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January news

The IRS will be begin accepting returns on January 28th and will issue refunds even if the federal government is still in partial shutdown. The IRS will bring back some of its workers as needed to process returns and send out refunds.

The IRS has eliminated the 1040EZ and the 1040A so everyone has to use the 1040. There have been many more forms created to replace the line items that were on the old 1040 form.

The fines under Obamacare’s individual mandate were repealed in in 2017 but didn’t take effect until January 2019. The penalties are still in effect for 2018 returns.

Claiming the hardship exemption for not having health insurance in 2018 is an easier process than in prior years. Use Form 8965 to claim the exemption. It can be filled out without first obtaining a certification from the health insurance marketplace. Just enter code G in column c of part III of the 8965. Make sure you check each month this applies.

Some states don’t follow the new tax law so you might be able to claim deductions that were formally a federal deduction on a state return. Be sure to check out if you live in one of these states. People living in California, Hawaii, Iowa, Minnesota and New York and some other states this affects. The federal moving expense deduction is gone also but some states kept this deduction. There are additional breaks available so be sure to check your state laws to see if you qualify.