July 2019 Newsletter
Tax Tips for College Graduates
Most college majors don't get students ready for handling their own taxes. With a changing economy and large amounts of student loan debt, graduates need to be prepared to manage their own taxes. The following is a list of tax issues graduates should pay attention to.

  1. Coordinate with your parents-make sure they are no longer claiming you as a dependent.
  2. Student Loan Interest-Check with a tax professional on tax breaks for interest paid on outstanding student loans after graduation.
  3. Continuing Education-Work related education is no longer deductible, but it may qualify for exclusion from income if it's part of an employer provided educational assistance program. The Lifetime Learning Credit may also be available for graduate school or post-college training.
  4. Retirement Accounts-You should contribute as much as possible to retirement accounts, from 401k plans through employers or IRA or Roth IRA accounts.
  5. Health Insurance-In addition to an exclusion for employer provided health insurance, there are also tax advantaged health savings accounts and flexible spending accounts to consider.
  6. Side Gigs-Keep good records of business related expenses which can be deducted if you are self employed. Keep in mind that you may have to pay estimated taxes and self-employment taxes.
  7. Record Keeping-Keep a file of all tax related documents such as expense receipts and tax statements.
What's New in 2019 Taxes?
  • The 2019 contribution limit for traditional IRAs and Roth IRAs jumps to $6,000. Individuals who are 50 and older can contribute an additional $1,000.
  • The income ceilings on Roth IRA contributions go up. Contributions phase out at adjusted Gross Incomes of $193,000 to $203,000 for couples and $122,000 to $137,000 for individuals.
  • Deduction phaseouts for traditional IRAs start at larger amounts for 2019 from Adjusted Gross Incomes of $103,000 to $123,000 for couples and $64,000 to $74,000 for singles.
  • The partial credit for retirement plan contributions ends at higher Adjusted Gross Income levels, $64,000 for married couples, $48,000 for heads of households and $32,000 for singles.
Office Hours
May 28th to August 29th
Monday through Thursday
9:00 a.m. to 4:00 p.m.
Closed on Fridays

Taxpayers Should be on the Lookout for two new Scams

Taxpayers should watch for new versions of two tax-related scams. One involves Social Security numbers related to tax issues, the other threatens taxpayers with a tax bill from a fictional government agency. Here are some details about these scams:
The Social Security Number Scam
  • You may get a phone call in which scammers claim to be able to suspend or cancel your Social Security number. This scam is similar to and often associated with the IRS impersonation scam.
  • It is an attempt by con artists to frighten taxpayers into returning robocall voicemails in order to get access to personal information.
  • Scammers may mention overdue taxes in addition to threatening to cancel the taxpayer’s SSN.
The Fake Tax Agency Scam
  • This scam involves a letter threatening an IRS lien or levy in order to have money sent to the scammer.
  • The scammer mails the letter to the taxpayer.
  • The lien or levy is based on bogus overdue taxes owed to a non-existent agency.
  • The fake agency is called the “Bureau of Tax Enforcement.” There is no such agency. 
  • The lien notification scam also likely references the IRS to confuse potential victims into thinking the letter is from a legitimate agency.

Always be cautious about giving out any of your personal information and be very suspicious of anyone trying to get you to send money to them.
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