This past year, when Congress passed the new tax code there have been a multitude of changes that are just now going into effect starting for the tax year 2018. So that means, in early 2019 when you are preparing your tax returns some of these changes may possibly affect you. The number one change in the new tax code is for individuals. The standard deduction has essentially been doubled for couples that are married and filing joint returns, the standard deduction has jumped up now to $24,000 up from $13,000 and on the individual side, the standard deduction has now gone up to $12,000. This is going to affect a lot of people that may normally itemize their deductions. Now, with the high increase in the standard deduction, they may just take that instead which will simplify their return.
A couple of other changes that will also affect more people on the individual side is the maximum tax rate, which is now 37% for individuals filing jointly. That tax bracket starts at $600,000. So every dollar above that is going to be taxed at 37% and for people who file single that limit is set at $500,000. Finally, the childcare tax credit has now been doubled from $1000 to $2000. So if you have a qualifying child and you can meet this standard to take this credit then the benefit that you get will essentially double.
When Should I File An Extension For My Tax Return?
Filing an extension should always be done before the actual due date of your return. So that means depending on the type of income tax return that you are looking to file, your due date may be either March 15th, April 15th or May 15th. By filing an extension before that due date you are essentially giving yourself an additional six months from that due date to file your return. Again, you have to remember that by taking this extension, you are only extending the time necessary to prepare and file the return. If you expect to owe, an extension does not extend the timeline for which you have to pay your taxes on the returns. So if you are expecting to owe then you do need to make a payment by your original due date but if you file that extension you still have an additional 6 months in order to prepare.
What Is The Deadline For A Tax Return When An Extension Has Been Filed?
Because certain tax returns are due before or after others, when your tax return extension has to be filed is dependent on the type of return. For example, if you are a partnership or an S-corporation, you have to file an extension by March 15th which would then extend the time you have to file the return until September 15th. For those on the individual side, those who file 1040s and certain estates and trusts and even big corporations, their deadlines are normally on April 15th so an extension would give them up to October 15th to file. Finally Tax exempt organizations such as charities, normally have a deadline to file of May 15th. So by filing an extension, they would then have till November 15th to file their tax return. As always, if the 15th falls on a Saturday or a Sunday or a federal holiday, then you may have an extra day or two to file that return.
For more information on Tax Changes For 2018 In South Carolina, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.