Resources & Notes
Have you completed the new W-4 form at your workplace?
The Tax Cut and Jobs Act increased the standard deduction but took away personal exemptions beginning in 2018. This required a drastic change in the W-4 form that employees fill out at work to let their employers know how much to withhold for federal income tax purposes. You can take a look at the new form by clicking on the link below.
Unreimbursed Employee Business Expenses
If you are an employee with significant non-reimbursed business expenses, you should talk to your tax adviser about the effect of the tax law changes from back in 2018. Non-reimbursed employee business expenses, formerly at least partially deductible on Schedule A , are no longer deductible. You may be advised to talk with your employer about establishing an accountable reimbursement plan and possibly restructuring your compensation package tax purposes. The changes do not affect schedule C filers (self-employed individuals), only employees. Ministers should have an accountable reimbursement plan established with their church employer to avoid paying unnecessary income tax.
~ Nelson
Missouri Property Tax Credit
"The Missouri Property Tax Credit Claim gives credit to certain senior citizens and 100 percent disabled individuals for a portion of the real estate taxes or rent they have paid for the year. The credit is for a maximum of $750 for renters and $1,100 for owners who owned and occupied their home. The actual credit is based on the amount of real estate taxes or rent paid and total household income (taxable and nontaxable).If you rent from a facility that does not pay property taxes, you are not eligible for a Property Tax Credit."
Click here for the Property Tax Credit Qualification Chart.
Link to video clip: https://youtu.be/j2rU79v7YWY
(From Missouri Department of Revenue website: http://dor.mo.gov/personal/ptc/ )
Social Security Administration Benefit Letter Change
People needing proof of their Social Security or Supplemental Security Income benefits can get verification letters online instantly through a my Social Security account at www.socialsecurity.gov/myaccount. You can also get one mailed to you by calling toll-free, 1-800-772-1213. Additional information on changes in services provided by the Social Security Administration can be found here. NOTE: SSA-1099 forms will still be mailed by the Social Security Administration.
Are You Eligible to File for Free?
If you meet certain income requirements and otherwise qualify you may qualify to self-prepare your own tax returns online for free! Not everyone feels comfortable preparing their own returns, but some love it! If your return isn't complicated, perhaps this is an option for you. If you want someone to review your return before filing, just contact Horton Tax & Accounting. Here's the link for the IRS Free File Infol...