Remember Congress passing a pretty big tax overhaul bill last year? Almost none of it affected last tax season. The IRS has been scrambling to implement all the changes (mostly good) for this upcoming tax season, and there are some big changes. Alas, it’s premature to go over most of the details now since we fully expect Congress to do some “tweaking” before year end. They can’t tweak earlier because, you know, elections and general procrastination…
Here are some of the changes that won’t be “tweaked”:
- The Standard Deduction has doubled, which is good news since most itemized deductions (Schedule A) have been eliminated.
- Bad News – unreimbursed employee expenses (Form 2106) are also eliminated, so if you are out-of-pocket for mileage, meals, cell phone, home office, etc., look for reimbursement from your employer. It is no longer deductible on your tax return! Note: this change applies to employees, NOT self-employed, so if you receive a W-2 but are not reimbursed for business-related expenses (salesmen, truckers, etc.), you need to talk to your employer now!
Reminders –
- If you pay estimated taxes, your 3rd payment is due on 9/17/2018.
- Partnerships and S-Corporations on extension are also due 9/17/2018.
- Personal and C-Corporation returns on extension are due 10/15/2018.
And finally, yet another reminder that scammers are out in force! The IRS (and most states) will never contact you by phone, text, or email about collections. They prefer to send nice letters, then unpleasant letters, then ugly letters. It’s best to just ignore any contact not made in writing and forward any letters you do receive to us for verification.