Income tax advices plus companies? 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.
Tax credits are the federal government’s way of encouraging businesses and individuals to do things—or not do things—that affect the greater good. For example, you can take tax credits for hiring employees, going green, providing access to disabled employees and the public, and providing health coverage for employees. Most are part of the General Business Credit, which is quite extensive so it’s quite possible that you qualify under some of its terms. Check with your accountant. Discover more details on https://greentree.tax/best-tax-preparation-services-in-houston/.
It’s much easier to sort through everything now than when 2019 is a distant memory. In fact, reviewing and organizing your records monthly helps spread the workload throughout the year instead of cramming it all into a year-end rush. Take time to go through any forms you’ve already filed (like Form 941) to check for accuracy. Make sure to confirm EIN numbers, social security numbers, and anything else the IRS might use to identify you or your employees. And when you’re done, move all your forms, invoices, and receipts into the same place — whether it’s online or a in physical folder — so you’ll be ready for tax time.
