A few new inflation adjustments or carry-overs for 1999:
- Starting April 1, 1999, the new Standard Mileage rate is 31¢ per mile. The IRS has announced that the Standard Mileage rate for business use of an automobile for 1999 will remain at the 1998 level of 32.5¢ per mile until April 1, 1999 to allow employers and employees time to implement the new rate without causing employers to treat any excess payment as wages and forcing employees to include excess payments in their gross income.
- The charitable mileage rate deduction has been increased for 1999 to 14.5 cents per mile. [Editor’s Note: Charitable mileage rate for 1999 was inadvertently listed as 14.5 cents per mile when in fact it is 14 cents per mile.]
Upcoming Tax Deadlines:
- Taxpayers whose tax returns were due by April 15, 1999 and who requested extensions of time to file have until October 15, 1999 to file their return before their extension expires.
- Employers required to file IRS Forms 941 (Employer’s Quarterly Federal Tax Return) must do so by October 31, 1999 for the Third Quarter of 1999.
- Maryland Employers: The deadline for filing forms MW506 (Maryland Employer Report of Income Tax Withheld) and DLLR/OUI 15 (Maryland Unemployment Insurance Quarterly Contribution Report) is October 31, 1999.
- Unlike Roth IRAs, persons looking to fund an educational IRA for a qualified individual must fund this IRA by no later than December 31, 1999, to qualify their contribution for 1999.