Social Security Credits

To determine eligibility for various benefits, the Social Security Administration uses a system of credits to determine if minimum work requirements have been met. Typical number of credits required for eligibility of benefits is 40. The maximum number of credits that can be earned in 2020 is 4. One credit is equal to earned compensation […]

2020 Form W-4MN

  2020 Form W-4MN   Form W-4MN is in addition to the federal Form W-4, which is used to calculate Minnesota withholding for an individual. Every individual that completes federal Form W-4 (for 2020) is required to complete Form W-4MN as well. The other times an individual should complete Form W-4MN is when they change […]

2020 New W-4 Form

  2020 Form W-4 Employees are NOT required to supply a new for W-4 if they have furnished a W-4 any year prior to 2020. However, anyone first paid after 2019 must use the redesigned 2020 form. If they fail to furnish the new form, they will be treated as a single filer with no […]

Child Tax Credit

In 2019, the credit for each child under the age of 17 is $2,000. For taxpayers with income above $200,000 ($400,000 married filing joint), the credit is phased out by $50 for each $1,000 of adjusted gross income above the threshold amount. For taxpayers whose tax liability is not large enough to fully utilize the […]

Minnesota minimum wage to increase 1/1/2020

The minimum wage for Minnesota will increase for inflation January 1, 2020.  The new minimum wage rate for large employers will increase to $10.00 per hour (from $9.86 currently) and small employers will increase to $8.15 per hour (from $8.04 currently).  PROVISIONS Thru 12/31/2019 Effective 1/1/2020 Larger Employer $9.86 $10.00 Small Employer $8.04 $8.15 90 […]

2019 Standard Mileage Rates

Beginning on January 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 58 cents per mile for business miles driven, up from 54.5 cents for 2018 20 cents per mile driven for medical or moving purposes, up from 18 cents for 2018 14 cents […]

Subtraction For Contributions to 529 Plans

Effective for tax years beginning after 2016, the legislation allows personal income taxpayers to subtract up to $1,500 ($3,000 for married joint filer) of contributions to any state’s Sec. 529 college savings plan or prepaid tuition plan. The subtraction excludes amounts that are rolled-over from other college savings plans and is limited to taxpayers who […]

When Does A Dependent Have To File A Return

A dependent has to file a return if the dependent has: Earned income only and the total is more than $12,200. Unearned income only (i.e. income which is not compensation for service) and the total is more than $1,100. Both earned and unearned income and the unearned income is more than $350 or the total […]

Lifetime Learning Credit

If a taxpayer, spouse, or dependent is a student, the taxpayer may be eligible for a nonrefundable credit of up to $2,000 (20% of the first $10,000 of qualified tuition and expenses). The credit is allowed for an unlimited number of years per taxpayer basis. It covers all 4 years of post-secondary education as well […]

Individual IRA Contributions (Traditional or ROTH)

If you and/or your spouse have taxable compensation (earnings subject to FICA and Medicare tax), you may be able to contribute to and Individual Retirement Account. The maximum Traditional IRA or ROTH IRA contribution for both 2019 and 2020 are $6,000 if under the age of 50 and $7,000 if age 50 or older as […]