IRS has already opened the electronic tax filing processing. Taxpayers looking for refunds are already e-filing and waiting for their money to be returned. (See below link to chart on estimations of tax refunds dates.) However, families with children should calculate if they qualify for the Child Tax Credit, which has increased for 2018. Keep in mind that the 2019 tax filing season is going to be an interesting one due to the Tax Cuts and Jobs Act of 2017. There are a lot of changes which could affect. you whether as an individual taxpayer or have a business. Seeking professional advice could be the norm for 2019. Contact Mir Taxes if you have questions, issues, concerns, say hello. Have a good season and check the calendar for other due dates specific to your situation. 

Tools for tax time!

Tax Preparation Checklist - start getting ready to get your tax return prepared for the 2018 tax year. The Checklist has been created to assist in getting organized. Click here. 

2019 U.S. Tax Calendar - keep yourself informed so you do not miss any tax deadlines

 _____________

January 28, 2018 - IRS process returns that are electronically filed

April 15, 2019 - Tax Day - US Residents

June 15, 2019 - International Tax Day - Expats

IRS to Waive Estimated Tax Penalty

The IRS released IR-2019-03, announcing that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year.

The IRS is generally waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two. The usual percentage threshold is 90 percent to avoid a penalty.

The waiver computation announced today will be integrated into commercially-available tax software and reflected in the forthcoming revision of Form 2210 and instructions.

This relief is designed to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to reflect an array of changes under the Tax Cuts and Jobs Act (TCJA), the far-reaching tax reform law enacted in December 2017. 

The updated federal tax withholding tables, released in early 2018, largely reflected the lower tax rates and the increased standard deduction brought about by the new law. This generally meant taxpayers had less tax withheld in 2018 and saw more in their paychecks. 

However, the withholding tables couldn't fully factor in other changes, such as the suspension of dependency exemptions and reduced itemized deductions. As a result, some taxpayers could have paid too little tax during the year, if they did not submit a properly-revised W-4 withholding form to their employer or increase their estimated tax payments. The IRS and partner groups conducted an extensive outreach and education campaign throughout 2018 to encourage taxpayers to do a "Paycheck Checkup" to avoid a situation where they had too much or too little tax withheld when they file their tax returns. NSA 1/16/19.

Tax in the News