2019 Tax Season is around the corner
Here are few tips for the upcoming 2019 Tax Season:
The IRS has just released its dates for opening of tax filing for the 2019 Tax Season. Individual 2019 tax return filings will be able to be processed beginning January 27, 2020. You may think this is late, but it's not. Most employers are required to send out W2s or 1099s for employees or contractors by January 31, 2020. So even with tax season opening on January 27th, you still may not have all of your documents you need. Check out the news release from the IRS here: https://www.irs.gov/newsroom/irs-opens-2019-tax-filing-season-for-individual-filers-on-jan-27
Whether you are preparing your returns or having a professional do them, make sure you have all the necessary documentation prior to sitting down and having them completed. It's okay if you don't, but it could save you time and money.
You can still make an estimated tax payment for 2019 if you make it by January 15, 2020.
And remember, individual returns for federal and most states are due by April 15, 2020. If you have a business, your returns are most likely due by March 15, 2020, but check with your tax professional.
If you are a small business owner, you may be entitled to the Section 199A Qualifed Small Business Deduction. This is a 20% deduction off of qualified business income. You can take a look here to see if you do qualify: https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-income-deduction-faqs.
A few other tips: make sure you check your amount of withholding from you paycheck
by visiting the IRS's withholding calculator: https://www.irs.gov/payments/tax-withholding and if you need to make a change, there is a new W4 form for you to make that change. Just make sure you ask your Human Resources department for that information. Also please note that the mileage rates have changed for 2020 and you can find that here: https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2020
Feel free to leave me a comment or contact me directly with any questions about the upcoming 2019 Tax Season. You can visit me at www.yourfinancialmaven.com or email me at email@example.com.