The IRS will start accepting personal income tax returns on Monday, January 27th.
The deadline to file your 2019 tax return and pay any tax owed is Wednesday, April 15th.
The IRS continues to encourage taxpayers to file their returns electronically and choose direct deposit for faster receipt of refunds.
The beginning of a new year is a great time for employees to review their withholding and determine if any adjustments are necessary.
The IRS has released the 2020 Form W4 which has been redesigned to reduce complexity and increase the accurateness of the withholding system.
The 2020 W4 form should be used by new hires and any employees making withholding changes in 2020.
The IRS has announced the contribution limit for employees who participate in a 401K, 403B and most 457 plans will increase to $19,500 for the tax year 2020 (up from $19,000 in 2019).
The catch-up contribution limit for employees aged 50 and over who participate in these plans will increase to $6,500 (up from $6,000 in 2019).
Some phony charities will have names that are similar to well-known organizations, as well as websites that sound or look like those of legitimate organizations.
The IRS has a charity search feature, Tax Exempt Organization Search, that allows people to find legitimate, qualified charities to which donations may be tax-deductible.
If requested, charities can provide their Employer Identification Number (EIN) which can be used to verify their legitimacy through the IRS charity search tool.
This online tool by the IRS allows taxpayers to check the status of their refund anytime.
Taxpayers can start checking on the status of their return within 24 hours after the IRS received their e-filed return, or four weeks after they mail a paper return.
Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station.
For more details see Notice-2019-02.
As of January 1, 2019, the maximum wage base that is subject to the Social Security payroll tax will increase from $128,400 to $132,900.
There is no limit on earnings subjected to the Medicare payroll tax.
The IRS and state governments are combating identity theft and tax fraud this tax year. Beginning this filing season all tax payers are required to have identity verification. Please include with your tax documents a copy of your state driver’s license or other state ID. If you’re married, both individuals must meet the requirement.
Sincerely,
BYB
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