Every year, NAEA works with its state affiliates nationwide to have the first week in February proclaimed “Enrolled Agent Week.” For the year of 2020, we are pleased to announce that our governor has issued the state of Missouri an Enrolled Agent Proclamation. As tax season is upon us, NAEA has seen that the state of Missouri recognizes knowledge, professionalism, and integrity of enrolled agents.

At Wamhoff Accounting, we currently have two Enrolled Agents, Sandy Furuya and Susan Taylor. As Enrolled Agents, we are federally-authorized tax practitioners who have technical expertise in the field of taxation and who are empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels–examination, collection, and appeals–of the Internal Revenue Service.

Tax Changes in Missouri

We are now in the second year of the Tax Reform law changes, and Missouri has also prepared some tax changes. Starting in 2019, your Missouri tax rate has a 5.4% maximum, and in 2020 it’s going to go down to 5.1% as long as you meet certain criteria. This is good news, considering it used to be 6%. However, depending on your level of income, you may be phased out of some former deductions. President Sandy Furuya breaks this down further in her latest video.

44 years ago, my brother, Bob Wamhoff, started an accounting firm in Florissant, Missouri to help clients in the area provide a high level of service and advice. I joined him, just a few years later, while I was still in my teens, helping him to crunch numbers and prepare forms. That first day on the calculator, I was so excited to be working with my big brother. Today, with a tear in my eye, I’m a proud little sister as I look back on his career and congratulate him on his retirement.

This tax season, we’ve had the privilege to serve many clients who have been there with us since those early days of Wamhoff Accounting. As they’ve come in for their tax appointments, we’ve reminisced about years Bob spent preparing returns on their kitchen tables and washing machines, and recalled the many locations the firm has called home since 1975. Bob led us all on that journey, always making sure that each client and each member of our staff was cared for and felt supported.

In the 44 years since Bob founded the firm, he built an amazing full-service financial planning and accounting business, and team of individuals that’s become well-known across the St. Louis region. He often jokes that he can’t even go to the grocery store without someone recognizing him from television! His hard work, dedication to his craft and his clients, and willingness to give back have brought him much success, and has made an indelible mark on the community.

I am honored to have the opportunity to carry his legacy forward, leading Wamhoff Accounting into the future but always maintaining the vision Bob set forth. He taught me everything I know, and I would not be the person I am today without him. Bob is someone I will always turn to for advice, even in his retirement, and I know he’ll be there to lend a helping hand or compassionate ear to anyone who might call upon him.

From your little sister, and the entire Wamhoff Accounting team — Happy Retirement, Bob!

Each month, St. Louis Small Business Monthly, publishes a list of companies in the Best in Business section which feature St. Louis area firms that “won’t settle for just good enough” in their approach to business. The companies are nominated by Small Business Monthly readers in a variety of categories, with the February issue featuring those who are best in customer service. Wamhoff Accounting is pleased to announce that the firm has been named to the list for the second year in a row.

“Since 1975, we’ve prided ourselves on providing the highest level of client service,” said Sandy Furuya, president of Wamhoff Accounting Services. “We always go the extra mile in supporting our clients, whether its full-service tax and accounting work for small businesses, or tax filings and preparation of returns for individuals. Clients know they can count on us for service they can’t get elsewhere.”

Wamhoff Accounting not only has made the Best in Customer Service list for the last two years, but for nine consecutive years now, the firm has been chosen as one of Small Business Monthly’s Best Accounting Firms in St. Louis.

“We’re honored to be included on these lists for multiple years, and are grateful to the readers and editorial staff of Small Business Monthly who have recognized our hard work and commitment to clients,” said Furuya.

Wamhoff Accounting assists clients with tax and accounting work, as well as with bookkeeping, financial statements, and establishing new businesses. Free initial consultations are available upon contact, and individual tax returns can be completed within the day.

With its many changes to individual tax rates, brackets and breaks, the Tax Cuts and Jobs Act (TCJA) means taxpayers need to revisit their tax planning strategies. Certain strategies that were once tried-and-true will no longer save or defer tax. But there are some that will hold up for many taxpayers. And they’ll be more effective if you begin implementing them this summer, rather than waiting until year end. Take a look at these three ideas, and contact us to discuss what midyear strategies make sense for you.

1. Look at your bracket

    
   Under the TCJA, the top income tax rate is now 37% (down from 39.6%) for taxpayers with taxable income over $500,000 (single and head-of-household filers) or $600,000 (married couples filing jointly). These thresholds are higher than for the top rate in 2017 ($418,400, $444,550 and $470,700, respectively). So the top rate might be less of a concern.

   However, singles and heads of households in the middle and upper brackets could be pushed into a higher tax bracket much more quickly this year. For example, for 2017 the threshold for the 33% tax bracket was $191,650 for singles and $212,500 for heads of households. For 2018, the rate for this bracket has been reduced slightly to 32% — but the threshold for the bracket is now only $157,500 for both singles and heads of households.
   So a lot more of these filers could find themselves in this bracket. (Fortunately for joint filers, their threshold for this bracket has increased from $233,350 to $315,000.)

   If you expect this year’s income to be near the threshold for a higher bracket, consider strategies for reducing your taxable income and staying out of the next bracket. For example, you could take steps to accelerate deductible expenses.

   But carefully consider the changes the TCJA has made to deductions. For example, you might no longer benefit from itemizing because of the nearly doubled standard deduction and the reduction or elimination of certain itemized deductions. For 2018, the standard deduction is $12,000 for singles, $18,000 for heads of households and $24,000 for joint filers.

 

2. Incur medical expenses

    
   One itemized deduction the TCJA has retained and — temporarily — enhanced is the medical expense deduction. If you expect to benefit from itemizing on your 2018 return, take a look at whether you can accelerate deductible medical expenses into this year.

   You can deduct only expenses that exceed a floor based on your adjusted gross income (AGI). Under the TCJA, the floor has dropped from 10% of AGI to 7.5%. But it’s scheduled to return to 10% for 2019 and beyond.

   Deductible expenses may include:

   • Health insurance premiums,
   • Long-term care insurance premiums,
   • Medical and dental services and prescription drugs, and
   • Mileage driven for health care purposes.

   You may be able to control the timing of some of these expenses so you can bunch them into 2018 and exceed the floor while it’s only 7.5%.

 

3. Review your investments

    
   The TCJA didn’t make changes to the long-term capital gains rate, so the top rate remains at 20%. However, that rate now kicks in before the top ordinary-income tax rate. For 2018, the 20% rate applies to taxpayers with taxable income exceeding $425,800 (singles), $452,400 (heads of households), or $479,000 (joint filers).

   If you’ve realized, or expect to realize, significant capital gains, consider selling some depreciated investments to generate losses you can use to offset those gains. It may be possible to repurchase those investments, so long as you wait at least 31 days to avoid the “wash sale” rule.

   You also may need to plan for the 3.8% net investment income tax (NIIT). It can affect taxpayers with modified AGI (MAGI) over $200,000 for singles and heads of households, $250,000 for joint filers. You may be able to lower your tax liability by reducing your MAGI, reducing net investment income or both.

Each year, St. Louis Small Business Monthly polls its readers to compile a list of the region’s best accounting firms. Wamhoff Accounting is honored to announce that, for the ninth year in a row, the firm has been named to the 2018 list of St. Louis’ Best Accounting Firms.

“We have always been committed to serving our clients, not only at tax time, but all year long,” said Sandy Furuya, president of Wamhoff Accounting Services. “Whether it’s an individual or a small business looking for tax or accounting support, we are here to help. We are honored to have been nominated and chosen as one of the Best Accounting Firms for nine years in a row. We are proud of the service we provide our clients, and look forward to continuing that service so they can meet their goals.”

Wamhoff Accounting not only has made the list of Best Accounting Firms for nine consecutive years now, but has also recently been chosen as one of Small Business Monthly’s Best in Customer Service. The professionals at Wamhoff Accounting have been serving business and individuals since 1975.

Services extend beyond taxes and accounting. Wamhoff Accounting also assists with bookkeeping, financial statements, and establishing new businesses. Free initial consultations are available upon contact, and individual tax returns can be completed within the day.

The Best Accounting Firms in St. Louis were announced in the May, 2018 issue of St. Louis Small Business Monthly.