Jerry Jones CPA
Wouldn’t it be nice to have a CPA that you deal directly with, that understands your business, that works in all 50 states and is there for you when you need him?
“Jerry has been completing my very complex tax returns for the past 10 years. He is an efficient, effective and highly competent CPA who returns great value for services performed. I highly recommend him to anyone seeking such expertise”.
Dennis F. Taxpayer

15 THINGS YOU SHOULD KNOW ABOUT THE DIFFERENT TAX BRACKETS

Tax-brackiet-advice-jerry-jonesThe 2017 Tax Cuts and Jobs Act went into effect on January 3. As part of the new legislation, all of the tax brackets have changed. For most Americans, the changes will offer some tax relief. However, the majority of the impact of the new legislation will be on businesses.

Both single filers and couples filing jointly will see differences in their tax liability. Let's take a look at 15 things you need to know about the new income brackets and tax rates and how they'll affect you.

1. 7 TAX BRACKETS REMAIN

The Act keeps the seven income tax brackets but lowers the tax rates for each. That means most Americans will see some relief when it's time to figure how to pay those taxes.

Don't Fall for These 20 Common Tax Myths

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To say the U.S. tax system is confusing is an understatement, so it's no wonder there are many misconceptions about the rules. The good news is that most people make less than $100,000 in a year and have no income other than their paychecks, so they can fill out the comparatively brief and very direct short form; almost everyone who uses the 1040EZ can fill it out themselves. For everybody else, though, the baffling mysteries of the tax code prevail, and can ultimately cost money. To help unravel some of the perplexities of the system, here are 12 common tax myths debunked. It might save money and sanity when the deadline rolls around.

Interest on Home Equity Loans Often Still Deductible Under New Law

WASHINGTON - The Internal Revenue Service today advised taxpayers that in many cases they can continue to deduct interest paid on home equity loans.

Responding to many questions received from taxpayers and tax professionals, the IRS said that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labelled. The Tax Cuts and Jobs Act of 2017, enacted Dec. 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer's home that secures the loan.

Under the new law, for example, interest on a home equity loan used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal living expenses, such as credit card debts, is not. As under prior law, the loan must be secured by the taxpayer's main home or second home (known as a qualified residence), not exceed the cost of the home and meet other requirements.

The IRS isn't calling you — it's a scam, and here's what to do if it happens to you

The IRS isn't exactly modern.

IRS-phone-call-scam-Jerry-JonesIf it needs to get in touch with a taxpayer, it sends a letter — not an email, not a phone call, and definitely not a message over social media. Especially in cases of tax fraud.

So when I recently got a voicemail admonishing me for supposed issues with the tax return I filed a few weeks ago, I knew it had to be the latest IRS phone scam.

A phone number from Washington, DC, called me and left a voicemail when I didn't answer.

It was an automated message that said:

"Time sensitive and urgent ... we found that there was a fraud and misconduct on your tax which you are hiding from federal government. This needs to be rectified immediately, so please return the call as soon as you receive the message."

It told me to return the call to the same DC-area phone number displayed on my caller ID. It's pretty clear this was a scam call, if not for the simple reason that the caller did not identify themselves as someone from the IRS. Also, as previously mentioned, the IRS prefers snail mail.

This is a sophisticated step in the latest tax scam Americans need to watch out for, according to the IRS. Scammers file a fake tax return with stolen personal information, like your Social Security number, and then use actual bank account information to have the refund deposited into your own account.

Then they call to collect, posing as the IRS or debt collectors demanding the return of the fraudulent tax refund. In some cases, the caller threatens criminal fraud charges, an arrest warrant, and to "blacklist" the taxpayer's Social Security Number.

Avoid the Rush: Taxpayers Must Validate Identity When Calling the IRS

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The Internal Revenue Service today reminded taxpayers and tax professionals that they will be asked to verify their identities if they call the IRS. This is part of the agency's efforts to keep taxpayer data secure from identity thieves.

Days before and after Presidents Day mark the peak period for taxpayer phone calls to the IRS. To avoid the rush, callers should be prepared to verify their identities if they need to call the agency.

IRS call center professionals take great care to make certain that they only discuss personal information with the taxpayer or someone the taxpayer authorizes to speak on their behalf. To ensure that taxpayers do not have to call back, the IRS reminds taxpayers to have the following documents ready:

  • Social Security numbers and birth dates for those who were named on the tax return in question

  • An Individual Taxpayer Identification Number (ITIN) letter if the taxpayer has one in lieu of a Social Security number (SSN)

  • Filing status – Single, Head of Household, Married Filing Joint or Married Filing Separate

  • The prior-year tax return. Telephone assistors may need to verify taxpayer identity with information from the return before answering certain questions

  • A copy of the tax return in question

  • Any IRS letters or notices received by the taxpayer

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