First Filing Year Individual Mandate Penalty Officially Repealed
Policies and Updates Intended to Help Small Businesses File Simpler, More Efficient and Beneficial Returns
DALLAS, TX – With two months until the deadline to file 2019 tax returns, Keith Hall, the president and CEO of the National Association for the Self-Employed (NASE) which is the nation’s leading advocate and resource for the self-employed and micro-businesses, encourages small business owners to “start preparing now by gathering your documents and reviewing key policies and updates to the tax code intended to make filing returns simpler, more efficient and beneficial.”
The Tax Cuts and Jobs Act, passed and signed into law in late 2017, impacts millions of Americans, including the small business community, who could save time and money with key policy changes.
“Now is the time for small businesses to start to prepare for filing their 2019 tax returns. It is crucial for small business owners to start gathering documents and reviewing tax obligations and deductions in order to educate themselves about the new tax system’s policies and updates to the tax code,” said Keith Hall. “Under our new tax system, an overwhelming majority of small businesses and self-employed entrepreneurs can expect to benefit from key changes and updates to the tax code that will help save both time and money. And remember, this is the first year where the individual mandate penalty is officially repealed and no longer a threat to small businesses.”
Tax Filing Tips
- Gather Your Documents Early – don’t wait until the last minute; now is the time to start making sure you have all your important tax filing documents.
- You’re Not Alone – stay connected; there are resources out there to help you, from IRS.gov to NASE.org and tax professionals.
- Educate Yourself About Changes to the Tax Code – believe it or not, there are changes and adjustments to the tax code year-to-year; make sure you find out what they are so you are prepared and can take advantage of them.
- Don’t Forget About Hidden or Overlooked Deductions – don’t leave anything on the table; make sure you are not missing any deductions that apply to you that can make the difference, such as mileage reimbursement, retirement contributions and the home office deduction.
Tax Filing Key Updates & Reminders
- The tax filing deadline for individuals is Wednesday, April 15th, 2020.
- This is the first filing year under the new tax system where the individual mandate penalty is officially repealed.
- Under the new tax system:
- A lower individual rate, which is where most self-employed small businesses file.
- A doubling of the standard deduction, which is $12,000 for single filers and $24,000 for married couples.
- Reduction or elimination of specific deductions such as for moving expenses or the unlimited state and local tax deductions known as SALT deductions, which are now capped at $10,000.
- A streamlined, standard home office deduction is available.
- The standard mileage rate for business use of an automobile is 58 cents per mile for 2019 tax returns, up from 54.5 cents last year.
- Limits for retirement plan contributions such as SEPs, IRAs and 401(k) plans may have changed for your situation.
“Our country’s new tax system is a huge benefit for the small business community. With a lower individual rate and double standard deduction, small business owners and self-employed Americans can take advantage of a more streamlined filing process. Remember, you are not alone and there are resources out there for help, including NASE.org, IRS.gov and SBA.gov, where information and assistance are readily available,” concluded Hall.
The National Association for the Self-Employed (NASE) is the nation’s leading advocate and resource for the self-employed and micro-businesses, offering a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy.
The NASE Next Biz Thing helps identify and connect our nation’s smallest businesses. Need small business help? Check out NASE’s Ask the Experts for advice or the NASE Minute for small business support.
The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association’s website at NASE.org