Claiming dependents

Who Qualifies as a Dependent on My Tax Returns?

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As much as you love receiving that tax return check in the mail, filing your returns can be a very complicated, headache-producing process. This is especially true if you have a unique dependent situation and aren’t quite sure who you can claim. An experienced tax lawyer can help you determine who can be a dependent and the best way to claim them on your taxes. Read on for information regarding who to claim as a child or adult dependent and what to do if you have a unique family situation.

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Tax Identity Theft

Protect Yourself from Tax Identity Theft in 2019 with These Helpful Tips

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Tax season is over, and some taxpayers have already been alerted to a serious issue regarding their returns: identity theft. Along with opening new accounts and credit cards in your name, tax identity theft is one of the main uses for stolen Social Security numbers.

Below, the tax professionals at SH Block Tax Services explain the essentials of tax identity theft and the findings of the IRS’ 2019 “Taxes. Security. Together.” awareness campaign. Read more

Tax Season

Tax Season Is Right Around the Corner — Start Preparing Today! 

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Tax season is back, and for most people, it comes with plenty of anxiety and frustration. But tax time doesn’t have to be this way. There are some simple actions you can take to streamline the process and get ahead of the game.

Now is the time to begin preparing for tax season, and if you follow the tips in this article, this could be the year you start making sound financial decisions that will pay major dividends for you and your family. Read more

Things Not To Do on Taxes

4 Things You Should Never Do During Tax Season (and 4 Tips on What to Do Instead)

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Here at S.H. Block Tax Services, we look forward all year to National Tax Day on April 15. However, we recognize that most people’s stress levels steadily rise in the weeks leading up to tax-filing time and peak on April 15. In fact, a 2012 study analyzed 30 years of data and found that auto accidents spike 6% on Tax Day.

We’re not here to pass judgment, but we can say from decades of experience that many people’s tax-time stress is self-inflicted. Often, easing the pain of tax season is a matter of getting rid of bad habits and replacing them with healthy and constructive ones.

To help you cut down on unnecessary tax-time headaches, we’ve created a list of four things you should never do on Tax Day. For each entry on the list, we’ve provided a good habit you can use to replace the bad one. If you use this list to reshape your tax preparation and filing habits, you’ll never have to dread the calendar march toward April 15 again. Read more

How to Avoid Estimated Tax Penalties

Use These 3 Tips to Avoid Estimated Tax Penalties

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If you seem to find yourself stuck paying estimated tax penalties year after year, you can take some comfort knowing you’re not alone. In 2015, which was the last time the IRS released data on estimated tax penalties, the agency reported that they assessed these penalties on 10 million taxpayers. On average, each of those 10 million taxpayers had to pay about $130 in penalties.

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IRS Audit

5 Common Red Flags That Could Trigger an IRS Audit

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Receiving a notice that you’re getting audited can wrack your nerves, but at the end of the day, an audit is nothing more than an in-depth fact-checking exercise. Although enduring an audit can be time-consuming and cumbersome, if you’ve been honest and accurate when keeping records and filing tax returns, you shouldn’t have anything to worry about.

Still, that doesn’t mean you should set yourself up for an audit. While the IRS says its audit selection process is entirely random, it seems several red flags tend trigger IRS audits. Keep reading to learn which behaviors or actions could prompt an unwanted review of your personal or professional finances.

And if you’ve already been chosen for an IRS audit or suspect you will soon, please contact S.H. Block Tax Services today to schedule a free consultation.

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Tax Cuts and Jobs Act

Understanding the Consequences of the New Tax Cuts and Jobs Act

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Last year, union dues and other job-related expenses exceeding 2% of adjusted gross income (AGI) could still be deducted as miscellaneous deductions. However, for 2018 (and for the foreseeable future), those deductions have been eliminated. All work-related tools, supplies, clothing, union dues, and other work expenses are no longer deductible. The same is true for home office expenses and unreimbursed travel and mileage costs.

Thankfully, new proposed legislation might help combat the harmful aspects of the Trump Administration’s tax law and put more money in American worker’s pockets instead of the IRS’ coffers. Keep reading to learn more. Read more

Marriage and Taxes

For Better or Worse: How Marriage Affects Your Tax Status

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Most people don’t have taxes on the brain when they decide to settle down permanently with their romantic partner, but that doesn’t mean your nuptials won’t affect your tax standing.

To mark Valentine’s Day, we’d like to share with you the many tax benefits (and a few potential drawbacks) of tying the knot as well as some helpful information about maximizing your refund or minimizing your tax liability. If your tax filing status has recently changed and you’ve got questions, please contact S.H. Block Tax Services for help.

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Sports Gambling

How Will Legalized Sports Gambling Affect Your Taxes?

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Although Maryland House Bill No. 989 failed to pass and legalize in-state sports betting in 2018, industry experts believe betting on sports will become legal in our state sooner rather than later, and it could have a major impact on Maryland’s economy.

In fact, with the flurry of legislative activity surrounding legalized sports betting in the United States over the past year, it seems the question isn’t if Maryland will someday have legal sports gambling, but rather when. But what would legalization mean in terms of taxes for the lucky winners (or unlucky losers)?

Keep reading to learn more about state-sanctioned sports gambling and find out how it could affect Maryland residents and their taxes. Read more

Quarterly Estimated Taxes

Quarterly Taxes Are Due Next Month — Are You Prepared?

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For independent contractors and small business owners who pay quarterly taxes, another important date is right around the corner. The final quarterly payment for 2018 income taxes is due on January 15, which is now less than one month away.

Some contractors and business owners struggle to budget throughout the year or fail to keep accurate records of their financial transactions. Those mistakes can cause major issues when taxes come due, which can in turn lead to unnecessary fees and penalties.

Keep reading to learn more about quarterly taxes, including how you can file and pay accurate taxes on time at crucial dates throughout the year. Read more