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March 10, 2021 By Tax Attorney

2021 Tax Changes in Review

Columbia SC tax attorney Joseph Arndt is dedicated to helping taxpayers steer clear of IRS trouble. He’s been doing that for over 30 years. A large part of that effort is keeping abreast of the annual changes in the tax code, large and small. Let’s a take a very basic look at some of the most important 2021 tax changes.

Marginal Tax Rates: Here is a look at your Marginal Rates for 2021, as provided by the IRS:

For tax year 2021, the top tax rate remains 37% for individual single taxpayers with incomes greater than $523,600 ($628,300 for married couples filing jointly). The other rates are:

35%, for incomes over $209,425 ($418,850 for married couples filing jointly);
32% for incomes over $164,925 ($329,850 for married couples filing jointly);
24% for incomes over $86,375 ($172,750 for married couples filing jointly);
22% for incomes over $40,525 ($81,050 for married couples filing jointly);
12% for incomes over $9,950 ($19,900 for married couples filing jointly).
The lowest rate is 10% for incomes of single individuals with incomes of $9,950 or less ($19,900 for married couples filing jointly).

Standard Deductions: The standard deduction is just easier than itemizing, and many folks take advantage of it. These have increased ever-so-slightly, up $150 for single and $300 for married filing jointly. [Read more…]

February 20, 2020 By Tax Attorney

Failed to Pay Your Taxes? The IRS May Pay You a Visit

from Bloomberg News by Laura Davison
February 19, 2020, 12:34 PM EST

Excerpt:

There’s a new incentive to file a tax return this year: an Internal Revenue Service agent may be making a house call if you don’t.

The IRS is increasing efforts to reach high-income individuals who have failed to file at least one or more tax returns in recent years as a last-ditch attempt to encourage compliance, the agency said on Wednesday. This would be the final step before the agency would pursue more severe procedures, including civil or criminal action against that individual, the IRS said.

The IRS is concentrating efforts on individuals who received at least $100,000 in income during a year and didn’t file tax returns. The agency knows the incomes of many taxpayers from third-party reporting from employers or financial institutions, even if they don’t file a return.

Read the full story at Bloomberg

February 4, 2020 By Tax Attorney

Choosing a Tax Preparer

During tax season, many South Carolina taxpayers will search for help to prepare their tax returns. Here are some tips to consider when picking a tax preparer:

● Check their qualifications. All preparers must have a Preparer Tax Identification Number (PTIN). The IRS’s directory of qualified taxpayers can help you find a preparer.

● Ask about their preparer’s fees. Do not give them your tax documents, SSNs, or other personal info when making this request. Avoid preparers who base their fee on a percentage of your refund.

● Make sure your preparer offers IRS e-file. The quickest and most accurate way to get your refund is to electronically file and use direct deposit.

● Confirm that your preparer signs your return and will be available after the tax filing deadline. So-called ghost preparers often help taxpayers unwittingly claim deductions and tax credits they aren’t eligible for. But because they didn’t sign the return or leave contact information, they can’t be held responsible when the return is audited.

● Look up tax preparers and read their reviews to make sure there aren’t any red flags. You can check with the Better Business Bureau to make sure the preparer doesn’t have a questionable history.

Find more tips for choosing a tax preparer at the SCDOR website >

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