So, now everyone thinks they are a do-it-yourself tax preparer. That’s wonderful!
I’m curious: does the box you bought your software in tell you the following: Tax refunds may face additional examination before you receive them.
Yes, welcome to Income “Tax Hell Oops” Season 2018-2017 Taxes.
While “the loss of deductibility effect” on the new tax laws actually take place for 2018 taxes, President Donald Trump says many are skirting the IRS system now and for this year’s taxes. He says he’s going to do something about it.
You’ll need a Social Security number in order to claim certain tax credits!
The President released his budget Monday for fiscal 2019, proposing $11.1 billion for the IRS including $2.3 billion for tax filing and compliance applications and $110 million to modernize the agency’s computer systems.
Some examples:
*Error correction: The IRS would have the authority to “correct more errors on tax returns before refunds are issued,” according to budget language. Short version: Delay in refunds.
*Claiming Credits: The White House has also proposed requiring a valid Social Security number in order for filers to claim the child tax credit and earned income tax credit. The child tax credit is now $2,000 per qualifying child, double the amount under the old framework.
Meanwhile, the amount of earned income tax credit a filer can claim depends on that person’s earned and adjusted gross income, as well as the number of qualifying children in a given household.
For the 2018 tax year, the maximum amount of credit a family can claim for three or more qualifying children is $6,444. That number is as low as $520 for filers with no kids.
If you think the requirement for a Social Security number sounds familiar, you’re right: A similar concept was proposed by House Republicans as part of the tax overhaul.
Certain workers aren’t eligible for Social Security numbers, but may use individual taxpayer identification numbers or ITINs in order to file their tax returns. Those filers include U.S. resident aliens, among others.
Short term: Delay in Refunds!.
These are just two examples of the horrendous tax season in front of you. As of Monday as well, the IRS issued out ” Tax Extenders”. What does that mean? Well, it means ( get ready) that it could be a tax deduction or credit that might have been lowered or phased out. If you did your taxes already, I am sure you wish maybe that tax deduction or credit would have been on the tax return this year?.
Guess what? An extender means it’s back on! And now, an amendment might need to be considered.
Short term: Delay in Correct Refund
And if the rumors are true (and they are) that the IRS has not created the forms yet to adhere to the big changes in the tax law that should be in place, by Jan of 2019 ( for 2018 taxes), and you really want to do your taxes yourself for the next two years?
There are times when we need a specialist as a primary doctor. Those times are sadly, when we are deathly I’ll and thank the Lord I’m sure it happens rarly in one’s life.
In our new financial world–now is the time. Hire a tax professional. For proper preparation for 2017, sound tax planning for 2018 taxes, finally coupled with proper 2018 tax preparation in 2019.
Yes, like a great medicial doctor in your life, it will require committment and services fees- but the cost of not preparing- like with your health-care will indeed cost you more.
Anthony Rivieccio is the founder and CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm specializing in solving financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, and The Bronx Chronicle. Mr Rivieccio is also currently an Adjunct Professor of Business , Finance & Accounting for both, City University of New York & Monroe College, a Private University. For financial assistance or a FREE 2017 Income Tax Analysis. Anthony can be reached at (347) 575-5045.
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The IRS did not “issue out ‘Tax Extenders'”, that was part of the budget bill passed by Congress. The IRS (like the rest of us) was blindsided by these extenders and is trying to update their forms and guidance to match. Don’t blame the IRS for this particular mess.