Proactive Tax Planning for 2019

By: Julie Roe, Staff Accountant

As individuals are starting to file their 2018 personal income tax returns, they are discovering the impact the new tax laws have on them. We knew tax reform would bring about some surprises. Many people that have been used to receiving a tax refund are discovering they can’t depend on that influx of money this year.  Worse yet, some individuals may even owe money with their tax return filing. Needless to say for some taxpayers, the hits just keep coming. As the sting of filing in 2018 sets in and then fades away, many taxpayers are now thinking ahead to filing for 2019. Proactive tax planning is at the forefront of the minds of many. As it should be. Luckily there is plenty of time to plan for 2019. I encourage everyone to visit the IRS website and review the Tax and Jobs Act in detail. The more you know, the better you and your accountant can plan ahead. Within the Tax and Jobs Act section on the website is a Paycheck Checkup. Here is the link: https://www.irs.gov/tax-reform  

Once you arrive at this section of the site you will find a series of questions to be answered regarding your 2019 payroll. The answers you receive afterwards will help give insight on  any adjustments you should make to your withholdings so you are better prepared for the next filing. Since there are plenty of days still to be had this year, any adjustments you need to make will not have to be as drastic compared to if you wait until later in 2019 to review your withholdings. Moral of the story…. make those adjustments now, not later. You will be glad you did. Holbrook & Manter can help you navigate this exercise and any other ones that will set you up for less tax surprises when you file in 2019. Contact us today to get started.