Accounting & Tax Preparation

Our only speaker today was Kay Cruson, our accountant and Tax Preparer in Lakewood, Colorado. Kay took her time today to discuss the new tax rules for your 2018 taxes. ProSeries Tax Software continues to adhere to the industry leading security and fraud protection standards. They have added a new security feature that masks all of the sensitive data, such as Social Security Number, bank accounts and tax professional Electronic Filing Identification Number (EFIN). This masking will be on both computer and print to protect personally identifiable data for both the tax payer and the tax professional.
There are several new forms this year as well as changes to others. Kay then passed around some of the new forms and worksheets so we could go over them while she was speaking about them.
New Forms and Worksheets:
• Form 1040 is now a postcard and replaces the 1040EZ form
• Form 1040 Worksheet: This is similar to the old 1040 form with breakouts of the new schedules
• Form 1040 Schedule 1: Additional Income & Adjustments to Income
• Form 1040 Schedule 2: Tax (Alternative Minimum & Tax Credits)
• Form 1040 Schedule 3: Nonrefundable Credits
• Form 1040 Schedule 4: Other Taxes (Self-Employment, Unreported SS and Medicare, Etc.)
• Form 1040 Schedule 5: Other Payments and Refundable Credits (Estimated Tax, Etc.)
• Form 1040 Schedule 6: Foreign Address, Third Party Designee and other information
• Qualified Business Income Component Worksheet
• Qualified Business Income Deduction Simplified Worksheet
• Qualified Business Income Deduction Summary
• Form 8867: Paid Preparer Due Diligence Worksheet HOH
• Form 8915A/8915B: Qualified Disaster Retirement Plan Distributions and Repayments

The Forms and Worksheets That Have Been Removed:
• Form 1040A
• Form 1040EZ
• Form 1095-B: Health Coverage
• Form 1095-C: Employer-Provided Health Insurance Offer & Coverage
• Form 2106-EZ: Unreimbursed Employee Business Expenses
• Form 8903: Domestic Production Activities Deduction
• Deduction for Exemptions Worksheet

Kay then went over the tax rates for 2018 – here are a few of the highlights:
• Personal Exemptions: The exemption amount is at $0 – as exemptions have been suspended by the Tax Cuts and Jobs Act.
• Standard Deductions for 2018:
• $12,000 for single or married filing separately
• $24,000 for married filing jointly or a qualifying widow(er)
• $18,000 Head of Household
• $1,050 or $350 plus earned income, whichever is greater (not to exceed $12,000)                  for a dependent of another
• Additional Standard Deduction for 65 and older or legally blind:
• $1,300 if filing married (jointly or separately) or qualifying widow(er)
• $1,600 if filing single or head of household

If you are in need of an accountant or tax preparer that can help you through the maze of the new rules and changing tax codes, give Kay Cruson a call.
Kay Cruson * Accounting & Tax Preparation * 303.937.3468 * kdotcrusonatattdotnet

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