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If you qualify for any of the new tax credits, consider adjusting your withholding or estimated tax payments. Use the excess in your own investment program.
Withdrawals from IRAs are penalty-free if used for your first home purchase or for paying college bills for a family member. You’ll pay income tax, but withdrawal may be less expensive than a loan.
If you administer a business from your home, the home office deduction will be easier to claim in 1999. This provision may be especially attractive to outside salespersons.
If your child has earned income, consider starting an IRA for him or her. The long investment period means even small contributions can grow to significant amounts by the time your child would use the fund.
Pay Taxes by Credit Card
The IRS is piloting two
different
ways for taxpayers to pay their federal income taxes by credit card -
either by telephone and by computer. With either method, private sector
companies will process the credit card transactions and report the payment
amounts, but not the credit card number, to the IRS. Users will pay
convenience fees, but the IRS is not involved in setting or collecting the
fees.
The computer option is available only for taxpayers using Intuit tax preparation software to file their returns electronically. Under the telephone option, taxpayers may call 1-888-2PAY-TAX and arrange payment of their taxes with a Mastercard, Discover, or American Express card.
 | Effective for 1999, a child tax credit of $500 per child (under age 17) is available |
| The Standard Mileage reimbursement rate was lowered to $0.31/mile effective April 1, 1999. Beginning January 1, 2000 the standard mileage rate will be $.325, the same as it was before the April reduction. |
| A child, under the age of 14, may have up to $1,400 in unearned income before the Kiddie Tax is triggered |
| In 1999, the Standard Deduction for a joint filer is $7,200; single $4,300 and Head of Household $6,350 |
| The maximum amount of Section 179 expense deductions allowed in 1999 was raised to $19,000. |
September 15, 1999 Third installment of 1999 individual estimated tax is due
October 15, 1999 Deadline for filing your 1998 tax return if you received an extension of the August 16th deadline
December 15, 1999 Corporations should deposit the fourth installment of estimated 1999 income tax
January 18, 2000 Fourth installment of 1999 estimated tax is due for individuals