The IRS has confirmed it will begin accepting 2019 tax returns on January 27^th. Here’s what you need to know for this upcoming tax season.

2019 tax season

The deadline to file 2019 tax returns and pay tax owed is Wednesday, April 15, 2020. The IRS expects more than 150 million individual tax returns to be filed. If you cannot file your return by April 15^th, you may apply for an extension to file until October 15^th, but this is not an extension of time to pay your tax. Taxes owed are still due by April 15^th.

Are there any benefits to filing right when tax season officially begins?

There are a few benefits to preparing your returns earlier rather than later—namely blocking identity theft more successfully by filing before a fraudster can. The other advantage is that refunds tend to be issued more quickly before the volume picks up later in March and April.

What’s new this filing season?

There are a number of changes from December 2017’s Tax Cuts and Jobs Act that will still make an impact this filing season. Check out our Tax Reform Center for everything you and your business need to know.

Here are some highlights:

• Increased standard deduction- The standard deduction for 2019 has increased to:
  -$12,200 for single filers and married filing separately,
  -$18,350 for heads of household, and
  -$24,400 for joint filers and qualifying widow(er)s.
• Medical expense deduction- The adjusted gross income (AGI) “floor” for 2019 was scheduled to increase to 10%, but it was recently reinstated to 7.5% for 2019 and 2020. You can still deduct medical expenses that exceed 7.5% of your AGI.
• Lower tax rates and changed income ranges-
  -The brackets before tax reform were: 10%, 15%, 25%, 28%, 33%, 35% and 39.6%
  -The 2019 brackets are: 10%, 12%, 22%, 24%, 32%, 35% and 37%

Other important deadlines

You’ll want to download our 2020 business and individual tax calendars for information on what is due in the coming months.

Questions? Contact us.