Gear Up for Tax Season – Are You Ready for Tax Filing?
If you have a small business, are bank accounts reconciled? Are year-end credit card account and loan balances correct? Do you have W-9 forms from individuals that received a payment of $600 or more for services provided to you? Is your tax appointment scheduled? These are all things to start thinking about.
In a perfect world accountants would love to receive business books that are reconciled and income and expenses allocated correctly! But we know that isn’t always the case.
Now is a good time to start sorting through income and expense accounts for your business to ensure items are classified correctly. This is extremely important for producing accurate financial statements and issuing 1099s and W-2s. Remember – the due date to file these year-end forms is January 31st.
2018 produced one of the largest changes to tax law in decades. The layout for Form 1040 changed, new business deductions were created, tax brackets changed, and the standard deduction doubled causing fewer taxpayers to itemize. It appears these same tax laws will carry through the 2019 tax year.
Have you moved? Sold your house? Marital status changed? These are important life changing events your accountant needs to know about. Also, the IRS is now requiring tax professionals to verify and audit certain parts of your information to ensure you are not fraudulently claiming personal tax credits. As such, we may need to see social security cards and tuition statements.
Are you retired? Do you still have a filing requirement? If earned income is less than the standard deduction there is a good chance you won’t need to file. Once you have all income tax information gathered up, visit with your CPA to help answer that question.
Were estimated tax payments made for the 2019 tax year? Will there be significant changes in income for 2020? These are other important items to discuss with your CPA during your tax appointment. Although 2019 will be the focus it doesn’t hurt to get geared up for 2020 as well!
Latest posts by Joei Tieman (see all)
- Gear Up for Tax Season – Are You Ready for Tax Filing? - January 13, 2020
- Another Change to Form 1040 - September 30, 2019
- Business Tax Reform - January 3, 2018