IRS Accepting 2019 Tax Returns Begining Monday 1/27/20

Happy New Year to All!
The IRS will begin accepting Tax Returns on Monday January 27, 2020. For those interested in early filing my office will be open for client consultations starting the Wednesday January 22nd.
For those who may not need a consultation, you could simply mail your documents to me or drop them off in my secure mail box. In addition I will be utilizing a “Docusign” option for signing of E-file authorization forms, for your convenience.
Below is summary of the key tax law changes for tax year 2019:

  • The Federal Obamacare Health Care Penalty has been eliminated for those uninsured or partially insured. However, some states have introduced their own penalty, including New Jersey.
  • Key dollar limits on IRA’s and retirement plans are higher for 2019:
    •     IRA and ROTH IRA payin limit is raised to $6,000 (catch-up contribution for those 50 or     over is $1,000)
    •     Maximum 401k contribution is $19,000 for 2019 (catch-up contribution is an additional     $6,000)
    •     Threshold for deducting Medical Expenses has increased from 7.5% to 10% of AGI
  • Standard deductions increase a bit: Married = $24,400; Singles = $12,200; Head of Household = $18,350; Income tax brackets are slightly wider due to inflation with no change to tax rates.

Dates to remember – Forms such as W-2’s and 1099’s are due to be sent to employees and contractors by January 31st. Brokerage 1099 Statements are due to account owners by Mid-February and K-1 Forms in Mid-March; Partnerships & S-Corp returns are due Monday 3/16/20; Individual & Corporate returns are due Wednesday April 15th.
Lastly, for your convenience I will be accepting Pay-Pal and all major credit cards for Tax Preparation fees.

Best wishes for a prosperous 2020!