Was your 2018 tax refund not as large as you were originally anticipating, or did you end up owing? With the changes from the 2016 Tax Cuts and Jobs Act, the IRS is still trying to perfect the Form W-4 for the proper amount of tax withholding. 

If you are expecting any life changes this year — marital status, number of dependents, or a substantial change in income or deductions — contact us so we can help you avoid the surprise next year.

READ MORE: The IRS releases its new tax withholding form. Here’s what you need to know.

Lehigh Valley Business had invited our Founder & Chairman, Thomas Riddle, to participate in a panel discussion about Succession Planning at their Business Growth Symposium the morning of June 13 at DeSales University. Tom will share his planning approach and experience with the panel and audience.

For more information and registration, visit lvb.com/event/business-growth-symposium

Special Event Alert
Our Senior Vice President Laurie Siebert is co-hosting a free Estate Planning seminar at PBS39 (839 Sesame Street, Bethlehem) on Wednesday, May 8 at 10 a.m.

Laurie and Attorney Charles Stopp, principal at the Law Offices of Steckel and Stopp will cover a variety of topics and addresses common questions.

Registration is free, and seats can be reserved online at the PBS30 website or by contacting Mariella Miller at 610-984-8222.

Final Tax Return Reminders!
Monday is the filing deadline, and our team is busy making sure that our clients’ tax returns are completed.

If you have requested a paper copy of your return, our office will notify you when it is ready for pickup. If you requested a digital copy, you will receive a notification e-mail from tax@valleynationalgroup.com to let you know that your returns are ready for review and your signatures.

Please be sure to return your signed 8879 and state filing forms to us as quickly as possible. You can deliver them in person, post a scan or image of the signed paper document to your eVault Client Portal, or e-mail them to our team at tax@valleynationalgroup.com.

Remember, local tax returns and any related payments are your responsibility to submit directly. We include instructions in your personal tax packet to help you get these submitted.

The IRS publishes a special electronic guide with tips for taxpayers during filing season. There have been three additional updates in 2019 covering tax reform changes, “Where’s My Refund?” and an RMD reminder. READ MORE at IRS.gov

Are you charitably inclined, not able to itemize but close to age 70 ½? 
A couple options: 1. Consider postponing charitable giving until you reach age 70 ½ and can make charitable donations directly from your IRA; 2. Calculate the amount of your annual charitable giving times the number of years until age 70 ½ and see if it makes sense to “bunch” your charitable giving into one tax year using a donor advised fund.

Do you hate making estimated tax payments on that unearned income? 
If you really don’t like having to remember to make quarterly estimated tax payments and have income available for federal income tax withholdings such as wages, pensions or IRAs, consider adjusting your withholding to cover any balances due. You can request additional amounts to be withheld from wages or up the percentage withheld on other sources such as IRAs or Social Security.

IRMAA – Income related monthly adjustment amount on your Medicare premiums. 
Do a little tax planning to help manage the premium adjustments on your Medicare because of high income thresholds. If you have had a substantial change or life event in your income circumstances, you may qualify for an adjustment. Click here for the Medicare Income-Related Monthly Adjustment Amount – Life Changing Event Form SSA-44.

For more tax tips and related resources, visit our website at valleynationalgroup.com/tax

by Laurie Siebert, CPA, CFP^®, AEP^®, Senior Vice President
I attended the Estate Planning Council of the Lehigh Valley’s recent “Estate Planning in a World of Rapidly Advancing Technology” seminar. What I learned is that you cannot ignore the implications of technology in the way we hold, access, retain, share and use it for financial or personal transactions and storage. Assuming that your personal representatives will have the ability to manage your internet of “things” may be costly. In any number of ways, accounts that may be accessible by user identification and passwords, may no longer be accessible if the account is closed. This could happen when credit cards linked to the accounts are notified of the death and they become frozen. Work with your attorney to make sure that your personal representatives will have the required permissions or strategies to manage your digital world.  Leave a roadmap of your online footprint for your personal representatives as well.  We strongly encourage everyone to take an inventory of the way you use technology, how to access it, what information or monetary value may be buried and on what devices. 

The IRS just published final guidance on one of the new provisions in the Tax Cuts and Jobs Act is the 20% pass-through deduction. In simple terms, individual business owners may claim a deduction equal to 20% of their qualified business income. However, limitations are in place that that will limit or eliminate the deduction for certain high-income earners.

The new guidance specifically addresses when a rental activity will rise to the level of trade or business and will qualify for this deduction. If an individual spends at least 250 hours of “rental services” throughout the year and maintain contemporaneous records for each location, including dates of all services performed by the taxpayer or somebody else, you may qualify for this deduction. READ MORE at IRS.gov

Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled. READ MORE at IRS.gov

NJ Tax Amnesty Expires on January 15
For those taxpayers who have received a New Jersey Tax Amnesty notice, please be aware that the program ends January 15, 2019. The program offers a waiver of most penalties and reduced interest charges for those who have met the eligibility requirements. READ MORE at the State of New Jersey Department of Treasury website: nj.gov/treasury