NASE News

Under New Tax System, Small Businesses Will Have a Simpler and More Efficient Filing Season

FOR IMMEDIATE RELEASE:
CONTACT:  Kristofer Eisenla, LUNA+EISENLA media
kristofer@lunaeisenlamedia.com | 202-670-5747 (mobile)

TAX SEASON – SMALL BUSINESS IMPACT

Tax Reform Law Passed in Late 2017 in Effect for 2018 Tax Returns; Now is Time to Get Prepared

DALLAS, TX – After a record-setting government shutdown that  affected  America’s small business community, including millions of self-employed and micro-businesses, the National Association for the Self-Employed (NASE) is encouraging entrepreneurs to start preparing now for filing this year’s tax returns.

This year is the first-time small business owners will be filing under the new tax system established by passage of the Tax Cuts and Jobs Act and many Americans are unsure about how the new law will impact their returns.  The Tax Cuts and Jobs Act passed and signed into law in late 2017 will impact millions of Americans, including the small business community, who could save time and money with key policy changes designed to make the filing process simpler and more efficient.

“Understandably small business owners are apprehensive about filing under a new tax structure and not completely sure how the law will impact their returns this year,” said  Keith Hall, president and CEO of NASE.  “However, the overwhelming majority of small businesses and self-employed entrepreneurs can expect to benefit from key changes and updates to the tax code in effect this year that will help save both time and money.

“The number one thing small business can do now is start to prepare: gather documents, review tax obligations and deductions, and get educated about the new tax code. And remember, you are not alone – there are resources from NASE.org, IRS.gov and SBA.gov where information and assistance are readily available.

“The passage of the new tax system will help make the filing process simpler and more efficient for millions of people. With a lower individual rate, double standard deduction and the elimination or reduction of specific deductions, everyone from the individual to the small business owner can take advantage of a more streamlined filing process. This will translate into saving time and money,” concluded Hall.

Tax Filing Key Updates and Reminders
- The tax filing date is Monday, April 15^th, 2019
- This is the first filing year of the new tax system, including:
  ~A lower individual rate, which is where most self-employed small businesses file
  ~A doubling of the standard deduction, which is $12,000 for single filers and $24,000 for married couples
  ~Reduction or elimination of specific deductions such as for moving expenses or the unlimited state and local tax deductions known as SALT deductions, which are now capped at $10,000
- A streamlined, standard home office deduction is available
- The standard mileage rate for business use of an automobile is 54.5 cents per mile for 2018 tax returns
- Limits for retirement plan contributions such as SEPs, IRAs and 401(k) plans may have changed for your situation

Tax Filing Tips
1. Gather Your Documents Early – don’t wait until the last minute; now is the time to start making sure you have all your important tax filing documents.
2. You’re Not Alone – stay connected; there are resources out there to help you from IRS.gov to NASE.org and tax professionals.
3. Educate Yourself About Changes to the Tax Code – believe it or not, there are changes and adjustments to the tax code year-to-year; make sure you find out what they are so you are prepared and can take advantage of them.
4. Don’t Forget About Hidden or Overlooked Deductions – don’t leave anything on the table; make sure you are not missing any deductions that apply to you that can make the difference, such as mileage reimbursement, retirement contributions and the home office deduction.

Hall recently penned a guest column in Home Business Magazine alerting the small business community to key policy changes that may impact their 2018 returns.

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The National Association for the Self-Employed (NASE) is the nation's leading advocate and resource for the self-employed and micro-businesses, offering a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy.

The NASE Next Biz Thinghelps identify and connect our nation’s smallest businesses. Need small business help? Check out NASE’sAsk the Experts for advice or the NASE Minute for small business support.

The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at NASE.org