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Tax Day Is Coming

With tax season in full swing and Tax Day five weeks away, the effects of the Tax Cuts and Jobs Acts are becoming known. For small business owners, this has meant confusion over the pass-through deduction and several repealed deductions for things like employee meals and transportation expenses.

Research shows that small business owners prefer a fair tax system over tax cuts. This is why CAMEO supports legislation efforts aiming at making the tax code simpler and more accessible to the millions of small businesses that fuel this country’s economy.

CAMEO is pleased to support H.R. 593, the Small Business Owners Tax Simplification Act of 2019. The bill was introduced on January 16 by House Small Business Committee Chair Nydia Velázquez (D-N.Y.) and Ranking Member Steve Chabot (R-Ohio). The bill amends the Internal Revenue Code, with respect to several requirements that affect small businesses and self-employed individuals, in order to:

  • Align the deadlines for four-month reporting deadlines with the calendar year end-of quarters;
  • Modify the dollar thresholds for 1099-MISCs and 1099k reporting requirements at $1,500;
  • Allow entrepreneurs and small business owners to participate in cafeteria benefit plans;
  • Exclude from self-employment income net earnings that are less than the amount required under the Social Security Act
  • Allow health insurance costs of self-employed individuals to be deducted for self-employment tax purposes; and
  • Allow voluntary tax withholding agreements, training, or group discount programs to contractors without classifying these individuals as employees

In the meantime, there are other things small business owners can do to better understand the Tax Cuts and Jobs Act’s provisions. The IRS has put out a series of webinars for this purpose:

Finally, if your clients have been affected by the new tax law, they can share their story with Businesses for Responsible Tax Reform. It will help us all better understand how the Tax Cuts and Jobs Act has actually impacted small businesses across the country.