Self-Study Education
for the Tax Professional
TaxEase, LLC
30 Years Experience in Tax Education
TaxEase will electronically report
the student's continuing education
hours to either or both the IRS and
CTEC upon successful completion of
this course.
2018 Updates
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The Tax Cuts and Jobs Act of 2017  created a lot of work for the IRS. The IRS must
issue new regulations, notices, publications, forms and schedules. An IRS oversight
structure to coordinate the implementation. They will be releasing forms throughout
the summer and fall. Guidance on the law changes will come in notices and form
instruction.

For the latest information the IRS has created  
www.IRS.gov/newsroom/tax-reform
On August 8, 2018 the Internal Revenue Service issued proposed regulations for
the provision allowing many owners of a sole proprietorship, partnerships, trusts and
S corporations to deduct 20 percent of their qualified business income.

The new deduction -- referred to as the Section 199A deduction or the deduction for
qualified business income -- was created by the Tax Cuts and Jobs Act. The
deduction is available for tax years beginning after Dec. 31, 2017. Eligible taxpayers
can claim it for the first time on the 2018 federal income tax return they file next year.

The deduction is generally available to eligible taxpayers whose 2018 taxable
incomes fall below $315,000 for joint returns and $157,500 for other taxpayers. It’s
generally equal to the lesser of 20 percent of their qualified business income plus 20
percent of their qualified real estate investment trust dividends and qualified publicly
traded partnership income or 20 percent of taxable income minus net capital gains.

Deductions for taxpayers above the $157,500/$315,000 taxable income thresholds
may be limited. Those limitations are fully described in the proposed regulations.

Qualified business income includes domestic income from a trade or business.
Employee wages, capital gain, interest and dividend income are excluded.

In addition,
Notice 2018-64, also issued Aug. 8 2018, provides methods for
calculating Form W-2 wages for purposes of the limitations on this deduction. More
information in the form of
FAQs on Section 199A can be found on IRS.gov.

Taxpayers may rely on the rules in these proposed regulations until final regulations
are published in the Federal Register.

TaxEase Update and Tax Law Sections discuss IRC Section 199A.


August 22, 2018
Keeping you aware of current information is important to TaxEase. Recently, the
Internal Revenue Service has been sending a series of messages to taxpayers and
tax professionals urging them to check the IRS online withholding calculator to make
sure they have the proper amount withheld from their paychecks so they can avoid a
nasty surprise next tax season.

As suggested in TaxEase courses, the changes from the Tax Cuts and Jobs Act
resulted in new withholding tables and a new W-4. The elimination of personal
exemptions and the dramatic changes to itemized deductions and the standard
deduction creates the need for a double check of withholding for your clients. It is
important not to forget those clients who are paying estimated taxes as well.

A recent report from the Government Accountability Office estimates 21% of all
taxpayers will under withhold for 2018. To use the IRS online withholding calculator
you will need the latest pay stub from your client and the prior year return.

According to the IRS, the withholding calculator works for most taxpayers. People with
more complex tax situations should use the instructions in Publication 505, Tax
Withholding and Estimated Tax. This includes taxpayers who owe self-employment
tax, alternative minimum tax, the tax on unearned income of dependents, or certain
other taxes, and people with long-term capital gains or qualified dividends.
Click Here to review 2018 IRS Tax Forms

On June 29, 2018, the IRS announced that it  is not
developing Forms 1040A and 1040EZ for the 2018 tax year