12/07/2018
It's almost end of another year so we need to get ready for a new year and a new tax season! Here are some notes and reimnders to get you ready for tax season.
1. Please make sure your current employer and contract agency have your most recent address to send year end income documentations! Nowadays, most of everyone should have a some sort of online access to view paystubs and W-2 forms. Be sure check with your employer before end of year. Most of income documentations such 1099 forms and W-2 forms should be available by January 31, 2019 but some could be available early as January 17th.
2. If you have all your tax deductible expense related documents in one place that's great but if you don't then start working on it. Please download and save your bank statements, credit card statements anything van be useful to file your tax.
3. College students? All education school tuituon payments, books, and equipments, other deductible expense paperworks should be saved. Colleges and universities should send form 1098-T form by January 31, 2019. If not check with school admission department. Most of students should get this form via Student portal access as well.
4. Children under 13 years old? If you pay for child care services be sure check with company to receive a child care fee payment summary for 2018.
5. Used your personal car for business? Then make sure you have your car mileage information, toll, parking, and repair maintenance fees and record, DMV registration fee, loan statements if you pay interest on loan.
6. Anyone who have received federal assistance "preimum tax credit" to purchase medical insurance will receive a Form 1095-A by end of your January 31, 2019. This is an important document to file your tax return.
7. Many will receive Form 1095-B or 1095-C as well. Please keep those forms as well these important documents to verify your medical coverage.
8. Newly passed Tax Cuts and Jobs Act (TCJA) removed mandatory tax penalty for those who doesn't have medical coverage starting January 1, 2019.
9. Based on this new TCJA overall income tax reduced, personal exemption amount per eliminated, additional 20% net income reduction allowed to most of pass through business income (such as sole proprietorship, S corp, single member LLC, etc) but subject to special rules.
10. Child tax credit increased to $2,000 from $1,000 per child 16 years old or younger by end of tax year. However, refundable portion of child tax credit limited to $1,600 per child and income limitation applies.
11. Anyone who hired employees or contractors need to file 2018 W-2 or 1099 Misc Forms by January 31, 2019!!
New tax season usually opens middle of Januar but IRS will not release any tax refund for those claiming child tax credit and earned income tax credit till middle of February!
Any mails with "Important Tax Information" stamped on the envelope should be be carefully reviewed or referred to your tax accountant.
Steps to Take Now to Get a Jump on Next Year’s Taxes
