PENALTY FOR HEALTHCARE

The new leg­is­la­tion elim­i­nates the Afford­able Care Act’s indi­vid­ual man­date or what it’s bet­ter known as Oba­macare. It’s not for this tax sea­son so if you went with­out health insur­ance sor­ry to break it to you, but you are going to be penal­ized unless you qual­i­fy for an exemp­tion of some type. The no penal­iza­tion will occur for the year 2019.

The penal­ty for going uncov­ered for 2018 will be $695 per adult or 2.5% of house­hold income in excess of tax fil­ing thresh­olds, whichev­er is high­er. The dead­line for open enroll­ment was Dec 15th. There was  plen­ty of bar­gains out there: Kaiser Fam­i­ly Foun­da­tion esti­mates that more than half of sub­sidy-eli­gi­ble, unin­sured indi­vid­u­als could buy a bronze-lev­el plan for no pre­mi­um contribution—that is, a $0 pre­mi­um. Doesn’t hurt to call around and see what is avail­able for you.

Because of the tax penal­ty is going to van­ish I would still sug­gest to have health insur­ance in case of any trag­ic acci­dent you are cov­ered.

DIDN’T RECEIVE W2 ? WHAT YOU SHOULD DO

If you didn’t receive your w2, Super sor­ry for the pain in your .…rhyme with .….crash!
     Your either super pissed, or total­ly frus­trat­ed. I don’t there is to much of a in between when it comes to either hav­ing mon­ey or the pos­si­bil­i­ty of owing tones of mon­ey.

           I COME WITH GOOD NEWS, GUESS WHAT ITS NOT THE END OF                                                       THE WORLD!

     I’m sure you fig­ured that much, but did you know you can still file tax returns? In case your employ­er has gone out of busi­ness, before send­ing you the W2 form.cropped-attachment_170927014301-2.jpeg
      The first thing that you need to do is to con­tact the pre­vi­ous employ­er and try to make an hon­est attempt in order to get the tax return. Send state­ments from him/her. Yes, this may be extra but send him/her a cer­ti­fied let­ter, which will serve as a proof that you made some seri­ous attempts.
      Gath­er your very last pay­check, as now it is the most recent doc­u­ment that con­tains annu­al pay and tax with­hold­ing infor­ma­tion. If you don’t have that, or can’t log into the old web­site for this info, you might as well put your head­phones or loud-speak­er on and get on the irs phone line and pray you aren’t on hold until who knows when.
Anoth­er thing I would advise is to gath­er some iden­ti­fi­ca­tion infor­ma­tion like Fed­er­al ID num­ber of the employ­er, name, last known address, and his Social Secu­ri­ty Num­ber, if pos­si­ble. Now, con­tact the Inter­nal Rev­enue Ser­vice for help, which is the best place from where you can expect the max­i­mum help to file tax returns. You can check out some num­bers to call here.
    You can then get a copy of the Form 4852 of IRS which is titled as Sub­sti­tute for Form W2, Wage, and Tax State­ment, or Form 1009R, Dis­tri­b­u­tions From Pen­sions, Annu­ities, Retire­ment or Prof­it-Shar­ing Plans, IRA’s, Insur­ance Con­tracts, etc. Until the time the gov­ern­ment tracks the miss­ing W2 form, you can just  use this sub­sti­tute form. In case you do or don’t get the miss­ing W2 form, it is impor­tant to fill in the amend­ed Form 1040X, which is titled as — Amend­ed U.S. Indi­vid­ual Income Tax Return. It is impor­tant to sub­mit each tax return doc­u­ment on time, even if you want to file a tax return with­out the W2; because a miss­ing W2 form is not grant­ed as an excuse by the Inter­nal Rev­enue Service.The IRS is super fast when it comes to penal­ty, fees, and inter­est, and I mean fast noth­ing like wait­ing on hold to talk to the total oppo­site.
         In case you are super flus­tered and you have many com­pli­cat­ed tax sit­u­a­tions going on or too much going on, in gen­er­al, to be try­ing to do this alone, then it is bet­ter to con­sult with a tax pro­fes­sion­al who can advise you. prob­a­bly is the best per­son to decide whether you need the W2 form to file tax returns, in the first place. You can also send an email here and get the help advise you need.

COMMON FORMS TO LOOK FOR

 

  • W-2: This is the form you receive from a reg­u­lar employ­er. This form includes infor­ma­tion about your wages and oth­er earn­ings (includ­ing tips, if applic­a­ble). This form also includes infor­ma­tion about how much you have paid in fed­er­al and state tax­es over the course of the year, as well as your pay­roll tax­es.
  • 1099-KIf you earned income as a free­lancer work­ing in the on-demand econ­o­my like Uber or Lyft you may see this form. Form 1099-K reports income processed through third-par­ty net­works, such as Pay­Pal. A pay­ment proces­sor must report income to the IRS using Form 1099-K if your gross pay­ments:
    • Exceed $20,000, AND
    • Exceed 200 trans­ac­tions with­in the tax year
  • 1099-MISC: More and more peo­ple do con­tract work on the side, as free­lancers and con­sul­tants. If you have received earn­ings from such activ­i­ties you can expect to receive a 1099-MISC.
  • Oth­er 1099 forms: The 1099-MISC isn’t the only 1099 form you might receive. If you received inter­est from sav­ings or invest­ments, you will get a 1099-INT. You might also receive 1099-DIV report­ing div­i­dends and dis­tri­b­u­tions from invest­ments, or a 1099-C if you have can­celed debt.
  • 1098: This is the form asso­ci­at­ed with mort­gage inter­est you have paid dur­ing the year. If you item­ize your deduc­tions, this form can be extreme­ly help­ful in ensur­ing that you get the right amount list­ed.

Tax Bill DO WHAT YOU CAN NOW

MOST OF THE TAX BILL CHANGES DON’T TAKE PLACE UNTIL 2018 HERE ARE A FEW THINGS YOU CAN DO because ordi­nary income tax rates should be low­er next year and many expens­es will either no longer be deductible or will be less valu­able in light of high­er stan­dard deduc­tions in 2018. So may want to try a few of these 

 

1. Delay year-end bonus­es or oth­er com­pen­sa­tion. Many employ­ees can­not con­trol the tim­ing of com­pen­sa­tion, but it nev­er hurts to ask. Where shift­ing income from 2017 to 2018 is pos­si­ble, low­er mar­gin­al tax rates should apply in 2018.
2. Max­i­mize retire­ment defer­rals. Be sure to ful­ly fund your 401(k) and/or IRA to fur­ther reduce gross income for 2017. We’ll dis­cuss dur­ing tax sea­son ful­ly fund­ing 2017 SEPs and oth­er retire­ment accounts that can be fund­ed up to April 15.
3. Busi­ness own­ers and con­sul­tants should delay billing. It isn’t prop­er to sim­ply delay deposit­ing checks received before year-end, but you gen­er­al­ly won’t be paid for amounts you haven’t billed. Shift that mid- to late-Decem­ber billing out until Jan­u­ary 1.
4. Pre­pay state income tax. This deduc­tion will be elim­i­nat­ed begin­ning in 2018, so pay the fourth quar­ter esti­mate that is dat­ed Jan­u­ary 2018 by Decem­ber 31, 2017. This strat­e­gy, how­ev­er, requires that you know your sta­tus regard­ing alter­na­tive min­i­mum tax (AMT). If you will be sub­ject to AMT in 2017, it is like­ly that pre­pay­ing your state tax­es will not reduce your 2017 tax­es. In that case, with no ben­e­fit in either year, it makes bet­ter finan­cial sense to make the pay­ment lat­er.
5. Pre­pay prop­er­ty tax­es. The deduc­tion for prop­er­ty tax­es is like­ly to be lim­it­ed to $10,000 begin­ning in 2018. To the extent that you already have an assess­ment that isn’t due until after the first of next year, pay it by Decem­ber 31. For tax­pay­ers with high prop­er­ty tax bills and oth­er large deduc­tions such as mort­gage inter­est and con­tri­bu­tions, accel­er­at­ing the 2018 prop­er­ty tax pay­ment into 2017 may save a deduc­tion due to dis­ap­pear next year. Mid-range tax­pay­ers may need a pro­jec­tion to see if this makes sense. And here again, the strat­e­gy won’t work for those in AMT in 2017.

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LAST MINUTE FILERS

If you don’t have all your paper work and can’t sub­mit your tax­es, get an exten­sions. It gives you 6 months to file. Unfor­tu­nate­ly, an exten­sion to file doesn’t give you an exten­sion of time to pay if you owe tax­es to the gov­ern­ment. So you should esti­mate what you’ll owe and pay by April 17, which is the last day to file in 2018. (Hol­i­day )

DEADLINES APPROACHING

Dead­lines to file your tax­es is approach­ing, don’t rush make sure you get all your papers that need to be filed.

April 17 is also the dead­line for first-quar­ter 2018 esti­mat­ed tax pay­ments, and Your 2014 tax­es if your get­ting a refund

When a tax­pay­er who is get­ting a refund does not file a return, the law gives them three years to claim that tax refund. If the tax­pay­er does not file a tax return with­in three years, guess what the mon­ey goes back to the U.S. Trea­sury. For 2014 tax returns, the three-year win­dow clos­es on April 17, 2018.

• April 17 is also the last day to make a 2017 tax-year con­tri­bu­tion to a Roth IRA or tra­di­tion­al IRA.

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