Albert Einstein once said, “The Most Difficult Thing to do in this World is your Federal Income Tax.” This is still true in 2019. Major tax reform that affects both individuals and businesses was enacted in December 2017. It is called the Tax Cuts and Jobs Act (TCJA.) The IRS estimates that we will need to create or revise more than 400 taxpayer forms, instructions and publications for filing season starting in 2019. This is more than double the number of forms created in a typical year.
Tax Reform for Individuals include:
- Do a Pay checkup. Adjusting Federal Income Tax Withholding. Do a new W-4.
- Credits – Child Tax Credit and Credit for other Dependents.
- Personal Exemption Deduction Eliminated,
- Standard Deduction Amount nearly doubled.
- Many Itemized Deductions are Eliminated.
- Deduction for Home Mortgage and Home Equity Interest is modified.
- Limit for Cash Charitable Contributions increased from 50% to 60% of AGI.
- Miscellaneous Itemized Deductions are suspended.
- Moving Expenses are no longer deductible except for the Armed Forces.
- State and Local Income Tax (SALT) limited to $10,000 per the calendar year.
- Section 179 Depreciation increased the maximum deduction to $1 million.
- Alimony is no longer Deductible.
- AMT exemption amount increased.
- For 2018, most tax rates have been reduced.
As mandated by Federal Law, all tax returns prepared by this office will be electronically filed. Both the IRS and all State Taxing Agencies require you to sign an approval form.
For new and returning clients, your returns will not be filed until we are in receipt of all necessary forms and PAYMENT of your invoice. If you have not made an appointment, please contact us ASAP. Don’t forget to bring your organizer to your tax appointment!
Thank you for choosing Network Tax Solutions, “Helping You Keep More of the Money You Make.”
Esta Klatzkin, EA
Founder, Network Tax Solutions