How The 2019 Tax Season Changes Affect You (Your Business)
The Trump Administration is responding as fast as possible to the economic problems facing US taxpayers.
Here is what we know for sure:
1. The 4/15/2020 Tax Filing Due Date has been postponed to 7/15/2020.
2. The government is going to start sending out checks to taxpayers within the next 2 weeks. The maximum amount per taxpayer will be $1,200 for single taxpayers and $2,400 for married taxpayers. These amounts will be increased by $500 per dependent child. All of the calculations will be based upon taxpayers’ 2018 tax returns. There will be a phase-out threshold starting at $75,000 for singles and $150,000 for joint filers, deducting $5 per $100 of income that exceeds phase-out threshold until reaching maximum phase-out thresholds of $99,000 for singles and $198,000 for joint filers. (These may not be final calculation figures.)
There are many major changes that the U.S. Treasury Dept. is considering in order to help relieve economic problems for Taxpayers. These are not yet approved as of 1 pm CST, 3/20/2020:
1. Individual Estimated Tax Payments postponed until 10/15/2020.
2. Withdraw of money from retirement plans with no 10% early withdrawal penalty up to $100,000. Any taxes due on withdrawals would be paid over three years.
3. Elimination of Charitable Tax Deduction Limitation of 50%.
4. Remove the limit of $3,000 of Net Operating Losses for Individuals and Corporations. Taxpayers would be allowed to amend previous year tax returns where NOL's were not documented. NOL's would be unlimited and go back up to five years.
5. Business Interest deduction limitation changed from 30% to 50%.
6. Employers would not have to pay the Employer's share of the 6.2% Social Security tax on employee wages for the remainder of 2020, and the amount of deferred taxes would be paid 1/2 by end of 2021 and 1/2 by end of 2022. Employers will still have to pay Employees withheld taxes.
There are several other proposals, but they only apply to specific tax issues that some Corporations and Stockholders face.
There has never been a more important time for every U.S. Taxpayer to seek the advice of a Tax Professional.
At Cocheran & Associates we are prepared and capable of offering "VIRTUAL" professional tax services. We are in touch with the IRS and industry associations every day to stay on top the rapid changes that are being made.
If you have any questions, please reach out to us.
David Hill, Enrolled Agent
One of America's Tax Professionals
Cocheran and Associates, LLC
226 NW 164th St.
Edmond, OK 73012