Subscribe to our newsletter for monthly tax tips:

Blog

Schedule a Free Consultation Learn About Our Services

How Does the “2017 Tax Cut and Jobs Act” Affect YOU in 2020?

Posted on October 30th, 2020

Jack Kern
Owner, President
Outsourced Accounting Department, Inc.

So first, how does the The 2017 “Tax Cut and Jobs Act” affect small businesses?  Let’s take a look.  Assume the following:

  • You and your spouse are 50% owners in your Sub-Chapter S (1120S) business.
  • Each of you takes a $25,000 annual salary
  • The Net Income of the business is $50,000, so each of you reports 50% of the business Net Income on your K-1 on your personal (1040) tax return.
  • You do not have enough deductions to itemize on your tax return, so can take only the standard deduction.

Based on the above assumptions, here is what your tax liability would have been in 2017:

Loader Loading...
EAD Logo Taking too long?

Reload Reload document
| Open Open in new tab

Based on your total gross income of $100,000 (salaries plus net income), and the standard deduction in 2017 of $12,700 and 2 exemptions of $4,050 (total of $20,800) for a married couple filing jointly, your taxable income becomes $79,200, resulting in taxes due of $11,278.

Loader Loading...
EAD Logo Taking too long?

Reload Reload document
| Open Open in new tab

Now, in 2020, not only were tax rates reduced in all tax brackets, but the standard deduction was increased to $24,800 for a married couple filing jointly, while the exemptions were eliminated.  Also, for small businesses, an additional credit is available based on of 20% of business net income.  In this case based on the above assumptions, this credit would amount to $10,000, resulting in Taxable Income of $65,200, and taxes due of $7,429, or a decrease in taxes of $3,849 from 2018.

But what if you don’t own a business, how would the tax cuts affect you?  Assume now that you each have an annual salary of $50,000, so total gross income of $100,000:

Loader Loading...
EAD Logo Taking too long?

Reload Reload document
| Open Open in new tab

Your taxable income is now $75,200, resulting in taxes due of $8,629, or a decrease of $2,649 from 2017 (that’s nearly $8,000 over 3 years, 2018 through 2020!).

Clearly, this tax cut act does benefit both small businesses and individuals, just something to consider as we approach the mid-term elections.  As to how tax cuts affect the economy, obviously, it depends on who you ask.  But below are some charts created from historical government statistical data.

Related Articles and Statistical Data:

Whose Income is K-1 Income Anyway, Mine or My Business’?

The Effect of Business Taxes on Job Growth

The Effect of Taxes on Businesses and the Economy

 


The Effect of Business Taxes on Job Growth

Posted on October 19th, 2020

Jack Kern
Owner, President
Outsourced Accounting Department, Inc.

As most are aware, presidential candidate Joe Biden has proposed raising individual income tax back up from 37% to 39.6% for individuals with income above $400,000, plus increases in capital gains, and payroll taxes. He is also proposing increasing the corporate income tax rate from the 21% established under the 2017 Tax Cuts and Jobs Act, to 28%. For purposes of this article, I will focus on the income tax component only.

The question is, what effect do such tax increases have on businesses, and in turn, job growth? As I have discussed in numerous articles, profit is a component of cash flow which is required to support sales growth, fund capital expenditures for plant and equipment, repay debt, and many other “after-tax” expenditures. Thus, it is also a determinant of a company’s ability to raise capital and obtain bank and other types of loans.

So what happens to profit and cash flow as a result of paying income tax?  Let’s take a look.  Say a company, in this case a C-Corporation, has the ability increase sales by a whopping 153% in one year (it happens), and the business is taxed at the current 21% rate:

Loader Loading...
EAD Logo Taking too long?

Reload Reload document
| Open Open in new tab

Note that its tax liability in the above example is around $246,000. Now assume that the corporate tax rate is increased to 28%:

Loader Loading...
EAD Logo Taking too long?

Reload Reload document
| Open Open in new tab

The company’s tax liability has now increased by $81,000 to around $327,000. To put this into perspective, now say it typically hires direct labor employees at an hourly rate of $15.00, times 40 hours a week, times 52 weeks = $31,200 per year. So (at the risk of over-simplification) that $81,000 is equivalent to approximately 3 employees who will either not be hired or may be laid off.

Of course, businesses will always have to pay taxes, the point of the above being that when the government is fooling around with corporate tax rates, it’s tampering with people’s jobs as well.  So it’s not “free” money just because a business is paying it rather than an individual.

Now with the respect to the tax increase to individuals, one major item that Biden’s tax plan does not really explain is whether that $400,000 also includes “pass-through” taxes on the net income from a small business owned by that individual. This is how most small businesses are taxed, at the personal income tax level of the owner.  Again, that money is needed by the business to operate and grow, so in most cases, the profit never even leaves the business. It’s just taxed on the individual’s 1040 tax return and included in his or her Adjusted Gross Income. If it is included in Biden’s tax plan, then these business profits would be taxed at the higher 39.6% rate (ignoring the effect of the 20% Qualified Business Deduction that was also part of the 2017 Tax Cut and Jobs Act).

To sum up, according to the The Tax Foundation’s article, Joe Biden – 2020 Tax Plan, “Biden’s tax plan would reduce the economy’s size by 1.47 percent in the long run. The plan would shrink the capital stock by just over 2.5 percent, and reduce the overall wage rate by a little over 1 percent, leading to about 518,000 fewer full-time equivalent jobs.”

Related Articles:

The Effect of Taxes on Businesses and the Economy

How Does the 2017 Tax Cut and Jobs Act Affect YOU?

Which Type of Business Entity Should I Choose? 

Whose Income is K-1 Income Anyway, Mine or My Businesses’?


The Effect of Taxes on Businesses and the Economy

Posted on October 18th, 2020

Jack Kern
Owner, President
Outsourced Accounting Department, Inc.

Do tax cuts work?  Critics say no, it only increases the deficit.  Proponents say yes, lower taxes enable individuals and businesses to spend more money which, in turn, also increases tax revenues and, therefore, reduces, not increases, the deficit.  To find out who is (more or less) right, let’s take a look at some historical government statistics.

First to be clear, the tax rates I am referring to in this article are the individual tax rates charged on the 1040 tax return. This is because, as I have discussed in previous articles, most small businesses are set up as either an LLC (i.e., sole proprietorship or partnership) or S-Corporation for tax purposes, both of whose taxes are “passed through” to the owner’s personal tax return at individual tax rates. (I will discuss corporate (C-Corporation) tax rates in a subsequent article.)

Of course there are a multitude of factors that affect the economy and deficit. But in terms of the government’s role, there are two primary policies it has at its disposal to affect the rate of economic growth, and in turn, unemployment and inflation: Fiscal Policy which is controlled by Congress and the President, and deals with tax rates, government regulation, and government spending; and, Monetary Policy which is managed by the Federal Reserve, and deals with interest rates and the supply and demand for credit through the banking system.

The Kennedy Administration was one of the first to advocate tax cuts as a means of stimulating the economy (chart-Kennedy)). Later during the Carter Administration, the economy was plagued both double digit inflation and unemployment, which President Carter described as “the misery index” and blamed it on a “malaise” on the part of the American people (chart-Carter). Doubting this, the Reagan Administration subsequently used tax cuts again to stimulate the economy, this time significant cuts, as well as reduced government regulations, which became known as “Supply-Side Economics” (dubbed by critics as “Trickle Down Economics”) (chart-Reagan).

Note the pattern between lower taxes and the declining unemployment rate between these three charts. There certainly would appear to be a correlation between those two statistical trends.

But did the lower tax rates actually stimulate economic growth, or was the lower unemployment rate just a coincidence?  In other words, what was the effect on the Gross Domestic Product (or GDP, the measure of the U.S. economy)?  The next chart is a comparison of tax rates to the GDP during the Reagan Administration (chart-Reagan GDP). It indicates there does seem to be a direct relationship between the two, especially in 1984 when GDP jumped 7.9% shortly after the tax cuts, and averaged nearly 5% through the end of the Reagan term.

Now, let’s look at the Obama Administration. Ignoring where the unemployment rate started (which is the topic of a whole different discussion), the unemployment rate steadily declined over the eight-year period, and despite a tax increase in 2013 (chart-Obama).  But what about the GDP during the Obama Administration? A comparison of tax rates to GDP indicates that the GDP was barely increasing as compared to the Reagan era above, hovering around 2 percent throughout most of the eight-year period (chart-Obama GDP). So it would seem based on this chart that there is a strong correlation between tax rates and the GDP.

In contrast, the increase in tax revenues under the Reagan Administration (see again above chart) ranged from 4.8% to over 11%, averaging 6.8% following the earlier tax cuts. And this included another jump in tax revenues in 1987 after additional tax cuts were enacted, reducing the top tax rate from 50% to 38.5%. So this increase in tax revenues can only be explained by economic growth.  And sooner or later, this also has to produce jobs.

Related Articles:

Big Government or Free Markets – Which Works Best?

How Does the 2017 Tax Cut and Jobs Act Affect YOU?

Which Type of Business Entity Should I Choose? 

Whose Income is K-1 Income Anyway, Mine or My Businesses’?

 


Some Banks Still Not Understanding Tax Returns

Posted on April 10th, 2020

Jack Kern
Owner/Pres.
Outsourced Accounting Department, Inc.

Marianne has been reading articles and comments by other CPA firms about what’s going on right now with these emergency SBA loan applications. One person said that the banker told their client “they should not have taken the 179 deduction because it reduced their income,” and there were other similar comments. This reminded me of several articles I wrote on this subject a while back about the difference between “book” and “tax” accounting, and the difference between “profit” and “taxable income:”

The Difference Between Your CPA and a Controller: M1

The Difference Between Your CPA and a Controller – Part 2

Profit vs. Taxable Income

The Risks of Misinterpreting Your Financial Statements 


Two New Tax Scams to Watch Out For

Posted on August 13th, 2019

Marianne Kern, CPA
Owner, President
Kern & Associates CPA, P.A.

Although the April filing deadline has come and gone, scam artists remain hard at work. As such, taxpayers should be on the lookout for scams that reference taxes or mention the IRS, especially during the summer and fall as tax bills and refunds arrive.

The two new variations of tax-related scams that are currently making the rounds are what the IRS has dubbed the “SSN Hustle” and the “Fake Tax Agency.” The first involves Social Security numbers (SSNs) related to tax issues and the second threatens people with a tax bill from a fictional government agency. Both display classic signs of being scams.

The SSN Hustle

The latest twist includes scammers claiming to be able to suspend or cancel the victim’s Social Security number. In this variation, the Social Security cancellation threat scam is similar to and often associated with the IRS impersonation scam. It is yet another attempt by con artists to frighten people into returning “robocall” voicemails. Scammers may mention overdue taxes in addition to threatening to cancel the person’s SSN.

Fake Tax Agency

This scheme involves the mailing of a letter threatening an IRS lien or levy. The lien or levy is based on bogus delinquent taxes owed to a non-existent agency, “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 organization.

A Reminder about Phone and Email Phishing Scams

The IRS does not leave prerecorded, urgent or threatening messages. In many variations of the phone scam, victims are told if they do not call back, a warrant will be issued for their arrest. Other verbal threats include law-enforcement agency intervention, deportation or revocation of licenses.

Criminals can fake or “spoof” caller ID numbers to appear to be from anywhere in the country, including an IRS office. This prevents taxpayers from being able to verify the true caller ID number. Fraudsters also have spoofed local sheriff’s offices, state departments of motor vehicles, federal agencies, and others to convince taxpayers the call is legitimate.

The IRS does not initiate contact with taxpayers by email to request personal or financial information. The IRS initiates most contacts through regular mail delivered by the United States Postal Service.

There are, however, special circumstances when the IRS will call or come to a home or business. Examples of when this might occur include times when a taxpayer has an overdue tax bill, a delinquent tax return or a delinquent employment tax payment, or the IRS needs to tour a business as part of a civil investigation (such as an audit or collection case) or during a criminal investigation.

If a taxpayer receives an unsolicited email that appears to be from either the IRS or a program closely linked to the IRS that is fraudulent, report it by sending it to phishing@irs.gov. The Report Phishing and Online Scams page provides additional details.

Taxpayers should also note that the IRS does not use text messages or social media to discuss personal tax issues, such as those involving bills or refunds.

Related Articles:

Indentity Theft and Your Taxes

Employers Beware: Identity Theft and W-2 Scam Alert

 

 


What to Do if You Receive an IRS CP2000 Notice

Posted on July 29th, 2019

Marianne Kern, CPA
Owner, President
Kern & Associates CPA, P.A.

An IRS CP2000 notice is mailed to a taxpayer when income reported from third-party sources such as an employer, bank, or mortgage company does not match the income reported on the tax return.

It is not a tax bill or a formal audit notification; it merely informs you about the information the IRS has received and how it affects your tax. It is, however, important to pay attention to what your CP2000 notice states because interest accrues on your unpaid balance until you pay it in full.

If you receive a CP2000 notice in the mail complete the response form. If your notice doesn’t have a response form, then follow the notice instructions. Generally, you must respond within 30 days of the date printed on the notice. You may request additional time to respond, and if you cannot pay the full amount that you owe, you can set up a payment plan with the IRS.

If the information on the CP2000 notice is not correct, then check the notice response form for instructions on what to do next. You also may want to contact whoever reported the information and ask them to correct it.

If the information is wrong because someone else is using your name and social security number please contact the IRS and let them know. You can also use the link on the IRS Identity theft information web page to find out more about what you can do.

If you do not respond, the IRS will send another notice. If the IRS does not accept the information provided, it will send IRS Notice CP3219A, Statutory Notice of Deficiency, and information about how to challenge the decision in Tax Court.

Do I Need to Amend my Return?

If the information displayed in the CP2000 notice is correct, you don’t need to amend your return unless you have additional income, credits or expenses to report. If you agree with the IRS notice, follow the instructions to sign the response page and return it to the IRS in the envelope provided.

If you have additional income, credits or expenses to report, complete and submit a Form 1040-X, Amended U.S. Individual Income Tax Return. If you need assistance with this, please call the office.

How to Avoid Receiving an IRS CP2000 notice:

  • Keep accurate and detailed records.
  • Wait until you receive all of your income statements before filing your tax return.
  • Check the records you receive from your employer, mortgage company, bank, or other sources of income (W-2s, 1098s, 1099s, etc.) to make sure they are correct.
  • Include all your income on your tax return including that from a second job or fees derived from the sharing economy (e.g. renting a spare room out on Airbnb).
  • Follow the instructions on how to report income, expenses and deductions.
  • File an amended tax return for any information you receive after you’ve filed your return.
  • Use a professional tax preparer who will help you avoid mistakes and find credits and deductions you may qualify for.

If you have any questions about IRS notices, help is just a phone call away.

 


What Is My Shareholder Basis?

Posted on July 23rd, 2019

Jack Kern
Owner, President
Outsourced Accounting Department, Inc.

Recently I’ve had a couple of clients ask me how much money they can safely distribute to themselves without triggering additional taxes. In essence, the question they were asking me is “What Is My Shareholder Basis?” The longer answer to this question is contained in these two articles:  The Basis of S-Corporation Stock Basis,  and S-Corporation Stock and Debt Basis.  But at the risk of oversimplifying the matter, your shareholder basis is the (net) amount of money you’ve put into the business in the form of loans and/or equity capital, plus the profit you’ve accumulated over time (i.e., Retained Earnings).  These amounts are found on the balance sheet.  For example:

Loader Loading...
EAD Logo Taking too long?

Reload Reload document
| Open Open in new tab

On the balance sheet in the above financial statements, under the Projected 2019 column it shows the following amounts:

Due to Member / Stockholder:        $56,707

Total Capital:                                        60,875

Due From Member                           (10,000)

Shareholder Basis:                          $107,582

In this instance, Total Capital at Dec. 2019 consists only of the company’s Retained Earnings, and includes its 2018 Net Income of $18,704, plus its 2019 Net Income of $58,427, less “Dividends” (tax distributions) of $1,649 and $14,607 in 2018 and 2019 respectively, resulting in the ending Retained Earnings of $60,875.

However, note that in this business, the financial statements are prepared on an accrual basis, so the company’s 2019 balance sheet now includes the non-cash items of $41,096 in accounts receivable which is added to Net Income, and $25,149 in accounts payable which is subracted from Net Income. Assuming the company’s tax return is prepared on a cash basis, these amounts would be adjusted back out of Net Income (and therefore, out of Retained Earnings), resulting in a Shareholder Basis for tax purposes of $91,635 (page 4 of the above financial statements).

Thus, the maximum amount the owner can distribute to him or herself without incurring additional taxes (and ignoring the cash needed by the business to operate) is $91,635.  Why? The Due to Member amount, less the Due From Member amount, is the owner’s own money that he or she has lent to the business, and the Net Income has already been taxed (through the K-1 on the owner’s personal tax return which, in this case, are the above tax distributions of $1,649 and $14,607).

Again, the tax codes are more complicated than the above illustration. So if you think the amount you want to distribute would put you close to your maximum, seek advice from your CPA or tax preparer.

Related Articles:

Profit vs. Taxable Income

Analyzing the Components of Cash Flow

Whose Income is K-1 Income Anyway, Mine or My Business’?     


Deducting Business-Related Car Expenses

Posted on July 13th, 2019

Marianne Kern, CPA
Owner, President
Kern & Associates CPA, P.A.

If you’re self-employed and use your car for business, you can deduct certain business-related car expenses.

There are two options for claiming deductions:

Actual Expenses. To use the actual expense method, you need to figure out the actual costs of operating the car for business use. You are allowed to deduct the business-related portion of costs related to gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments).

Standard Mileage Rate. To use the standard mileage deduction, multiply 58 cents (in 2019) by the number of business miles traveled during the year.

Car expenses such as parking fees and tolls attributable to business use are deducted separately no matter which method you choose.

Which Method Is Better?

For some taxpayers, using the standard mileage rate produces a larger deduction. Others fare better tax-wise by deducting actual expenses. You may use either of these methods whether you own or lease your car.

To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. In subsequent years, you can choose to use the standard mileage rate or actual expenses. If you choose the standard mileage rate and lease a car for business use, you must use the standard mileage rate method for the entire lease period – including renewals.

Opting for the standard mileage rate method allows you to bypass certain limits and restrictions and is simpler; however, it’s often less advantageous in dollar terms. Generally, the standard mileage method benefits taxpayers who have less expensive cars or who travel a large number of business miles.

The standard mileage rate may understate your costs, especially if you use the car 100 percent (or close to it) for business.

Documentation

Tax law requires that you keep travel expense records and that you show business versus personal use on your tax return. Furthermore, if you don’t keep track of the number of miles driven and the total amount you spent on the car, your tax advisor won’t be able to determine which of the two options is more advantageous for you at tax time. It is essential to keep careful records of your travel expenses (if you use the actual expenses method you must keep receipts) and record your mileage.

You can use a mileage logbook or if you’re tech-savvy, an app on your phone or tablet. A number of phone applications (apps) are available to help you track your business expenses, including mileage and billable time. These apps also allow you to create formatted reports that are easy to share with your CPA, EA, or tax preparer.

To simplify your recordkeeping, consider using a separate credit card for business.

Related Articles:

Important 2019 Tax Changes for Individuals and Businesses

Taxable vs. Nontaxable Income

 

 


Identity Theft and Your Taxes

Posted on May 30th, 2019

Marianne Kern, CPA
Owner, President
Kern & Associates CPA, P.A.

Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. It presents challenges to individuals, businesses, organizations and government agencies, including the IRS.

Learning that you are a victim of identity theft can be a stressful event. In many cases, you may not be aware that someone has stolen your identity and the IRS may be the first to let you know you’re a victim of identity theft after you try to file your taxes.

Between 2015 and 2018, the number of taxpayers reporting they were identity theft victims fell 71 percent. However, despite the steep drop in tax-related identity theft in recent years, taxpayers should remember that identity thieves constantly strive to find new schemes that work. Once their ruse begins to fail as taxpayers become aware of their ploys, they change tactics. Taxpayers and tax professionals must remain vigilant to the various scams and schemes used for data thefts.

Here’s what you should know about identity theft:

  1. Protect your Records. Do not carry your Social Security card or other documents with your SSN (Social Security Number) on them. Only provide your SSN if it’s necessary and you know the person requesting it. Treat your personal information, including tax returns, as if they were cash. Don’t leave it in plain sight for people to steal. Protect your computers with anti-spam and anti-virus software and routinely change passwords for all of your Internet accounts.
  2. Don’t Fall for Scams. Criminals often try to impersonate your bank, credit card company, and even the IRS in order to steal your personal data. Learn to recognize and avoid those fake emails and texts. Always err on the side of caution and delete anything that seems suspicious or unfamiliar.
  3. Beware of Threatening Phone Calls.Correspondence from the IRS is always in the form of a letter in the mail. The IRS will notcall you threatening a lawsuit, arrest, or to demand an immediate tax payment using a prepaid debit card, gift card, or wire transfer. If you receive a suspicious or threatening phone call, hang up immediately.
  4. Report ID Theft to Law Enforcement. If you discover that a tax return was already filed using your SSN and cannot e-file your return because, consider taking the following steps:
  • File your taxes by paper and pay any taxes owed.
  • File an IRS Form 14039, Identity Theft Affidavit (see below). Print the form and mail or fax it according to the instructions.
  • Contact one of the three credit bureaus (Equifax, Transunion, and Experian) to place a fraud alert and/or a credit freeze on your account.
  1. Complete an IRS Form 14039,Identity Theft AffidavitOnce you’ve filed a police report, file an IRS Form 14039, Identity Theft Affidavit. Print the form and mail or fax it according to the instructions. You may include it with your paper tax return as well.
  2. IRS Notices and Letters. If the IRS identifies a suspicious tax return with your SSN, it may send you a letter asking you to verify your identity by calling a special number or visiting a Taxpayer Assistance Center. This is to protect you from tax-related identity theft.
  3. IP PINs. If a taxpayer reports that they are a victim of ID theft or the IRS identifies a taxpayer as being a victim, he or she will be issued an IP PIN (Identity Protection Personal Identification Number). The IP PIN is a unique six-digit number that a victim of ID theft uses to file a tax return. Each year, you will receive an IRS letter with a new IP PIN.
  4. Data Breaches. Not every identity theft case involves taxes. If you learn about a data breach that may have compromised your personal information, keep in mind that not every data breach results in identity theft. Make sure you know what kind of information has been stolen so you can take the appropriate steps before contacting the IRS.
  5. Report Suspicious Activity. If you suspect or know of an individual or business that is committing tax fraud, you can report it on the IRS.gov website.
  6. IRS Assistance.Information about tax-related identity theft is available online at IRS.gov. The IRS has a special section on IRS.gov devoted to identity theft and a phone number available for victims to obtain assistance.

Related Articles:

Employers Beware: Identity Theft and W-2 Scam Alert

IRS Dirty Dozen Tax Scams for 2018

IRS Scam Alert: Erroneous Refunds & Fake Calls

 


Four Tax Deductions that Disappeared in 2018

Posted on March 24th, 2019

Marianne Kern, CPA
Owner, President
Kern & Associates CPA, P.A.

Tax reform eliminated a number of deductions that many taxpayers counted on to reduce their taxable income. Here are four that could affect you.

  1. Personal Exemptions

Personal exemptions enabled individual taxpayers to reduce their taxable income in addition to the standard deduction, but were repealed for tax years 2018 through 2025. While the standard deduction did increase significantly under tax reform to compensate – $12,000 for individuals, $24,000 for married taxpayers filing jointly, $18,000 for heads of household – some taxpayers could still lose out.

  1. Tax Preparation Fees

Tax preparation fees, which fell under miscellaneous fees on Schedule A of Form 1040 (and were also subject to the 2% floor), were also eliminated for tax years 2018 through 2025 as well. Examples of tax preparation fees include payments to accountants, tax prep firms, and the cost of tax preparation software.

  1. Unreimbursed Job Expenses

For tax years starting in 2018 and expiring at the end of 2025, miscellaneous unreimbursed job-related expenses that exceed 2% of adjusted gross income (AGI) are no longer deductible on Schedule A (Form 1040). Unreimbursed job-related expenses include union dues, continuing education, employer-required medical tests, regulatory and license fees (provided the employee was not reimbursed), and out-of-pocket expenses paid by an employee for uniforms, tools, and supplies.

  1. Moving Expenses

Prior to tax reform (i.e., for tax years starting before January 1, 2018), taxpayers were able to deduct expenses related to moving for a job as long as the move met certain IRS criteria. However, for tax years 2018 through 2025, moving expenses are no longer deductible–unless you are a member of the Armed Forces on active duty who moves because of a military order.

If you have any questions about tax reform and how it affects your particular tax situation, consult a tax professional.

Related Articles:

Important Tax Changes for 2018

Important 2019 Tax Changes for Individuals and Businesses