Tax E-filing season arrives

Esther Gulyas says make sure software has latest updates

Tom Puckett
January 27, 2020 - 4:00 am
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Buffalo, NY (WBEN) The e-filing season has begun in the tax world. Our resident tax expert says if you're e-filing, make sure your software is up to date.

"A major tax change happened four days before Christmas," says Esther Gulyas of EG Tax. "You want to make sure your software company has updated the software to reflect the changes."

Gulyas says one big change is in medical. "Before the changes, medical was deductible if it exceeded 10 percent, then they reduced it to 7.5%," says Guylas. Another one is with tuition deduction, that was deducted under the tax reform. "It's back in play both in 2018 and 2019, so you may be able to amend your 2018 returns if you weren't able to use the lifetime learning credit or the American opportunity tax credit." She says if the change affects you, you'll be able to reduce your tax liability.

Gulyas says another change affects seniors. "The required minimum distribution has been extended starting in 2020 to those age 72, so those who were going to march down to take money out of their IRA won't have to do it until they're 72," says Gulyas. "Starting in 2020, if you're older than 70 1/2, you can contribute to your IRA if you're working."

Gulyas says people who had a child can take up to $5,000 out of their 401k or IRA without being penalized.

She emphasizes doing your homework as you e-file. "Look at irs.gov to make sure you're aware of all these changes to make sure you fit into these categories, and even though it's not deductible on the federal level, if you're a New York taxpayer and you can itemize, they're still deductible on the 2019 state returns," adds Gulyas. 

 

 

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