The following are some life events that can affect your tax return; you may need to take steps to mitigate their impact and avoid unpleasant surprises after it is too late to address them. Learn more. .embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }

Video: The following are some of the more frequently encountered tax issues encountered by recently married couples. Learn more. .embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }

Article Highlights: Home Equity Loan Home Equity Interest Deduction Alternative Minimum Tax Above-the-Line Interest Deduction Qualified Expenses If you are considering borrowing funds to finance your college education or that of your spouse or children, it is important that you understand that the student loan interest deduction is not limited to the interest paid on government student loans. In fact, virtually any loan interest will qualify as long as the loan proceeds are used solely for qualified higher-education expenses (that is, it is a sole-purpose loan). However, the maximum interest that is deductible each year is $2,500. Thus, in addition to government student loans, home equity lines of credit, personal loans from unrelated parties, and even credit cards can be used if they otherwise qualify. Pension plan loans and loans from related parties do not qualify. Example #1 – Jack takes out an equity line of credit on his home and borrows $30,000 to finance a solar electric installation on his home and $10,000 to pay his daughter’s qualified education expenses. Because this loan is not used for a single purpose (he used it to borrow funds for more than education), he cannot deduct a portion of the interest as above-the-line education loan interest. However, Jack can still deduct the prorated interest on the solar installation as home-acquisition debt if the total debt does not exceed the acquisition debt limits. If Jack had only used the loan to pay for qualified education expenses, then up to $2,500 of the loan interest could have been deducted as above-the-line student loan interest. Example #2 – Mark has a Visa card that he uses for a variety of purposes, and he also uses it to pay his daughter’s qualified education expenses. Because the credit card is not used exclusively to pay for qualified education expenses, none of the interest will qualify as student loan interest. However, if Jack had only used the credit card to pay for qualified education expenses, then up to $2,500 of the credit card interest could have been deducted as above-the-line student loan interest. Caution: Although we use a credit card as an example of an alternate student loan, it is not practical because of the high interest rates. If a loan is not subsidized, guaranteed, financed, or otherwise treated as a student loan under a program of the federal, state, or local government or an eligible educational institution, a payee (the lender) must request a certification from the payer (the borrower) that the loan will be used solely to pay for qualified higher-education expenses. Form W-9S, Request for Student’s or Borrower’s Social Security Number and Certification, is provided by the IRS for this purpose. You can claim a deduction for student loan interest whether you claim the standard deduction or you itemize your deductions since it is an adjustment to income, often referred to as an above-the-line deduction. To qualify as an eligible loan, the loan must have been taken out solely to pay the costs of attending an eligible educational institution for an individual during a period when the individual is a

According to one recent study, the vast majority of Americans who are between the ages of 55 and 64 say that they have only saved, on average, about 12% of what they’ll need to live out their retirement years in comfort. Things have gotten so severe that experts believe that about 64% of working aged people in the United States say “not having enough saved to retire” is their number one concern, regardless of how far off that date happens to be. But as disconcerting as those statistics are, there is also a silver lining to the situation. Maximizing your savings for retirement is something that you can start doing immediately, regardless of how old you are. It just requires you to keep a few essential things in mind while you do it. If you don’t have a plan, you don’t have much of anything at all Maybe the most important thing for you to understand about maximizing your savings for retirement is that there is truly no “one size fits all” approach to what you’re trying to do. That can be terrifying, yes... but it can also be incredibly liberating if you go about things the right way. In a larger sense, what this means is that you need a plan for saving for retirement, and you need it TODAY. Don’t just say to yourself “I’m going to save 5% of my income every year” and hope that’s enough to get you through. You need to carefully consider all of your own specific variables and come up with a plan that mitigates risk and puts your best foot forward in the most logical way that you can. In a smaller sense, this means that you need to think about: Paying off debt. List all of the current debt responsibilities you have, including bills, credit cards, large purchases like a mortgage, and more. Be sure to include the current interest rates, too. Once you know exactly how much you owe and to whom, you can come up with a realistic plan to pay off that debt (or reduce it) as soon as you can. Figure out how much money you’re going to need to maintain your current lifestyle during retirement. Again, everyone has a different definition of the term “comfortable,” so don’t let someone else tell you how much you should save. Only YOU can do that. Expect the unexpected. Certain problems ‒ like health issues ‒ can crop up unexpectedly and at the worst possible moment. On top of everything else, come up with a strategic approach that will allow you to have the cash reserves necessary to mitigate risk from these problems wherever you can.

August 12 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during July, you are required to report them to your employer on IRS Form 4070 no later than August 12. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

August 12 - Social Security, Medicare and Withheld Income Tax File Form 941 for the second quarter of 2019. This due date applies only if you deposited the tax for the quarter in full and on time. August 15 - Social Security, Medicare and Withheld Income Tax