A word to the wise: It’s never too early to start preparing for something! Whether it be out of excitement or fear of procrastinating, getting ahead of the game in most things in life makes everything a lot easier down the line, and preparing for the new tax season is no exception. Because the upcoming tax season is expected to bring some changes, the tax experts at SD Associates are here to fill you in, so you can know exactly what to expect for your 2019 tax filing.
New Year, New Forms
There will be at least three new forms making their debut in the 2019 tax season: the 1040-SR, 8995 and 8995-A. Here’s a quick breakdown of each:
- 1040-SR: Equipped with a standard deductions chart, this form is meant to be easier to read and easier to navigate for seniors.
- 8995: This form is a simplified computation of Qualified Business Income (QBI), Real Estate Investment Trust (REIT) dividends or have earned income from a Publicly Traded Partnership (PTP).
- 8995-A: This form is for taxpayers who have Qualified Business Income (QBI) from a Specified Service Trade of Business, Real Estate Investment Trust (REIT) dividends or have earned income from a Publicly Traded Partnership (PTP).
Whether we like it or not, taxes are something we all must deal with. If you’re a business owner who doesn’t have time learn the tax code, or deal with annual changes in the tax code, this may be the year to start utilizing the services from a tax professional.
NO more Affordable Care Act Penalties
Congress have thus far been unsuccessful in repealing the Affordable Care Act, the Tax Cuts and Jobs Act did eliminate the individual mandate — aka the “Obamacare penalty.” This is the penalty you pay for not having health insurance.
This penalty is only repealed in tax years 2019 and beyond. If you didn’t maintain qualifying health coverage throughout 2018, you still may face the penalty when you file your tax return in 2019.
Changes to the 1040 Form
Differing from 2018, this new season’s 1040 form has changed slightly to make things a bit easier. The IRS has combined schedules 2 and 4, and 3 and 5, to reduce the number of stand- alone schedules.
Sad Goodbyes to This Tax Break
The 2019 season is giving us something to “wine” about. The tax breaks on beer, wine and distilled spirits (a result from the Tax Cut and Jobs Act), are set to expire at the end of this fiscal year. This tax break—which once allowed small distilleries to fairly compete with wine and beer industries—will now cause owners, as well as customers, to pay more for alcohol. If you’re concerned about how the expiration of other tax breaks might impact your personal budget or business, SD Associates can help you estimate your taxes in preparation for your 2019 tax filing.
No matter what tax changes may occur from season to season, you can always count on the team at SD Associates in Elkins Park, PA to provide you with the most attentive, high-quality service. Contact us today to schedule an appointment with one of our tax experts!