IRS is providing a variety of tax relief for those affected by the Hurricane Florence. For the latest updates, check the ww.irs.gov website
IRS is providing a variety of tax relief for those affected by the California Wildfires. For the latest updates, check the ww.irs.gov website
The IRS urges all taxpayers to file a complete and accurate tax return by making sure they have all the needed documents before they file. This includes:
Forms W-2 from employers.
Forms 1099 from banks and other payers.
Forms 1095-A from the Marketplace for those claiming the Premium Tax Credit.
Typically, these forms start arriving by mail in January. Taxpayers should check them over carefully, and if any of the information shown is wrong, contact the payer right away for a correction.
Employer credit for paid family, medical leave available
Employers that provide paid family and medical leave to employees may qualify for a new credit for tax years 2018 and 2019, the IRS announced.
In addition, eligible employers who set up qualifying paid family leave programs or amend existing programs by Dec. 31 can claim the credit for paid family and medical leave, retroactive to the beginning of the employer’s 2018 tax year, for qualifying leave already provided.
Notice 2018-71 details guidance on the credit, which was enacted by the Tax Cuts and Jobs Act. The notice clarifies how to calculate the credit, including application of rules and limitations.
Generally, for tax year 2018 the employee’s 2017 compensation from the employer must have been $72,000 or less. Among other conditions:
IRS gives taxpayers a break on employee moving expenses
The Internal Revenue Service is allowing people to continue to deduct employer payments or reimbursements for employee moving expenses, as long as they happened before this year, although the Tax Cuts and Jobs Act will change that for this year and going forward.
The IRS said Friday that employer payments or reimbursements in 2018 for employees’ moving expenses that were incurred prior to 2018 can be excluded from an employee’s wages for income and employment tax purposes.
The tax overhaul that Congress passed last year suspended the exclusion from income for moving expenses reimbursed or paid by an employer for most employees starting this year, so those amounts are now taxable, except for active-duty members of the U.S. Armed Forces whose moves are tied to a military-ordered permanent change of station.