Working poor, lower middle class, upper middle class, 1%… where do you fall on the grand scheme of their scale? and food for thought on getting a bigger piece of the pie.


The scholar Richard Reeves, as detailed in the above piece by the PBS Newshour, describes the various “classes” as defined by wealth.  He also theorizes that it is not the top 1 percent necessarily obstructing the rest of us from accruing some financial stability, but the “upper middle class” group earning $117,000 (the top 20%) or more may be unintentionally keeping the the majority out of the equation.

If you “write off” any employee business expenses for yourself or your employee’s, this article may be for you.

Tax reform brings changes to fringe benefits that can affect an employer’s bottom line and what employee’s can actually deduct on their personal returns. 


Source: Tax Reform Tax Tip 2018-162: Tax reform brings changes to fringe benefits that can affect an employer’s bottom line


As most of you are aware we have a new tax plan in place for tax year’s 2018 – 2026 (as of now).  Among the many changes previously deductible employee business expenses (including fringe benefits) may be excluded or the process has changed.

Continue reading….


The IRS reminds employers that several programs have been affected as a result of the Tax Cuts and Jobs Act passed last year. This includes changes to fringe benefits, which can affect an employer’s bottom line and its employees’ deductions.

Here’s information about some of these changes that will affect employers:

Entertainment Expenses & Deduction for Meals
The new law generally eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation.

However, under the new law, taxpayers can continue to deduct 50 percent of the cost of business meals if the taxpayer or an employee of the taxpayer is present, and the food or beverages are not considered lavish or extravagant. The meals may be provided to a current or potential business customer, client, consultant or similar business contact. Food and beverages that are purchased or consumed during entertainment events will not be considered entertainment if either of these apply:

  • they are purchased separately from the entertainment
  • the cost is stated separately from the entertainment on one or more bills, invoices or receipts

Qualified Transportation
The new law also disallows deductions for expenses associated with qualified transportation fringe benefits or expenses incurred providing transportation for commuting. There is an exception when the transportation expenses are necessary for employee safety.

Bicycle Commuting Reimbursements
Under the new law, employers can deduct qualified bicycle commuting reimbursements as a business expense. The new tax law suspends the exclusion of qualified bicycle commuting reimbursements from an employee’s income. This means that employers must now include these reimbursements in the employee’s wages.

Qualified Moving Expenses Reimbursements
Employers must now include moving expense reimbursements in employees’ wages. The new tax law suspends the exclusion for qualified moving expense reimbursements.

There is one exception as members of the U.S. Armed Forces can still exclude qualified moving expense reimbursements from their income if they meet certain requirements.

Employee Achievement Award
Special rules allow an employee to exclude achievement awards from their wages if the awards are tangible personal property. An employer also may deduct awards that are
tangible personal property
, subject to certain deduction limits. The new law clarifies the definition of tangible personal property.


Like or share this article if it pertains to you or someone you know.

-Thanks, Stephanie



It’s not too late to do your taxes.

Even though the October 15th deadline has passed to file late Tax Year 2017 returns, they can still be prepared, submitted, and even e-filed.  The process is pretty simple.

Gather your documents. W2’s, 1099’s, 1098’s, Charitable Contribution info, or business income and expense numbers, and more (depending on your situation).  It’s a good time to start thinking about where you are going to start organizing and holding information for the next tax season which will be the filing of Tax Year 2018.

Submit your documents to P.T.S. (Pauline’s Tax Service) or Stephanie.  Items can be submitted electronically or dropped off at the office on 124th and Huron.

Review and finalize.  The tax returns will be prepared and discussed, then paid for.

Submit to IRS and States.  The ultimate last step after reviewing and finalizing is e-filing, so the returns will be e-filed and there is nothing more you need to do.  Unless you have a balance due instead of a refund, then you are responsible for making the payment(s).


Pauline’s Tax Service, Ltd.
12365 Huron ST. suite 1800
Westminster CO 80234


Contact Information

 (303) 301-7167     |   |


Checkout the IRS’ site at for more information about the latest tax news and information. Older tax returns can still be prepared too.  Ask about which one’s can still be e-filed, but they can always be paper filed.


Filling out a new withholding form for your employer is beneficial. The form is called W4 and there is a new version out.

Employee’s Withholding Allowance Certificate – Form W4

A new version of Form W-4 is available to help taxpayers check their 2018 tax withholding following passage of the Tax Cuts and Jobs Act.


Purpose. Complete Form W-4 so that yourUntitled
employer can withhold the correct federal
income tax from your pay. Consider
completing a new Form W-4 each year and
when your personal or financial situation


If changes to withholding should be made, the Withholding Calculator gives employees the information they need to fill out a new Form W-4, Employee’s Withholding Allowance Certificate. Employees will submit the completed W-4 to their employer.


Generally, on line 5 you will enter 0 to withhold the maximum amount.  However, if you are looking to come out even at the end of the year on your tax liability you may be able to get away with claiming 1 or higher, even without and dependents.


Updated 2018 Withholding Tables Now Available; Taxpayers Could See Paycheck Changes by February


weekly wages paid income tax withholding


The Internal Revenue Service today released Notice 1036, which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation enacted last month. This is the first in a series of steps that IRS will take to help improve the accuracy of withholding following major changes made by the new tax law.

The updated withholding information, posted today on, shows the new rates for employers to use during 2018. Employers should begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018. They should continue to use the 2017 withholding tables until implementing the 2018 withholding tables.

Many employees will begin to see increases in their paychecks to reflect the new law in February. The time it will take for employees to see the changes in their paychecks will vary depending on how quickly the new tables are implemented by their employers and how often they are paid — generally weekly, biweekly or monthly.

The new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers to claim withholding allowances. This will minimize burden on taxpayers and employers. Employees do not have to do anything at this time.

“The IRS appreciates the help from the payroll community working with us on these important changes,” said Acting IRS Commissioner David Kautter. “Payroll withholding can be complicated, and the needs of taxpayers vary based on their personal financial situation. In the weeks ahead, the IRS will be providing more information to help people understand and review these changes.”

The new law makes a number of changes for 2018 that affect individual taxpayers. The new tables reflect the increase in the standard deduction, repeal of personal exemptions and changes in tax rates and brackets.

For people with simpler tax situations, the new tables are designed to produce the correct amount of tax withholding. The revisions are also aimed at avoiding over- and under-withholding of tax as much as possible.
To help people determine their withholding, the IRS is revising the withholding tax calculator on The IRS anticipates this calculator should be available by the end of February. Taxpayers are encouraged to use the calculator to adjust their withholding once it is released.

The IRS is also working on revising the Form W-4. Form W-4 and the revised calculator will reflect additional changes in the new law, such as changes in available itemized deductions, increases in the child tax credit, the new dependent credit and repeal of dependent exemptions.

The calculator and new Form W-4 can be used by employees who wish to update their withholding in response to the new law or changes in their personal circumstances in 2018, and by workers starting a new job. Until a new Form W-4 is issued, employees and employers should continue to use the 2017 Form W-4.

In addition, the IRS will help educate taxpayers about the new withholding guidelines and the calculator. The effort will be designed to help workers ensure that they are not having too much or too little withholding taken out of their pay.

For 2019, the IRS anticipates making further changes involving withholding. The IRS will work with the business and payroll community to encourage workers to file new Forms W-4 next year and share information on changes in the new tax law that impact withholding.

More information is available in the Withholding Tables Frequently Asked Questions.

There are some major changes for individuals on the Schedule A (Itemized Deductions) per the Tax Cuts and Jobs Act

Many of the deductions that people have been taking over the last several years are going away for years’ 2018 and later.  These particular items can be found on the 1040 Schedule A.  See below.


Deduction for personal casualty and theft losses suspended (unless incurred in federally-declared disaster area)

Limitations to the deduction for state and local taxes

Limitations to the deduction for home mortgage interest in certain cases

Eliminating most miscellaneous itemized deductions such as:

  • Deductions for employee business expenses
  • Tax preparation fees
  • Investment expenses, including investment management fees
  • Employment related educational expenses
  • Job search expenses
  • Hobby losses
  • Safe deposit box fees
  • Investment expenses from pass-through entities

Eliminated the limitation on itemized deductions for certain high-income taxpayers.

Resources: IR-2017-210IR-2018-32IR-2018-122IR-2018-127

Stash invest has some advise on kids and budgeting. Here it is.

Teach your kids how to navigate the back-to-school shopping jungle with this budgeting activity.

3 min read

The summer is drawing to a close, and it’s almost time for your kids to head back to school.

To get ready, you’ll need to do some back-to-school shopping, for new sneakers, notebooks, pencils and all the other items that your kids will need for a new year of classes.

But do your children know how much it will cost to buy all of that gear? It’s important for kids to learn the value of money, and how much things cost, whether that’s for a new hobby, game, or all that back-to-school merchandise.

In this activity, your children will learn how to create a budget and a spending plan. This activity will help your child practice these skills when it comes to making purchases for school. This activity is for children between 3rd and 8th grades.

What will your kids learn? Most children participate in preparing to go back to school. New clothes, shoes, backpacks, school supplies, haircuts, and technology are often found on wish lists, but they can be budget breakers. Teaching children to classify “needs” versus “wants,” prioritize needed items, and spend within a set budget, are valuable life lessons. While working on this activity, children will practice and learn valuable lessons about budgeting and buying.

Teach your kids about back to school budgeting

Download the activity sheet

What You’ll Need

Getting Started

  • Set a dollar amount for your child’s back-to-school spending budget.
  • On the “Back-to-School Wishlist,” create a list of items your child wishes to buy.
  • Decide which of these items are needs, and which are things you want, but could do without. Circle your selection.
  • Have your child prioritize the list. Number the most important item on my list as 1.
  • The child will transfer the list to the “Back-to-School Shopping List.” Help your child research each item to determine its price, and where to buy it.
  • The child will find the total cost of the list. Does it if within his or her budget? If not, work together discussing priorities and possibly needing to save for an important item.

Talk to your kids!

Parents should check in with their children to make sure they understand what they’ve learned.

It is important that your child understand needs versus wants. When working on the list or reviewing after your child has completed it, discuss different opinions. Children need sneakers for school. Do children need the latest popular sneaker? There is a computer available to them at school, do they need their own?

  • What do you need to start the school year? Encourage your child to set a reasonable budget and stick to it.
  • Do they need to spend all of their money? What can they do with any extra? (encourage savings)
  • Have a discussion about the best time to buy certain items. Although stores have back-to-school sales on clothes during the summer, if you wait those same items are permanently discounted in early fall.
  • Assist your child in researching where they can get the best price. Don’t make purchases until a plan is in place.
  • How can you save for items that fall outside the budget? If your child wants something you deem extravagant, make a plan.
  • After completing the activity, encourage your child to continue the practice of keeping a list, identify needs vs. wants and prioritizing. Talk about continued planning for other items and events.

By Stash Team