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Take a deep breath, a drink, no matter what calms you down: it's tax season.
If you have already filed your return and received a satisfactory refund, congratulations! You are a lucky person because many people are going through a difficult time this year.
Strangely, much of the pain comes from a change that may seem pleasant: radical changes that, while offering a boon to the rich, amount to a tax cut for most Americans. However, combined with the government's longest stint in history, the short-term effects of these changes have been surprisingly disruptive.
Early returns indicate that fewer people than usual have benefited from the expected repayments. This has created an unsustainable spectacle: many people who pay less tax each week discover that they owe money to the Internal Revenue Service. In addition, residents of states like New York, New Jersey and California are facing a new ceiling of federal deductions for national and local taxes and are unsure whether their federal tax bill has increased as long as they have not changed their statement. In addition, many tax preparers are unaware of any new breaks and burdens.
Good luck! The journey may be more difficult than usual. We can not eliminate the problems, hire your refund or make the tax declaration a total pleasure. But we have largely covered the tax burden and prepared tax software articles and reviews, in the hope that with our help the ordeal will be easier and, at least, more understandable.
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Why do I pay more? What deductions can I take? The pros answer the big questions
The most significant changes to the tax code in recent decades have taken effect – and tax filers are confused. Many people who relied on fat tax refunds are taken aback when they learn that they are not getting them. For some thorny issues, especially those involving small businesses, tax preparers are also perplexed. We have asked chartered accountants and other tax preparers to do their best and give taxpayers clear answers.
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The 8 most common questions on tax returns for 2019, answered by experts
The best tax software this year, reviewed by The Wirecutter
If you prepare your own tax return, you can benefit from the assistance of an expert provided by a top notch tax software. The Wirecutter, a division of The New York Times Company that rigorously tests products, has reviewed this season's offers. The reviewers made several recommendations based on factors such as managing your own business and the complexity or simplicity of your financial situation. If it's very simple, they say, try H & R Block Free.
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The best tax software
Archiving with your smartphone: there is a disadvantage
The phones are fabulous for playing games and reading new apps. But are they effective for the tax return? Millions of people think so. Our reporter Tara Siegel Bernard did a telephone test, but she was not impressed. She found the experience unpleasant, in parts, and had unanswered questions about how to complete a reporting template. For the taxes of her own family, she will count again this year on a human accountant.
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Depositing taxes on your phone? Insert a frustrated Emoji here
A stop, and now the slowdown
"In this world, nothing can be certain, except death and taxes," said Ben Franklin. Given these alternatives, the tax man generally looks good. However, the particular tortures imposed this year may make the choice less obvious.
The complete overhaul of the tax legislation in force for the persons completing their declaration would, on its own, have imposed the I.R.S. and tax experts to make many adjustments and give a lot of new directions this year. The partial shutdown of the government has considerably slowed down the process. And first-time returns include more unpleasant surprises for taxpayers – who owe money when they expect to receive a refund – from the past.
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The government's decision made the I.R.S. Even more frustrating
The tax season begins, but it may not be all right
Your 2019 tax refund may be higher, lower or later than usual
Lower tax refunds surprise those who are waiting for additional relief
A heated debate in Congress, but do not expect a change
Only a year after radical changes have taken place, the proposals to reorganize – again – the tax code are being generalized. On the Democratic side, calls are being made for a more progressive system that would force the rich to pay more, reversing the rise in income inequality. The Republicans, meanwhile, want the current tax rates, which are due to expire at the end of 2025, to be permanent. The ruling power division in Washington means you should not expect big changes this year. But heated debates in Congress and during the 2020 election campaign will give clues to upcoming legislation.
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Everyone is talking, little action: what to expect on tax policy this year
When the rich want to pay more taxes
Rich people get the richer benefits from tax code changes, and many of them are happy, as you might expect. But a few of them oppose an alleged reform that put more money – much more – in their pockets. They were already doing very well and do not need additional help from the tax system: the poorest need more money. Some millionaires and billionaires, however, are hostile to this kind of talk. The friends of wealthy tax critics call them "traitors to their class."
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They are rich and they are crazy about taxes (too low!)
For small businesses, a new, potentially lucrative puzzle
The 2017 tax bill provides a 20% deduction for "qualifying business income", which is a boon to those who can get it. But who exactly qualifies? The rules are arcane, and I.R.S. the orientation has changed. The health, law, financial services, entertainment and consulting sectors are not qualified, for example, but architecture and engineering are. In some cases, eligibility depends on small details. Read on for some tips.
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Small businesses benefit from new tax breaks, but there are many "ifs"
The law offers assistance to wealthy investors and disadvantaged neighborhoods. Can he do both?
By allowing wealthy investors to postpone the payment of the tax man, new funds from the opportunity area begin to attract substantial sums. The funds provide tax relief under the 2017 Tax Act to attract money to struggling communities.
The idea is that investors benefit from tax breaks, while neighborhoods acquire new businesses and modernize their apartment buildings, shops, and so on. But areas designated as being in difficulty are not always really in need. The bustling area of Long Island City where Amazon has proposed to place its campus, a plan it has abandoned, has been designated a zone of opportunity, for example. And even when neighborhoods are really struggling, providing tax breaks for the rich can be a difficult way to redevelop them.
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Opportunity zones offer tax breaks and, perhaps, help for communities
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