Recent Events Update
President Trump directed the IRS to extend the April 15, 2020 tax filing and payment deadline for those affected by Coronavirus this past week.
As of Saturday, March 14, 2020, no details have yet been provided to clarify who will qualify for this relief or what the revised deadline will be.
We will monitor this situation closely and provide guidance to clients once more information is available.
Anderson Tax & Consulting will continue to prepare tax returns assuming the normal filing schedule in the meantime.
2020 Standard Mileage Rates Announced
The IRS recently announced the standard mileage rates for 2020.
Beginning on January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019,
- 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and
- 14 cents per mile driven in service of charitable organizations.
IRS Announces Start to the 2020 Tax Filing Season
The IRS recently announced that taxpayers will be able to start filing their individual 2019 tax returns electronically on January 27, 2020.
IRS Commissioner Chuck Rettig said “As we enter the filing season, taxpayers should know that the dedicated workforce of the IRS stands ready to help. We encourage taxpayers to plan ahead and use the tools and information available on IRS.gov. The IRS and the nation’s tax community are committed to making this another smooth filing season.”.
The initial filing deadline for 2019 individual income tax returns is April 15, 2020.
2019 income tax must be paid by that date to avoid certain penalties and interest, but filing extensions can be submitted by the first April deadline to allow additional time to make certain retirement plan contributions or gather any remaining information necessary to file a complete and accurate tax return. An extension of time to file (Form 4868) allows taxpayers an additional six-month extension of time to file their income tax returns, or until October 15, 2020.
Changes Coming to Ohio Individual Income Tax in 2019 and 2020
Governor DeWine recently enacted tax law changes for 2019 and 2020. The 2019 changes can be read here, 2020 will be summarized and communicated in the future.
IRS Announces Start of 2019 Filing Season
Despite the government shutdown, the Internal Revenue Service confirmed on January 7, 2019 that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.
IRS Commissioner Chuck Rettig said “We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period.”.
The initial deadline for 2018 individual tax returns is April 15, 2019.
2019 IRA and 401(k) Contribution Limits Announced
The IRS recently announced the inflation-adjusted contribution limits for 2019.
The 2019 401k limit, for those under 50 years of age, is $19,000 (a $500 increase from 2018).
The 2019 IRA limit, for those under 50 years of age, increased to $6,000.
More can be read here.
