Welcome to Tax Time!
It is Christmas for Accountants as this is when we have the most fun during the year. Unfortunately, most normal people do not share this sentiment, So, in the spirit of extending some cheer and goodwill to you, I will try to make tax season as painless as possible for you. Who knows? Maybe some good news will be waiting under your tax-Christmas tree.
Important Deadlines (not limited):
January 15, 2020 Deadline to pay 4th quarter estimated tax for year 2019
January 31, 2020 1099s and W2s must be received by contractors and employees
February 18, 2020 deadline for financial institutions to mail out 1099-B, 1099-S, some 1099-MISC
March 15, 2020 1120S S-Corp tax returns or extensions due or extensions
March 16, 2020 1065 Partnerships, LLCs with 2 or more owners
April 15, 2020 1040 individual tax returns or extensions due
1041 estates & trust tax returns or extensions due
1120 C Corp tax returns or extensions due
FinCin Form 114 reports on foreign bank accounts
Last day to contribute to 2019 IRA, HSA, or solo 401(k)
Deadline for 2020 Quarter 1 estimated tax payments
June 1, 2020 deadline for institutions to send Form 5498 retirement balances
June 15, 2020 deadline for 2020 Quarter 2 estimated payments
Deadline for US citizens living abroad to file tax returns or extensions
September 15, 2020 deadline for 2020 Quarter 3 estimated payments
1120S and 1065 tax returns that filed extensions
October 1, 2020 Deadline to establish self-employed IRA for 2019
October 15, 2020 1040 and 1120C tax returns that filed extensions
Deadline to fund a SEP-IRA or solo 401(k) for 2019 if extension filed
1099s to Contractors
Form W-9 (attachment) – if you operate a business, and you paid somebody at least $600, the IRS requires you to issue this person a 1099. Give the person the W-9 and have them complete it then return it to you. They must receive the 1099 by January 31, 2020. If you want me to help you with distributing 1099s, please return the completed W-9s to me by January 24, 2020.
What is new for Tax Year 2019? (not limited)
Health insurance shared responsibility payment is no longer required (no penalty for not having health insurance)
Increased Standard Deduction: Single $12,200, Married Filing Jointly $24,400, Head of Household $18,350
Virtual currency transactions: reporting necessary
Tuition & fees deductions: some benefits expired in 2017 have been reinstated
Deduction for Mortgage Insurance Premiums: some benefits expired in 2017 have been reinstated
Disaster Tax Relief: if federally declared zones, there is an increase in the standard deduction
For W-2 recipients, the W-4 attachment is for your review. The form is new for 2020 and the withholding tables for tax withheld have changed. Complete the W-4 attachment and give it to your employer. I will comment on this informally: many people with W-2 income were not happy having a tax bill resulting from the 2018 tax law changes. Perhaps giving your employer an updated W-4 will give you some relief from this issue.
The client information and supplemental information attachments are for your review. If your information has changed, please complete the forms and return them to me. It will give us a head start with your tax preparation. You can return the forms to me VIA email, drop box, or bring them with you to your consultation.
When to check-in with James?
Of course, you can call, text, email me at any time, as I am always here for you. For tax time, keep in tuned with the deadline schedule listed in this email. For tax preparation, we must wait until you receive all your tax forms from your payers and recipients. You should have all these forms by the first week of February. By this date, if you have not received expected forms, you may consider contacting your providers. Keep in mind that some providers may elect to make your forms available online for download from their websites. Next, if you enrolled in Obamacare, you must give me your form 1095 from the government, as it is required. They should mail it to you, but it is also available on healthcare.gov.
I have given you some delightful information to digest and process. Feel free to contact me with questions. Until then…. Happy Tax Season!