What to do to get ready for 2020 tax return filings:

Naturally, we CPA’s will require W-2s, 1098-K, 1099-Misc, 1099-Div, K-1s, W-2Gs – anything that shows income for the tax year including bank account interest.  

For taxpayers who itemize, charitable donations, mortgage interest, tax statements for property tax and personal property tax are needed.  If estimated payments are made to any taxing jurisdiction -Federal, State, Local – provide how much and when those paid.

Most taxpayers have already received your “important tax information” statements by end of January.  For those who get K-1s, they are normally done and available by March 15 unless extended. If anything tax relevant that’s new such as starting a business or working from home, do provide that information as well.

Tax organizers are usually sent out around January or February to help with information gathering. Put all these documents together and send via snail mail, a pdf attachment to email or drop-off.

How soon tax returns are done to e-file depend on the completeness of the information provided and how early we get such information.

Don’t wait until September or October to get your information out! We do our best work when we aren’t rushed.  (Isn’t it amazing how fast 2020 is flying by already?!)

What was new last tax season? A lot! Besides the biggest tax reform in over 30 years, have you seen the new Form 1040 which makes it look like you can file your tax returns on a “postcard?” Well…….not so fast! Attach are the printable new forms with instructions or visit the IRS site for more information.

  • 2018 Form 1040 with Schedules 1 – 6 (pdf)
  • 2018 Form 1040 Instructions (pdf)

Another big change under the 2017 Tax Reform and Jobs Act aka “TCJA” is the Qualified Business Income “QBI” deduction. It is the net amount of qualified items of income, gain, deduction and loss with respect to qualified trade or business from sole proprietors, pass-thru entities such as Partnerships (excluding publicly traded), S Corporations, LLC’s taxed as partnerships or S corps, and Trusts. The QBI calculation can be quite complex so be sure to check with your tax professional about it if the deduction applies to your tax situation.

  • Section 199A Qualified Business Income Deduction Flowchart (pdf)
  • QBI Deduction Scenario and Example – see attached (pdf)
  • The QBI Deduction goes on Line 9, page 2, of the new Form 1040 (pdf)

2017 TCJA Client Newsletter What It Means For INDIVIDUALS and For BUSINESSES

Another tax season is over! However, the outcome of the much hailed 2017 Tax Cuts and Jobs Act came in with mixed results and not what many had expected. The IRS reported that overall, tax refunds were down compared to the prior year. As I had outlined in my blog titled “The Good, The Bad and The Ugly of the 2017 TCJA,” it’s definitely a mixed bag. Best wishes to another prosperous year and until next “Taxing Time 2020” – life goes on. Cheers!

Where client relationship and personalized service do not end after tax season Ends -Balanced Accountability