Tax Season: What you need to know
Tax season is upon us. In fact, the Internal Revenue Service has begun receiving 2018 federal tax returns.
You can file for free electronically through the IRS website or download paper forms. Also, tax preparation companies such as Turbo Tax and H&R Block are filing tax returns to the IRS on behalf of their customers.
According to U.S. News & World Report, the most significant changes this year are, tax rate changes, the doubling of the child tax credit, estate tax changes, business income, alimony payments and charitable and medical deductions. Also, the standard deduction nearly doubled to $12,000 for single tax filers and $24,000 for married couples filing jointly.
“Everyone has a different tax situation, some will come out better with the new changes while some, worse,” says Ellsworth Buck of GreatFlorida Insurance, Florida’s top independent homeowners insurance agency.
How to Prepare:
Print a tax checklist from the IRS, Turbo Tax or H&R Block. Collect and file necessary tax documents such as W-2s from your employers and 1099s from your bank. Do not forget to gather charitable contribution receipts.
Pull out old returns to remind yourself of the credits and deductions you claimed the previous year.
Common life events that could affect your taxes include, marriage, divorce, growing your family, educational expenses, buying or selling a home, retirement, accepting a promotion, receiving an inheritance and dealing with a death.
You have until April, 15 to file your 2018 taxes electronically or postmark your paper taxes. Tax returns for LLCs and S-corporations are due, March 15.