How To Get Ahead Before The 2019 Tax Year – Part I

1
How To Get Ahead Before The 2019 Tax Year Part I
2

• With the 2019 tax year looming on the horizon,
  youre probably already thinking about preparing
  for this time to try and get the maximum out of
  the changes that were introduced with the TCJA,
  or Tax Cuts and Jobs Act. Credits have been
  adjusted, exemptions and tax bracket have
  altered, making it the perfect time to take a
  step back and look at your finances before the
  end of the fourth quarter. Keeping that in mind,
  here are just a few intelligent money manoeuvres
  to think about before December 31st, that could
  help you stay a step ahead of the tax filing
  season

3

• Adjust your withholdings
• The advice from certified financial planners and
  advisors alike, is to take the crucial step of
  adjusting your withholdings, as the TCJA made a
  whole host of changes that have a direct impact
  upon tax liabilities. Some of the changes include
  eliminating the personal exemption, a higher
  amount of the child tax credit and an increase on
  standard deductions. As a taxpayer, business or
  individual, you may want to adjust your W-4 to
  make the most of your tax withholdings.

4

• Wherever possible, group your deductions
• The new tax law has seen an end or at the very
  least a limit, to many itemized deductions, so as
  a taxpayer, your credits and tax breaks may vary
  greatly. At the beginning of 2018, a great many
  taxpayers who claim itemized deductions every
  year, may find that theyre no longer able to do
  so, as a direct result of increases to the basic
  standard deduction 24,000 for those who file
  jointly, 12,000 for single filers, 18,000 for
  household heads and 12,000 for married couples
  filing separately. Many itemized deductions have
  also been cut back significantly or been
  abolished altogether.

5

• Pay off nonqualifying home equity loans
• The interest on a home equity loan was once
  deductible, and so in the past, having one was an
  effective tax reduction strategy. Now, however,
  this is no longer the case, and mainly because
  the new stipulations make it extremely tough to
  be eligible. Now, the only instance in which a
  deduction is permitted, is if the loan was taken
  out to buy, build or improve the home.
• The best way of making sure that you fully
  understand your tax situation and that you can
  conform with the changes to the law, is to
  consult with a tax professional, this is
  especially useful if your financial situation is
  not straightforward.

6

• Guessing your way through your tax return is the
  quickest way to land yourself with a penalty, or
  to miss out on a refund because you didnt fully
  understand the new tax law.
• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax service Coral Gables.
  If you are looking for individual tax preparation
  in Miami , Heyer Associates would be a right
  option.