Five Things to Remember About Exemptions and Dependents for Tax Year 2017

From the IRS | IRS Tax Tip 2018-20 | February 7, 2018

Most taxpayers can claim one personal exemption for themselves and, if married, one for their spouse. This helps reduce their taxable income on their 2017 tax return. They may also be able to claim an exemption for each of their dependents. Each exemption normally allows them to deduct $4,050 on their 2017 tax return. While each is worth the same amount, different rules apply to each type.

Here are five key points for taxpayers to keep in mind on exemptions and dependents when filing their 2017 tax return:
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Pennsylvania Nonprofit Audit Requirement Thresholds Raised

On December 22, 2017, Governor Wolf signed Act 71 of 2017 (House Bill 1420) into law, amending the Pennsylvania Solicitations of Funds for Charitable Purposes Act by raising the threshold of annual contributions required to trigger an audit.
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Pennsylvania's New 1099-MISC Withholding Tax Requirements: PA Department of Revenue Issues 1099-MISC Fact Sheet

From the PA Department of Revenue |

Act 43 of 2017 created a withholding obligation for certain payors of Pennsylvania-source income and lessees of Pennsylvania real estate to non-residents. It also expanded the requirements with respect to when a copy of Federal Form 1099-MISC is required to be filed with the Pennsylvania Department of Revenue.
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IRS, States and Tax Industry Warn Employers to Beware of Form W-2 Scam; Tax Season Could Bring New Surge in Phishing Scams

From the IRS | IR-2018-8 | January 17, 2018

The Internal Revenue Service, state tax agencies and the tax industry urge all employers to educate their payroll personnel about a Form W-2 phishing scam that made victims of hundreds of organizations and thousands of employees last year.
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IRS Reminds Employers: Forms W-2, W-3, and Some Forms 1099-MISC Due January 31, 2018

From the IRS | IR-2018-15 | January 30, 2018

The Internal Revenue Service is reminding employers that the deadline for filing employee Forms W-2, Wage and Tax Statement, for calendar year 2017 is January 31, 2018. This includes Forms W-3, Transmittal of Wage and Tax Statements. In addition, reporting payments to contract workers on Form 1099-MISC (box 7, nonemployee compensation) must also be filed by January 31.
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IRS Urges Travelers Requiring Passports to Pay Their Back Taxes or Enter Into Payment Agreements

From the IRS | IR-2018-7 | January 17, 2018

The Internal Revenue Service strongly encourages taxpayers who are seriously behind on their taxes to pay what they owe or enter into a payment agreement with the IRS to avoid putting their passports in jeopardy.
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