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Marriage Penalty
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Don't become the victim of a work-at-home scam
IRS posited Per Diem Amounts Effective October 1, 2020
M&IE per diem rates are $55, $56, $61, $66, $71, and $76 depending on the locality the taxpayer sleeps that night.
The full per diem tables by state and key city lookup is www.gsa.gov click on the Per Diem link.
As in the past, you can choose to use the new rates beginning October 1, 2020 or continue to use the old rates for the entire year.
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Your Business is Probably Overspending in These Four Areas
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Don't Run the Risk of a High Tax Bill! - Know when you should ask for professional help.
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IRA: Can I invest in anything I want?
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Avoid Name Mismatch Audits
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IRA: Can my child set up an IRA?
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Client Update Newsletter: October 2020
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What if I owe more to the IRS than I can pay?
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Passive Activity
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The Lost Art of Tracking Home Improvements - How a tax law makes us sloppy and creates a tax risk
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2021 Social Security Changes Announced
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Can I deduct fees I pay to care for my child while I work?
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What is the difference betwee a tax deduction and a tax credit?
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Can my hobby be considered a business?
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Are mortgage refinancing costs deductible?
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Education Tax Credits
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IRA: Should I convert my traditional IRA into a Roth?
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Health Savings Account (HSA)
We’re All in Grant officially opens on Today! The program will kick off on Monday 10/19 at 8 am – and runs until Monday Nov 2 at midnight (2 weeks). It is not a first come, first serve award – so you don’t need to apply right away Monday - -but don’t forget!
Main criteria:
1. Net revenues under $1 million
2. Less than 50 full time equivalent employees (not bodies, but FTEs)
3. Be in good standing with WI Dept of Revenue
4. Have filed 2019 tax return!!
5. Economic impact from COVID
6. If awarded the first grant, can still apply for this one (but there is priority criteria)
7. Business started prior to 1/1/20
8. Operating in WI for at least 75% of labor and assets costs
It does look like priority will be given to businesses that missed the last grant of $2500, ethnic minority
businesses and greatest COVID impact.
WEDC.ORG
We're All In Small Business Grant - Phase 2 | WEDC
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Head of Household
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Can I deduct fees I pay to care for my child while I work?
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When are gift taxes due and who pays them?
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To Amend or Not Amend? - Is it always a good idea to amend your tax return if you find an error?
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What if I can't file my tax return on time?
NEWS.RESOURCESFORCLIENTS.COM
Client Update Newsletter: November 2020
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5 Reasons Why the Elderly Are Susceptible to Scams
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Give Your Children the Financial Education They Need
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Tax Savings for Non-Itemizers - Can't itemize? There are still tax breaks for you
Happy Halloween From our Staff at Hagen CPA!
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IRS Releases Key 2021 Tax Information
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Tips to Organize Your Tax Records - Creating order out of chaos
Here are the traditional IRA phase-out ranges for 2021:
• $66,000 to $76,000 – Single taxpayers covered by a workplace retirement plan.
• $105,000 to $125,000 – Married couples filing jointly. This applies when the spouse making the IRA contribution is covered by a workplace retirement plan.
• $198,000 to $208,000 – A taxpayer not covered by a workplace retirement plan married to someone who’s covered.
• $0 to $10,000 – Married filing a separate return. This applies to taxpayers covered by a workplace retirement plan.
Here are the income phase-out ranges for taxpayers making contributions to a Roth IRA:
• $125,000 to $140,000 – Single taxpayers and heads of household.
• $198,000 to $208,000 – Married, filing jointly.
• $0 to $10,000 – Married, filing separately.
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Lower Your Taxes THIS YEAR! - Here are 6 ideas that most people can use
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Is disability income taxable?
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Must I buy a more expensive home to avoid taxes?
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Who can I claim as a dependent?
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Hagen CPA, LLC: Client Videos
Happy Thanksgiving from our staff at Hagen CPA.
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Does my child have to file a tax return?
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Hagen CPA, LLC: Client Videos
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Client Update Newsletter: December 2020
Donate to charity from IRS:
There is still time to make a 2020 donation. Taxpayers who don't itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying charities. Cash donations include those made by check, credit card or debit card. Before making a donation, people can check the Tax Exempt Organization Search tool on IRS.gov to make sure the organization is eligible for tax-deductible donations.
The Coronavirus Aid, Relief, and Economic Security Act changed this law. The CARES Act also temporarily suspends limits on charitable contributions and temporarily increases limits on contributions of food inventory.
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Proposed Tax Legislation - October 2020
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Age (not death!) and Taxes - Age does matter, when it comes to tax obligations
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Hagen CPA, LLC: Client Videos
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What tax breaks are available due to a natural disaster?
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15 Year-End Tax Tips
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Interest: In the Eyes of the IRS
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Home Office
Christmas party with our wonderful staff! Thank you for all you do for our Clients!
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Gone Phishing?
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Record Retention Guide for Individuals
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Is the sale of my home taxable?
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Hagen CPA, LLC: Client Videos
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Home Office
Christmas party with our wonderful staff! Thank you for all you do for our Clients!
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Your Home. A Bundle of Tax Benefits.
Our Staff at Hagen CPA would like you wish you and your families a very Merry Christmas!
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How to keep track of business car expenses?
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Hagen CPA, LLC: Client Videos
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Gone Phishing?
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Record Retention Guide for Individuals
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2021 Mileage Rates are Here! - New mileage rates announced by the IRS
Our Team at Hagen CPA would like to wish you a Happy New Year!
The new COVID-19 relief package was signed into law December 27, 2020:
Expenses paid for with PPP loan money are tax deductible! This clears up uncertainty that has existed since the first round started in April. In effect, forgiven PPP loans are tax free grants. This applies to both the first round and the second round of loans.
2021 Mileage Rates:
The business rate is 56 cents per mile (down from 57.5 for 2020).
The depreciation portion of this rate is 26 cents per mile (down from 27 for 2020).
Charitable rate is 14 cents per mile (same as for 2020).
Medical and moving rate is 16 cents per mile (down from 17 for 2020).
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Your Home. A Bundle of Tax Benefits.
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PPP Loan Expenses Are Now Tax Deductible
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Client Update Newsletter: January 2021
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2021 Mileage Rates are Here! - New mileage rates announced by the IRS
From IRS: They will begin delivering a second round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act. The initial direct deposit payments may begin arriving as early as of last night for some and will continue into next week. Paper checks will begin to be mailed today, Wednesday, Dec. 30. The IRS emphasizes that there is no action required by eligible individuals to receive this second payment. Some Americans may see the direct deposit payments as pending or as provisional payments in their accounts before the official payment date of Jan. 4, 2021. The IRS reminds taxpayers that the payments are automatic, and they should not contact their financial institutions or the IRS with payment timing questions. Eligible individuals who did not receive an Economic Impact Payment this year – either the first or the second payment – will be able to claim it when they file their 2020 taxes in 2021. Generally $600 for singles and $1,200 for married couples filing a joint return. In addition, those with qualifying children will also receive $600 for each qualifying child. Dependents who are 17 and older are not eligible for the child payment.
IRS.GOV
Internal Revenue Service | An official website of the United States government
Our Team at Hagen CPA would like to wish you a Happy New Year!
The new COVID-19 relief package was signed into law December 27, 2020:
Expenses paid for with PPP loan money are tax deductible! This clears up uncertainty that has existed since the first round started in April. In effect, forgiven PPP loans are tax free grants. This applies to both the first round and the second round of loans.
CENTER.RESOURCESFORCLIENTS.COM
2021 Social Security
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2021 FICA Tax Rates
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More Stimulus Payments on the Way
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Reminder: Fourth Quarter Estimated Taxes Now Due - Now is the time to make your estimated tax payment
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PPP Loan Expenses Are Now Tax Deductible
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Client Update Newsletter: January 2021
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Hagen CPA, LLC: Client Videos
The 2021 tax season will start on Friday, Feb. 12, 2021, when the IRS will begin accepting and processing 2020 tax year returns.
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Are You a Contractor or Employee? - Knowing the difference is very important
There is a new round of Paycheck Protection Program loans called PPP Second Draw Loans. These are for businesses that already received a PPP loan and whose revenue is down 25% or more in any calendar quarter as compared to 2019. Restaurants and hotels are eligible for bigger loans than other businesses.
The first round of PPP loans is being reopened. If you did not already get a PPP loan you can apply. SBA is supposed to issue guidance on both new loans and Second Draw loans by January 7, 2021.
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Hagen CPA, LLC: Client Videos
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2021 Social Security
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IRS Identity Theft Season Begins Now
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Above-the-line Deductions
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Is Cancelled Debt Income?
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What's New in 2021
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Hagen CPA, LLC: Client Videos
The 2021 tax season will start on Friday, Feb. 12, 2021, when the IRS will begin accepting and processing 2020 tax year returns.
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Capital Gains
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Alert: Look for New 1099 NEC - Your 1099's are coming soon
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My W-2 is WRONG! What should I do?
Wishing you the best retirement ever! Enjoy the new chapter of your life and enjoy being your own boss. You will always be remembered for your hard work throughout the years. Thank you for your dedication to the team.
“When is a retiree’s bedtime? About 30 minutes after they fall asleep on the couch.”
“Retirement is the only time in your life when time no longer equals money.”
Enjoy your retirement!
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Alernative Minimum Tax (AMT)
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Hagen CPA, LLC: Client Videos
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IRS Identity Theft Program NOW OPEN! - New one-time use PIN option available for all
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What to do with a loan to you that has gone bad?
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What is a capital Gain Distribution?
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Client Update Newsletter: February 2021
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How Does Adjusted Gross Income Differ from Gross Income?
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Hagen CPA, LLC: Client Videos
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Offer in Compromise (OIC)
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How to Correct an Error on my Tax Return?
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Be Prepared For These Pandemic-Related Tax Surprises
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Proposed Tax Legislation - December 2020
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Proposed Tax Legislation - November 2020
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IRS Identity Theft Program NOW OPEN! - New one-time use PIN option available for all
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2020 Education Credits, Deductions and Savings Limits
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Record Retention Guide for Businesses
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Hagen CPA, LLC: Client Videos
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Unemployment Benefits; Are They Taxable?
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Oops! I Wish I Knew That.
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Offer in Compromise (OIC)
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Are your parents safe from scams?
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Hagen CPA, LLC: Client Videos
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A Social Security agent or a scammer?
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Understanding Tax Terms: AFRs
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How to avoid
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2020 Education Credits, Deductions and Savings Limits
Janesville Noon Rotary Club Club will be collecting the following items for the baking aisle for the Milton Food Pantry for our service project for the month of. Baking goods needed:
Flour
Sugar of any kind
Pancake mix
Bisquick or Jeffy mix
Oil
Muffin, cake, or brownie mixes
Frosting
Baking powder or baking soda
Pie fillings
Chocolate chips
You are invited to drop off your baking items at HAGEN CPA, located at 4525 Woodgate Drive, Janesville, during the following hours: Monday -Thursday 8 a.m. to 8 p.m.; Friday 8 a.m. to 5 p.m.; and Saturday 9 a.m. to 4 p.m. PLEASE DROP OFF DONATIONS NO LATER THAN MARCH 15, 2021. Thank you for your support of this project!
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Review Your Social Security Earnings Report
Taxpayers can deduct medical expense paid for an individual who would have been a dependent except that:
*He or she received gross income of $4,300 or more in 2020
* He or she filed a joint tax return for 2020
*The taxpayer, or spouse if filing jointly, could be claimed as a dependent on someone else’s 2020 tax return.
NEWS.RESOURCESFORCLIENTS.COM
Client Update Newsletter: March 2021
March charity of the month is the American Society for Prevention of Cruelty to Animals. It was the first humane society to be established. In recognition of that we have chosen our local Humane Society of Southern Wisconsin to receive donations to our Friday Jeans day during the whole month of March!! Our team at Hagen CPA loves supporting local non-profits in our community! If you are interested in helping as well here is the link to make a donation https://www.petsgohome.org/donate/
PETSGOHOME.ORG
Donate | Humane Society of Southern Wisconsin
March 15th is the Due date for your Partnership tax Return and S Corporation Tax Returns. If you do not have all your paperwork ready to process those returns you can file an extension and then you have till September 15th to file.
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Tax Return Review Hints
What to do is missing W-2 or 1099:
Taxpayers should contact the employer, payer or issuing agency and request the missing documents. This also applies for those who received an incorrect W-2 or Form 1099.
If they can’t get the forms, they must still file their tax return on time. To avoid filing an incomplete or amended return, they may need to use Form 4852, Substitute for Form W-2, Wage and Tax Statement or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
If a taxpayer doesn't receive the missing or corrected form in time to file their tax return, they can estimate the wages or payments made to them, as well as any taxes withheld. Then use Form 4852 to report this information on their federal tax return.
Email phishing scams
From IRS:
The IRS does not initiate contact with taxpayers by email to request personal or financial information. Generally, the IRS first mails a paper bill to a person who owes taxes. In some special situations, the IRS will call or come to a home or business.
Taxpayers should report IRS, Treasury or tax-related suspicious online or email phishing scams to phishing@irs.gov. They should not open any attachments, click on any links, reply to the sender, or take any other actions that could put them at risk.
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Hagen CPA, LLC: Client Videos
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Defending Fair Market Value
Lodging Expenses for Medical Care:
The cost of meals and lodging at a hospital or similar institution is deductible if the principal reason for being there is to received medical care. Lodging not provided in a hospital or similar institution is deductible up to $50 per night per person, including someone traveling with the person receiving medical card. In this case no deduction is allowed for meals. You must meet all the following requirements contact us or your tax advisor for more information and this is still limited to 7.5% of our AGI.
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ALERT! Some Unemployment Income Now Tax Free for 2020
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Stimulus Checks, Other Tax Breaks Included in New Legislation
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Tax Return Review Hints
What to do is missing W-2 or 1099:
Taxpayers should contact the employer, payer or issuing agency and request the missing documents. This also applies for those who received an incorrect W-2 or Form 1099.
If they can’t get the forms, they must still file their tax return on time. To avoid filing an incomplete or amended return, they may need to use Form 4852, Substitute for Form W-2, Wage and Tax Statement or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
If a taxpayer doesn't receive the missing or corrected form in time to file their tax return, they can estimate the wages or payments made to them, as well as any taxes withheld. Then use Form 4852 to report this information on their federal tax return.
Email phishing scams
From IRS:
The IRS does not initiate contact with taxpayers by email to request personal or financial information. Generally, the IRS first mails a paper bill to a person who owes taxes. In some special situations, the IRS will call or come to a home or business.
Taxpayers should report IRS, Treasury or tax-related suspicious online or email phishing scams to phishing@irs.gov. They should not open any attachments, click on any links, reply to the sender, or take any other actions that could put them at risk.
If you already filed your taxes and you had unemployment, IRS says: "Don't Amend"
Returns filed with unemployment benefits prior to the $10,200 exclusion should not be amended. The IRS has indicated it will refigure taxes on these returns and adjust the taxpayer's account accordingly. The IRS will then send any refund amount directly to the taxpayer.
The IRS has not yet communicated a timeline for making adjustments and sending refunds.
Tax Day for Individuals Extended to May 17
The Treasury Department and IRS has officially announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.
as of today this relief does not apply to 2021 estimated tax payments that are due on April 15, 2021. These payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments.
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ALERT! 2020 Tax Date Delay AND Unemployment Income Now Tax Free - What you need to know
The Internal Revenue Service today reminds taxpayers that the most convenient way to check on a tax refund is by using the “Where’s My Refund?” tool at IRS.gov or through the IRS2Go Mobile App.
Taxpayers can start checking their refund status within 24 hours after an e-filed return is received. In addition, “Where’s My Refund?" provides a personalized date after the return is processed and a refund is approved.
IRS.GOV
Internal Revenue Service | An official website of the United States government
CENTER.RESOURCESFORCLIENTS.COM
ALERT! Some Unemployment Income Now Tax Free for 2020