2018 Fall issue of Horizons

Timely Reminders

October 15, 2018 Individuals If you have an automatic six-month extension to file your income tax return for 2017, file Form 1040, 1040A, or 1040EZ and pay any tax, interest, and penalties due. Reminder: The automatic extension does not extend the time to pay, only the time to file. Therefore, any tax due on returns filed after the original due date will likely have penalties and interest assessed. Calendar year C Corporations deposit the fourth installment of estimated income tax for 2018. Reminder: The estimated tax due can be 100% of the estimated current year tax or 100% of the actual prior year tax, whichever is the lesser. However, “large” corporations cannot base estimated tax payments on prior year tax and must calculate quarterly estimates based on estimated current year tax. A corporation is considered a “large” corporation if it had taxable income of at least $1 million in any one of the three immediately preceding tax years. December 31, 2018 Individuals & Cash Basis Businesses Pay amounts intended to be deducted on 2018 returns. An example includes the fourth quarter state estimated tax payment. The payment is due on January 15, 2019, but it would be deductible on the 2018 return if paid on or before December 31. Individuals If you are over 70 ½ in 2018 and have an IRA or qualified retirement plan account, the minimum required distribution needs to be paid on or before December 31. December 17, 2018 C Corporations

Planning Point: if you have more than one IRA, you do not have to take a distribution out of each. As long as the distribution is calculated using the total of all the IRA accounts, the distribution can come out of any of the IRAs or a combination. Individuals & Businesses Tax planning is best done before the end of the year. This will allow time to make accounting elections or other actions to optimize tax for the year. Planning after the year end limits the amount of options available to achieve the desired result.

Federal Unemployment Tax File Form 940 for 2018.

February 15, 2019 Individuals

If you claimed exemption from income tax withholding in 2018 on the Form W-4, Employee’s

Withholding Allowance Certificate, you gave to your employer, you must file a new Form W-4 by this date to continue your exemption for 2019. All Employers Begin withholding income tax from the pay of any employee who claimed exemption from income tax withholding in 2018, but did not provide Form W-4, Employee’s Withholding Allowance Certificate, to continue the exemption in 2019.

January 15, 2019 Individuals If you are not paying all of your 2018 estimated income tax

through withholding, pay the fourth installment of your 2018 estimated tax using Form 1040-ES and applicable state form(s) if not paid on or before December 31.

March 1, 2019 Farmers & Fishermen

Can avoid estimated tax penalty if Form 1040 for 2018 is filed on or before March 1, 2019.

January 31, 2019 Businesses

March 15, 2019 S Corporations

Issuers need to file 1099-MISC forms reporting nonemployee

compensation in box 7 with the IRS by January 31, 2019. For other 1099s and 1099-MISC with amounts in boxes other than 7, the filing deadline is February 28, 2019, if paper filing or March 31, 2019, if filing electronically. Reminder: Most 1099s are still due to the recipient on January 31. All Employers File Form W-2s for 2018 with the Social Security Administration and provide copies to employees.

File a 2018 calendar year income tax return (Form 1120S) and pay any tax due. Provide each shareholder with a copy of Schedule K-1(Form 1120S), Shareholder’s Share of Income, Deductions, Credits, Etc. If you want an automatic six-month extension of time to file the return, file Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns. Partnerships File a 2018 calendar year income tax return (Form 1065) and pay any tax due. Provide each shareholder with a copy of Schedule K-1(Form 1065), Shareholder’s Share of Income, Deductions, Credits, Etc. If you want

Federal Payroll Tax File Form 941 for the fourth

quarter of 2018. Deposit or pay any undeposited Social Security, Medicare and withheld federal income tax.

Timely Reminders

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