social security withholdings of $7,886. The excess is reported on line 71. Excess comes from either changing jobs during the year or a single employer overpaying SS.

Tuesday, March 6, 2018

What If My Spouse and I Have Been Over Our HSA Family Limit? (Excess Contribution to an HSA)

You will have to notify the bank. The excess contribution will need to be reported with your 1040 filing on Form 5329. If you discover it after filing for the year, the amount can be penalized by 6% to 10% for each year it goes un-taxed. In this case, if you already filed for that year, you would have to file a 1040X amended return for that year along with a Form 5329. If you have several years, you'll have to file several amended returns.


SOURCES:
https://www.irs.gov/forms-pubs/about-form-5329

https://www.irs.gov/instructions/i8889

What If Both I And My Spouse Have HSA Contributions? What is Our Max Contributing Amount

You can each have an HSA or just one of you but the max contribution is always the family limit:

2018 $6,900
2017 $6,750

SOURCE:
https://www.irs.gov/instructions/i8889

Thursday, February 1, 2018

Home Equity Loan Interest Will No Longer Be Deductible For 2018 Filing Year

Source:
https://www.marketplace.org/2017/12/22/business/tax-bill-2017/tax-reform-home-equity-interest-deduction-affect

How Do I Report Your Crypto Currency On My Taxes?

Like other stock investments, it depends on cost basis, long-term or short-term (duration of your investment), and your gain or loss.

Further Info from TaxAct:

SOURCE: https://proadvance.taxact.com/paying-taxes-cryptocurrency-bitcoin-ethereum-litecoin-ripple/