February Tax Tips

Today TaxMama® says that we are flooded with questions from members. So drop by the TaxQuips forum to see if someone already received an answer to one of your issues.

Dear Family,

Well, the U.S. Government is finally back open – if for only three weeks. The IRS is driving along on all cylinders. But it’s really hard to get through to them or to the Taxpayer Advocate Service. (TaxPros who are subscribed to my IRS News feed will get a link to a special service soon.) So what’s a taxpayer to do?

1) If you have issues that really need answers before you can file – plan to put your tax return on extension. That way, you’ll get the answers you need when things slow down.

2) Ladies, if you got married recently, make sure the name on your tax return matches your Social Security card. If not, either use the name that’s on your SS card on your tax return, or put the tax return on extension until you update your name with the Social Security Administration. Having the wrong name can hold up your refunds.

3) Check TaxMama’s® Tax Calendar regularly to see if you have any deadlines coming up. TaxMama’s® 2019 calendar is ready for you – http://taxmama.com/tax-calendar/

4) Slow down on your frantic filing. Many information forms have a February 28th filing deadline. So you might not get these forms before the first week of March:
      1099-INT; 1099-DIV; 1099-B; 1099-C;1098

Warning: the investment forms – especially the 1099-Bs are apt to be wrong. The companies issue them to meet the deadlines – then send out corrected, amended forms a month later.

5) If you really, really need your refund soon, file with the best estimates you have for those issues where you have questions – and plan to file an amended return. Be sure to include a disclosure statement with your tax return to explain about the estimates.

6) We are working with an entirely new tax law this year. There are a lot of changes. So make sure you know which ones affect you, especially if you are preparing your own tax return. The IRS has released nearly 300 pages of procedures just on the 20% Qualified Business Income deduction. You can wade your way through the raw data here – https://www.irs.gov/downloads/irs-drop
Or visit the IRS’s special website for businesses – https://www.irs.gov/newsroom/find-out-how-tax-reform-affects-your-businesses-bottom-line-at-irsgov

7) For those people who bought the Trump Tax Cut book, the book’s website is now open. http://www.trumptaxplanbook.com/ The site will tell you where to find the password, in the book, so you can log in and get the resources handout and some of the other updates, so you can finish your 2018 tax returns – and do some planning for 2019.

And remember, you can find answers to all kinds of questions about taxes and business issues, free. Where? Where else? At http://iTaxMama.com/AskQuestion

To make comments please drop into the TaxQuips Forum.