Welcome 2019! Are we glad to see you! Just in case you think that's a question, the answer is a resounding yes!
We're not so excited, however, about all the changes that took full effect in 2018 thanks to the
Tax Cuts and Jobs Act (TCJA). And we're a bit worried — especially those of us expecting refunds — that the
partial government shutdown that includes the Internal Revenue Service will delay the 2019 tax filing season.
We'll keep our fingers crossed that Washington, D.C., will soon strike a funding deal. And with that hope in mind, let's get down to dealing with our 2018 tax returns.
Jan. 1: I know. You had a really good time ringing in 2019 so you're taking things slow today. That's OK. Let's start with something easy, like checking out your
2018 and 2019 tax brackets. The 2018 data applies to the return (or extension) due this April. But for tax planning purposes, you also need to look at what's in store for brand spanking new 2019.
Jan. 2: It's back to work (unless you're a
furloughed government employee for the first time in this new year! Thank goodness it's a short one. But it's long enough for you to evaluate your payroll withholding. Again, TCJA changes make getting your withholding right and the Internal Revenue Service has issued a new
Form W-4 that you can give to your payroll office. The sooner you do so, the better it will be for your paychecks.
Jan. 7: Millions of taxpayers already are filling out their 1040s because they are expecting refunds. That's cool if you have all your necessary
tax statements, such as 1098s, 1099s and your W-2(s). They don't officially have to be sent until the end of the month, but some arrive earlier, so keep an eye on your snail mail or e-mail box.
Jan. 10: Does your job include
tips? If so and you received at least $20 in gratuities in December, use
Form 4070 to report them today to your employer.
Click image
for a tip calculator. Jan. 14: The 2019 tax-filing season is the 17th that the IRS has partnered with Free File Alliance to provide millions of taxpayers the opportunity to prepare and e-file their taxes at no cost.
This year, qualifying taxpayers — that's those with income of $66,000 or less — can use one of the expected dozen or so special commercial tax software programs at IRS.gov's
Free File online page. Even if you make too much to use the online software, you can file using Free File's fillable forms.
Jan. 15: Do you receive income such as
capital gains or
self-employment? Then you need to make
estimated tax payments. The final
1040ES payment for the 2018 tax year is due today.
Jan. 21: Many people spend Martin Luther King Jr. Day as a
day of service. Taking time today (or any other) to volunteer at a charity isn't tax deductible, but some costs associated with
volunteering could help reduce your tax bill if you itemize. Note, though, that the
increased standard deduction amounts could mean fewer folks will fill out a Schedule A. But tax breaks aren't the real reason most of us give to our favorite nonprofits, so don't let that stop you from doing good deeds today (or any other).
Jan. 24: Will you fill out your Form 1040 yourself using
tax software or hire a preparer? There are good arguments for both options. If you opt to get professional tax help, make sure you
find a tax pro who's perfect for your tax situation. And be sure to
check him or her out thoroughly before handing over details of your tax life.
Hiring a tax pro could really help parents, who are trying to decipher the
child-related tax breaks that were changed by the TCJA. The same is true for folks whose
marital status is different from last filing season.
Jan. 28: The
2019 tax filing season officially opens today, including returns submitted by Free File. The IRS is pledging that returns will be processed and
refunds issued even if the partial government shutdown is still in effect.
Jan. 31: Business owners also could benefit from tax help this filing season as they try to decipher whether they qualify for the new
Section 199A deduction. This is a 20-percent individual income tax deduction for income from pass-through entities, such as sole proprietorships and partnerships. But just who's eligible and the IRS rules on its application leave lots of room for
clarification.
Small Business Tax Calendar: SpeakingBusiness owners also could benefit from tax help this filing season as they try to decipher whether they qualify for the new
Section 199A deduction. This is a 20-percent individual income tax deduction for income from pass-through entities, such as sole proprietorships and partnerships. But just who's eligible and the IRS rules on its application leave lots of room for
clarification.
Small Business Tax Calendar: Speaking of business taxes, you'll find important filing, deposit and record keeping dates throughout the year that your company needs to know in the IRS'
tax calendar for small businesses and the self-employed. You also can get more tax calendar information in
IRS Pub. 509.