Tax filing season is upon us and individuals everywhere are in the process of filling out the appropriate paperwork required for their specific returns. Whether an individual, family of six or even anywhere below or beyond, each person who has earned income over the past year is required to report their earnings and amount of taxes paid. Doing so then either results in subjects receiving a refund due to having paid too much in during the course of the preceding year or owing more money to the federal or state governments.
The filing season officially opened on January 27 and returns must be submitted prior to the April 15 deadline, unless submitting an extension. For many, the changes from year to year are minimal but recent revisions to the tax code, as is common practice with new administrations, continue for this year. One of the most significant changes which continues to apply, has been the increase in standard deduction rates across the board.
Single - $12,400
Individuals who have no other tax burdens other than themselves are subject to the standard deduction rate for single filers. This limit ($12,400) applies to the amount which may be utilized to reduce a person’s tax burden.
Married Filing Jointly - $24,800
Those who are married and filing together receive an appropriate amount of double that for individuals. While the option to itemize a return exists, thanks to the raised general assignment allowable, many people can save time by simply electing to utilize the new standard rate.
Married Filing Separately - $12,400
Some reasons exist for married filing separately and persons who fall into these categories can receive the same standard deduction as individuals. While there may be other differences to their filing status and potential deductions, the standard deduction amount applies in similar fashion to individuals.
Head of Household - $18,650
If filing as Head of Household, a person receives a slight boost to their standard deduction rate. Increased to $18,650 for these individuals, there are certain criteria for utilizing the Head of Household status on a tax return.
If you’re ready to file a return or need help determining exactly which standard deduction rate may apply to your given situation, then let the tax professional
s at Bloch Rothman and Associates assist you today. In addition to providing answers to your filing status questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a quality tax service, our group can also complete all types of returns or answer any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!