Deadline for 2018 W-2s
Remember: All W-2s must be filed by Thursday, January 31, 2019.
2019: A Challenging Tax Year Ahead
The coming 2019 tax season looks to be the most challenging in over 40 years.
The new tax bill is over 400 pages. There is not enough space or time here to explain all of the changes effective for the 2018 returns. Some of the changes that will affect most taxpayers are:
- There will be no more personal exemptions. The Standard deduction has changed to $12,000 for Single and $24,000 for Married Filing Joint
- The maximum amount for state and local taxes that will be deductible is capped at $10,000 - no matter your income.
- There will be NO more miscellaneous deductions allowed on Schedule A; the so-called long form.
- Casualty losses will no longer be deductible unless they are part of a federally declared natural disaster, such as the California wildfires.
Visit: https://www.irs.gov/pub/irs-pdf/p5307.pdf for more information about changes for individuals and families.
- One item that will affect all businesses with employees in Washington State will be the new Family Leave Act (FLA). The new law will be administered through the Washington State Employment Security Department. FLA starts January 1, 2019, and there will be at least one additional form that will have to be filed quarterly.
Visit: https://www.paidleave.wa.gov/employers for details about how this new rule affects your business, also visit: www.paidleave.wa.gov/premium-calculator for the premium calculator.
- Deductions for entertainment, such as taking a client to a ball game or the theater, will no longer be deductible.
- The meals deduction is 50% max, and must be for business purposes.
- There's a new pass-through deduction for S Corps and Partnerships. The computation is quite complicated. The deduction may not apply to service type of enterprises such as law offices, accountants, and doctors.
- The new mileage rate for 2019 will be 58 cents per mile for business travel when using a personal vehicle.
- The job credit for hiring veterans is still available, no matter when they served in the military.
Taxpayers must become educated about the many changes in order to be prepared for the 2019 tax season.
We wish you a happy and prosperous New Year!
---David S. Nelson, CPA