When you consider your business, and the driving force behind it, you think of delivering excellent products and service, of innovating, of growing sustainably into the future. But do you think of record keeping? You should! It is one of the most critical functions involved in running a strong business.
If you’ve ever wanted tax simplification, where you can file your tax return on a postcard, you may have your wish. But maybe not… In the past, we had a Form 1040, a simplified 1040-A and an even more simplified 1040-EZ. Not many people fill out returns by hand anymore, but if you did, you might accidentally pick the wrong form. Starting with 2018 returns being filed now, there is only Form 1040, which will be the only form some taxpayers will file, but for everyone else, there are up to six additional schedules.
The full effects of The Tax Cuts and Jobs Act (TCJA) passed in December 2017 are being felt. There are so many tax changes (have you seen the new forms?), it could be years before all the changes are fully understood. If you haven’t figured it out yet, you may need to adjust your withholding, especially if your “refund” turned into a balance due.
In a recent article I told you that many taxpayers are finding that they are getting smaller refunds, or actually owe with their return, because the Tax Cuts and Jobs Act of 2017 modified withholding tables for employees, resulting in less tax withheld. Please remember that in many cases your tax liability will be less than it was in 2017 given the same income and deductions, but the withholding tables may have been a bit too aggressive in reducing withholding so many are finding that they have to pay the IRS this year.