4th Quarter Estimated Payments are due to the IRS by January 15, 2019
1st Quarter 2019 Estimated payment are due on April 15, 2019
Check IRS.Gov for the Withholding Calculator tool to make sure you are having enough tax withheld.
Business Taxes Updates
The 2018 Standard Mileage Rate is 54.5 cents
Many owners of sole proprietorships, partnerships, trusts and S corporations may deduct 20 percent of their qualified business income. The new deduction -- referred to as the Section 199A deduction or the qualified business income deduction -- is available for tax years beginning after Dec. 31, 2017.
The new law eliminates the deduction for expenses related to entertainment, amusement or recreation. However, taxpayers can continue to deduct 50 percent of the cost of business meals if the taxpayer or an employee of the taxpayer is present and other conditions are met.
Businesses are now able to write off most depreciable business assets in the year the business places them in service. The 100-percent depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances and furniture generally qualify.
Employers are required to file W-2s and 1099s by January 31st with the federal government
Personal Tax Return Updates
The standard deduction for married filing jointly rises to $24,400 for tax year 2019, up $400 from the prior year.
For single taxpayers and married individuals filing separately, the standard deduction rises to $12,200 for 2019, up $200.
For heads of households, the standard deduction will be $18,350 for tax year 2019, up $350.
The personal exemption for tax year 2019 remains at 0, as it was for 2018, this elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act.
For tax year 2019, the top rate is 37 percent for individual single taxpayers with incomes greater than $510,300 ($612,350 for married couples filing jointly). The other rates are:
35 percent, for incomes over $204,100 ($408,200 for married couples filing jointly);
32 percent for incomes over $160,725 ($321,450 for married couples filing jointly);
24 percent for incomes over $84,200 ($168,400 for married couples filing jointly);
22 percent for incomes over $39,475 ($78,950 for married couples filing jointly);
12 percent for incomes over $9,700 ($19,400 for married couples filing jointly).
The lowest rate is 10 percent for incomes of single individuals with incomes of $9,700 or less ($19,400 for married couples filing jointly).
For calendar year 2019, the dollar amount used to determine the penalty for not maintaining minimum essential health coverage is 0, per the Tax Cuts and Jobs act; for 2018 the amount was $695.
The annual exclusion for gifts is $15,000 for calendar year 2019, as it was for calendar year 2018.
Medical Mileage for 2018 is .18 cents per mile.
Charitable donation mileage for 2018 is .14 cents per mile.
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