Due to the spread of COIVD-19, the federal tax deadline has been extended to July 15. With tax day is just around the corner, taxpayers and advisors should proactively consider some of the challenges that they are likely to encounter. To help you prepare this tax season, our Tampa tax attorneys have put together six common tax problems to look out for this year.
If you are dealing with any tax issues, our Tampa tax attorney is here to help you. Contact Law Offices of Darrin T. Mish, P.A. today at (813) 295-7648 to schedule a consultation!
#1: Medical Expense Deductions
In 2010, the Affordable Care Act raised the number of medical expense deduction threshold from seven and a half percent to ten percent of adjusted gross income. This made it more challenging for people to qualify for a medical deduction. Although the threshold has fluctuated since it is currently at ten percent this year, this means that taxpayer unreimbursed medical and dental expenses need to exceed ten percent of their adjusted gross income to qualify for a deduction.
#2: Changes to Retirement Contributions
A new change to retirement contribution limits will be implemented this year. Taxpayers are able to save more money in tax-advantaged retirement accounts, which could ultimately low their tax burden. 401(k) base contributions are now up to $19,000, when it was $18,500 in 2018. The IRA base contribution, whether ROTH or traditional, is now up to $6,000 when it was $5,500 in 2018. Although this doesn’t seem like a major, the $500 increase in IRA contribution limits is something taxpayers should be aware of.
#3: Alimony Deductions
One of the Tax Cuts and Jobs Act changes that start this year is the elimination of alimony deductions. Alimony payments tied to any divorce or separation agreements made in 2019 or after will no longer be deductible. This will could be a major change for taxpayers who use to get thousands of dollars in alimony deductions.
#4: Errors in Tax Forms
This is a major issue that is evident during every tax season. Making mistakes on tax return forms can lead to delays in proceedings and can result in audits. One of the most common mistakes that people make in their tax forms is that they input the wrong Social Security number, the wrong bank account information, or just miss filling out information all together.
#5: No Quarterly Estimated Taxes
Freelancers and self-employed individuals may not be aware that they are required to pay quarterly estimated taxes for the year. Failing to pay quarterly estimated taxes can leave the taxpayer with a hefty bill when taxes are due, and it can result in late fees.
#6: Filing to File Taxes on Time
Another recurring tax issue that people encounter is failing to file taxes on time. Although most would assume that this issue doesn’t arise, many people often miss the due date and face serious penalties as a result. Failing to file your taxes on time often results in fees and other inconveniences.
Experienced Tampa Tax Attorney
One thing is always certain; tax problems will never go away on their own. The complexity of tax codes and tax requirements can make taxes a frustrating and overwhelming situation. If you encounter any tax problems, you need an experienced tax lawyer who can guide you through the complexities of tax laws and the IRS. Whether you are struggling with a complicated tax problem, or you are subject to an IRS audit, we can help you. Law Offices of Darrin T. Mish, P.A. has over 20 years of experience helping those throughout Tampa find relief from common tax issues.
Get the guidance and help you need by contacting our Tampa tax lawyer today at (813) 295-7648!