Blatnik Law, LLC

Full Service Solo Practitioner Law Firm

Kelley's Law Blog

Kelley's Law Blog

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WOW! Tax Changes!

Posted on February 6, 2019 at 1:20 PM

Now that the federal government shut down and is on a temporary pause (or temporary redo), and ostensibly, tax payers have received their W-2s and 1099s, tax payers are looking to file their returns. Needless to say, the 2018 forms and procedures vary greatly in comparison to the 2017 forms.

Major Changes to the 1040 form - this form is now broken down into seven (7) forms which consist of the 1040 form plus the 1040 Schedules 1 - 6

Portions of the 1040 form have been moved to stand alone or separate schedules. This makes the first page of the 1040 half blank and basically only requests the tax payer household composition information.

The second page of the 1040 is also half blank. The information that typically filled the entirety of page 2 of form 1040 has also been moved to separate schedules.

Good news: fewer lines to complete on the form 1040 so in many ways may be less confusing with unnecessary additional information or requests for information

Not so good news: Tax payers must or should review Form 1040 Schedules 1-6 in order to confirm all appropriate forms are completed, which means opening and reviewing more IRS forms and pdfs for filing taxes.

Did the tax cut help or hurt? As with all lawyer answers, DEPENDS. One of my clients bemoaned the inability to deduct a sizeable charitable donation to a religious organization while another benefitted greatly from the dependent deduction and increase in standard deduction.

Feel free to contact this office for a consultation to discuss the impact of tax changes to you and your estate.


To Wed or Not To Wed

Posted on December 9, 2018 at 9:30 PM

To  Wed or Not To Wed:  Should You Propose Over the Holidays?

As the holidays approach and the crisp cold air moves romantic partners to consider marriage, such partners should keep in mind that the undertaking of marriage creates legal repercussions not easily escaped. Generally speaking, Nevada law treats property acquired during the course of marriage by either partner as community property that is subject to "equal disposition" in a divorce. (See, NRS 125.150(1)(b)) In addition to alteration of property ownership and eventual division, income tax considerations, depending upon the circumstances, may warrant a second look at legal marriage. In many cases, income tax liability increases with marriage such as when two working people's joint income as a married couple pushes the couple into a higher tax bracket than either partner would have been in if single.

Prior to tying the knot, contact financial and legal planners to assist in determining the best way to minimize tax liability and protect assets while you venture down love's tumultuous and joyful road of marriage.