Today TaxMama® wants to remind you it’s time to start doing your year-end planning for 2018 – or, if it’s too late for some strategies – to start working on next year. NOW!
Dear Family,
November is the perfect time to do some planning. Here are some things to consider:
- Review your 2018 withholding on jobs and pension – it may not be enough. And you still have a few pay periods where you can raise your withholding. Provide payroll with an updated Form W-4 (Do you need to change your state’s withholding, too?)
- Review your 2018 estimated tax payments. You might need to make an extra payment by January 15th, 2019.
- This year, small businesses, it is essential to do tax planning to see the effects of TCJA – how will the new Qualified Business Income Deduction affect you? If you have not already done a review to see if you need to change your business entity to an S corporation or other pass-through entity; or to revise your payroll policies – do it now to get ready for 2019.
- Should you be opening a SEP-IRA, or 401k plan for your company? These plans give you a wealth of opportunities to cut your taxes – and to build up savings. If you want a 401k plan (solo or for employees), you must open it before December 31st.
- How would your company benefit from providing child care to employees? There is a special tax credit for employers who pay for their employees’ child care – even for very small employers, who employ their own family members.
- How do the restrictions on deductions for meals and entertainment affect your spending and deductions? Do you need to cut out some lavish or extravagant entertainment practices?
- How does the elimination of the employee business expense affect you?
- Or your employees? Should you be doing something different to help them?
- Here are some considerations if they want to switch to being freelancers –
https://taxmama.com/tax-quips/switching-from-employee-status-to-independent-contractor/
To help you plan, please join me on December 5th for a Tax Cuts and Jobs Act webinar to help folks who are self-employed, and folks with large employee business expenses to restructure your tax picture and cut your taxes. https://taxmama.com/asktaxmama/webinar-the-trump-tax-plan/
To make comments please drop into the TaxQuips Forum.
And remember, you can find answers to all kinds of questions about taxes and business issues, free. Where? Where else? At www.TaxMama.com.
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