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Category: Tax and Life Changes

Life changes and your taxes go hand in hand; believe it or not. That being said, it’s easy to forget about your tax return as a newlywed or when you’re welcoming a newborn into the family. Be aware that many of these changes also make you eligible for deductions and credits on your tax return. In some cases, you may need to update your W-4 form as well. PriorTax will keep you up to date on what to do when these life changes occur. You won’t be left in the dark.

Check back here for answers to your questions about how these changes affect your taxes.

 

Archive for the ‘Tax and Life Changes’ Category

2019 Tax Calculator

Posted by admin on November 8, 2021
Last modified: November 8, 2021

If you need to file back taxes for 2019, a tax calculator is something you’ll want to have in your back pocket during the process. A federal tax calculator for the 2019 tax year will give you an estimate of what your tax liability was for that year and can help guide your next steps.

Use a 2019 tax calculator to figure out which of the three possible scenarios of where your relationship with the IRS currently stands applies to you:

  • The taxes that have already been withheld from your paychecks from 2019 combined with the tax credits you are eligible for may cover your 2019 tax bill.
  • If you’ve had too much tax withheld from your paychecks, then you should expect a tax refund when you file, and the 2019 tax calculator can tell you how much that will be.
  • If you’ve not had enough withheld or prepaid based on estimates (if you’re self-employed), then you may still need to pay the rest of your tax bill.

Link to 2019 Tax Calculator

Gather up your documents and get started today with our easy-to-use online federal tax calculator for 2019. And if you need help with your tax returns for any other year, we have the tools for that too. We offer tax calculators for each year going back to 2011, and we can help you prepare prior-year tax returns for each year going back to 2008. So visit PriorTax.com today to get up to date with your taxes.

Is the federal tax calculator for 2019 safe to use?

When you use any of our online prior-year tax calculators, it will be completely anonymous. You don’t need to create an account with us or enter any identifying personal information to use it.

What do information do I need to use a federal tax calculator for 2019?

When you open our 2019 tax calculator, you’ll find three different sections. The information needed to estimate your tax bill has been divided into three parts to make things as straightforward as possible.

The first section is ‘Family’. This is where you’ll provide your general personal information, including things such as age, filing status, and the number of dependents you are claiming.

The second section is ‘Income’. This is where you’ll need the tax paperwork you received from work and from any banks or other financial institutions. You’ll need to enter

  • any income you received as an employee or during unemployment
  • any income earned from investments, including any retirement plans
  • any income earned from either self-employment or your own business
  • any other forms of income such as Social Security benefits, federal tax withheld from benefits, or alimony payments

This information is used to determine your total income for 2019.

The third and final section is ‘Deduction and Credits’. This is where any estimated federal and state tax payments you have already made are taken into account. You will also enter information about household, education, and unreimbursed work expenses and information about retirement savings plans and donations made during the year.

What information does the federal 2019 tax calculator provide?

In addition to your estimated refund or outstanding tax bill, you will also see a breakdown of the numbers that contributed to this amount. You will be given line-by-line details outlining your:

  • Total Income
  • Above the Line Deductions
  • Adjusted Gross Income
  • Standard Deduction
  • Total Exemptions
  • Taxable Income
  • Regular Taxes
  • Alternative Minimum Tax
  • Tax Credits
  • Additional Taxes
  • Tax Payments
  • Refundable Credits

What can I do if I am missing any information needed for the federal tax calculator for 2019?

The 2019 tax calculator, like all of our online prior-year tax calculators, can only provide an estimate based on the information that you enter into the form. If you enter estimates or guesstimates for details like your wages, keep in mind that our calculation will be based on those numbers. Remember that your exact tax refund or tax bill may change once you enter your exact numbers.

It is always important to keep track of any tax documents you receive throughout the year, like your W-2 forms from your employers or 1099 forms from your bank or for any other source of income. If you are missing any of these forms or never received them, a good first point of call will be your work or your bank.

However, the IRS understands that there are times when you aren’t able to obtain copies of these documents. If this is your situation, you can contact the IRS to request a free tax transcript from the IRS. These are available for the current tax year as well as for the past three years and will summarize your return information.

Sometimes you need an actual copy of your prior tax return rather than just a summary. For those situations, a copy of your prior tax return can be requested from the IRS for a fee. You are able to request full copies for the current tax year and for the past six years.

The federal 2019 tax calculator estimates that I am owed a refund. What next?

Everyone has three years from the original filing deadline to file their prior-year tax return and claim their refund. When you don’t have an outstanding tax bill, you are not subject to any IRS penalties for not filing your return on time. And you have until April 15, 2023, to claim your refund for the 2019 taxes you overpaid.

The federal tax calculator for 2019 estimates that I have outstanding taxes to pay. What next?

Unlike the deadline to claim a refund, there is no deadline to file your 2019 tax return.

There are penalties for both late filing and late payment that the IRS will levy. These additional charges will accumulate over time. However, the late filing penalty will usually work out to be more costly than the late payment penalty. So it’s often a good financial decision to file your prior-year return for 2019 as soon as possible, even if you are not currently in a position to pay the full bill.

FILE 2019 TAXES

Posted by admin on November 3, 2021
Last modified: November 8, 2021

The deadline to file your 2019 taxes on time may have passed. However, it’s not too late to get on top of the paperwork and file your 2019 taxes. Plus, filing your prior year’s taxes can be easier than you think.

While it’s not too late to file your 2019 taxes, it is now too late to file your 2019 taxes online using e-file. Instead, you will need to mail in a hard copy of your tax return to file your 2019 taxes. The deadline to use e-file to file your 2019 taxes online was October 15, 2020.

Although you can no longer file your 2019 taxes online, there are options available for you to prepare your tax return online. Visit PriorTax.com today. We can help you prepare your 2019 tax return online, reviewing and organizing your documents to be downloaded, printed, signed, and mailed off to the IRS. In addition, our experienced tax professionals can answer any questions you may have along the way.

Now that you’ve decided to get back on track with your tax filing obligations, where to start? The first step to filing any prior-year tax return, including your 2019 taxes, is to gather all the information you will need.

So, what information will you need to file your 2019 taxes?

file 2019 taxes
file 2019 taxes

What you’ll need can be broken down into three broad categories: your personal information, information about your income, and any adjustments to your income. Let’s take each of these in turn.

Personal Information to file 2019 taxes online

This category contains information to help the IRS process your tax return. The IRS needs to match the file of your 2019 taxes to you, know who your tax return includes, and then know where to deposit your tax refund if applicable.

  • Birthdates and Social Security or other Taxpayer Identification Numbers for you, your spouse, and your dependents
  • Copies of last year’s tax returns are helpful but not required
  • Your bank account number and routing number, if you want to receive any tax refund by direct deposit

Information about your Income to file 2019 taxes online

This category contains all the information you will need to fill out the income section of your 2019 tax return. The most common document will be the W-2 form known as the “Wage and Tax Statement” that you received from your employer. Other forms of income include self-employment income, dividends, royalties which will have their own documents.

Here’s a checklist of the relevant income paperwork and information you may have:

  • Form W-2
  • Form 1099-C “Cancellation of Debt” (the IRS generally considers canceled debt as taxable income)
  • Form 1099-G “Certain Government Payments” (forms for unemployment income and state/local tax refunds)
  • Form 1099-MISC “Miscellaneous Income” (forms you may receive for a range of different types of non-employee compensation)
  • Form 1099-R “Distributions from Pensions, Annuities, Retirement, or Profit-Sharing Plans” (forms for payments/distributions from IRAs or retirement plans)
  • Form 1099-S “Proceeds from Real Estate Transactions” (forms for income from the sale of a property)
  • Forms 1099-INT, -DIV, -B, or K-1 s (forms for investment or interest income)
  • Form SSA-1099 (forms for if you received Social Security benefits)
  • Alimony payments received
  • Business or Farming income: profit/loss statement, capital equipment information
  • Miscellaneous Sources of Income: jury duty, gambling winnings, Medical Savings Account, scholarships, etc.
  • Installment Sale Information: Forms 6252, principal and interest collected during the year, SSN and address for payer

Income and Expenses from Rental Property: profit/loss statement, suspended loss information

Adjustments to your Income to file 2019 taxes online

This category contains the information about your expenses that will help you calculate your Adjusted Gross Income or AGI. This information can reduce the amount of your income that the IRS considers taxable. This can help increase your tax refund or lower the amount of your tax bill still outstanding.

  • Form 1098-E “Student Loan Interest Statement” (forms for student loan interest paid, loan statements for student loans are also relevant here)
  • Alimony payments paid
  • Records of any IRA contributions made during the year
  • Records of Health Savings Account (HSA) contributions
  • For Students and Student Dependents: Form 1098-T for tuition paid (receipts/canceled checks for tuition paid for higher education are also relevant here)
  • For Teachers: receipts/canceled checks for expenses paid for classroom supplies, etc.
  • For armed forces reservists, employees with impairment-related work expenses, fee-basis state or local government officials, and specific categories of performing artists: receipts/canceled checks for employee business expenses.

If you are self-employed:

  • Records of self-employed health insurance payments
  • Records of payments into SEP, SIMPLE, and other qualified self-employed pension plans

Itemizing your Tax Deductions to file 2019 taxes online

While filing your 2019 taxes, just like in any other tax year, you have the choice to either take the standard deduction or to itemize your deductions.

The standard deduction is a preset amount that taxpayers are allowed to deduct from their taxable income annually. The standard deduction amount will depend on your filing status, and to keep up with inflation, it is annually indexed.

Depending on your personal situation, itemizing your deductions and credits may help you to lower your tax bill more than standard deductions. This can be especially true for high earners who also have several large expenses to deduct. To itemize your deductions, you will need to collect documentation detailing expenses so that you can be sure you are getting all the deductions and credits to your tax bill that you are eligible for.

What can you do if you are missing some of the tax documents you need to file 2019 taxes?

There can be a lot of paperwork and digital files to keep track of to file your taxes. Have you lost some of your documents? Fortunately, for the times when you cannot obtain new copies of your tax documents, there is a backup available. In such cases, you can request a free tax transcript from the IRS. This document will summarize your return information. 

Free tax transcripts from the IRS are available for the current tax year and the past three years. So, you have until 2023 to request a free tax transcript for the 2019 tax year.

What’s New for the 2020 Tax Year?

Posted by Manisha Hansraj on January 15, 2021
Last modified: January 18, 2021
2020 tax year

Here’s the breakdown of all the changes.

Standard deduction

For the 2020 tax year, the standard deduction amounts have increased. Here are the amounts below.

  • Single or Married filing separately – $12,400
  • Married filing jointly and Qualifying widow(er) – $24,800
  • Head of Household – $18,650

For taxpayers who are blind or at least 65 years old, they can claim an additional standard deduction. The standard deduction is $1,300 and $1,650 for the single or head of household filing status.

Taxpayers who are both blind and of eligible age receive a doubled additional standard deduction.

Recovery Rebate Credit (Stimulus Payment)

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What is Form 1099-NEC?

Posted by Manisha Hansraj on January 11, 2021
Last modified: January 13, 2021
Form 1099-NEC

For the 2020 tax year, there’s a new income statement.

The IRS has introduced a new form called Form 1099-NEC. Whether you’re well versed in reporting your taxes or not, this may be confusing.

Typically, your self employment income is reported on box 7 of your 1099-MISC statement. For the 2020 tax year it is now reported on a 1099-NEC. The IRS has done this to separate filing deadlines.

Why would you receive Form 1099-NEC?

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Understanding Joe Biden’s Tax Plan

Posted by Manisha Hansraj on December 18, 2020
Last modified: December 18, 2020
joe biden's tax plan

Many Americans want to know how our future president’s tax plan will affect them.

Biden’s tax plan will affect wealthier Americans, corporations, and everyday individual taxpayers. He also plans on making significant tax revisions on Trump’s previous tax plan which took place in 2017.

Skip the tax jargon by taking a look at this quick breakdown.

Key Changes

Here are the major findings in Biden’s tax plan.

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How does the Coronavirus Stimulus Check Work? (FAQ’s)

Posted by Manisha Hansraj on April 7, 2020
Last modified: April 15, 2020
stimulus check

The IRS has approved an economic stimulus package due to the spread of the Coronavirus (COVID-19).

A $2 trillion economic plan was passed by the Senate to combat the affects of COVID-19 on Americans. This stimulus plan includes payments to individuals, the self-employed, unemployment coverage, and more.

Here are some common questions about the coronavirus stimulus checks.

Do I have to apply for the stimulus check?

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How to File Your 2019 Taxes

Posted by Manisha Hansraj on January 13, 2020
Last modified: June 24, 2020
2019 tax return

The 2020 tax season starts on January 27, 2020. January kicks off the new year and with a new year, comes a new tax season. Get a fresh start by finding out the new tax changes for your 2019 tax return.

Additionally, check out some tax reminders below.

Tax dates to remember

It’s important to set a reminder whether it’s your phone or calendar.

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Tax Deductions: Choosing to Itemize or Claiming the Standard Deduction

Posted by Manisha Hansraj on January 3, 2020
Last modified: January 3, 2020

Trying to understand anything tax related makes you feel like you’re back in grade school.

However, it doesn’t have to be difficult. Here’s some sure-fire information that may help you out if you’re a first time filer, or if you have some general questions about claiming tax deductions.

What’s the difference between claiming the standard deduction and itemizing deductions?

In general terms, a tax deduction is a certain amount you are allowed to exclude from your income. This means that you are taxed on a lower amount of income, and thus pay less in taxes.

While not as valuable as tax credits – which directly decrease your tax liability – deductions can still reduce your tax burden significantly.

There are two ways to claim deductions.

  1. Itemize deductions. Add up all of your allowable expenses and subtract them from your income.
  2. Claim the standard deduction. Deduct the basic amount available to everyone.

While preparing your taxes you need to figure out whether you get a bigger tax break from itemizing your deductions or claiming the standard deduction. Most people end up claiming the standard deduction, but some people have enough allowable expenses to make it worth their while to itemize deductions.

The Standard Deduction

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10 Reasons to File Your Prior Year Tax Return Now

Posted by Manisha Hansraj on December 3, 2019
Last modified: December 5, 2019
prior year tax return

It’s not too late to file your taxes.

Life is never put on hold, even for tax season. Before you know it, the April and even October deadline fly right by. Then, you forget to file it next tax season and then the season after that.

However, although the deadlines go by, you should still file your prior year tax return. Here are some reasons why.

1. You’re getting a refund

One of the most important things to remember is that the IRS does not wait for anyone. According to the IRS, you have a three-year statute of limitations for refunds; meaning you can only claim tax refunds going back three tax years within the original April due date.

For example, if you want to claim a 2016 tax refund, your last chance to claim it is April 15, 2020. This means you must file by that date to get your refund. Therefore, any tax years going back from 2016 cannot be claimed.

Check out our helpful tax calculators to determine your refund for relevant tax years.

2. The IRS can hold your current year refund

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Did You Miss The 2018 Tax Deadline?

Posted by Manisha Hansraj on October 14, 2019
Last modified: October 23, 2019
missed 2018 tax deadline

Time waits for no one, especially the tax season.

With the year ending soon, another tax season is on the way. If you’re stuck trying to figure out what the next steps are for the missed 2018 tax deadline, keep reading.

Can you still e-file your 2018 tax return?

Although April 15, 2019, was the original tax deadline, you can still e-file your tax return until October 15, 2019. After this date, you will be required to paper-file your tax return. This means that you must to print, sign, and mail your tax return to the IRS and your state department of revenue.

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