Tax season is upon us and as the government temporarily comes out of the shutdown, tax season will officially begin on January 28th. Starting on the 28th, taxpayers can file their federal tax returns and tax refunds will begin to be issued. Employers are required by January 31st to send out your W-2, this will list your earnings, retirement contributions and taxes that have been withheld. Businesses that hire independent contractors, should receive a 1099-MISC and they are also required to send them out before January 31st. If you are form 1099sA, you will receive your form before mid-February.
This year will be the first-year taxpayers will be filing their federal tax return under the changes made by the Tax Cuts and Job Act. There have been hundreds of changes to the tax code created by the Tax Cuts and Job Act. These include doubling the standard deduction for certain filers, increased the Child Tax Credit, the elimination of several miscellaneous deductions, and limits being placed on certain itemized deductions.
Under the new Tax Cuts and Jobs Acts, taxpayers will more likely be claiming the standard deduction rather than itemizing their taxes. The IRS is expecting about 90% of taxpayers to claim the standard deduction this year, versus the usual 70% that did in previous years. Under the Tax Cuts and Jobs Act, several limits were placed on itemized deductions that will now limit the amount people who itemize can write off. For instance, a $10,000 cap was placed on taxpayers’ state and local tax deduction, along with limits on the casualty loss deduction, the mortgage interest deduction and unreimbursed employee expenses. To figure out which option is best for you, contact a local tax accountant and they can help you decide which option will help you either pay less in taxes or help you get a bigger tax refund.
Along with the tax code changes, a major tax form is also getting a makeover. Form 1040 will now be the size of a postcard and forms 1040EZ and 1040A are being eliminated. That means taxpayers will just use the new 1040 form. Along with the new 1040 form, taxpayers will also have six schedules they may have to include with their tax return.
When filing your tax return, you can either file a paper return in the mail, or file online. The IRS recommends filing online as it is the easiest and quickest way to file your tax return and there is a smaller chance of you making a mistake. If you need help filing your tax return, you can call Polston Tax. Our team of tax accountants and CPA’s can not only help you structure your business in income in a tax-effective way, but we can help you file your tax return and take advantage of all tax credits and tax deductions available to you. Call us today at 844-841-9857 or click below to schedule your free consultation.