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4 Useful Tips to File Your Taxes Online

Trying to file our taxes as soon as possible requires careful planning and a decent amount of time. However, the Internal Revenue Service (IRS) made available an online tool that has made the process easier and faster. During the last two decades, there has been a significant increase in e-filing. Last year, 92% of taxpayers chose e-filing for their tax return. Thus, we are bringing four useful tips to file your taxes online in case you need some help on this effective and simple process.  

When you work with a professional tax assistant, you don’t really need to worry about the process. However, if you are doing this on your own, these tips might be of great help. First, you need to do your research and learn about the dates for filing. After that, you should sign up with the IRS for your direct deposit payment. Only then you might continue and actually submit your taxes through the IRS website. Lastly, you just need to sign off your tax return and wait until you receive your deposit. We hope these tips to file your taxes online makes the process simpler and easier for you.  

Know the Dates and Don’t Miss Them 

One of the most important tips to file your taxes online include knowing the relevant dates and not missing them. Earlier this month, the IRS announced that the tax filing season will begin on Monday, January 28th, 2019. The due date to file your tax returns is by midnight of April 15th, 2019. This date only changes to April 17th for residents of the states of Maine and Massachusetts. We should also remember that we should apply for an extension around March if we think we will need one. 

Sign Up for Direct Deposit Payment 

Another important step to take when filing our taxes online is signing up for your direct deposit before actually filing. This will help you ensure you receive your refund sooner rather than later. When opting for a direct deposit instead of a physical check you won’t have to worry about having the check lost or stolen. You can go to the IRS website and visit their Refunds section or have your tax preparer do it for you.  

E-File Your Taxes through the IRS Website 

Once you’re on the IRS website, you can go to their e-filing portal and start the process. They also have an article with different tips to file your taxes online that might be worth checking first. Taxpayers with an adjusted gross income of $66,000 or less have the option to use the IRS system to file their taxes. For those with an AGI over such figure, the IRS will direct you to a certified service for e-filing.  

Sign Off Your Tax Return 

The last step of e-filing online is signing off your tax return using one of their many electronic signature options. The IRS has available two signing options, both through the use of a Personal Identification Number, or PIN. First, taxpayers have the option of using the AGI figure or PIN number from the year before. For the second option, the taxpayer and their tax preparer need to sign the tax return. Then, the IRS will generate a signing authorization request they must confirm later on.  

The Internal Revenue Service has done an excellent job in simplifying and perfecting their online filing systems. This is why, every year, millions of taxpayers decide to go through this simple and easy process. We hope these tips to file your taxes online are useful and help you completing your e-filing process for this season.  

4 Useful Tax Tips for Filing Season 2019

The Internal Revenue Service announced that the 2019 Tax Filing Season will begin on Monday January 28th. This should give us a couple of weeks to start preparing and gather our papers and any other documents we might need. This is why we have decided to gather four useful tax tips for filing season 2019. We hope these tips will help you stay on top of your income tax return and let you be as ready as possible for when the time of filing comes.  

Since we have until April 15th to submit our 2018 tax returns, we should take our time and do some research. There have been changes and updates on tax laws, and it´s always better to stay up to date with them. Also, checking on your tax withholding is a strategy that tends to be left aside. Considering all our deductions can help us reduce the amount of time we spend preparing our files. Keeping track of our state income tax can also save us time and money and avoid having a not-too-pleasant surprise.  

Do Your Research 

One of the most important tax tips for filing season 2019 is trying to take a fresh look at our taxing situation. There were several changes to current tax laws regarding thresholds and brackets. So, the best approach this year, is to avoid assuming we qualify for a given break and do our research instead. 

When it comes to tax credits, deductions, withholds, and even state income tax, the more accurate we are, the better. Therefore, we should take advantage of the time we have before tax season begins and do our homework. Confirming whether we qualify for a credit, deduction, bracket, etc., will help us save time and money this year.  

Remember to Check your Tax Withholding 

Keeping track of our tax withholding is always a good idea. This is particularly true at the beginning of the year and when tax law changes. If we work for a company, most likely our employer withholds a part of your salary and pays it to the IRS. This way, you receive a smaller paycheck, but your income tax is taken care of.  

However, we should be aware of how much they are withholding, or if they are at all. This will help us calculate our tax return more accurately when filing comes. If our employer withholds too little, we might be subject to a higher tax bill. If they are paying too much, however, we might have to wait until our refund check arrives.  

Consider Your Deductions 

Most taxpayers tend to struggle when deciding to itemize their tax deductions or going for the standard one instead. Because of the changes on tax laws, with almost doubled the standard deduction, we need to consider our options more carefully.  

If we hadn´t itemized our deductions before, we might want to consider this possibility this year. However, if we had been itemizing them, we should take a deeper look into this possibility. We want to make sure that itemizing makes sense financially, and that we will benefit from it.  

Keep Track of Your State Income Tax 

Last but not list, one of the most useful tax tips for filing season 2019 is keeping track of our state income taxes. There are many reasons why we should do the necessary research regarding what happens in our state. For example, there are many states that have independent tax systems. This means that not every state will reflect tax law changes that happen in a federal level.  

This year’s tax season will be a bit different for the majority of us. We need to make sure we are ready for those changes. Therefore, the best way to stay ahead of the taxing game is with the support of a professional tax broker or tax consultant. This way, we’ll be able to make the most out of our income tax and start a new year with the right foot.  

Fraud Threats to Financial Institutions: A Constant Online Struggle

During the last couple of years, the interaction between financial institutions and their customers has become more digitized than ever. Online services, requests, and applications are key aspects of an enjoyable and memorable customer experience. However, the process of online identity verification has brought several fraud threats to financial institutions, which represent a significant risk for institutions and customers.   

Back in June 2018, the credit reporting agency TransUnion hired the research company Forrester Consulting to carry out a study regarding fraud threats to financial institutions. During August and September, Forrester conducted a survey that 153 institutions from the US, Canada, and India responded to online. The results of the survey showed that fraud against financial institutions is increasing at an alarming rate. It also showed that financial institutions lack tools and strategies to tackle fraud. Besides, finding an effective solution without mitigating the customer experience is the main goal of financial institutions.   

Fraud Threats to Financial Institutions Have Increased  

Fraudulent activity has increased within the financial industry. Thanks to the digitization of processes and information, new fraud threats to financial institutions have risen. According to Forrester’s survey, 94% of the firms have experienced some type of fraud. The most common types of fraud include identity theft, new account fraud, synthetic identity fraud, and account take over fraud.   

The study also found several tendencies that are having an influence on fraud threats that financial institutions experience. First, behaviors and expectations of customers have changed, which forces companies to provide remarkable and memorable experiences. 70% of the firms mentioned that they interact with their customers online more than face-to-face.   

Also, the fact that fraudsters are keeping up with technology enables them to outsmart security systems and surveillance strategies. Almost 70% of the firms mentioned that they feel one step behind fraudsters.   

Lastly, this survey also revealed that financial institutions don’t seem to be equipped with the necessary tools to tackle and unarm the most advanced fraudsters. Thus, more than 50% of the firms stated that their security systems are not effective enough to fight fraud properly.   

Challenges that Financial Institutions Face Against Fraud Threats  

Besides these complex dynamics, there are several challenges that financial institutions face when trying to fight off fraud threats. TO begin with, the current systems financial institutions use lack essential capabilities to combat fraudsters. More than 50% of the firms stated that they do not have access to the tools they’d like to, such as real-time insights. They also mentioned that the current tools they do have access to don’t support multi-channel protection. Missing analytics capabilities like machine learning, predictive analytics, and social media analytics make them vulnerable, too.   

Another significant challenge is the difficulty of accurately and efficiently detecting and mitigating fraud altogether. According to the survey, 92% of the firms stated that they experience several issues when trying to remain compliant and respond to real-time alerts.   

The fact that their current fraud solutions rely on inaccurate data to try to prevent and mitigate fraud has become an issue, too. This is because fraud detection and identity verification vendors do not meet the firms’ expectations. Having issues with costs, support, and quality of service is another challenge institutions must work with regularly.   

Key Recommendations to Tackle Fraud Threats to Financial Institutions  

Even when the current situation regarding fraud to financial institutions has become difficult to manage, Forrester’s survey provided several key recommendations to manage such threats more effectively.   

One important recommendation is to understand the importance of high-quality data and its sources. Having a fraud detection system that relies on quality data will reduce fraud risks significantly.   

The quality of our fraud prevention strategies and decisions can benefit greatly from using consortium data. All the information our company generates from fraud management attempts can be useful to prevent fraudulent activity in the future.   

The importance of choosing the right vendor to manage and design our fraud prevention strategies is another key aspect. We need to make sure that our vendors will provide high-quality data, and that have documented and proven security services. This way we’ll know that our company is collaborating and being protected by the right partner.   

Crypto Taxes: What You Need to Know about Cryptocurrencies and Taxation

The concept of cryptocurrencies and crypto investment has been around for a couple of years now. It is so that we have seen a continuous increase in mainstream investments and crypto transactions recently. However, we need to start thinking about the crypto taxes and liabilities that come from investing in currencies such as bitcoin, ethereum, and others of the like. This is still a gray area that might confuse people, whether they are investing or not. 

The very first thing we need to consider is that cryptocurrencies are indeed taxable. This means that crypto taxes will apply. Nevertheless, we must remember that the IRS sees cryptocurrencies as property, not as dollars or cash. Therefore, crypto taxes will apply for capital gains or losses, depending on our particular case. This means that, just as with any other property, we need to keep track of each crypto transaction.  

Cryptocurrencies Are Taxable 

Since 2014, the Internal Revenue Service made available its official guidance document regarding crypto taxes. This means that, for the IRS, cryptocurrencies do generate tax liability. However, we must note that cryptocurrencies count as property, not as actual currencies or dollar amounts. The IRS has been focusing more on crypto transactions than they did before. Failing to pay our crypto taxes still constitutes tax fraud. This can result in a minimum sentence of 5 years in prison or having to pay a fine of up to $250,000. 

Cryptocurrencies Count as Property 

As we mentioned above, the IRS counts cryptocurrencies as property, just as stocks or real estate. This means that you will have to pay taxes on it if there has been a capital gain. However, if you have taken any kind of loss, you might be able to get a lower tax bill.  

It is important that we keep track of each and every one of our crypto transactions as accurately as possible. Recording when we buy cryptocurrencies, how much we paid, when we sold them (if we did), and what we received for it is essential. This way we’ll be able to properly calculate whether we had a gain or a loss.  

Keep Record of Each Crypto Transaction 

Keeping record of each and every one of our crypto transactions is essential. This will help us calculate our investment and allow us to properly file our crypto taxes report. Besides, having a complete and detailed log will help us avoid miss a transaction. Even when involuntarily, it could count as tax fraud, and the consequences are severe. As a result, we recommend hiring the services a professional tax consultant. This way, we will be able to maximize our refund and avoid having to pay a fine.  

3 Types of Tax Credits You Might Want to Know About 

Last week we talked about some really useful tax deductions you might be able to take advantage for during the upcoming tax season. This week, we´ll be discussing 3 types of tax credits you might also qualify for. As the year is almost over, we want to make sure you are informed and prepared for filing your income tax return next year.

There are many types of tax credits you might be eligible for, which you can find on the IRS website. However, we will be talking about three of them only. First, we’ll talk about the tax credits for people with kids. Then, we’ll go over the different tax credits for investing in education or retirement accounts. Lastly, we’ll talk about a tax credit you can get for making “green” purchases, for both residential energy and electric vehicles.

Child Tax Credit

Thanks to the Child Tax Credit, you might be eligible for up to $2,000 for every kid you have, plus $500 for each non-child dependent, too. Something to take into account is that the amount of credit you qualify for depends on your total income. For the 2018 tax year, the phase-out begins at $200,000, or $400,000 if you file as married filing jointly.

The percentage of this credit can be anywhere between 20% and 35% of your expenses related to child and dependent care. If your family’s adjusted gross income is of $15,000 or less, you qualify for the 35%. This percentage will shrink one percentage point for every extra $2,000 addition to your AGI.

Investment on Education or Retirement Credit

Another quite useful tax credit is the Retirement Saver’s Credit. This credit can be anywhere from 10% to 50% of up to $2,000 in contributions we made to a retirement account. This includes IRAs, 401(k)s, 403 (b)s, and certain retirement plans. The percentage of this credit will depend on your AGI and filing status, yet it’s a credit worth checking if your income is less than $63,000.

Another quite useful tax credit is the American Opportunity Tax Credit, which depends on qualifying education expenses of higher education students. This credit can be of up to $2,500 per student and includes tuition, activity fees, supplies, books, and equipment needed during your first four years of college. If your AGI is higher than $90,000, or $180,000 filing jointly, you might not qualify for this credit. However, parents claiming the student as a dependent might be able to take such credit, still.

Eco-Friendly Purchase Credit

There are two types of tax credits we can take for eco-friendly purchases we made this year. First, we have the Residential Energy Tax Credit, which can give you up to 30% of expenses for energy systems. This includes alternative energy equipment such as solar water heaters and solar panels.

Also, we have the Plug-In Electric-Drive Motor Vehicle Credit, which includes light trucks and passenger vehicles. The credit amount can be anywhere between $2,500 and $7,500 for having bought a plug-in electric vehicle. In order to qualify, the car must be new, as the IRS doesn’t count used or second-hand cars. Also, the vehicle must have four wheels, at least, and come with a rechargeable battery with a capacity of four-kilowatt hours as a minimum.

If you want to have more details about these or any other tax credits you might be eligible for, get in touch with us. We’ll be more than happy to answer all of your questions and give you the guidance you need.



4 Useful Tax Deductions You Should Take This Year 

The year is almost over, and most of us are starting to prepare for the upcoming tax season. The Internal Revenue Service has not announced yet when will the tax season officially begin, though. Nevertheless, being prepared for when it does can save us a lot of time and effort when filing our income tax return. Having that in mind, we might want to look at the many tax deductions available that could help us get a lower taxable income.

There are many different types of tax deductions available for us. Each of them, of course, comes with their corresponding requirements. However, we are including 4 useful tax deductions that could help most of you reduce your taxable income. Such deductions include student loans, retirement plans, theft loses, and medical expenses.  Here is how you can take advantage of each of them if they apply to you.

Student Loans and Education Expenses

Dealing with student loans, interests, and other education expenses can be quite stressful for many of us. The good thing is that these expenses can qualify as tax deductions we can take advantage of. For the year 2018, you can deduct up to $2,500 in interest on your student loan, as long as you’re not married filing separately.

Your adjusted gross income (AGI) has to be less than $80,000 for taxpayers filing as single, head of household, or qualifying widow. If you’re filing as married filing jointly, the AGI needs to be less than $165,000. Other education expenses include tuition, fees, room and board, books, and other supplies.

Retirement Plans

Preparing for your retirement is one of the smartest inversions one can make. Even when making contributions to retirement plans might be easier said than done for some, it will eventually pay back. These contributions can be tax deductible and might vary depending on the type of retirement plan you have.

A Simplified Employee Pension plan is for those who work as self-employed. On the other hand, an Individual Retirement Account works for employees and self-employed workers, too.

In order for these contributions to qualify as tax-deductible, they must be after-tax dollar contributions. For example, if you earn $200 and pay $45 in federal taxes, a contribution that comes from the remaining $155 can qualify as deductible.

Casualty and Theft Losses

If we decide to go for an itemized deduction instead of the standard one, we can add the costs of casually and theft losses to become tax deductible. This means that if any of our belongings were lost due to theft, vandalism, fires, storms, or can accidents, the expenses of repairing or replacing them are deductible.

In order for these costs to qualify, each loss event has a limit of $100. If we have multiple events, each must attaint to the $100 limit, too. The total of our casualty and theft losses must not include the $100 deduction per event when we calculate it. Also, there will be a reduction of 10% from our AGI before we can get the total amount of deductible expenses.

Medical and Dental Expenses

One of the best and most useful tax deductions we should definitely take advantage of is the one for medical and dental expenses. Keeping track of these expenses might be difficult, especially if we visit our GP and dentist quite often. However, having the patience to go through this definitely comes with some benefits.

In order for your medical bill to qualify as deductible, it must account for 7.5% of your adjusted gross income. Anything below this percentage will not be deductible. This means that if your AGI was of $50,000, your yearly medical bill should be of, at least, $3,750.

If you want to know more about these and other tax deductions, don´t hesitate to contact a professional tax advisor. They will be able to help you through the process and give you the guidance you need in order to maximize your deductions.

Common Tax-Filing Mistakes and How to Avoid Them 

The end of the year is getting closer and closer, which means that we must prepare our tax return in order to file it on time. However, more often than we’d like to admit, we might end up caught in the rush of things. This rush may lead us to make some quite common tax-filing mistakes that we should avoid.

Sometimes, trying to finish our taxes before the year is over can become quite an overwhelming task. As a result, making math mistakes, filing with the wrong status, forgetting about side-jobs, and even mailing unsigned forms could cost more than double checking. These are some of the most common tax-filing mistakes, and we’ll tell you how to avoid them.

Making Math-Mistakes

Believe it or not, making math mistakes when preparing our taxes is quite a common mistake. If you’re the kind of person that rather use pencil and paper, don’t forget to double, even triple check before submitting any of your forms. Even when it sounds unlikely, this is a problem that many taxpayers still face.

The best way to avoid math mistakes, though, is using e-filing software or apps instead. This software will be able to catch on any possible mistake you might have made. Therefore, it will help you submit an accurate tax return. There are many free options available, including the ones by H&R Block and Turbotax.

Filing Under the Wrong Status

Filing under the wrong status one of the most common tax-filing mistakes people continue to make year after year. The IRS recognizes five different status you can file under. These include Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualified Widow/Widower with Dependent Child.

The Head of Household status tends to be the one most claimed in error, according to the IRS. As a result, they offer an Interactive Tax Assistant through their website. Such an assistant can help you figure out which status you should use.

Forgetting to Add Any Side-Jobs

During the last couple of years, more and more Americans are becoming a part of the gig economy. Having a part-time job to help you earn some extra income is more common than we might think. This is, in a part, thanks to apps like Uber or Wag, which allow partners to work whenever they have the time to.

If you have worked for an app of the like or done some work as a contractor or freelancer, don’t forget to add this income to your tax report. Also, remember that you might be able to add some of your expenses as business expenses if they qualify.

Mailing Unsigned Forms

Another one of the most common tax-filing mistakes that people keep committing is mailing forms without the corresponding signature. We can’t stress enough how important it is to double, even triple check that everything is in order before mailing.

If you want to make sure you don’t make any of these really common tax-filing mistakes, we also recommend hiring professional help. This way, not only you will avoid mistakes or errors, but you could also maximize your tax returns.

How to Avoid Falling for A Tax Collection Scam 

This week is the National Tax Security Awareness Week, and during such, efforts are made in order to keep taxpayers informed and prepared to avoid being victims of fraud. As most of us start preparing our year-end paperwork, we need to know how to avoid falling for a tax collection scam. During this season, fraudsters start targeting and attacking unsuspecting taxpayers across the country.

In order to avoid finding ourselves in this kind of situation, there are some aspects we need to consider. First of all, we need to be fully aware of what a tax collection scam really entails. Then we must be ready to identify the different signs that can give a fraudster away. Also, we must know what to do in case we happened to become victims of a tax collection scam.

What Is a Tax Collection Scam?

The term Tax Collection Scam, or Tax Scam, refers to any kind of fraudulent contact that attempts to deceit a person into paying a given amount to a fraudster pretending to be an IRS employee. The most common type of Tax Scams is fraud phone calls. However, during the last couple of years, fraudsters have also sent phishing emails to taxpayers.

In most cases, scammers will tell you that you have a balance of overdue taxes or penalties. They will urge you to make a deposit as soon as possible, too. It is also common to receive threats of arrest, deportation, and loss of business, too.

How Can You Identify a Tax Collection Scam?

There are many signs that can give away a tax scammer quite easily. The very first thing we need to know is that the IRS never contacts taxpayers by phone. If you happened to have an overdue balance with them, the IRS would contact you by letter, first.

Second, the IRS does not request taxpayers to make payments via direct deposits or wire transfers or using a credit card over the phone. They have a secure online portal where taxpayers can make payments in a safe and monitored way. You can find more about their payment options here.

You should remember that scammers will use common names and even give fake IRS badge numbers. Also, they can make the Caller ID display the name of the IRS in order to trick taxpayers. They might also be able to give you the last 4 digits of your Social Security number. Therefore, you must remain alert in case you are being the target of a tax collection scam.

What to Do If Am A Target of a Tax Collection Scam?

Whenever we suspect a fraudster is trying to make us fall for a tax collection scam, we must always remain calm. Even when they might sound aggressive and threatening, we should stay calm and disconnect the call. Never confirm nor provide any of the information they might give or ask from you. Instead of engaging with the scammers, hang up and contact the IRS immediately. They will be able to confirm or deny whether you have an overdue balance with them or not.

They also have a security awareness campaign called “Taxes. Security. Together.” that aims at creating a strong partnership among taxpayers and professionals. They have a list of prevention steps to take in order to avoid falling into any kind of tax collection scam.



The Effects of Divorce on Taxes: What You Need to Know 

Going through a divorce can be a tough, long, and more often than not, complicated process. In the US, more than 40% of marriages end up filing for a divorce at some point. With such a rate, we must wonder what the effects of divorce on taxes really are. Therefore, we’ve come up with this brief summary of several aspects to consider before filing for a divorce.

There are several effects of divorce on taxes that we must be aware of if we are going through the process of ending our marriage. To begin with, we will have to think about the date, as this will impact our filing status. Then, we need to know what filing status we’ll opt for, either as single or head of household. Also, we need to understand the role of alimony, child support, and dependent child credits will play after a divorce.

How Can A Divorce Change Your Taxes?

Whenever we decide to end a marriage, many different aspects of our life change, sometimes drastically. The same happens with our tax situation, and we need to prepare for all the different adjustments we’ll have to face. To begin with, the date on which we decide to complete our marriage won’t really make a difference. This is because the IRS considers you unmarried during the complete year even if your divorce process ended by Dec. 31st. However, you must consider the total income you’ll file during the year of your divorce in order to settle on a completion date beforehand.

Filing Status After A Divorce

One of the most relevant effects of divorce on taxes is that it can change the status we’ll use when filing our income report. As we mentioned before, if our divorce was final by Dec. 31st, the IRS will still consider us unmarried during the entire year. If we haven’t been able to finalize our divorce by the end of the tax year, we can decide to file as married filing jointly or separately. However, once our divorce is final, we must file as either single or head of household. Such status will bring us many benefits, including a higher standard deduction, a lower tax rate, and even eligibility for some other tax credits.

Alimony and Child Support

After our divorce has been processed, we still need to take care of taxes on alimony and child support payments. In the case of alimony, the ex-spouse who pays for it will be able to take a tax deduction for such payments. However, the IRS will only consider alimony payments that we make in cash, and that a divorce agreement requires. On the contrary, child support payments do not qualify for a tax deduction for the person paying it. Also, the recipient of child support payments doesn’t have to pay income taxes on such amounts.

Dependent Child Tax Credit

One of the effects of divorce on taxes that most couples tend to contend about is claiming children as dependents. This is because we are able to qualify for several tax exemptions and benefits when we claim for child dependents. One example is the child tax credit that parents or guardians of dependents can get up to $2000 as a tax credit for every child. In order to be eligible for such credit, the child must be under the age of 17 and lived with you for more than half of the tax year.

Year-End Tax Tips to Save Money This 2018

With the last month of the year about to begin, looking for ways to save on your taxes sounds like a good idea. There are many different ways through which we can make sure we lower our tax return payment for next April. Here we have three amazing year-end tax tips to save money this year that are quite simple and effective.

Whether you decide to make a last-minute donation to your favorite charity or giving a tax-free gift to a family member, these options are really convenient. Besides, you’ll be helping those who need it the most. Also, you will definitely make the month of someone if you decide to go for the tax-free gift. Now, if none of these options work, you might be able to talk to your employer and have them defer your bonuses until January, in case you earned any.

Donate to Charity

One of the most effective and selfless year-end tax tips that will help you save some money is to make a donation to charity. Before making a donation, you must be aware that not all organizations count as charitable. So, make sure you donate to a religious organization, a war veteran’s organization, volunteer firefighters, or any other organization that counts as charity. Keep in mind that our donation should meet a certain minimum amount in order for it to result in a charitable contribution deduction.

Make A Tax-Free Gift to A Family Member

Another great way to save money on your income tax return is by giving a tax-free gift for a family member. A gift qualifies as any transfer of money or money’s worth that is not received in return. Unlike it happens with charitable deductions, family gifts have a yearly limit amount that we mustn’t exceed. For the year of 2018, the limit amount per family member goes to $15,000 as an individual or $30,000 as a married couple. If our gifts qualify, we wouldn’t have to report it to the IRS as income, but we need to file the corresponding form to make it count.

Defer Your Performance Bonuses

If you earned a performance bonus this year, talk to your employer and see if they can defer such rewards. Receiving it in January 2019 instead of December 2018 might help you save some money on your tax return. This way, you will be able to report a lower income while still receiving your bonus next year. Keep in mind that you will still to report this as your income, but it wouldn’t be until your 2019 income tax return.