IRS will accept 2018 1040 Tax Returns starting 1/28/19

I am ready to file your 2018 personal  or business return.  The IRS is currently accepting business returns, forms 1065,1120-S, and 1120-C.   The due date for a timely filed business return this year is 3/15/2019.

IRS will accept personal returns, form 1040, starting 01/28/2019.  The due date for a timely filed personal return is 4/15/2019.  IRS has eliminated forms 1040EZ and 1040A. All resident taxpayers will file the new form 1040.  This form has schedules to attach to it for Personal Deductions, and Self Employment , Rental Real Estate, and Investments.

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.

I will be happy to review your income and deductions to see  if it is in your best interest to file Schedule A for 2018 and 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.

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            2018           2019

Business Miles        54.5           58

Charitable Miles     14.0           14.0

Medical Miles*       18.0            20.0

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

Announced in IR-2018-251 by the IRS