2019 Tax Returns

I look forward to filing personal and business returns for 2019.  The IRS has announced the start of electronic filing of 2019 returns on January 27th, 2020.  Business returns, Forms 1065, 1120-S and 1120 are due one month before personal returns.  Business returns for 2019 will be due on Monday, 3/16/2020.  Personal returns are due on Wednesday, April 15th.

Clients, please call to schedule an appointment ! 678-910-2362

Deduction of Taxes on Schedule A

The recent  tax law includes changes to itemized deductions, including the deduction for taxes paid. The deduction is limited to a total of $10,000.00.  The sum of your income tax or sales tax, added to your property tax and other deductable taxes is limited to $10,000.00. 

At this writing the $10,000.00 state tax limitation is still in place.

I will be happy to review your income and deductions to see  if it is in your best interest to file Schedule A going forward.

 

Tax Cuts and Jobs Act Changes

Some popular write offs are eliminated by the Tax Cuts and Jobs Act of December 2017. Most of these deductions were taken on Schedule A, Itemized Deductions and include,  Employee Business Expenses, such as Business Mileage, Meals and Entertainment, Business Use of Home. These deductions are all eliminated for people who are employees and receive form W2.  These deductions were the Miscellaneous Itemized Deductions, subject to the 2% of Adjusted Gross Income threshold.  This also includes tax preparation fees and investment expense, not deductable on any other schedule. This hits truckers who are employees of their firms, instead of owner - operators , sales representatives who drive their personal car for work related activities, airline hosts and hostesses and many other professions.

Teachers who spend 900 hours in the Primary and Secondary education field still have Educator Expenses Adjustment on form 1040.  The adjustment is $250 for single filers, and $500 for a joint return where both taxpayers are teachers.  However, additional expense for classroom support is no longer deductable as unreimbursed employee expenses.  

Moving Expenses are no longer deductable unless you are in the military.

Casualty Losses are only deductable if they are in a federally declared disaster area.

These changes begin in tax year 2018 and are effective until tax year 2025 unless changed by Congressional vote, or legal challenge in court, before then.

Standard Mileage Rates - in cents per mile

 Tax Year            2019        Tax Year       2020  **

Business Miles        .58                Business Miles        .57

Charitable Miles     .14                Charitable Miles     .14

Medical Miles*        .18                Medical Miles         .17

* Rate also applies to Moving mileage, deductable only for military members

* Announced in IR-2018-251 by the IRS

** Announced in Notice 2020-05 by the IRS