The current U.S. tax law for individuals and small business owners is very complex. Start preparing NOW. One of the most followed personal financial tips is to consult a good accountant this season.
Here are a couple of major changes that may affect your 2018 tax returns:
Different Taxation Rules
Depending on your business entity, there are a variety of a correct ways you should be filing your business taxes. And getting it right can be hard for busy entrepreneurs. Sole proprietors have different taxation rules for LLC’s, S Corporations and C Corporations. Speaking to an accountant or tax professional can help you figure out what your obligations based on your business entity federal, state, and local.
IRS Releases Regulations on Passthrough Business Deductions
In August, the Internal Revenue Service issues proposed regulations for a new provision affecting passthrough businesses. The regulations would allow many owners of sole proprietorships, partnerships, trusts and S corporations to deduct 20 percent of their qualified business income. This new deduction is referred to as the Section 199A deduction or the deduction for qualified business income was created by the Tax Cuts and Jobs Act. Eligible taxpayers can claim it for the first time on their 2018 federal income tax return.
Stay on top of these important dates:
April 15 – Tax Deadline
File electronically, no later than 11:59 p.m. If you are mailing your return, your envelope must be postmarked by the deadline date.
October 15 – Extension Deadline
This is the last day to file your tax return if you received an extension from IRS.
Need more help making sense of it all this tax season? Consider using a tax professional. If you don’t have one yet, call T. Williams & Associates!