Frequently Asked Accounting Questions

2018 – 54.5 cents per mile. 2019 – 58 cents per mile.

Return Type Original Due Date Extended Due Date Comments
Individual Form 1040 April 15 October 15
Partnership Form 1065 March 16 September 15 Fiscal year returns are due 2 ½ months after year-end. A 6 month extension is allowed.
S Corporations Form 1120S March 16 September 15 Fiscal year returns are due 2 ½ months after year-end. A 6 month extension is allowed.
C Corporations Form 1120 April 15 October 15 Fiscal year returns are due 3 ½ months after year-end. A 6 month extension is allowed.
Exempt Organizations Form 990 May 15 November 16 Extension will be a single, automatic 6 month extension.
Trust & Estates Form 1041 April 15 September 30 Fiscal year returns are due 3 ½ months after year-end. A5 ½ month extension is allowed.
FINCEN Report 114 April 15 October 15

The annual gift exclusion for the 2018 and 2019 tax year is $15,000 per individual recipient.

For the 2018 tax year, the greater of $695 or 2.5% of household income. For 2019, there is no penalty.

2018 – Single = $3,450 Family = $6,900
2019 – Single = $3,500 Family = $7,000

Pay as much as you can to avoid higher interest payments and penalties. Contact the IRS to set up a payment plan. If you cannot pay under a payment plan, you may propose an offer in compromise that will allow you to pay some of the balance due. This is worked out with the IRS. If you are experiencing financial hardship, the IRS may suspend claims for a short period of time.

American Opportunity Credit (maximum benefit amount of $2,500):

  • Calculated based on up to $4,000 in qualified educational expenses  – 100% of the first $2,000 and 25% of the next $2,000.
  • Qualified expenses are amounts paid for tuition, fees and other related expenses such as books, supplies and equipment required for attendance. Expenses such as room and board, insurance and student health fees do NOT qualify.
  • Up to 40% of the credit is refundable.
  • Credit limited to 4 years.
  • The credit is phased out at certain income levels and is completely disallowed at income of $180,000 for married filing joint and $90,000 for single or head of household. The credit is not available for taxpayers filing married but separate.

Lifetime Learning Credit (maximum benefit amount of $2,000):

  • Calculated based on 20% of up to $10,000 in qualified educational expenses.
  • Qualified expenses are amounts paid for tuition and fees and other related expenses such as books, supplies and equipment required for attendance. In addition, expenses for courses taken to acquire or improve job skills qualify.  Expenses such as room and board, insurance and student health fees do NOT qualify.
  • Credit is NOT refundable.
  • No limit on the number of years the credit can be taken.
  • The credit is phased out at certain income levels and is completely disallowed at income of $131,000 for married filing joint and $65,000 for single or head of household. The credit is not available for taxpayers filing married but separate.

2018 – Single/MFS – $12,000 MFJ – $24,000 HOH – $18,000
2019 – Single/MFS – $12,200 MFJ – $24,400 HOH – $18,350

You must make estimated payments for the current tax year if BOTH of the following apply:

  • Your federal withholding and any refundable tax credits will be less than the smaller of:
  • 90% of your current year tax, OR
  • 100% of the prior year’s tax
  • You expect to owe at least $1,000 after subtracting your withholding and refundable credits. 

There are many variables but, in general, you may claim a son, daughter, step-daughter, etc., who is:

  • under the age of 19 or under the age of 24 and is a full-time student or is permanently disabled, and
  • lives with you and does not providing more than one half of their own support.

FAQ Colorful Squares Stripe Horizontal