Now that tax season is here, it’s a good time to review some reminders when preparing to file income taxes.
Tom Kennedy is a certified public accountant with Henkel and Associates in Jefferson, and he reminds everyone that employees of a business, except for self-employed individuals, can no longer claim travel mileage for vehicles.
“So that’s no longer deductible for employees. You need to try and talk with your employer and see if you can get an accountable plan, where they reimburse you for your mileage. It can be tax free to you that way and they (the employer) get the deduction.”
Kennedy points out, even though the standard itemized deduction amounts have changed drastically at the federal level, he suggests to keep it for state tax purposes.
“If you have an Iowa tax return, the limits can be as low as $2,080. You still need to keep track of a lot of this stuff (but) they don’t allow you to deduct as much as they did in the past.”
Kennedy adds, make sure you have all proper documentation when filing taxes, such as W2, 1099 and other important tax documents. The tax filing deadline is Wednesday, April 15th.