It’s hard to believe the end of the year is near and tax time will be at hand. As we look ahead to 2020, there are some new tax changes you will want to be aware of as you prepare to file your 2019 taxes.
One of the biggest items is that there is no individual mandate in regard to health insurance. If you itemize your deductions, there will be higher Medical Expense Deduction. Un-reimbursed medical expenses will have to exceed 10% to deducted from income.
There will be no alimony deduction. Retirement Account Limits will be higher, along with Health Savings Accounts.
In January those important documents begin arriving. Do you keep your tax documents in one area of your home? It’s a great idea to do so Whether it arrives in your email or your snail mail you will want to begin a file to keep documents you will need.
Of course, you will need identification, a driver’s license or state ID, a Social Security Card or proof of number, and Proof of Residence.
Along with your income documents you will want to have things such as:*IRA contributions, *Energy Credits, *Student Loan Interest, * Medical Health Account contributions, *Self Employment health insurance payments, *Education expenses, *Real Estate Taxes Paid and *Personal Property Taxes.
Deduction documents may include: Childcare costs, Travel costs, Mileage, Medical and Dental Expenses.
Everyone’s circumstances are different, these are general documents that you can be gathering now to be sure you have the items needed for a smooth tax experience this first quarter of 2020.
These are just some of the new tax changes for 2020. You will want to research carefully if you file your own taxes, or consult your accountant for changes you need to be aware of.
This article cannot be used as tax advise or for tax planning.
Hat’s Off to a New Year of Opportunity!