I have not yet reviewed
the new draft form in detail – but it looks confusing.
As Kelly reports, “The revised form W-4 will not be effective
until 2020”.
“In a survey of tax professionals by the National Center for Professional
Education Fellowship, 74 percent of respondents said that this filing season
was more difficult than last year, with over half citing the Section 199A
pass-through deduction as the No. 1 issue. Ninety-six percent said they were
negatively affected by the February release of final 199A regs.”
Clearly a tax pro’s experience
with the season depended on the types of clients he or she has and the issues
involved with the returns prepared. I
certainly did not find the season “painful”, as one tax pro’s response
indicated. Many returns were simpler,
considering the inability of most of my clients to itemize due to the increased
Standard Deduction and the loss and limitation of deductions. While I may not agree with the changes on a
philosophical level, I did not complain about the reduced work and agita that
resulted.
Two good observations
from fellow tax pros in the article –
“We also learned that there’s a difference between a tax preparer and a
tax professional. . . . A true tax professional took the time to go over the
return and explain to clients how they gained from tax reform, and how they
lost.”
I have always
provided a detailed “The Word” memo with a finished return explaining the
differences between the current return and the previous year’s return and what
needs to be done going forward.
And perhaps most
important –
“This filing season underscores the need for professionals who
understand what a return should look like without having to rely on their
software.”
Sadly, many tax
preparers today are merely data entry clerks and not true tax professionals.
“It's May 22 report on the economic effects of the TCJA found that the
most expansive tax reform since the major 1986 Tax Reform Act is that the 2017
bill basically had a negligible effect in its first year on the U.S. economy.”
Most of my clients
actually paid less federal income tax under the GOP Tax Act, but unfortunately,
due to the “IRS withholding FU”, either got smaller refunds or owed more tax,
some much more, when filing their 2018 returns.
* FYI, the IRS issued
Rev.
Proc. 2019-25 with the calendar-year 2020 inflation-adjusted figures
for the annual HSA contribution limits. It also includes the minimum deductible
amounts and maximum out-of-pocket expense amounts for high-deductible health
plans.
|
|
2019
|
2020
|
|
Maximum
HSA Contribution
|
Self-only:
$3,500
Family: $7,000
|
Self-only:
$3,550
Family: $7,100
|
|
Minimum
HDHP Deductible
|
Self-only:
$1,350
Family: $2,700
|
Self-only:
$1,400
Family: $2,800
|
|
HDHP
Out-of-Pocket Maximum
|
Self-only:
$6,750
Family: $13,500
|
Self-only:
$6,900
Family: $13,800
|
| | | |
* Attention Tax Pros
- one last try at a monthly newsletter for tax professionals to share
information and resources and encourage discussion of issues of interest and
importance to the tax preparation industry. Check out the June 2019 issue ofTHE TAX PROFESSIONAL. Your thoughts and comments are welcomed and solicited,
“It happens more often than you think. Without a good understanding of
the rules, you might make a move that results in leaving Social Security
benefits on the table.”
THE LAST WORD
It is literally
impossible for me to find anything positive to say about Donald T Rump.
He is devoid of
humanity. He is incapable of sympathy and empathy. He is totally self-absorbed and cares for
nothing or no one but himself.
He has absolutely no
redeeming qualities. He is certainly NOT
funny, generous, smart, knowledgeable, kind, caring, concerned, compassionate, honest,
loyal, trustworthy, dependable, or competent.
He is not a good
husband, a good father or a good friend.
He is a totally
worthless piece of garbage.
TTFN
