Today TaxMama® realizes that this is the last day of January. There are some important things for you to know today.
Dear Friends and Family,
Let’s start with today’s deadline – January 31st. That’s the deadline for W-2s and 1099-MISC forms to be filed. Employers already know and are meeting the deadline. But small businesses without employees…if you want to claim a deduction for $600 or more that you paid to someone for services – that deadline is today. What, you didn’t know? Or you’re still trying to get them to give you their Social Security Number? Don’t panic. You can get a 30 day extension using Form 8809. https://www.irs.gov/pub/irs-pdf/f8809.pdf
The IRS opened their electronic filing system on January 29th. But please, don’t be in a hurry to file. In fact, you just might want to put your tax return on extension. I’ll tell you why in a moment.
These tax provisions that might affect your tax return, have expired, effective 12/31/2016:
- Exclusion from Gross Income of Discharge of Qualified Principal Residence Indebtedness.
- Mortgage Insurance Premiums Treated as Qualified Residence Interest.
- Above-The-Line Deduction for Qualified Tuition and Related Expenses
- Empowerment Zone Tax Incentives.
- $500 Lifetime Credit for Nonbusiness Energy Property
- 30% Credit for Residential Energy Property – on geothermal, or wind energy power units and power cells
The credit is still good for qualified solar electric and water heating properties
- Credit for New Qualified Fuel Cell Motor Vehicles
- Credit for 2-Wheeled Plug-In Electric Vehicles
As I told you earlier there is a Tax Extender Bill introduced by Senator Orrin Hatch on December 20, 2017. Nothing has happened to it yet.
But I am confident that it will be acted on by spring. But when passed, it will restore everything I’ve just listed, retroactively to January 1, 2017.
It’s often better to file for all these tax breaks on an original tax return. Amended returns get more closely scrutinized. So, unless you’re in a real hurry for your money – or don’t fear an audit, put your tax return on extension. Incidentally, you don’t have to wait until April 17th to do that. You can file Form 4868 as early as you like. https://www.irs.gov/pub/irs-pdf/f4868.pdf So don’t wait until the last minute.
To make comments and tell us about how the Trump Tax plan affects you, please drop into the TaxQuips Forum.
And remember, you can find answers to all kinds of questions about the Tax Cuts and Jobs Act and other tax and business issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed version of TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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Note: Correction to Tip #6, courtesy of Lori Christian of http://www.whidbeysunwind.com/