Lehman, Hershberger & Company P.C.

Certified Public Accountants

  We see beyond the numbers to what matters most.

 

Goshen Office

301 W. Lincoln Ave.

Goshen, IN  46526

Phone: 574-533-8857

Fax: 574-534-5443

RLehman@lhpc.us

 

Shipshewana Office

P.O. Box 216

305 E. Main St.

Shipshewana, IN  46565

Phone: 260-768-4552

Fax: 260-768-4001

BrianH@lhpc.us


 

Document
W-9

January 2019


Dear Friend & Valued Client:

The staff at Lehman, Hershberger & Company P.C. hopes your holiday season was Merry and Bright!  It’s hard to believe, but it’s time to start thinking about taxes again!  We want to sincerely thank you for allowing us to be of service in the past, and we look forward to seeing you soon.

Our newsletter is designed to give you the guidance needed for understanding how the new tax law changes will personally affect you; to dispel some myths; and to provide some basic ideas for tax planning.


2018 Tax Changes for Individual

The new “postcard” return will make income tax preparation easier, right?!  Not true.  The recurring theme in all of our continuing education classes this year has been the 20% increase in time we can expect to properly complete your return.  Here are some of the major changes that have occurred.

  • The new Federal withholding tables were designed to lower your total tax bill for the year by giving you a bigger paycheck throughout the year.  Unfortunately, they were not designed to give you a refund at year end.  Instead your refund will be very small (if any) because you already received it in bits and pieces through larger paychecks throughout the year. 
  • The ability to itemize deductions has been dramatically decreased because the new law provides a much, much larger standard deduction.  (You are allowed to deduct the greater of the two).  However, we still need to accumulate the information on your medical, tax, mortgage interest, charity and other deductions in order to apply the new rules, and to complete your state tax returns.
  • A major change has occurred on home equity lines and 2nd mortgages, most of which are no longer deductible.  In order to get your largest deduction, we will need to know much more information on these accounts than in the past, such as amounts borrowed and used.
  • Employee work related business expenses are no longer deductible on the Federal return, but we may still need the information for your state return, and if you incur a lot of these types of expenses, you need to discuss the use of an accountable plan with your employer.
  • Most home-related energy efficiency credits are now expired, but an incredible 30% Federal credit still exists for solar, wind and geothermal costs; and a $7,500 Federal credit for buying a fully electric car still applies through the end of 2018.
  • If you are retired, over age 70 ½, and have an IRA, you must utilize the direct IRA to charity transfer tool to make charitable contributions.  This simple trick can save you hundreds of dollars in income tax.
  • With over 50% of working Americans now covered by health savings insurance policies, it is of absolute importance that you start a health savings account, even with $50, and discuss some excellent tax savings ideas with us for these tax-beneficial plans.  And yes, you were still required to maintain health insurance for every member of your family for 2018 or face a potential penalty.


Finally, in order to prepare your return this year we are required to obtain all of your W-2’s, 1099’s from retirement, interest, dividends and brokers, Form 1095 for health insurance, bank Forms 1098 and any other official IRS documents.


Important Info:

  • Filing an Extension does not give you an extension to pay!  Even if an extension is filed, the IRS and State will assess penalties and interest on the amount due from the original due date.
  • If you owe tax and cannot pay, file your returns anyway in order to avoid late filing penalties.
  • Our extended office hours will start on Jan. 23rd.  Before that, our offices will be open 8a-5p Mon-Fri. 


Payment Terms:  As always, payment for services is due when you pick up your returns.  We do, however, offer the following payment options: 

  • Cash, check or money order,
  • Visa or MasterCard (3% additional fee to cover bank charges),
  • Fee Collect ($30 additional fee) - This service allows you to have your tax preparation fees deducted directly from your federal tax refund.


From all of us here at Lehman Hershberger, we wish you a very Blessed New Year!!