It’s that time of the year when some people anticipate a tax refund and others find themselves unready to file a tax return. The Internal Revenue Service recently announced that it will begin accepting 2017 individual tax returns on Jan. 29. However, employers and income agencies (i.e. Social Security) are granted the entire month of January to provide W-2 and 1099 income statements, and financial organizations have until mid-February to issue tax forms. Additionally, any primary tax filer who purchased health insurance via Covered California last year will need a 1095-A form to reconcile any premium tax credits. So your tax filing date should be dependent on having received all tax documents and not on the announced filing start date. The 2017 tax return filing deadline is April 17th, 2018.
Filing taxes can be a complicated process and an undesirable expense. There are a few do it yourself consumer software packages like Turbo Tax that can guide you through the process for less than $100. There are also tax preparation and filing outlets like H&R Block and Jackson Hewitt that provide on-line and seasonal tax preparer services. Professional practitioners like state Registered Tax Preparers (RTPs), Certified Public Accountants (CPAs) and Enrolled Agents (EAs), whose fees vary, are usually retained by individuals and businesses with more complex tax filing needs.
Tax preparers and professionals have different skills, education, and expertise. They also gain personal and financial data when retained by you. So it is important to choose one that you can trust and that best fits your needs. The difference between a good tax preparer or professional is often your time and money. http://www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional provides some good information on choosing a tax professional. It is also worthy to note that the Internal Revenue Service and City of Seal Beach offer free tax assistance and filing, respectively, to low-to-middle income people and Seniors.
The tax filing season is also a good time to become aware of any new tax laws and how they may have an effect on your future tax return. On Dec. 22, 2017 the Tax Cuts and Jobs Act was signed in to law. This legislation significantly reformed the U.S. tax code for 2018 and will impact every taxpayer going forward. So there may be no better time than now to understand which provisions of the new law are applicable to you and plan accordingly. (I suggest you do an online search of “Tax Cuts and Jobs Act” for more information.)
Ready or not, the tax filing season is upon us and it will be to your advantage to have all your 2017 income statements and tax forms as well as some knowledge of any changing tax laws before filing a tax return or setting an appointment with a tax preparer.
Steven C Stasoiski is a registered Tax Professional and Licensed Health and Life Insurance Agent and was recently voted Best of Seal Beach Gold and Bronze by the Sun Newspaper readers. He may be reached at 562-596-7213 or scstasoiski@gmail.com with any questions or column suggestions.
