News & Publications
Woori Accounting, Inc. provides latest updates from Internal Revenue Services (IRS) or other related government agencies and newspaper(s) that you and/or your business may have to give a close attention.
IRS Announces Start Date For The New Tax Filing Season
The Internal Revenue Service (IRS) has announced that tax season will open on Monday, January 27, 2020. The IRS will begin accepting paper and electronic tax returns that day.
2018 Tax Reform
State and local taxes
Under the new tax plan, taxpayers can deduct up to $10,000 in state and local income taxes. Previously, there was no cap on the amount you could write-off. Filers simply had to choose between deducting their state income tax or sales tax; both were not deductible together. All other state and local taxes, such as property taxes, could be deducted together.
2019 TAX SEASON CALENDAR: THE DATES YOU NEED TO KNOW
Before you start preparing to file your 2019 taxes, take a look at our 2019 tax season calendar to make sure you’re aware of some important tax deadlines. If you don’t find what you’re looking for here, you can also check out IRS.gov—the final source for all taxes-related dates, rules, and regulations.
Penalty for No Health Insurance 2020 in California
Health insurance tax penalties were introduced at the federal level with the Affordable Care Act, or Obamacare. This meant that all taxpayers across the country were required to obtain health insurance coverage or pay a tax penalty. The federal law was repealed and coverage was not mandatory in the state of California in 2019. However, California has now introduced a new state mandate for individual health care in 2020.
What Is Earned Income Credit and Do I Qualify in 2019?
The earned income credit (EIC) is a tax credit available to low to moderate income taxpayers. The credit can be worth up to $6,431 for 2018 and up to $6,557 for 2019. A tax credit is better than a tax deduction in that the credit is a direct reduction in the amount of tax owed.
IRS Announces 2019 IRA Contribution Limits
For the first time since 2013, the contribution limit for individual retirement accounts has increased, from the current $5,500 to $6,000 in 2019. For taxpayers aged 50 or over, the limit will be $7,000 after taking into consideration the $1,000 catch-up amount. The contribution limit for employees who participate in Internal Revenue Code Section 401(k), IRC Section 403(b), most IRC Section 457 plans and the Thrift Savings Plan is increased from $18,500 to $19,000. The catch-up contribution limit for employees aged 50 and over who participate in these plans will stay at $6,000.
IRS issues standard mileage rates for 2019
WASHINGTON — The Internal Revenue Service today issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: