IRS Issues Standard Mileage Rates for 2019

From the IRS | IR-2018-251 | December 14, 2018

The Internal Revenue Service today issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018,
  • 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018, and
  • 14 cents per mile driven in service of charitable organizations.
The business mileage rate increased 3.5 cents for business travel driven and 2 cents for medical and certain moving expense from the rates for 2018. The charitable rate is set by statute and remains unchanged.
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A Summer Job in Sharing Economy May Affect Taxes

From the IRS | IRS Tax Tip 2018-104 | July 9, 2018

A college student wanting to do something other than wait tables. A teacher needing to make a little extra money. A family wanting to rent out their home while they’re on vacation. These are just a few examples of taxpayers making money from the sharing economy who should consider how this income affects their taxes.

Here are some key things for taxpayers to know about participating in the sharing economy:
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Pennsylvania Enacts Legislation Providing an Additional State Tax Deduction for Depreciation

From the Pennsylvania Department of Revenue

CORPORATION TAX BULLETIN 2018-03 | Issued: July 6, 2018

This bulletin supersedes Corporation Tax Bulletin 2017-02

Bonus Depreciation Before Act 72 of 2018

Before Act 72 of 2018, section 401(3)1.(q) of the Pennsylvania Tax Reform Code (TRC) disallowed bonus depreciation in the year in which assets were placed in service, but allowed corporations to deduct the federal bonus depreciation over several tax years after the assets were placed in service. Specifically, section 401(3)1.(r) of the TRC provides for the recovery of the disallowed depreciation of qualified property that was claimed and allowable under section 168(k) of the IRC by providing for an additional deduction in certain circumstances. The additional deduction is equal to three-sevenths of the remaining depreciation amount, not including the depreciation claimed under IRC 168(k). Additionally, upon the disposition, sale, or transfer of the asset subject to bonus depreciation, the law allows a corporation to deduct the unused bonus depreciation.

Bonus Depreciation After Act 72 of 2018
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IRS Working on a New Form 1040 for 2019 Tax Season

From the IRS | IR-2018-146 | June 29, 2018

As part of a larger effort to help taxpayers, the Internal Revenue Service plans to streamline the Form 1040 into a shorter, simpler form for the 2019 tax season.

The new 1040 – about half the size of the current version -- would replace the current Form 1040 as well as the Form 1040A and the Form 1040EZ.  The IRS circulated a copy of the new form and will work with the tax community to finalize the streamlined Form 1040 over the summer.

This new approach will simplify the 1040 so that all 150 million taxpayers can use the same form. The new form consolidates the three versions of the 1040 into one simple form. At the same time, the IRS will still obtain the information from each taxpayer needed to determine their tax liability or refund. 
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City of Philadelphia Department of Revenue Announces Wage Tax Rate Reduction Starting July 1, 2018

The City of Philadelphia Department of Revenue announced a Wage Tax rate reduction starting July 1, 2018.

The new Wage Tax rates are as follows:

  • Residents of Philadelphia = 3.8809% (.038809).
  • Non-residents of Philadelphia who are subject to the Philadelphia City Wage Tax = 3.4567% (.034567).
What this means for you

Any paycheck that you issue with a pay date after June 30, 2018 must have Philadelphia City Wage Tax withheld at the new rate.

Get full details about the new Wage Tax rate.

Tax Bill This Year? Check Withholding Soon, Avoid Another One Next Year

From the IRS | IR-2018-145 | June 28, 2018

Taxpayers who owed additional tax when they filed their 2017 federal tax return earlier this year can avoid another unexpected tax bill next year by doing a “paycheck checkup” as soon as possible, according to the Internal Revenue Service.

The Tax Cuts and Jobs Act, the tax reform legislation passed in December, made major changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the Child Tax Credit, limiting or discontinuing certain deductions and changing tax rates and brackets.
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