The Delayed Tax Deadline, What You Need to Know
The delayed 2019 filing tax deadline of July 15th 2020 is fast approaching. It’s important to note that while coronavirus is still impacting us, there are choices for taxpayers. It is still an option to extend your filing deadline to October 15th. This might be a beneficial option for some if your business is still experiencing disruptions due to COVID-19.
As cases of coronavirus continue to sky rocket across the state of Florida, for many business owners, the true extent of losses might not be known, so you might be asking yourself if you should in fact file next week, or ask for an extension for three months.
If you’ve held off this long, you might not even need to file for an extension. There is a chance that the IRS could extend the filing deadline even further than the current deadline. Treasury Secretary Steven Mnuchin indicated there is a chance of another postponement until September 15th. This would negate the need for a filing extension. This hasn’t happened yet though, and it isn’t something that you should depend on.
The benefit of delaying filing could give a business owner more time to discover losses which are directly related to the COVID-19 pandemic. The IRS usually allows losses due to unusual experiences such as natural disasters like tornadoes, floods. This pandemic is one of those unprecedented events. Many businesses have had to close completely, or have other tangible losses such as a drop in inventory.
Ultimately, choosing to file or asking for an extension is up to the individual taxpayer. At Howard & Company, we are working full time to process your tax returns. You are welcome to email or fax your information to us. You can also drop off your paperwork for your tax return and we will schedule a phone appointment with you.
What’s New with the New W-4?
The IRS changed the W4 for 2020, the intent behind the changes were to make it simpler to fill it out. Here’s what you need to know about the new IRS W-4.
The Form W-4 is the Employee Withholdings Certificate. This is the form that employees fill out for employers to deduct income tax from their earnings. It has needed an overhaul for quite some time. According to the IRS, this new form is less complicated and only requires taxpayers to answer more straightforward questions.
There will no longer be deductions, or personal exemptions. Instead the new Form W-4 calculates withholdings by having you fill out your information such as your name, job information including multiple jobs and if your spouse works, dependents, and other adjustments, then it must be signed. Not everyone has to fill out every step, it varies by individual. To see what the new 2020 form W-4 looks like, click here.
Who has to fill out the new form?
If you’re already working you don’t need to fill out the new form for the new year. But if you’re newly employed, or have had a change in your lifestyle status, then you would need to fill one out. A change in lifestyle status could include a marriage, divorce, having a baby or adoption.
Be careful when filling it out, if you don’t have enough taxes withheld, you could end up owing the government money when you file your taxes. If you have too much withheld, think of it as an interest-free loan (and a smaller paycheck). The IRS is there to help you figure it all out. They have a tax withholding estimator which can walk you through it all. Just have all of your previous year’s information available so that it is as accurate as it can be.
If you’re having trouble keeping up with the tax laws, or just don’t have time for it anymore, contact Howard Employee Services. We are your trusted all-in-one employee & employer services provider.