Keeping the office clean and full of snacks
Alright client....they did it! They deadline is now July 15.
We are still open so please continue to call and make you appointments and get the info in as quick as possible so we can get them done ASAP please.
We appreciate each and every one of you
The filing deadline did not change. It is still April 15. Please call the office and make your appointment today to get in. We look forward to seeing you!
This week we will start our extended hours. We will be open Monday-Friday 9-7 and Saturday 9-2 during tax season. Call to make your appointment.
Give us a call to make your appointment to start your tax returns. Partnerships and S Corps are due March 15. If you need year end reports such as 1099s, w2s, and other payroll forms please call right away so we can get you in before those are due January 31. Can’t wait to see all our clients again!
This year we decided to adopt a family in need. We adopted a single mom with 2 girls. We love being able to give back to the community. Merry Christmas everyone from all of us at Accutax 🎄
2020 Charitable Contributions Deduction – Did You Know?
Ordinarily, only taxpayers who itemize deductions may deduct charitable contributions on their federal tax returns. However, the CARES Act allows many people who do not itemize to claim a deduction for 2020 cash contributions to IRS-approved charities. Tax deductions lower a person's tax bill by reducing taxable income.
In general, individuals and couples who do not itemize deductions may deduct up to $300 for cash contributions made to qualifying charitable organizations in 2020. Qualifying organizations include many nonprofits dedicated to educational, religious, literary, and disaster and hunger relief activities. The IRS provides an online search tool (link below) to help taxpayers determine whether a particular charity qualifies to receive tax-deductible donations.
As a reminder for those who do itemize deductions, the CARES Act also sets the 2020 cash contributions itemized deduction limit at 100% of adjusted gross income (AGI) for most taxpayers, a temporary increase from the usual limit of 60% of AGI. Qualifying 2020 cash contributions in excess of the limit may be carried over as deductions for tax year 2021.
A tax professional can help you determine whether your contributions qualify for these special rules, and how to claim your deduction if so.
IRS Charitable Organizations Search Tool: https://www.irs.gov/charities-non-profits/tax-exempt-organization-search
What a fun time the office had last night! Painting at Yellowstone Coffee & Canvas then off to look at Christmas lights!🎄 We would like to wish a very Merry Christmas to all of our clients.
'Tis the Season for Important Tax Paperwork
Keeping your records organized will help make sure you don't miss out on valuable deductions when it is time to file.
Some documents to be on the lookout for:
- Wage and income statements (like W-2 or 1099-MISC)
- Health Insurance statements (like Form 1095)
- Proof of qualifying educational expenses (like Form 1098-T)
- Mortgage interest statements
- Retirement distribution statements
- Investment account statements
- Charity donation receipts
Tax Filing Season Start - Did You Know?
The IRS has announced that the individual tax filing season will start on Friday, February 12, 2021 and the current deadline to file 2020 tax returns and pay any taxes owed is Thursday, April 15, 2021.
Although the IRS systems open for processing on February 12, you do not have to wait until then to begin preparing for your tax return.
Tracking Income and Expenses for “Gig” Work – Did You Know?
With working from home becoming more common in 2020 & 2021, many people are taking on freelance or “gig” work to supplement their incomes. Whether you rely on gig work as your primary income source or just log a few hours a week, it is important to track all your freelance income, along with any associated expenses. Freelance income must be reported to the IRS, but deductions for a home office and expenses like supplies and mileage can reduce your tax liability.
If you have multiple income sources, including an hourly or salaried job, you may need to adjust your withholding to account for your freelance work. If most or all of your work is on a freelance basis, you may need to make quarterly estimated tax payments.
A tax professional can help you develop an efficient system to record your income and expenses, and keep your withholding or estimated tax payments on track. It is much easier to track these numbers on an ongoing basis than to reconstruct them at the end of the year.
2021 Mileage Rate Changes
Starting on Jan. 1, 2021, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 56 cents per mile of business travel driven, a decrease of 1.5 cents from the rate for 2020.
- 16 cents per mile driven for medical or moving purposes (for qualified active duty members of the Armed Forces), a decrease of 1 cent from the rate for 2020.
- 14 cents per mile driven in service of charitable organizations, remaining unchanged from 2020.
You may also have the option of calculating the actual costs of using your vehicle rather than using the standard mileage rates.
How to Set Yourself Up for a Hassle-Free Tax Season (2/4)
By taking a few simple steps now, you can greatly reduce uncertainty and stress during the 2020 tax filing season. These actions will help set you up to complete your return efficiently, without unpleasant surprises:
Organize Records of Other Potentially Taxable Transactions
The sale of major assets like stock, a house or any other “big ticket” item may yield a taxable capital gain. Many cryptocurrency transactions (such as buying and selling Bitcoin) also have tax implications, since the IRS classifies cryptocurrencies as property. Make sure you have complete records of all your significant financial and property transactions during 2020.
How to Set Yourself Up for a Hassle-Free Tax Season (1/4)
By taking a few simple steps now, you can greatly reduce uncertainty and stress during the upcoming 2020 tax filing season. These actions will help set you up to complete your return efficiently, without unpleasant surprises:
Gather Documents Showing Wage, Business And Other Income
If you work as an employee, you should receive a W-2 from your employer(s) by early February, showing your earnings for the year and the total tax withheld from your paychecks. If you are self-employed (including gig economy work) or own a business, you should receive 1099 forms from your clients showing fees paid to you.
Interest and dividend income, along with royalties from past work, are also reported on 1099 forms. Recipients of unemployment benefits (including $600 federal Pandemic Unemployment Assistance payments) and/or taxable Social Security benefits should receive a year-end statement detailing these payments as well. Store all of these documents with your tax records.
How to Set Yourself Up for a Hassle-Free Tax Season (4/4)
By taking a few simple steps now, you can greatly reduce uncertainty and stress during the 2020 tax filing season. These actions will help set you up to complete your return efficiently, without unpleasant surprises:
Start Early!
The IRS opens for tax filing season tomorrow, February 12th. With all the unpredictability of life during a pandemic, staying ahead of the tax game is more important than ever. Assemble your records as soon as possible. If you have any questions, a tax advisor can help you identify and organize the documents you need. Tax professionals will have far greater availability early in the tax season than at the last minute.
How to Set Yourself Up for a Hassle-Free Tax Season (3/4)
By taking a few simple steps now, you can greatly reduce uncertainty and stress during the 2020 tax filing season. These actions will help set you up to complete your return efficiently, without unpleasant surprises:
Be Aware of Refund Interest And Stimulus Payments
Because the processing of some tax refunds was delayed in 2020 due to the pandemic, the IRS paid interest to many refund recipients. Unlike refunds themselves, these interest payments are classified as taxable income. If you received a tax refund interest payment, the IRS will send you Form 1099-INT in January, which you will need when preparing your return.
Recipients of a 2020 Economic Income Payment (EIP, also called a stimulus payment) should have also received IRS Notice 1444, Your Economic Impact Payment. Make sure to keep this notice handy. If your EIP amount was lower than it should have been, Notice 1444 will give you the information you need to claim a tax refund for the balance owed to you.
Where's My Refund? - Did You Know?
You can use the IRS 'Where's my Refund' (https://www.irs.gov/refunds) tool to check the status of your refund. The 'Where's my Refund' tool is updated once daily, usually overnight. Your status is generally available within 24 hours upon the IRS receiving your e-filed return. If you have filed a paper return, the IRS is currently experiencing processing delays for paper filed returns, but will process them in the order received.
IRS Extends Filing and Payment Deadlines Due in April – Did You Know?
In response to the pandemic, the IRS has extended both the 2021 federal income tax filing and payment deadlines for individual taxpayers. Here are the important details:
- The filing deadline for 2020 federal individual income tax returns has been automatically moved from April 15, 2021 to May 17, 2021.
- The payment deadline for individual taxpayers to pay their 2020 tax due has also been automatically extended from April 15, 2021 to May 17, 2021. This extension also applies to those who pay self-employment tax.
- The same extension does not apply to estimated tax payments with the due date of April 15, 2021. (For most payers of estimated taxes, this is their first-quarter payment for 2021).
Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension to October 15, but this does not include an extension to pay.
