No. of Recommendations: 6
Although this isn't the (excellent) Tax Strategies Board, all of us on METAR will be affected by 2019 taxes so I believe this post is on-topic. (This post describes the ACTUAL income tax, not theories or speculations about pie-in-the-sky future tax reforms that will probably never happen.)

Those who are working should adjust their withholding to avoid nasty surprises and penalties.

Those who are investing successfully should have been paying estimated taxes on interest and realized capital gains in every quarter on the 1040ES, easily paid online from a checking or bank account via www.irs.gov.

While the 4Q2019 1040ES isn't due until 1/15/2020, I always like to pay it in December to get it out of the way. I have already entered my rough income in 2019 tax software which is available online. I enter the exact numbers as the 1099s arrive. This leaves only tweaks for the final data which depends on the source of the income (banks always prompt, brokers often annoyingly delayed).

WA State does not have an income tax. Many METARs have state and local income taxes which will also need attending.

https://www.nytimes.com/2019/12/06/your-money/taxes/income-t...


Last Tax Season Was a Mess. Now’s Time to Prepare for This One.

If you didn’t change the tax withholding in your paycheck, you still have time to avoid another unpleasant surprise — or even a fine.

By Tara Siegel Bernard, The New York Times, Dec. 6, 2019

...
For 2019, taxpayers who didn’t generally withhold at least 90 percent of their liability from their paychecks may be required to pay a fine. That threshold is back up from 80 percent, where it was set last year as everyone adjusted to the new rules.

If you didn’t change your withholding by filling out a new W-4 form with your employer, there are still steps you can take to try to avoid the extra charge....If you find that you’re not withholding enough, submit a new W-4. The I.R.S. released a new version of the form on Thursday. ...

The new law simplified the tax lives of many households because it doubled the standard deduction. About 90 percent of taxpayers used the standard deduction on their 2018 tax return, the I.R.S. said, up sharply from 70 percent in 2017.

But that doesn’t mean there aren’t some simple strategies to consider to lower your tax bill, and there’s still time left in the year to put them to work....
[end quote] -- more in the article.

I volunteered as an AARP Tax Aide (free tax preparation for low-income people and seniors) last year and will again this year. This is limited to relatively simple tax advice although even that is convoluted thanks to our wonderful tax code. For more complicated questions, ask your accountant or the wonderful, knowledgeable folks at the Tax Strategies Board. https://boards.fool.com/tax-strategies-100155.aspx?mid=34356...

Wendy
Print the post  

Announcements

This is a Politics Free Board
Politically charged posts are not permitted on the Metar Board. If you make a political post, and it is alerted, the post will be removed. Thanks!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.