Dear Client,

2018 was the first year that people filed under the new tax law (Tax Cut and Jobs Act).

Here are some interesting facts from McKay Tax client tax filing last year:

• Over 50% of you that itemized in 2017 used the standard deduction in 2018.
• Over 95% of you paid fewer taxes for 2018 than you did in 2017.

Briefly, here is what you can expect for 2019 deductions

• Standard deductions are $12,200 single, $18,350 for the head of household, and $24,400 for married jointly.
• The Dependent & Child Tax Credit remains the same at $2,000 for dependents 16 and under, and $500 for dependents 17 and over.

Here are a few things to think about for year-end tax planning:

Charitable Donations

If you think that you will itemize and you need to make a trip to the DI or Salvation Army do so before December 31^st. Be sure to get a receipt and write the items and value of each of the receipts.  Some taxpayers strategize by bunching charitable deduction into one year.  This allows them to itemize one year and take the standard the next year.  For example, donate 2019 charity in January 2020 rather than now, in December.  Make your final 2020 charity donations later in 2020 which will give you twice the deduction in one year – allowing you to itemize a greater value in 2020 and use a standardized deduction in 2021.  You could also do this with other itemized deductions.

IRA Contributions

If you are over 50 years old and wait until tax filing day in 2020, you may be able to get a deduction for an IRA for 2019 of up to $6,000 or $7,000.  If you are over 70 ½ years old and are required to take a 2019 minimum distribution from your IRA account then you can make the distribution payable to your favorite charity and have it not be taxable.

Selling Stock

If you have a few underperforming stocks that you wouldn’t mind unloading, now is the time! By selling an underperforming stock, you may be able to wipe out any capital gains from the year for any positive stock sales, plus another $3,000 in income.

Flex Spending Accounts

This time of the year is when employees must specify how much salary they will set aside in flex spending accounts (section 125) for medical and child care expenses.  Using flex funds to pay for medical and child care expenses save on Federal and State Taxes. You can also save an additional 7.65% in FICA and Medicare taxes.  Be sure to estimate medical and child care expenses low since extra money left in the accounts at year-end is usually lost.

Retirement

Please call me for the answers to your questions about early distributions from a retirement fund or planning your retirement. A simple phone call may save thousands of dollars in additional taxes and penalties.

As always feel free to call me anytime for answers to your tax questions (including major events) at no additional cost.

Look for your appointment confirmation and questionnaire to come in the mail by January 5th or sooner.

Have a Merry Christmas and Happy New Year!

Sincerely

Rich McKay

Can you believe it is that time of year again!  I’ve comprised a list of the tax forms and their due dates for 2020.  On the left, you’ll find the form type and on the right, you’ll see the date the form needs to be filed for the 2019 tax season.

We know that can be confusing, so let’s reiterate that: These are 2020 dates for 2019 tax forms regarding the 2019 tax year.

As always, if you have any questions feel free to jump over to our Contact page and reach out to us.

April 1

File with the IRS if you’re an employer that will electronically file 2018 Form 1097, Form 1098, Form 1099 (other than those with an earlier deadline) and/or Form W-2G.

If your employees receive tips and you file electronically file Form 8027.

If you’re an Applicable Large Employer and filing electronically, file Forms 1094-C and 1095-C with the IRS. For all other providers of minimum essential coverage filing electronically, file Forms 1094-B and 1095-B with the IRS.

April 15

If you’re a calendar-year corporation, file a 2018 income tax return (Form 1120) or file for an automatic six-month extension (Form 7004) and pay any tax due.

Corporations pay the first installment of 2019 estimated income taxes.

April 30

Employers report income tax withholding and FICA taxes for the first quarter of 2019 (Form 941) and pay any tax due.

May 10

Employers report income tax withholding and FICA taxes for the first quarter of 2019 (Form 941) if you deposited on time and fully paid all of the associated taxes due.

June 17

Corporations pay the second installment of 2019 estimated income taxes.

There are 21 different institutions of higher learning within a mere 50 miles of Ogden, Utah. Many of the students attending Weber State University, Stevens Henager College, Broadview University Layton, and other schools will be filing their own taxes for the first time in their young lives.

If you’re among one of those first-time tax filers, don’t panic: We’re here to help. These tips can help you glide through the tax-filing process with ease.

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If you’re a freelancer in Salt Lake City, you know that it’s important not to leave money on the table when you do your taxes.

Enter the Qualified Business Income (QBI) deduction. While the Tax Cuts and Jobs Act of 2017 that made some sweeping changes to American taxes have been criticized for being most favorable to big business, the QBI is actually aimed at the smaller entrepreneur and self-employed individual. Here’s what it means for you.

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If you’re like a lot of other small business owners in Utah, your family means a lot to you. You’ve worked hard to create an enterprise that will provide for your family’s needs — hopefully, well into the future.

Well, why not put your family to work for you? If you haven’t done it before, the new tax laws that went into effect due to the Tax Cuts and Jobs Act (TCJA) makes it an even better idea than ever!

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Entrepreneurs looking for the right place to launch a company these days would be crazy to ignore what’s happening in Utah. The area known as Silicon Slopes — which includes Salt Lake City, Lehi, Provo and Park City alike — is rapidly emerging as the new national hub for both mega-companies and startups alike.

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Ogden, Utah, has a lot to offer entrepreneurs. From its beautiful historic architecture on 25th street and loads of gorgeous mountain scenery to its comfortable affordability and housing, freelancers and other self-employed professionals have every reason to love the city and all its surrounding locations. It’s the perfect place to launch your business and turn your dreams into a livelihood.

However, tax problems can derail your plans before you get very far if you make a serious mistake — and taxes for the self-employed can be complicated. At tax time, a lot of self-employed people start having their friends who only have a few W2s to file (and we don’t blame them).

Let’s talk about some of the most important things you need to know about your taxes if you’re self-employed.

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IRS official tax dates you need to stay on top of your taxes.

2019 Federal Legal Holidays

• January 1 – New Year’s Day
• January 21 – Martin Luther King Jr.’s Birthday
• February 18 – Washington’s Birthday
• April 16 – District of Columbia Emancipation Day
• May 27 – Memorial Day
• July 4 – Independence Day
• September 2 – Labor Day
• October 14 – Columbus Day
• November 11 – Veterans’ Day
• November 28 – Thanksgiving Day
• December 25 – Christmas Day

2019 E-File Dates

• January 28 – First day to e-file and first IRS acknowledgements of e-filed returns
• April 15 – Last day to e-file timely returns and extension requests
• April 21 – Last day to retransmit rejected timely filed returns and extensions
• June 17 – Last day to e-file timely extension request for overseas taxpayers
• October 15 – Last day to e-file returns that received 6-month extension
• October 22 – Last day to retransmit rejected late or extension returns

Important 2019 Tax Dates

• January 10 – Report tips of $20 or more to employer
• January 15 – Make last 2018 estimated tax payment
• February 11 – Report tips of $20 or more to employer
• March 11 – Report tips of $20 or more to employer
• April 10 – Report tips of $20 or more to employer
• April 15 – Due date to file calendar year 2018 tax returns or request an automatic 6-month extension of time to file. Pay any tax that is due, even if you file a 6-month extension of time to file.
• April 15 – First 2019 estimated tax payment due
• May 10 – Report tips of $20 or more to employer
• June 10 – Report tips of $20 or more to employer
• June 17 – Second 2018 estimated tax payment due
• July 10 – Report tips of $20 or more to employer
• August 102– Report tips of $20 or more to employer
• September 10 – Report tips of $20 or more to employer
• September 16 – Third 2018 estimated tax payment due
• October 10 – Report tips of $20 or more to employer
• October 15 – Final due date to file calendar year 2017 tax returns for taxpayers who received a 6-month extension
• November 12 – Report tips of $20 or more to employer
• December 10 – Report tips of $20 or more to employer

Hi Business Clients!

I’ve pieced together all of the forms and calculators you should need to be ready for filing your 2018 business taxes.

The attached Corporate and LLC guidelines and other various forms are to help keep your corporation valid with the state and the federal government in addition to tax planning.   If you do not have a corporate book (Corporation) we can tell you where to obtain one.

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