Get Ready! Tax Season 2020 is Around the Corner – Are You Prepared?

The year 2019 was a whirlwind of changes and surprises in the tax world. As we bid adieu to the old year and gear up for the upcoming Tax Season 2020, it’s crucial to get your ducks in a row and prepare to face the new year head-on. Whether you’re a seasoned employee or a business owner, here are some essential steps to help you navigate through the tax season with confidence and ease.

Adjust Your Withholding:
– Conduct a “payroll check-up” to ensure you’re having enough taxes withheld from your wages.
– Utilize the IRS Website Tax Withholding Estimator for assistance if needed.

Adjust Your Employer Retirement Plan Contribution:
– Maximize contributions to your Employer Provided Retirement Plan, such as a 401K or a 403b.
– Take advantage of catch-up contributions for those over 50 years of age.

Check Your Eligibility For Individual Retirement Account {IRA} Contributions:
– Explore the option of contributing to an IRA in addition to your employer-provided retirement accounts.
– Maximize your contributions by consulting with your tax preparer.

Estimating Annual Income For Small and Medium Business Owners:
– Calculate and pay taxes every quarter as a business owner.
– Utilize the Electronic Federal Tax Payment System Account on eftps.gov for easy handling of payments.

Making Retirement Plan Contributions For Business Owners:
– Consider contributing to a Solo 401K/ SEP/ SIMPLE IRA as a business owner.
– Consult with an Enrolled Agent to establish eligibility and contribution limits.

Review Changes To Rental Income and Safe Harbor Requirements:
– Stay updated on the Internal Revenue Service clarifications regarding rental income and safe harbor deductions.
– Ensure compliance with the necessary requirements to claim deductions under §199A.

Renew Your Individual Tax Identification Number {ITIN}:
– Renew expiring ITINs for yourself or family members.
– Refer to the FAQ’s issued by the IRS for further information.

In order to make the upcoming tax season a smooth and successful one, proper preparation and organization are key. Ensure you have all your records in order and communicate with your tax professional for any guidance and assistance needed. By planning ahead and staying informed, you can tackle Tax Season 2020 with confidence and ease.

As a reminder, please consult an Enrolled Agent for your specific tax needs and visit my website www.mntaxbiz.com for more information and contact details. Let’s make Tax Season 2020 a breeze together!