Helpful Tax Tips: Part 2
When should individuals expect to receive their W-2's from their employers and other tax documents from banks, investments, etc. What should someone do if they do not receive these documents? These are questions you should be thinking about. Our Mid-MO CPA firm is here to answer these questions and more in Part 2 of this 2 Part blog series: Helpful Tax Tips. If you have any questions, please call our Central MO accounting firm today. All locations and phone numbers can be found on our website at www.WTCPA.com.
Most individuals should expect to receive their Form W-2 from employers by January 31, 2020. If your employer does not mail or hand-deliver yours to you by the end of the month, check any online employee portals or contact your HR department. If you performed any freelance work during 2019 and received compensation of at least $600, you should receive a Form 1099-MISC by January 31, 2020. Investment statements are typically issued in “waves” depending on the underlying investments held. Some investment statements could be sent as early as January 31st, while many final copies may not be issued until March 15th. Most individuals can expect to receive their tax documents from mid-February to early March.
Contact your financial advisor if you have any questions about the status of your documents. Most banks and other financial institutions will have information for interest earned or interest paid available by the end of January. Keep in mind that many of these statements can be accessed online. Check with your financial institution for the delivery method of your statements if you are unsure.
Are there any major changes to tax laws that individuals should be aware of?
The SECURE Act of 2019, although not nearly as sweeping as the Tax Cuts and Jobs Act of 2017, made several updates to rules surrounding retirement plans. One of the most notable being the age increase for the onset of Required Minimum Distributions (RMDs) from age 70 ½ to age 72. Furthermore, the age restrictions for contributing to a traditional IRA have been lifted so long as there is earned income. Additionally, most payouts to non-spousal beneficiaries of an IRA have been mandated to a 10-year payout period. Beyond the aforementioned changes, the SECURE Act also includes an allowance for a penalty-free retirement plan distribution up to $5,000 for a qualified birth or adoption, an increase in the tax credit available to small businesses when establishing a retirement plan, and much more.
Minimum wage and salary requirements will be an important discussion for many businesses in 2020. The minimum wage for Missouri increased to $9.45 an hour (up from $8.60 in 2019), and the new minimum salary for exempt employees increased to $35,568 annually (compared to $23,660 in 2019).
Standard mileage rates for business use of a vehicle has changed to 57.5 cents per mile for 2020 (down from 58 cents in 2019).
The minimum essential health insurance coverage requirement with its corresponding individual shared responsibility payment was eliminated in 2019.
If there is any additional information you feel would be helpful we would welcome that.
Unfortunately, fraud, tax scams and identity theft continue to be an important issue that taxpayers need to be educated about. Keep confidential information secure and avoid using generic or repeat passwords for online accounts. The IRS does NOT initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. This includes requests for PIN numbers, social security numbers, passwords or similar access information for credit cards, banks or other financial accounts. The IRS has only one method to initiate contact: by mail. If you receive any correspondence via email, text, or phone do not answer. If you do receive IRS notices or other correspondence by mail, bring them to your tax professional to review and respond appropriately. For more information, please give us a call today.
Most individuals should expect to receive their Form W-2 from employers by January 31, 2020. If your employer does not mail or hand-deliver yours to you by the end of the month, check any online employee portals or contact your HR department. If you performed any freelance work during 2019 and received compensation of at least $600, you should receive a Form 1099-MISC by January 31, 2020. Investment statements are typically issued in “waves” depending on the underlying investments held. Some investment statements could be sent as early as January 31st, while many final copies may not be issued until March 15th. Most individuals can expect to receive their tax documents from mid-February to early March.
Contact your financial advisor if you have any questions about the status of your documents. Most banks and other financial institutions will have information for interest earned or interest paid available by the end of January. Keep in mind that many of these statements can be accessed online. Check with your financial institution for the delivery method of your statements if you are unsure.
Are there any major changes to tax laws that individuals should be aware of?
The SECURE Act of 2019, although not nearly as sweeping as the Tax Cuts and Jobs Act of 2017, made several updates to rules surrounding retirement plans. One of the most notable being the age increase for the onset of Required Minimum Distributions (RMDs) from age 70 ½ to age 72. Furthermore, the age restrictions for contributing to a traditional IRA have been lifted so long as there is earned income. Additionally, most payouts to non-spousal beneficiaries of an IRA have been mandated to a 10-year payout period. Beyond the aforementioned changes, the SECURE Act also includes an allowance for a penalty-free retirement plan distribution up to $5,000 for a qualified birth or adoption, an increase in the tax credit available to small businesses when establishing a retirement plan, and much more.
Minimum wage and salary requirements will be an important discussion for many businesses in 2020. The minimum wage for Missouri increased to $9.45 an hour (up from $8.60 in 2019), and the new minimum salary for exempt employees increased to $35,568 annually (compared to $23,660 in 2019).
Standard mileage rates for business use of a vehicle has changed to 57.5 cents per mile for 2020 (down from 58 cents in 2019).
The minimum essential health insurance coverage requirement with its corresponding individual shared responsibility payment was eliminated in 2019.
If there is any additional information you feel would be helpful we would welcome that.
Unfortunately, fraud, tax scams and identity theft continue to be an important issue that taxpayers need to be educated about. Keep confidential information secure and avoid using generic or repeat passwords for online accounts. The IRS does NOT initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. This includes requests for PIN numbers, social security numbers, passwords or similar access information for credit cards, banks or other financial accounts. The IRS has only one method to initiate contact: by mail. If you receive any correspondence via email, text, or phone do not answer. If you do receive IRS notices or other correspondence by mail, bring them to your tax professional to review and respond appropriately. For more information, please give us a call today.
Our Success Stems From Your Success
For tax preparation services you can count on, call:
Sedalia -- (660) 827-4990
Marshall -- (660) 886-6815
Camdenton -- (573) 346-6822
Lake Ozark -- (573) 964-5739
Check out our website: www.WTCPA.com
Follow us on:
