New Year and New Decade Blessings to All! 2020 is a delightful number for a New Year filled with Hope!
News & Notes from the Ladies at O'Neills to assist you in preparing 2019 Income Tax Returns
Taxpayer Certainty and Disaster Relief Act of 2019 - passed in December of 2019 - Some Changes which may affect you:
2020 Business Mileage Rate: 57.5 cents per mile
Medical Mileage Rate: 20 cents per mile
Charitable Contribution: 14 cents per mile
Required Minimum Distribution (RMD) age is 72 years (for those who turn 70 1/2 years of age after 12/31/2019)
Alimony is not deductible by the payer and not taxable to the recipient for divorce settlements effective 1/1/2019. Alimony remains either taxable or deductible for pre-1/1/2019 agreements.
529 Education Funds may be used for pre-college education expenses; qualified apprenticeship education programs and repayment of qualified student loan debt
RETROACTIVE TO 2018 and effective for 2019
Exclusion of Income from discharge of principal residence debt
Principle Mortgage Insurance (PMI) deductible as qualified residence interest on Schedule A of Form 1040
Medical Expense deduction floor of 7.5% for all taxpayers
Energy Efficient Homes Credit - windows, exterior doors, qualified roof replacement, heating/air conditioning systems
Electric Car Credit
Note: The Staff at O'Neills will review your 2018 return and advise if a 2018 amendment is beneficial
Form 8332 (Non-Custodial Spouse Dependent Form) MUST be signed and filed with each pertinent tax return - no exceptions!
There is no Federal penalty for electing not to purchase a qualified health insurance plan in 2019 and thereafter. A State Health Insurance Mandate Penalty applies in MA, NJ, VT and DC.
Form 1095-A (Marketplace Health Insurance Annual Statement) is required to file your income tax return - no exceptions.
The IRS will begin accepting electronically filed income tax returns on January 27, 2020.
Foreign Financial Accounts with an aggregate total greater than $ 10,000 MUST be reported to the IRS.
Crypto-currency Account activity may be taxable and MUST be reported on your annual income tax return, if applicable.
Internet Sales Businesses must comply with Sales Tax Nexus rules by collecting sales tax for the state to which the item is sold and shipped. It is no longer a requirement to maintain a physical presence in the state of delivery of the item(s). If you think that this new rule may apply to your business activity, contact Aimee to discuss the matter, further.
REMINDERS * DUE DATES * OFFICE POLICIES
Forms W-2 and 1099 are to be issued by 1/31/2020. If you are a business owner/employer and you elect for O'Neills to prepare your W-2 and/or 1099 documents, please contact our office ASAP.
If you neglected to send in your final estimated payment - send it ASAP rather than wait to remit payment with your tax return - you may incur a penalty for failing to file your final installment.
MARCH 1 - early filing deadline for qualified farmers' 2019 Income Tax Returns
MARCH 15 - filing deadline for Partnerships (1065) and Subchapter S Corporate (1120S) Income Tax Returns
APRIL 15 - filing deadline for:
Trusts and other Fiduciaries (1041)
contributions to qualified IRA programs for 2019 deduction
Maryland Department of Assessments and Taxation Form 1 (Business Entities)
To request O'Neills to file a timely extension, you must contact our office not later than 7 days prior to the deadline to file. The filing of an extension does not eliminate penalties and interest for late payment of taxes due. The Staff at O'Neills will provide a recommendation for estimated tax payment to be paid with the extension filing.
Please call the office at 410-838-6980 or send an email to firstname.lastname@example.org to schedule an appointment to meet with Aimee or Mary Lou or to deliver your tax documentation for preparation. Please plan for at least 15 to 30 minutes to deliver your tax documents, update your file information, sign required documents and answer pertinent questions. You may request the information forms to be sent to you prior to your appointment. Tax Information Organizers are available by request and on the O'Neills website at www.oneillenterprises.com.
FEES and E-FILING:
Tax Preparation Fees must be paid and E-file Authorization Forms must be signed and returned to our office BEFORE your return will be e-filed. Failure to remit payment and/or the signed authorization form will delay the filing of your return.
Annual Tax Prep fees will not increase without notice. Should it be necessary to increase your fee for the preparation of your 2019 returns, you will be notified of the amount of the fee increase prior to the completion of your income tax return. Effective July 1, 2020 the hourly rate is $ 65 for bookkeeping and payroll support services.
ELECTRONIC DELIVERY: O'Neills provides electronic delivery options:
FAX: 410-836-0772 - This is the most secure method by which to deliver documents. There is no surcharge for this service. Please call or send an email to inform the office that documents will be sent via FAX and include a reply telephone/email contact on your fax cover page so that the office may contact you to confirm receipt of the faxed documents.
EMAIL: documents may be delivered as .pdf attachments to an email. REMOVE SOCIAL SECURITY NUMBERS from documents which are sent via email. There is no surcharge for this service.
Email address: email@example.com
ENCRYPTED DELIVERY: A one-time annual fee of $ 25 is collected for the set up of an encrypted delivery portal to receive and transmit your tax returns and documents between you and our office. Please contact the office by phone (410-838-6980) or email: firstname.lastname@example.org to schedule this service. The
$ 25 set-up fee will be added to your annual tax preparation fee.
You are welcomed to mail documents to our office. Please call or send an email to inform the office that the documents have been mailed. You will receive a telephone call or email from the office to confirm receipt of your documents through the mail or other ground delivery (UPS, etc.)
You may elect to have a paper copy of your tax returns mailed to you. There is a $ 25 surcharge for this service plus the mailing expense. The mailing fee will be added to your annual income tax preparation fee.