Leah’s Accounting & Business Solutions Facebook Feed
Dropping off your taxes.... Remember, our office has moved downstairs. Please enter through the doors under the deck. Feel free to park up top by the old building and walk down, long the tree line, or straight in. Be mindful of people coming and going, so no blocking the driveway.
*** Worry Free Wednesday ***![]()
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Retirees: File Form 24 to protect against tax identity theft.![]()
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People who are 65 and older are more likely to be victims of tax identity theft because fraudsters know that many retirees don't make enough money to file income taxes. The fraudsters will file a fake income tax return with a retiree's personal information to try and get a refund.![]()
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Retirees can prevent tax identity theft by filing Idaho's Form 24 as soon as possible. The Grocery Credit Refund is a yearly refund of $120/person for some of the sales tax you pay on groceries. ![]()
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Our office can and will file a Form 24 for people who qualify, with no charge. Contact us for an appointment. 208-245-0930 or 208-245-5204
*** Tax Tip Tuesday ***![]()
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Don't miss this deadline coming up! ![]()
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Calendar-year partnership and S corporation returns are due March 15 unless these entities seek an extension of the deadline by filing Form 7004. ![]()
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Late return filers face a stiff fine: $210 for each month late, up to a maximum of 12 months, multiplied by the number of partners or shareholders in the firm.![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or 208-245-0930, or message us on Facebook.
*** Tax Tip Tuesday ***![]()
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Leasing a vehicle to use in your business is more expensive tax-wise in the coming years. ![]()
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If a car that is worth more than $56,000 is first leased for business during the year, the lessee must pay income tax each year on an amount spelled out in IRS tables. ![]()
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For example, on a three-year lease for a $75,000 car with a lease term starting in 2022, the income inclusion is $24 in 2022, $51 in 2023, and $77 in 2024 (Rev. Proc. 2022-17 - www.irs.gov/pub/irs-drop/rp-22-17.pdf). ![]()
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Note that you don’t add the amounts to your income when filling out your tax return. Instead, you reduce the size of your deduction for the lease payments on the vehicle.![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or 208-245-0930, or message us on Facebook.
Our office will be closed this morning until about 11:00 am due to an off-site meeting. We will be back open from about 11:00 am until 5:00 pm.![]()
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If you need to drop anything off, feel free to do so in the big mailbox by the gate and sign.
*** Worry Free Wednesday ***![]()
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Here’s a reminder on the tax treatment of damage or settlement awards: ![]()
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Proceeds received for physical injuries or physical illness are tax-free. On audit, IRS agents will look at the court petition, complaint or claim that was filed, showing the original grounds for the lawsuit. They’ll review the settlement agreement to see how the document characterizes the amounts paid and received by the parties. ![]()
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Damages received for emotional distress are taxable…with two exceptions. Amounts paid for mental anguish that arises from physical injuries are tax-free. The same goes for reimbursements for medical treatment of emotional trauma.![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or 208-245-0930, or message us on Facebook.
Are You Ready? We Are!![]()
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The IRS has set Monday, January 23, 2023, as the official start to the 2023 tax filing season for individual returns.![]()
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You should be receiving your Tax Organizers any day ....... ![]()
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Give us a call to set up your appointment, or feel free to drop off your documents. We are here from 8am to 5pm, Monday - Friday![]()
208-245-0930 or 208-245-5204
*** Tax Tip ***![]()
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The IRS will begin accepting business returns via e-file tomorrow, Thursday, January 12, 2023.![]()
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The IRS has yet to announce an official start date for Individual returns; however, we can transmit approved return types and they will be held in the queue until the IRS begins accepting them.![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or 208-245-0930, or message us on Facebook.
*** Worry Free Wednesday ***![]()
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Great news! IRS won’t refer tax debts of low-income individuals to private collectors. ![]()
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Taxpayers who receive Supplemental Security Income (SSI) are now excluded from the agency’s policy of turning over inactive tax receivables to private collectors. Any private collection referrals that have already been made will be recalled.![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or 208-245-0930, or message us on Facebook.
***Worry Free Wednesday***![]()
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The Internal Revenue Service issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.![]()
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Beginning on Jan. 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: ![]()
• 65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022. ![]()
• 22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with the increased midyear rate set for the second half of 2022. ![]()
• 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022. ![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or 208-245-0930, or message us on Facebook.
Happy New Year!![]()
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We hope that your 2023 is full of happiness, adventure, and gratitude for all the things that truly matter in life!![]()
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Learn from yesterday,![]()
Live for today,![]()
Hope for tomorrow.![]()
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Reminder: Our office is closed tomorrow, Monday, January 2nd. ![]()
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We will be back in the office during our regular hours on Tuesday, January 3rd!
Happy New Year's Eve Eve! 🥳![]()
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Our office is closed Friday, December 30th and Monday, January 2nd to spend time with our families. ![]()
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Enjoy ringing in the new year, and don't have too much fun! ...is that even possible?!? 😜
Happy New Year's Eve Eve! 🥳![]()
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Our office is closed Friday, December 30th and Monday, January 2nd to spend time with our families. ![]()
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Enjoy ringing in the new year, and don't have too much fun! ...is that even possible?!? 😜
*** Worry Free Wednesday ***![]()
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How cool is this!?! ![]()
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The IRS now has more ways to communicate with taxpayers. It has a Spanish version of Forms 1040 and 1040-SR. The forms, schedules, and instructions are all in Spanish and can be printed from the IRS’s website. ![]()
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Also, 1040 and 1040-SR filers can attach Schedule LEP to their returns to indicate whether they wish to receive written communications from the IRS in a language other than English. There are 20 languages to choose from.![]()
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Many of its most popular publications come in multiple languages. Ditto for its website, where 90 of the top IRS web pages are in multiple languages. There are also versions for braille readers and for people wanting large type.
Due to the freezing temperatures and ice on the roadways, including our driveway, the office will be closed tomorrow, Tuesday, December 27th, and we will be working remotely.![]()
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Stay safe out there!
Due to the freezing temperatures and ice on the roadways, including our driveway, the office will be closed tomorrow, Tuesday, December 27th, and we will be working remotely.![]()
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Stay safe out there!
Merry Christmas from our family to yours! ![]()
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Life is a gift, and we are grateful for each and every one of you! 💝
Happy Christmas week!![]()
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We hope that you are enjoying the holiday and keeping track of those receipts! 🤣![]()
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Our office will be closed Friday, December 23 and Monday, December 26 to enjoy the holidays with our families!
*** Worry Free Wednesday ***![]()
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Working on your estate and gift-giving plans? ![]()
You might be thinking of using a GRAT…Grantor Retained Annuity Trust. If done right, a GRAT can freeze the value of appreciated assets while transferring appreciation to the next generation with little to no estate or gift tax. ![]()
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The individual who establishes the trust, known as the grantor, transfers assets into an irrevocable trust for a set term, while retaining the right to an annual stream of income plus interest based on IRS’s applicable federal rate. At the end of the term, the assets are distributed to whomever the grantor named as the trust’s creation.![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or message us on Facebook.
Reminder: ![]()
We will have intermittent winter hours that will likely change daily! Due to winter weather and our driveway, plus potential power outages, internet outages, illness, and other appointments that may pull us away from the office, we will do our best to be in the office during our regular business hours.![]()
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Stopping by the office without a scheduled appointment is discouraged during these months of winter weather. Please call ahead to make sure we are here and available to help you! We can be reached at either 208-245-0930 or 208-245-5204.![]()
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You are also more than welcome to message us here on Facebook or send us an email at either landerson@leahsacct.com, wbaskin@leahsacct.com, or office@leahsacct.com. We will get back to you as soon as we can!
Our office will be closed for training tomorrow, Thursday, December 15th. ![]()
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We will be back open on Friday, December 16th during normal hours: 8:00am-12:00pm.
*** Worry Free Wednesday ***![]()
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Who is excited for tax season coming up? 🤣![]()
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Did you know you can file for free and use direct deposit? Taxpayers whose income is $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program. That being said, of course we would love to give you a hand with your taxes, especially if you are having trouble an any way with preparing your return! 😂![]()
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We too can file your return electronically, and have it direct deposited into your financial account. This is the fastest way for you to receive your tax refund. ![]()
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Fun fact: refunds can be directly deposited into bank accounts, prepaid debit cards, or mobile apps as long as a routing and account number is provided.![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or message us on Facebook.
Join us this weekend for a book signing with local fantasy author Amy Rose Davis. She'll be with us from 1-3 p.m. on Saturday, December 10 signing copies of the first three installments of her five-book series, The Taurin Chronicles.![]()
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And, hey, if you have a second to stop by before Saturday to pick up a copy or two, you should. These books are REALLY good.
If you like fantasy books, plan on stopping in this weekend at The Paperhouse and pick up a signed copy!Join us this weekend for a book signing with local fantasy author Amy Rose Davis. She'll be with us from 1-3 p.m. on Saturday, December 10 signing copies of the first three installments of her five-book series, The Taurin Chronicles.![]()
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And, hey, if you have a second to stop by before Saturday to pick up a copy or two, you should. These books are REALLY good.
*** Worry Free Wednesday ***![]()
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Businesses can save lots on taxes with first-year 100% bonus depreciation. Firms can deduct the full cost of new and used qualifying business assets, with lives of 20 years or less, that they buy and place in service during the year. The cost of a qualified film, television, or live theatrical production is eligible too. ![]()
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Purchase and place assets in service this year if you want the full tax break. Bonus depreciation isn’t as valuable after 2022. Unless Congress acts, the 100% write-off phases out 20% for each year after 2022, before expiring in 2027. ![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or message us on Facebook.
With tax season coming up, many of our clients start texting pictures of documents. Did you know that you can use your iPhone to create a PDF document of multiple pages? ![]()
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Follow these steps: ![]()
-Go to the Notes app on your iPhone.![]()
-Tap the New Note icon in the bottom right corner.![]()
-Tap on the camera icon and then on "Scan Documents".![]()
-Hit the Save button in the bottom right corner and this will save it to your notes.![]()
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When you're ready to send it off:![]()
-Click on the document.![]()
-Tap on the Export icon in the top right corner.![]()
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You can also sign your document:![]()
-Right before you pick where to send it off to; scroll down on the menu.![]()
-Tap Markup. Use that tool to sign your document.![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or message us on Facebook.
As we look out on this beautiful snowfall today, it reminds us that we will have intermittent winter hours that will likely change daily! Between potential power outages, internet outages, illness, and other appointments that may pull us away from the office, we will do our best to be in the office during our regular business hours.![]()
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However, if you plan on stopping by the office without a scheduled appointment during the month of December, please call ahead to make sure we are here and available to help you! We can be reached at either 208-245-0930 or 208-245-5204.![]()
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You are also more than welcome to message us here on Facebook or send us an email at either landerson@leahsacct.com, wbaskin@leahsacct.com, or office@leahsacct.com.
From our family to yours, have a Happy Thanksgiving!![]()
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We are thankful for all of our clients and friends!![]()
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In observance of the Thanksgiving holiday, our office is closed today and tomorrow. ![]()
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Enjoy time with family and friends! ![]()
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What are you most grateful for?
From our family to yours, have a Happy Thanksgiving!![]()
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We are thankful for all of our clients and friends!![]()
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In observance of the Thanksgiving holiday, our office is closed today and tomorrow. ![]()
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Enjoy time with family and friends! ![]()
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What are you most grateful for?
*** Worry Free Wednesday ***![]()
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Many of us are trying to make healthier choices – despite the food laden holidays! So that begs the question, “Is the cost of health and wellness coaching a deductible medical expense?” ![]()
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Maybe. It depends on the facts and circumstances. Under the general rules, to qualify as a medical deduction, an expense must be incurred primarily to alleviate or prevent a physical or mental disability or illness. According to IRS, taxpayers should use objective factors in figuring whether an expense that is typically personal in nature, such as health and wellness coaching, is incurred for medical care. ![]()
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Among the factors IRS says to consider: Whether the cost of the coaching is for diagnosing, treating, mitigating, preventing, or alleviating the taxpayer’s disease, as opposed to being merely beneficial to one’s general health. Whether the cost would not have been incurred but for the taxpayer’s medical condition. Also important are whether there is a doctor’s recommendation and the effectiveness of the coaching.![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or message us on Facebook.
*** Worry Free Wednesday ***![]()
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Did you know that small businesses have flexibility in choosing how often to file payroll tax returns?![]()
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If you have a new business and expect your yearly federal employment taxes…Social Security taxes, Medicare taxes, and withheld federal income taxes…to be $1,000 or less, then you can select the option to file an annual Form 944 when you apply for an employer identification number (EIN). Those who don’t check the box for annual filing will be required to submit the 941 quarterly payroll tax returns.![]()
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Existing businesses that now file the 941 but meet the 944 eligibility rules can call IRS to request to file the 944. Employers that have previously filed 944s but now have more than $1,000 in employment taxes must still file the 944 unless they get written permission from the IRS to switch to quarterly 941 filing.![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or message us on Facebook.
Closing at 12:30 today, 11-15-22![]()
Back to regular business hours tomorrow (11-16-22)![]()
Sorry for the inconvenience.
Closing at Noon today, 11-14-22. ![]()
Back to regular business hours tomorrow. ![]()
Sorry for the inconvenience.
*** Worry Free Wednesday ***![]()
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More workers’ families will soon be able to qualify for the premium tax credit. People who are offered affordable health insurance through their employer can’t get subsidies or the premium credit when buying coverage through an exchange. ![]()
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Employer coverage is treated as affordable if the employee’s share of annual premiums for self-only coverage under the plan doesn’t exceed 9.61% of household income. Currently, this same self-only coverage test also applies in determining affordability for the employee’s spouse and children. ![]()
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Proposed regulations to change that rule would base affordability for family members on the employee’s share of the cost of family coverage under the employer’s plan. Note that affordability for the employee would still be based on the cost of self-only coverage.![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or message us on Facebook.
Great reminder any time of year, but even more important as we are ever more careful with our winter driving conditions!Don't ignore these signs! Get your brakes checked by the Jim's Auto Tire Pros team today!
Fix-It Guides - Common Problems, Real Solutions | Internal Revenue Service
www.kiplinger.com
Find, fix and avoid common retirement plan mistakes. Use the Fix-It Guides for 401(k), 403(b), SARSEP, SEP and SIMPLE IRAs.
Our Office is currently closed due to Mother Nature…. ![]()
No power No internet![]()
Be Safe Out There
We have had some inquires about how Leah is doing after her back surgery and wanted to give you an update. ![]()
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Leah hasn’t had her surgery yet, it was scheduled on October 21st, 26th, and November 3rd. It has been rescheduled yet again, this time to November 16th. In the meantime Leah will be in and out of the office, working only part time as being in her chair all day gets uncomfortable for her. ![]()
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If you need an appointment, please contact the office, we are scheduling a few appointments with her. Thank you for your continued support! Wendy and Debbie are in the office and can assist with most issues that come up.
*** Worry Free Wednesday ***![]()
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The IRS wants to help employers make sure their 401(k) plans stay error-free. A fix-it guide outlines how to avoid the most common errors in these plans. The handbook also explains the steps that 401(k) plan sponsors can voluntarily take to correct mistakes so that the plan does not end up losing tax-qualified status. IRS also has guides for 403(b) plans, SEPs, SARSEPs, and SIMPLE IRA plans. ![]()
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Go to www.kiplinger.com/letterlinks/fixits for all these helpful web-based guides.![]()
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If you have any questions or would like more information, call our office at 208-245-5204 or message us on Facebook.
Fix-It Guides - Common Problems, Real Solutions | Internal Revenue Service
www.kiplinger.com
Find, fix and avoid common retirement plan mistakes. Use the Fix-It Guides for 401(k), 403(b), SARSEP, SEP and SIMPLE IRAs.
We know numbers can be scary...![]()
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But yes, we are open during our regular hours on Halloween!![]()
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Have a safe time out and about tonight with your kiddos!
New hours at Luong China Cafe starting next week!Please note our winter hours for China Cafe
*** Worry Free Wednesday ***![]()
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Have you ever heard of a reverse mortgage? ![]()
A reverse mortgage is a mortgage loan, usually secured by a residential property, that enables the borrower to access the unencumbered value of the property. The loans are typically promoted to older homeowners and typically do not require monthly mortgage payments.![]()
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Now you may ask, “I want to secure a reverse mortgage on my home. Will I have to pay tax on the money I get?” No. The payments you get from a reverse mortgage are treated as nontaxable loan proceeds, not income. ![]()
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Also, you can’t deduct the interest you eventually pay because you’re not using the proceeds to buy, build, or substantially improve the home securing the loan.![]()
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If you have any questions, call our office at 208-245-5204 or message us on Facebook.
*** Worry Free Wednesday ***![]()
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The swap of a life insurance contract for a long-term-care policy isn’t taxed. It’s treated as a tax-free exchange. Ditto for the swap of an annuity contract for a long-term-care policy. ![]()
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In addition, long-term-care insurance can be offered as part of an annuity contract, and no tax is due if the insurance premiums are paid with the annuity’s cash value. Furthermore, the cash value in life insurance policies and annuities can be used free of tax to purchase long-term-care coverage.![]()
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You may ask, "What is an annuity?" An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.![]()
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If you have any questions, call our office at 208-245-5204 or message us on Facebook.
Doolittle's Delish sure does look delicious! ![]()
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Go check out the newest food truck in town! Find the red truck on Homer Drive near Harvest Foods from 5am-2pm Mon-Fri!![]()
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If you've been there, what is your favorite? Or what did you pick for your first try?![]()
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If you haven't been there yet, what are you excited to try?
Fun stuff planned for the kids on Halloween!![]()
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We love to see the community pulling together for events like these! ![]()
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Donate some candy at Harvest Foods or Archie's IGA, and set up your trunk on Halloween either between 6th and 9th street on Main Street or on 7th Street between Center and College.![]()
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For questions about participating, please contact Stacey at the Elks (208-245-1418) or Aaron with the St. Maries Chamber of Commerce (208-245-3563).Halloween 🎃 is three weeks away! The Elks Lodge 1418 St. Maries, Idaho and the St. Maries Chamber of Commerce, SMHS are all working together to make this year the biggest Trunk or Treat yet! Thank you to Archie's IGA and St Maries Harvest Foods for accepting candy donations for this event! ![]()
We can't wait to participate and see you all! 🧟😈 👻 ![]()
For questions about participating, please contact Stacey at the Elks (208-245-1418) or Aaron with the St. Maries Chamber of Commerce (208-245-3563)
*** Worry Free Wednesday ***![]()
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Understanding Taxpayer Rights: Everyone Has a Right to Finality![]()
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Taxpayers have a right to know when the IRS has finished the audit. This is one of ten basic rights — known collectively as the Taxpayer Bill of Rights.![]()
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o Taxpayers have the right to know:![]()
The maximum amount of time they have to challenge the IRS’s position.![]()
The maximum amount of time the IRS has to audit a particular tax year or collect a tax debt.![]()
When the IRS has finished an audit.![]()
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o The IRS generally has three years from the date taxpayers file their returns to assess any additional tax for that tax year. ![]()
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o The IRS generally has 10 years from the assessment date to collect unpaid taxes. ![]()
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o There are circumstances when the 10-year collection period may be suspended. This can happen when the IRS cannot collect money due to the taxpayer's bankruptcy or there's an ongoing collection due process proceeding involving the taxpayer.![]()
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o A statutory notice of deficiency is a letter proposing additional tax the taxpayer owes. This notice must include the deadline for filing a petition with the tax court to challenge the amount proposed.![]()
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o Generally, a taxpayer will only be subject to one audit per tax year. However, the IRS may reopen an audit for a previous tax year, if the IRS finds it necessary. ![]()
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#IRSTaxTip: Understanding taxpayer rights: Everyone has the right to finality.![]()
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If you have any questions, call our office at 208-245-5204 or message us on Facebook.
Our office is closed for Columbus Day!![]()
Enjoy the day!![]()
We will be back open on Tuesday morning!
Congratulations to these students who showed the most school spirit during ![]()
SMHS #HOCO2022 💚💛 & won their very own custom Peet Dryer! ![]()
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Left to Right:![]()
Freshman- Atley Gibson![]()
Sophomore- Sydney Villa![]()
Junior- Maddie Johnson![]()
Senior- Damien Banderob
The office will be closing at 2:00pm today 10-05-2022 and tomorrow 10-06-2022. Sorry for any inconvenience these shorter hours may cause. We will open every morning at 8am. Thank you for your understanding.
*** Worry Free Wednesday ***![]()
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2022 Special Session Rebate:![]()
Governor Little signed a bill in September 2022 that provides $500 million in 2022 tax relief. Full-year Idaho residents in 2020 and 2021 who file income tax returns for those years automatically qualify for a one-time rebate. This includes those who filed Form 24 to get the grocery credit refund.![]()
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Idahoans who qualify for the 2022 Special Session rebate can now track their payment online at tax.idaho.gov/rebate. To get the status of their rebate, they’ll need their Social Security number and either their Idaho driver’s license, state-issued identification number, or their 2021 income tax return. ![]()
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The Tax Commission is issuing rebates to taxpayers in the order it received 2021 income tax returns, with about 75,000 going out weekly. Taxpayers need to file the required tax returns by December 31, 2022, to be eligible for the rebate. ![]()
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The rebate amount is $300 for individual filers and $600 for joint filers or 10% of a taxpayer’s 2020 income taxes, whichever is greater.![]()
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For more information about the tax rebates, visit the Frequently Asked Questions page at tax.idaho.gov/rebateinfo.
tax.idaho.gov
*** Tax Tip Tuesday ***![]()
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As the old saying goes: When something sounds too good to be true, it probably is. ![]()
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Taxpayers with outstanding tax bills might be tempted by businesses (often called Offer in Compromise mills) who advertise and offer to help them reduce their tax debt. ![]()
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An Offer in Compromise is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed. The offer program gives eligible taxpayers a path toward paying off their debt when they otherwise couldn’t or would face financial hardship.![]()
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These OIC mills urge people to hire their company to file an OIC application, even though the taxpayer won't qualify. They often charge big fees to prepare applications that they know the IRS will deny. This unfair practice wastes taxpayers’ time and money.![]()
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Taxpayers who do qualify for an OIC can get the same deal working directly with the IRS, without the extra fees.![]()
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The OIC mills that are dishonest are a problem all year long, but they step up their advertising after the filing season ends, when taxpayers are trying to resolve their tax issues.![]()
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Here’s what taxpayers considering an OIC should know:![]()
o Individual taxpayers can use the IRS's Offer in Compromise Pre-Qualifier tool to see if they're eligible.![]()
o When a taxpayer is ready to apply, they can watch an OIC video playlist that will lead them through the steps and forms to calculate an appropriate offer based on their assets, income, expenses and future earning potential.![]()
o Taxpayers must make an offer based on their true ability to pay.![]()
o Applying does not guarantee that the IRS will accept the taxpayer’s offer.
*** Worry Free Wednesday ***![]()
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IRS Online Account makes it easy for taxpayers to view their tax info any time.![]()
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Taxpayers who want to check their account information including balance, payments, tax records and more, can log into their IRS online account. It’s a simple and secure way to get information fast.![]()
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Taxpayers can view:![]()
o Their payoff amount, which is updated for the current day.![]()
o The balance for each tax year for which they owe taxes.![]()
o Their payment history.![]()
o Key information from their most current tax return as originally filed.![]()
o Payment plan details if they have one.![]()
o Digital copies of select IRS notices.![]()
o Economic Impact Payments if they received any.![]()
o Their address on file.![]()
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Taxpayers can also use their online account to: ![]()
• Select an electronic payment option.![]()
• Set up an online payment agreement.![]()
• Access tax records and transcripts.![]()
• Approve and electronically sign Power of Attorney and Tax Information Authorization requests from their tax professional.![]()
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Taxpayer's balance will update no more than once every 24 hours, usually overnight. Taxpayers should also allow 1 to 3 weeks for payments to show up in the payment history.![]()
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#IRSTaxTip: IRS online account makes it easy for taxpayers to view their tax info anytime
ow.ly
Tax Tip 2022-105, July 12, 2022 — Taxpayers who want to check their account information including balance, payments, tax records and more, can log into their IRS online account. It’s a simple and ...
*** Tax Tip Tuesday ***![]()
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Taxpayers have the right to appeal an IRS decision in an independent forum. This is one of ten basic rights that all taxpayers have when working with the IRS. The IRS’s Independent Office of Appeals that handles a taxpayer's case must be separate from the IRS office that initially reviewed that case. ![]()
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Here are some important details about the right to appeal a decision in an independent forum: ![]()
o Taxpayers who receive a statutory notice of deficiency (an IRS letter proposing additional tax) and then timely file a petition with the United States Tax Court may dispute the proposed adjustment before they must pay the tax.![]()
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o Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties.![]()
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o Taxpayers have the right to receive a written response regarding a decision from the Office of Appeals.![]()
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o When taxpayers don't agree with the IRS's decisions, they can refer to Publication 5, Your Appeal Rights and How To Prepare a Protest If You Don't Agree, for details on how to appeal.![]()
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o Generally, taxpayers may file a refund suit in a United States district court or the United States Court of Federal Claims if: ![]()
They have fully paid the tax and the IRS has denied their tax refund claim.![]()
No action is taken on the refund claim within six months.![]()
It's been less than two years since the IRS mailed them a notice denying the refund.
*** Worry Free Wednesday ***![]()
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Voice bots are helping the IRS with incoming calls to its collections division. These bots provide more than just generalized assistance to taxpayer. They can also access taxpayer accounts. ![]()
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Currently, the bots can help callers set up a new payment plan or modify an existing one. Callers are first asked to authenticate their identification and to set up a personal identification number. ![]()
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In just 10 days, these bots answered 200,000 and set up 2,092 payment plans. Soon, bots will take requests for tax transcripts, payment history, and balance owed.
*** Tax Tip Tuesday ***![]()
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Enhanced Business Meal Deduction![]()
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The IRS encourages businesses to begin planning now to take advantage of tax benefits available to them when they file their 2022 federal income tax return. This includes the enhanced business meal deduction. ![]()
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For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal. ![]()
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To qualify for the enhanced deduction: ![]()
o The business owner or an employee of the business must be present when food or beverages are provided.![]()
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o Meals must be from restaurants, which includes businesses that prepare and sell food or beverages to retail customers for immediate on-premises or off-premises consumption.![]()
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o Payment or billing for the food and beverages occurs after December 31, 2020, and before January 1, 2023.![]()
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o The expense cannot be lavish or extravagant. The cost of the meal can include taxes and tips, however, the cost of transportation to and from the meal isn't part of the cost of a business meal.![]()
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Grocery stores, convenience stores, and other businesses that mostly sell pre-packaged goods not for immediate consumption, do not qualify as restaurants. Employers may not treat certain employer-operated facilities as restaurants, even if they operate under contract by a third party.![]()
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Business owners may be able to deduct the cost of meals and beverages provided during an entertainment event if either of these apply: The purchase of the food and beverages occurs separately from the entertainment. Or the cost of the food and beverages is separate from the cost of the entertainment on one or more bills, invoices, or receipts.![]()
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Here’s what businesses need to know about the enhanced business meal deduction
go.usa.gov
Tax Tip 2022-91, June 14, 2022 — The IRS encourages businesses to begin planning now to take advantage of tax benefits available to them when they file their 2022 federal income tax return. This inc...
*** Worry Free Wednesday ***![]()
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What taxpayers need to know about making 2022 estimated tax payments: ![]()
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By law, everyone must pay tax as they earn income. Generally taxpayers must pay at least 90% of their taxes throughout the year through withholding, estimated or additional tax payments, or a combination of the two. If they don’t, they may owe an estimated tax penalty when they file. ![]()
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Some taxpayers earn income not subject to withholding. For small business owners and self-employed folks, that usually means making quarterly estimated tax payments. ![]()
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Do you need to make estimated tax payments? Here are a few key points to consider:![]()
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o Do you expect to owe $1,000 or more when you file your 2022 tax return, after adjusting for any withholding? The IRS urges anyone in this situation to check their withholding using the Tax Withholding Estimator on IRS.gov. If the estimator suggests a change, the taxpayer can submit a new Form W-4 to their employer.![]()
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o Aside from business owners and self-employed individuals, people who need to make estimated payments also include sole proprietors, partners and S corporation shareholders. Corporations generally must make these payments if they expect to owe $500 or more on their 2022 tax return.![]()
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o Aside from income tax, taxpayers can pay other taxes through estimated tax payments. This includes self-employment tax and the alternative minimum tax.![]()
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The remaining deadlines for paying 2022 quarterly estimated tax are: Sept. 15 and Jan. 17, 2023.![]()
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Visit IRS.gov to find options for paying estimated taxes.
*** Tax Tip Tuesday ***![]()
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Deductions for K-12 Educators![]()
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Teachers can deduct $250 for the cost of their unreimbursed expenses. This is an above-the-line write-off claimed on Form 1040, Schedule 1, line 11. ![]()
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Homeschooling parents unfortunately can’t take the deduction. It’s only for K-12 educators who work at least 900 hours during a school year in elementary or secondary school.
*** Worry Free Wednesday ***![]()
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Common IRA Beneficiary Questions:![]()
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How does the 10-year rule work? Must amounts be paid out each year? ![]()
Or can the beneficiary wait until year 10 to take the money? ![]()
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It depends. ![]()
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If the deceased IRA owner died BEFORE his or her first beginning date for taking RMDs (Required Minimum Distributions), then payout would not need to be distributed evenly over a 10-year period. Instead, beneficiaries can wait until year 10 to take either out all of the money, take annual payouts, or skip years, as long as the inherited IRA is fully depleted within 10 years. ![]()
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If the deceased IRA owner died AFTER the RMD beginning date, then the annual RMDs must be paid to the beneficiary in years 1 through 9, with the rest of the amount depleted by year 10, IRS says in proposed regulations. ![]()
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Practitioners want the 10-year cleanout rule to apply on a consistent basis, without regard to whether the IRA owner dies before or after the RMD beginning date.
*** Tax Tip Tuesday ***![]()
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SEP-IRA Contribution Deadline![]()
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Self-employed folks have until October 17th to set up and fund a SEP-IRA (Simplified Employee Pension Plan) for 2021. You can put in up to 20% of your net self-employment earnings…the net profit shown on your Schedule C less one-half of your SECA tax liability (a.k.a. self-employment tax, which is paid by self-employed workers to cover the cost of Social Security and Medicare tax)…with a cap on net self-employment earnings of $290,000 for 2021 and $305,000 for 2022.
Happy Labor Day!!![]()
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We hope you have had a fabulous weekend so far! ![]()
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Who has been enjoying the Paul Bunyan Days festivities the last few days?![]()
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Reminder: Our office is closed today to celebrate with our families!
Who is looking forward to a long weekend?![]()
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Whether you celebrate by joining in on the Paul Bunyan Days festivities happening all weekend, or escape to the woods to go camping, we hope you have a fun and safe weekend with your friends and family!
*** Worry Free Wednesday ***![]()
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Americans working overseas get a bit more relief on housing costs in 2022. The standard ceiling on the foreign housing exclusion increases to $15,680, up $462 from last year. But workers in many high-cost locations around the world qualify for a significantly higher exclusion. IRS Notice 2022-10 has the full details.
*** Tax Tip Tuesday ***![]()
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Heed the timing rules for gifting a check to a family member, etc. The recipient must deposit a personal check for it to count as a gift for estate and gift tax purposes. ![]()
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The rules differ when gifting a cashier’s check. The recipient must physically receive the cashier’s check before it counts as a gift. ![]()
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In a recent case, a recipient initially refused a cashier’s check made out by a decedent shortly before death. Four months later, the estate canceled the original check and paid the amount again, which was accepted and received. The cashier’s check is included in the decedent’s estate for estate tax purposes (Allison, D.C., Calif.).
*** Worry Free Wednesday ***![]()
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Keep an eye on the popular bipartisan House bill that passed the House Ways & Means Com. unanimously last year, which is rare these days. The Securing a Strong Retirement Act of 2021, commonly known as SECURE 2.0, is sponsored by Rep. Richard Neal (D-MA) and Rep. Kevin Brady (R-TX), two of the lawmakers who spearheaded passage of the original 2019 SECURE Act.![]()
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Among its many proposals: ![]()
-Indexing to inflation each year the $100,000 cap for qualified charitable distributions from traditional IRAs.![]()
-Letting people ages 62 to 64 stash more money in 401(k)s.![]()
-Raising the age for taking required minimum distributions incrementally to 75.![]()
-Requiring employers to offer automatic enrollment in their 401(k)s with employee opt-out. ![]()
-Incentivizing small firms to adopt retirement plans.
*** Tax Tip Tuesday ***![]()
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If you’re using funds from a retirement account to pay medical costs, the exemption to the 10% penalty for pre-age-59 ½ distributions is narrow. ![]()
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To qualify as penalty-free, the money must be used for medical costs of the taxpayer, spouse, or dependent; the funds must cover expenses paid in the year of the withdrawal; and only the amount of medicals that exceeds 7.5% of adjusted gross income counts. This penalty relief applies regardless of whether a taxpayer itemizes deductions. ![]()
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In a recent case, an individual who took an early distribution from his retirement plan to allegedly help pay for his medical costs didn’t qualify for the 10% penalty exception because his total medicals didn’t exceed the AGI floor (Salter, TC Memo. 2022-29).
Good Monday morning!![]()
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Our office is still working on our data migration. There have been a few hiccups, so please bear with us as we get everything working and sorted out. ![]()
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If you have sent us an email and we haven't responded, please give us a call at 208-245-0930 or 208-245-5204 so we can address your concern.![]()
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Thank you for your patience!!
Our office is closing today at noon. ![]()
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Hope to see you down at the Benewah County Fair! ![]()
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We will be back in the office from 8am-noon tomorrow (Friday).![]()
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If you have an urgent need in the meantime, please feel free to email us, as we do check our emails periodically as we can. ![]()
landerson@leahsacct.com![]()
wbaskin@leahsacct.com![]()
office@leahsacct.com
*** Worry Free Wednesday ***![]()
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Retirement legislation could advance this year. In 2019, lawmakers passed the SECURE Act to help participants in workplace retirement plans and IRA owners. Now there are multiple proposals that would go even further to encourage more individuals to save for retirement, give relief to people withdrawing funds during retirement and urge employers to offer retirement plans.
*** Tax Tip Tuesday ***![]()
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Note the tax implications if you’re doing a short sale of your main home. ![]()
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One set of rules is for recourse loans, in which the debtor is personally liable for the shortfall on the sale. If the lender ends up forgiving the remaining debt, remember that up to $750,000 of forgiven debt on a primary residence is tax-free. ![]()
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Results differ on nonrecourse loans, meaning the debtor isn’t personally liable for the deficiency. In this case, the waived debt is included in the amount realized for calculating gain or loss on the short sale. For primary homes, no loss is allowed and up to $250,000 of the gain…$500,000 for joint filers…can be excluded from income.
*** Worry Free Wednesday ***![]()
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The annual cap on deductible contributions to HSAs rises in 2022 to $3,650 for self-only coverage and $7,300 for family coverage. People born before 1968 can put in $1,000 more.![]()
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Qualifying insurance policies must limit out-of-pocket costs to $14,100 for family health plans and $7,050 for people with individual coverage. Minimum policy deductibles remain $2,800 for families and $1,400 for individuals.
*** Tax Tip Tuesday ***![]()
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There are lots of breaks for buyers of business vehicles under the tax laws. The annual depreciation caps for passenger autos rise sharply in 2022. ![]()
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If bonus depreciation is claimed, the first-year ceiling is $19,200 for new and used cars first put in service this year. The second- and third-year caps are $18,000 and $10,800. After that $6,460. If no bonus depreciation is taken, the first-year cap is $11,200. ![]()
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Buyers of heavy SUVs used solely for business can write off the full cost, thanks to bonus depreciation. SUVs must have a gross weight rating over 6,000 pounds. Also, up to 100% of the cost of a big pickup truck can be expensed. When expensing business assets, the amount expensed can’t exceed taxable income from the taxpayer’s business. Bonus depreciation does not have this limit.
Heads up...![]()
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Our office will be going through a systems upgrade today (Friday, August 5th) beginning at noon. If you send us an email between noon on Friday and Monday morning, and have not heard back from us by Wednesday, August 10th, please give our office a call at either 208-245-0930 or 208-245-5204 to verify that we received your email.![]()
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We do not foresee a problem, but we want you to be aware just in case!
Refunds | Internal Revenue Service
irs.gov
Get information about tax refunds and track the status of your e-file or paper tax return.
*** Worry Free Wednesday ***![]()
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About the “Where’s My Refund?” tool: ![]()
This helpful tool, accessible on IRS.gov or the IRS2Go mobile app, allows taxpayers to track their refund through three stages:![]()
o Return received.![]()
o Refund approved.![]()
o Refund sent.![]()
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The tool is updated once a day, usually overnight, and gives taxpayers a projected refund issuance date as soon as it’s approved. ![]()
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It’s also one of the most popular online features available from IRS. The “Where’s My Refund?” tool was developed in 2002 and was used by taxpayers more than 776 million times in 2021.![]()
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There’s no need to call the IRS to check on refund status unless it has been more than 21 days since the return was filed or the tool says the IRS can provide more information. If the IRS needs more information to process the return, the taxpayer will be contacted by mail. For more information about checking the status of a tax refund, please visit IRS.gov/refunds.
Refunds | Internal Revenue Service
irs.gov
Get information about tax refunds and track the status of your e-file or paper tax return.
*** Tax Tip Tuesday ***![]()
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Be sure your child has a Social Security number if claiming the child credit. You must put the SSN on the 1040. There is no exception to the SSN requirement, not even for taxpayers with religious objections. The SSN mandate is in the tax law. Parents must have either a SSN or an individual tax identification number. Eligible children without SSNs can qualify as other dependents for the $500 credit.
*** Worry Free Wednesday ***![]()
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The Internal Revenue Service announced on June 9th that spear phishing is the 8th item on the 2022 "Dirty Dozen" scams warning list and a serious problem because it can be tailored to attack and steal the computer system credentials of any small business with a client data base, such as tax professionals' firms.![]()
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"Tax professionals generally relax a little after filing season and many take a well-deserved vacation but don't let your IT defenses down," said IRS Commissioner Chuck Rettig. "Spear phishing remains one of the biggest threats to the tax industry and other client-based enterprises."![]()
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Spear phishing is an email scam that attempts to steal a tax professional's software preparation credentials. These thieves try to steal client data and tax preparers' identities in an attempt to file fraudulent tax returns for refunds. Spear phishing can be tailored to attack any type of business or organization, so everyone needs to be on the lookout and not rush to act when a strange email comes in.![]()
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The IRS has compiled the annual “Dirty Dozen” list for more than 20 years as a way of alerting taxpayers and the tax professional community about scams and schemes. The list is not a legal document or a literal listing of agency enforcement priorities. It is designed to raise awareness among a variety of audiences that may not always be aware of developments involving tax administration.![]()
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“Dirty Dozen” scams tend to be most prevalent during the filing season but criminals are busy all year long. The IRS, state tax agencies and the nation’s tax community – working together as the Security Summit – continue to see an increase in this scheme attacking the tax professional community.![]()
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The latest phishing email uses the IRS logo and a variety of subject lines such as "Action Required: Your account has now been put on hold." The IRS has observed similar bogus emails that claim to be from a "tax preparation application provider." One such variation offers an "unusual activity report" and a solution link for the recipient to restore their account.![]()
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Emails claiming "Your account has been put on hold" are scams. The scam email will send users to a website that shows the logos of several popular tax software preparation providers. Clicking on one of these logos will prompt a request for tax preparer account credentials.![]()
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The IRS warns tax pros not to respond or take any of the steps outlined in the email. Similar emails include malicious links or attachments that are set up to steal information or to download malware onto the tax professional's computer.![]()
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In this case, if recipients enter their credentials into the pop-up window, thieves can use this information to file fraudulent returns by using credentials that were provided by the tax professional. For more information, see IR-2022-36.
*** Tax Tip Tuesday ***![]()
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Thinking about adding solar panels to your home? You can get a tax break for part of the cost of solar panels, solar-powered water heaters and the like installed in a primary residence or vacation home. The credit equals 26% of the cost of the equipment and installation. It falls to 23% in 2023 and expires in 2024. You only get it once the system has been installed. ![]()
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If you buy solar panels late this year but don’t put them in until 2023, you can’t claim the 26% credit on your 2022 return. You’ll have to wait and take a 23% credit when you file your 2023 return in 2024. ![]()
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If you install solar panels and get a rebate from your utility company, it will affect your credit amount. Although the rebates aren’t taxable income, the cost of the panels is reduced by the rebate amount when you figure your credit.
*** Worry Free Wednesday ***![]()
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A lot of states have huge budget surpluses from higher tax revenues and federal pandemic aid. But people nationwide are hampered by inflation and need assistance paying for everyday necessities. ![]()
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Many lawmakers want to give some of the extra revenue back to residents. Hence the idea of lowering taxes, which happens to also be politically popular and has bipartisan support. There are tax-cutting proposals in blue and red states. ![]()
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A few states have already passed big tax cuts, mainly affecting income taxes. For example, Idaho cut personal income tax rates. Authorized rebates to residents equal to the greater 12% of 2020 taxes or $75 for each taxpayer and dependent. Many other states are considering broad tax cuts, with several likely to pass. Among some of the more popular trends: ![]()
o Tax breaks for senior citizens, such as lower taxes on Social Security, pensions and other retirement income.![]()
o More one-time-only income tax rebates for taxpayers and their dependents.![]()
o Slashing or nixing income taxes, including collapsing multiple income brackets into one flat tax rate. This isn’t new but is more widespread, albeit limited to red states.![]()
o Reducing sales taxes and property taxes, including property taxes on cars. Taxes on groceries are also being targeted in more than half the states that tax food.![]()
o And watch for short-term fuel tax relief to help with surging gas prices.
*** Tax Tip Tuesday ***![]()
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The costs of special education can sometimes qualify as medical expenses. Itemizers can include in medical expenses on Schedule A the cost of tuition, meals, and lodging for schools that furnish special education to help children overcome learning disabilities caused by mental or physical impairments. Any ordinary education received must only be incidental to the special education. Costs paid for private tutoring by specially trained teachers also qualify as medicals. You generally need to have a doctor’s recommendation before taking the write-off.