The 2018 Tax Law passed by congress in 2017 brought significant changes on how taxes are filed. For example, the Form 1040 was shortened, however, six (6) additional schedules are required to be completed. Individual taxpayers may see a simpler filing due to an increase in the Standard Deduction but, business owners and property owners will be significantly impacted due to the enactment of the Qualified Business Deduction (QBD). Determining what qualifies for eligible QBD claims in the new tax code can take some time because the IRS rules are complicated with little clarification.
These major tax code changes made it necessary for a small increase in filing fees. The new rules will require extra time in preparing each return to ensure claims comply with new IRS guidelines. Also the increase is intended to cover our higher software and service fees that’s direct cost to KFS. We expect an 8%-10% average increase in filing fees. We’re confident this should have minimum impact to individual budgets.
- Forms 1095‐A ‐ If anyone in your household had a Marketplace plan, you should get Form 1095-A, Health Insurance Marketplace Statement, by mail no later than mid-February. It may be available in your HealthCare.gov account as soon as mid-January. IMPORTANT: You must have your 1095-A before you file.
- 1095 B or C related to the Affordable Care Act/Health Insurance (not required, but please provide if you have received one of these forms.
- W‐2 forms, all 1099's (int, div, cap gains, Social Security, etc.), K‐1's (partnerships, S‐Corps, trusts).
- Brokerage statements showing investment transactions for stocks, bonds, etc., and related cost of stocks and dates acquired‐“Final” versions may not be sent to you until mid‐March.
- Supporting documents for mortgage interest, taxes, donations, etc.
- Copies of closing statements regarding the sale, purchase, or refinance of real property.
‐ Legal papers for adoption, divorce, separation and custody issues.
‐ Any tax notices sent to you by the IRS or other taxing authority.
- Tax Due Dates - For most Individuals deadline for filing is April 15.
** Deadline for filing is May 17, 2021.**