Blog // Life is Taxing...
At The Eleventh Hour.
I was never sure who coined the phase “at the eleventh hour”. I assumed it meant “very little time left”.
As it turns out, that is what the term means. But today (Veteran’s Day) – it has specific meaning. World War One ended on the 11th day of the 11th month on the 11th hour. I’m a veteran and I’m very proud that I served my country. However, veteran’s who put their lives on the line in trenches far away served their country in ways most of us will never know.
So when I woke up this morning, I had a variety of clothing choices. It is a holiday so I could put on something very casual (yes, that includes flip flops). Since the Seahawks play tonight, I could wrap myself in my Wilson jersey & a ball cap. On top of that, the Sounders won the CUP and I’m sure there are going to scarves and hats supporting them today.
After reviewing my options, I decided to put on my blue dress pants, my red golf shirt, my American flag socks and a Rotary pin with the Rotary Wheel and the American flag.
With all the choices, this seemed the most appropriate for me. I love this country — I so appreciate the veterans who served and are serving — and I am a huge fan of Rotary.
In the future, when I tell a client who wants to get their return done and there is not much time left to file, that they have come to me in the 11th hour, I’ll know there is more than one meaning to that phrase.
Take care this holiday season and give some thought to those who will not be with their loved ones due to service in the military.
Since I am also your accountant, anyone looking for some year end tax planning should reach out to us soon so we have time to plan.
Things to Think About As Year End Nears.
Took a few months off from blogging to catch my breath. We had a very busy tax season both in April and in October but the rush is over.
Many changes have occurred since the 2018 tax year. There is no more penalty for not having health care coverage. This coverage of course is encouraged and there is still a market place to acquire it at a discount.
The standard deduction will increase for the 2019 tax year which will cause more filers to elect to take the standard deduction and not itemize.
We have mentioned in the past how taking the standard deduction eliminates the deduction for your charitable contributions. A reminder that when you are taking out required IRA distributions (over age 70 1/2) you can send these required distributions directly to the charity and not report them as income on your return. That’s right, you will not have to report your required IRA distribution on your return if it goes directly to a charity. You end up getting your charitable deduction and the standard deduction. Some rules apply so be sure to talk with us.
Estate taxes—so many questions from my clients about a parent or spouse passing and do they need to file any estate tax returns. There are different answers for different situations—the important thing is that you ask us about it.
I’m sitting at my desk and it is October 30th (Happy Halloween to all seven of my readers!) and I finally feel like I am caught up with work. For 10 months I forgot what that feels like.
I’ll try to stay on top of my blogging and of course if you have any questions for me, call or email me and I’ll get back to you right away—again, a benefit of being all caught up.
Take care hope you get a TREAT and not a TRICK.
Never been this tired after a tax season.
It was a long and busy tax season this year. I’m sure after each tax season I say the same thing but something was different this year.
Probably the fact that our clients and ourselves were learning and adjusting to a new tax law. One that not only changed how the tax was computed but how the forms looked.
The larger standard deductions, the lower tax rates and wider brackets were nice for a significant number of tax filers. However, for my readers, all eight of you, it was an unpleasant experience in limitations and eliminations.
Limiting the tax deduction to $10,000 max certainly hurt those with Real Estate tax payments twice that amount. In addition, the sales tax deduction was basically eliminated by the $10,000 cap on these taxes.
Add to this, the entire removal of the miscellaneous itemized deduction on Schedule A—where you deduct our fee, legal fees, unreimbursed business expenses and brokerage management fees.
I know—I know, stop venting. I promise one good trip to Vegas and I will be able to put this behind me.
We hope that Hutchinson & Walter took care of you during this extra busy tax season and if we still have your return, give us a gentle reminder that you are still waiting for it to be finished up.
For those of you who stayed on the sideline and just filed an extension, it would be our hope that you come see us during the summer and not wait until September or October when we will again, have a mini tax season.
No matter when you bring us your return and no matter how tired I am, we will give you our best effort.
Enjoy your summer and hope to see you soon.
It's the Journey and not the Destination
The HW staff have attended many classes—read dozens of articles—sat thru numerous webinars—and we are ready for the 2018 tax return filing season!!
Many clients have already met with us or sent in their data and some returns have even been completed now that the IRS is back up and running.
This will be my 32nd tax season with Hutchinson & Walter—formerly Bashey, Hutchinson & Walter—formerly Bashey Hutchinson & Baroh—formerly Bashey & Company.
During this time of year, the amount of work requires long hours but the benefit of this time of year is that I get to see so many of you. Our sit down during tax season may be the one time we get to catch up—not only on taxes but on each other’s life.
With our location that shares the same floor with Overlake Internal Medicine, I run into more of you all the time. I’m not sure if you are here to see me or have blood drawn.
You normally comment on how old I am looking. You might ask me about my family or my golf game. I let you know what a great job you did getting your information together and check in on how your kids are doing at college.
It is these visits that make Tax Season something to enjoy. For those of you who mail in your data each year, that is OK also. Just don’t expect me to recognize you when we bump into each other at the grocery store!
Missing me? Please come by sometime and say hi. See the office and get me all caught up on things. Maybe even schedule your physical and then lunch with me afterwards.
Until then, hope all is well in your tax and personal life and that your Journey has been smooth. If you have read this blog, let me know when we meet up.
Thanks for listening and I will talk at you again.