EDITOR’S NOTE: The following article was originally printed by the National Federation of Independent Business
With tax season approaching, the Internal Revenue Service released resources for businesses and individuals regarding what the Tax Cuts and Jobs Act (TCJA) means during the 2018 tax filing season.
The vast majority of small business owners-87 percent-think the new tax law will have a positive effect on the general economy, according to a recent NFIB report that captures small business owners’ initial reactions to the Tax Cuts and Jobs Act.
Below is a breakdown of key topics and resources now available to ensure businesses and individuals are compliant come Tax Day.
If you’re filing individually, the TCJA may have had a major effect on your taxes. Publication 5307 walks you through the paycheck checkup process to help you review your tax situation and avoid additional tax payments, or worse: penalties. The 12-page guide includes steps taxpayers can take to ensure that they are compliant under the new NFIB-backed TCJA law.
Whether you’re a one-man operation or managing an operation with 100 employees, running a business means paying attention to the changes in the tax law. The IRS offers this resource for business-specific provisions in the tax law. Topics include Deduction for Passthrough Businesses and Changes in Accounting Periods and Methods of Accounting.
Business that file as corporations benefit from a 21-percent rate and the repeal of the corporate alternative minimum tax. Section 199A provides a deduction of up to 20 percent for pass-through companies, which includes most small businesses. Increased thresholds for the estate tax mean that fewer businesses have to spend time and money planning for the estate tax.
Visit the IRS’s tax reform page to download a copy of Publication 5307 for more information on tax rates, federal income tax withholding calculations, and deductions for individuals and businesses. .
For more news and updates on the recent tax relief law, visit NFIB’s tax reform page.