Other Tax Interesting Developments
1) The new 1040 form is the size of a (very large) postcard.
Measuring 5″ x 7.5″, it is two-sided. In tandem with the new 1040, taxpayers may need to use up to six new schedules (named Schedule 1, 2, 3, 4, 5, and 6) and/or the traditional “alphabet” schedules to fully detail their 2018 tax picture, whether they file electronically or submit a paper return. The 1040A and 1040EZ forms have been discontinued.23
2) A new W-4 form is in the works for 2020.
The I.R.S. released the 2019 Form W-4 in December, and it differed only marginally from the 2018 version. The agency needs to overhaul the form in the wake of the Tax Cuts & Jobs Act, and according to an article at the website of the Society for Human Resources, the revamped 2020 W-4 will likely be unveiled during the first quarter of 2019. (One expected change: workers will state a specific dollar amount they want withheld for a calendar year, replacing withholding allowances.)19
Scarlet Oak Financial Services can be reached at 800.871.1219 or contact us here. Click here to sign up for our weekly newsletter with the latest economic news.
This Special Report is not intended as a guide for the preparation of tax returns. The information contained herein is general in nature and is not intended to be, and should not be construed as, legal, accounting or tax advice or opinion. No information herein was intended or written to be used by readers for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions. Readers are cautioned that this material may not be applicable to, or suitable for, their specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. Readers are encouraged to consult with professional advisors for advice concerning specific matters before making any decision. Both Scarlet Oak Financial Services/ Faye Sykes and MarketingPro, Inc. disclaim any responsibility for positions taken by taxpayers in their individual cases or for any misunderstanding on the part of readers. Neither Scarlet Oak Financial Services, Faye Sykes, nor MarketingPro, Inc. assume any obligation to inform readers of any changes in tax laws or other factors that could affect the information contained herein.
This material was prepared by MarketingPro, Inc. for use by Scarlet Oak Financial Services and Faye Sykes.
Citations.
1 – cnbc.com/2019/01/08/irs-confirms-tax-season-to-start-jan-28-despite-government-shutdown.html [1/8/19]
2 – blog.indinero.com/2019-business-tax-deadlines [6/1/18]
3 – thebalancesmb.com/payroll-tax-deadlines-for-january-and-february-3974577 [1/4/19]
4 – taxact.com/support/24459/2018/irs-filing-deadlines [1/10/19]
5 – trustetc.com/resources/investor-awareness/contribution-limits [11/1/18]
6 – shrm.org/resourcesandtools/hr-topics/benefits/pages/agencies-preview-form-5500-for-2019-filings-while-revamp-delayed.aspx [11/26/18]
7 – forbes.com/sites/kellyphillipserb/2018/11/15/irs-announces-2019-tax-rates-standard-deduction-amounts-and-more [11/15/18]
8 – fool.com/taxes/2018/12/15/your-2019-guide-to-the-alternative-minimum-tax.aspx [12/15/18]
9 – paychex.com/articles/compliance/aca-individual-mandate-penalty-reduced-2019 [12/21/18]
10 – foxbusiness.com/business-leaders/amazon-ceo-jeff-bezos-divorce-subject-to-these-tax-changes [1/10/19]
11 – forbes.com/sites/ashleaebeling/2018/11/01/irs-announces-2019-retirement-plan-contribution-limits-for-401ks-and-more/ [11/1/18]
12 – irs.gov/newsroom/401k-contribution-limit-increases-to-19000-for-2019-ira-limit-increases-to-6000 [11/27/18]
13 – forbes.com/sites/ashleaebeling/2018/11/15/irs-announces-higher-2019-estate-and-gift-tax-limits [11/15/18]
14 – taxfoundation.org/2019-tax-brackets [11/28/18]
15 – thebalance.com/lifetime-learning-tax-credit-3192933 [1/11/19]
16 – tinyurl.com/ycdgvpr5 [1/14/19]
17 – investrustwealthmanagement.com/2018/09/27/what-are-the-new-rules-for-401k-hardship-withdrawals/ [9/27/18]
18 – tax.thomsonreuters.com/news/moves-that-will-maximize-the-new-deduction-for-pass-through-income [12/12/18]
19 – shrm.org/resourcesandtools/hr-topics/compensation/pages/fica-social-security-tax-2019.aspx [12/19/18]
20 – irs.gov/pub/irs-pdf/p334.pdf [2019]
21 – tinyurl.com/ycd6bl8q [12/14/18]
22 – medicareresources.org/faqs/what-kind-of-medicare-benefit-changes-can-i-expect-this-year/ [10/15/18]
23 – forbes.com/sites/howardgleckman/2019/01/15/the-new-1040-will-fit-on-a-big-postcard-but-it-wont-make-tax-filing-any-simpler [1/15/19]
