An important part of financial planning is Tax Planning. With so many changes to the tax code this year HFM is highly encouraging everyone to review their tax plan or make a tax plan this summer with their CPA or tax advisor. Don’t get caught in April 2019 with a potentially higher tax bill than 2017. Now is the time you should consider making changes to your withholding NOT in December 2018. Read the latest news from the IRS.gov on what to do and we remind you to consult with your tax adviser as well.
IR-2018-145, June 28, 2018
Washington, DC – Taxpayers who owed additional tax when they filed their 2017 federal tax return earlier this year can avoid another unexpected tax bill next year by doing a “paycheck checkup” as soon as possible, according to the Internal Revenue Service.
The Tax Cuts and Jobs Act, the tax reform legislation passed in December, made major changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the Child Tax Credit, limiting or discontinuing certain deductions and changing tax rates and brackets.
These far-reaching changes could have a big impact on the tax refund or balance due on the tax return people file next year. The IRS encourages every employee to do a “paycheck checkup” soon to ensure they have the correct amount of tax taken out of their pay.
Checking and adjusting withholding now can prevent an unexpected tax bill and penalties next year at tax time. The IRS Withholding Calculator ( https://www.irs.gov/individuals/irs-withholding-calculator) and Publication 505, Tax Withholding and Estimated Tax, can help.
The IRS encourages taxpayers to be proactive:
Taxpayers can get more information on these topics at www.irs.gov/withholding. For information on steps taxpayers can take now to get a jump on next year’s taxes, including how the new tax law may affect them, visit IRS.gov/getready.
Now that the holidays are over and the new year has begun it’s time to start thinking about Tax Season. We scoured the internet and picked out a few important points that you as an Employee, Retiree or Business Owner should know for filing your return.
Tax Season Filing deadline– Begins Monday, Jan. 23, 2017 and you have an extra weekend as returns or extensions are due by midnight Tuesday, April 18, 2017.
Delayed Refunds – Taxpayers claiming certain tax credits like the Earned Income Tax credit (EITC) or the Additional Child Tax Credit (ACTC) should expect a longer wait for refunds- until mid February. Read more information here https://www.irs.gov/uac/2017-tax-filing-season-begins-jan-23-for-nations-taxpayers-with-tax-returns-due-april-18
Where’s My Refund? Great tool that allows you to check the status of your refund. Check out this video on how it works. https://www.youtube.com/watch?v=-WrZR2qc-3g
1099’s – Your investment account Custodian is responsible for issuing 1099’s. The mail dates vary throughout February and March. HFM clients will receive more information via email about their specific 1099 mail dates as they become available to us.
Tax Scams – Please note that the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. Note that the IRS will never
Read about examples of recent scams https://www.irs.gov/uac/tax-scams-consumer-alerts For more information on phishing scams please see https://www.irs.gov/uac/suspicious-e-mails-and-identity-theft and https://www.irs.gov/pub/irs-pdf/p5027.pdf
We hope you have found this information helpful. We are not professional tax advisors so please consult with your CPA for your personal situation. If you don’t have a CPA and you need an introduction please let us know, we would be happy to connect you with one.