Elvira's Tax & Bookkeeping Services, LLC
P.O. Box 113930
North Providence, RI 02911
401-205-1346
Fax 401-205-1347
EIN 27-1207269
2018
THE IRS WANTS YOU TO KNOW
THIS MEANS THAT...
Federal income tax withholding may need adjustment
​
​
​
Paycheck Checkup
​
​
​
​
​
​
Alternative minimum tax (ATM) exemption amount increased
​
​
​
Reporting health Care Coverage
You need to pay most of your tax during the year, as the income is earned or received. If you don't, you may owe an estimated tax penalty when you file.
​
Doing a checkup can help protect against having too little tax withheld and facing and unexpected tax bill even a penalty at tax time. Some taxpayers might prefer to have less tax withheld up front and receive more in their paychecks. which would reduce their tax refund next year.
​
Far fewer taxpayers will pay the ATM.
​
​
​
The IRS will not consider a return complete and accurate if you do not report full-year coverage, claim a coverage exemption or report a shared responsibility payment on the tax return. You remain obligated to follow the law and pay what you owe at the point of filing,
​
​
​
​
​
​
​
​
Making Estimated or Additional Tax Payments
Certain taxpayers - including those who don't have enough income tax withheld by their employer - may have to pay estimated taxes.
If the amount of income tax withheld from your salary or pension is not enough, or if you receive income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, you may have to make estimated or additional tax payments.
The IRS encourages everyone to use the Withholding calculator to perform a quick "Paycheck Checkup." This is even more important this year because of recent changes to the tax law for 2018. Having enough tax withheld or making estimated or additional tax payments during the year can help you avoid problems at tax time. Taxpayers can adjust withholding on their paychecks or the amount of their estimated tax payments to help avoid an unexpected tax bill or prevent penalties.
​
Form 1040-ES, Estimated Tax for Individuals, available on IRS.gov, is designed to help taxpayers figure these payments simply and accurately. The estimated tax package includes a quick rundown of key tax changes, income tax rate schedules for 2018 an a useful worksheet for figuring the right amount to pay. The IRS also mailed 1 million Form 1040-ES vouchers with instructions in late March to taxpayers who used this form last year.
​
Taxpayers can pay their taxes throughout the year anytime. They must select the tax year and tax type or form when paying electronically. If you're paying by check - make it out to the "United States Treasury" and indicate the tax year and type of taxes you are paying.
​
2019
​
Deduction for medical and dental expenses modified. If you plan to itemize for tax year 2019 and unreimbursed medical and dental expenses will have to exceed 10% of you 2019 adjusted gross income in order to be deductible.
​
Reporting Health Care Coverage - The shared responsibility payment is reduced to zero under TCJA for tax year 2019 and all subsequent years.
​
Repeal of deduction for alimony payments - divorce or separation agreements executed or modified after Dec 31,2018 providing alimony will have different tax consequences. The alimony payments will not be deductible for the spouse who makes alimony payments and they will not be included in the income of the receiving spouse.
​