What's Different Between 2019 and 2020 Tax Seasons?Feb 19, 2020 | 0 Votes by Justo - rate In order to help you prepare your tax report the best way possible, we will show you the differences between the 2019 and 2020 tax seasons.
The tax season is right around the corner, which means it is time to prepare. In order to help you prepare your tax report the best way possible, we will show you the differences between the 2019 and 2020 tax seasons.
Don't let it take you by surprise. Start preparing and schedule an appointment with your trusted tax insurance advisor or search among your files and gather all the receipts you have from the past 12 months of expenses before April 5 comes. Here is a breakdown of what you need to know about the current tax season.
Let's talk about the new
First, thanks to the 2018 Fiscal Reform Act approval where tax rates and deductions changed, lots of Americans grew interested in their taxes. These changes came into effect for the 2018 fiscal year; however, you should consider that some things will be different when presenting your 2019 taxes, as income tax tranches have increased in 2019 due to inflation.
After the Reform took place, the standard deduction fee also increased to $12,200 for single taxpayers and to $24,400 for married couples filing a joint return. Changes are taking over this year's tax season; as the penalty for not getting health insurance is gone, the medical expense deduction is now higher, and the estate tax you can inherit in your life before the property is hit with the 40% tax has increased $200,000.
Many of the changes that came into effect last tax season are still important in 2020, so there is nothing to worry about.
To take into account: Let's know the dates of the 2020 fiscal season
The sooner you file your taxes the better. Don't wait until the very last minute to do it. Here's a list of the 2020 tax season dates so you can make it on time and even enjoy some benefits of filing your taxes early.
In late January, the IRS starts to accept and process the 2019 tax returns. By January 31st, you should already have your W-2 form delivered by your employer or online. April 5th is D-Day. This is the day when you pay your taxes and the last day to ask for a six-month extension, in case you need more time to file them. June 15th is the last day of the two-month extension automatically given to those who live overseas or have been on military duty outside the USA. Finally, October 15th is the last day of the six-month extension for those who got it approved in April.
After knowing the changes present in the new tax season, it’s important to take into account not only the impact of any change in your home during 2019 but also to start organizing your receipts and other essential files to be prepared for the tax return filing.
Finally, if you’re one of those who like to have their info stored in a digital format for faster and in-depth control, Shoeboxed or Expensify are two applications that will help you keep your receipts and expenses organized at-hand. Get on it and get your taxes right!