Taxpayers know that there are tax deductions out there to be utilized to reduce the taxes paid on your income. Most are aware of the common deductions, but there are many deductions that simply get overlooked by most taxpayers.
Now that tax season is here, the early indications of the effects the 2017 Tax Reform are starting to show. While fewer people have filed their returns than this time period in past years, the data is showing that more and more Americans are seeing lower refunds than in years past. Many taxpayers did not understanding the full implications of the tax reform and failed to make the proper changes. Since we are still relatively early in the year, now is the time to review those possible changes for 2019.
We often think that having a home in multiple states is a great idea, and sometimes we contemplate working while traveling between these homes. In some cases, our jobs take us to multiple locations. What happens when we work in multiple states throughout the year?
The Tax Cuts and Jobs Act of 2017 has led to changes in the way companies choose to be taxed. Prior to the tax reform, many businesses were required to use the accrual method of accounting. But with the change in tax law, businesses with $25 million or less in annual revenue over the prior three years can use the cash method. More businesses are choosing the cash method of accounting instead of the previous accrual method, but what is the difference between cash and accrual methods of accounting?