Tax preparation guides from firms
Tax help tricks from providers? You can also split your refund among the direct deposit choices by completing Form 8888.18? You’ll need to let your tax preparer know what you want to do, so that can be indicated on your return. If you use the same preparer that you used last year, they are likely to have your previous information. If you use a new preparer, last year’s return can serve as a reminder to the preparer—and you—of some items you don’t want to overlook. Here are two examples: Interest and dividends. Last year’s return should indicate which banks, mutual funds, or other financial institutions sent you 1099 forms. Use that list to make sure you received 1099s from them again this year (unless you closed those accounts or sold the investments in the meantime).
The SECURE Act, which became law at the end of 2019, includes several provisions that apply to high income earners. They include: The age for Required Minimum Distributions (RMDs) from retirement plan accounts was raised to 72. However, if you turned 70 1/2 in 2019, you will be required to take a disbursement in 2020. Eliminating the age limit for contributions to Traditional IRA accounts. Increasing annual contribution limits for 401(k) and 103(b) accounts to $19,500, and to $13,400 for SIMPLE IRAs. The contribution maximum for Traditional and Roth IRAs remains at $6,000 per year. Increasing the Social Security wage base to $137,700. Increasing the income ceiling for Roth IRAs. Contributions now phase out at $124,000 and $139,000 of modified adjusted gross income. ($196,000 to $206,000 if you’re married filing jointly.) Increasing limits for long-term care premium deductions to $5,430 per person for people age 71 or over, and to $4,3500 for people between the ages of 61 and 70. Self-employed earners may write off 100% of their premiums using Schedule 1 of the 1040 form. These changes are significant because they make it possible for high income earners to make additional contributions to a retirement plan during the tax year.
The Internal Revenue Code is set up to provide numerous tax breaks to individuals and businesses alike. Even the IRS acknowledges that you must keep some money to live on and with which to run your enterprise. Some small business tax savings strategies, like timing income and expenses, must be accomplished before the end of the tax year. But others, such as funding a retirement plan, can be done at any time before you file your tax return. Discover more details at https://greentree.tax/tax-preparation-service-in-houston/.
Current research indicates that individuals are likely to make errors when preparing their tax returns. The following tax tips were developed to help you avoid some of the common errors dealing with the standard deduction for seniors, the taxable amount of Social Security benefits, and the Credit for the Elderly and Disabled. In addition, you’ll find links below to helpful publications as well as information on how to obtain free tax assistance. If you do not itemize your deductions, you can get a higher standard deduction amount if you and/or your spouse are 65 years old or older. You can get an even higher standard deduction amount if either you or your spouse is blind. (See Form 1040 and Form 1040A instructions.)