Tax Facts

Information to help individuals and small business navigate our complex Tax Laws. Not to be construed as tax advice. Contact your hired tax advisor for your specific tax situation and advice.

Moving Expense Deduction in 2018

This calendar year 2018, you can deduct moving expenses only if you are an active duty member of the Armed Forces and meet certain other requirements such as a military-ordered permanent change of station (PCS).

But what if your moving expenses were paid out of pocket in 2017, and your move also occurred in 2017, and you were not reimbursed until this year, 2018? The IRS just issued some guidance on this very situation in their Notice 2018-75 which states that if your employer waited until 2018 to reimburse you for those expenses, then the reimbursements should be excluded from your wages on the W-2 and are also not subject to federal income taxes or the payroll taxes.

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Taking Your RMD from an IRA

Did you take an RMD from your IRA? It may seem like alphabet soup, but it is an important check you should make each year if you are over 70. Once you reach 70 and a half, you are required to start taking distributions from your IRA. This is called an RMD or Required Minimum Distribution. And it is just that - an amount of money you are required to take out of the IRA in the calendar year. If you don't take the distribution by December 31 (last day of the calendar year) you will incur a penalty on your tax return for not doing so. That penalty is steep: 50% of your RMD! Call your tax advisor and your financial advisor to determine your IRA status and make sure you don't end up giving half of it to the IRS!

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