Leah’s Accounting & Business Solutions Facebook Feed
We are back up….but still having intermittent issues with phone and internet. Thank you for your patience! Have a great weekend!
If you are trying to contact our offices, we are currently closed due to phones and internet lines being down. Not sure if this is "an outage"....Ziply couldn't confirm. We will be closed until this is fixed....possibly until tomorrow afternoon. Please send and email and we will get back to you as soon as we can. Thank you!
Would love to hear from our clients, without you we wouldn’t be us!
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WAHOOOOOOOO We made it! We would like to thank everyone for making this another AMAZING tax season! ![]()
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With that, we are off for a weekend of relaxation!
Technically speaking the official Tax Day this year is April 18th since April 15th is a legal holiday in Washington DC. We aren't located in Washington DC, and our offices will be closing April 15th at noon for our annual end of tax year trip. We will be closed Monday April 18th for our "Tax Day Holiday". ![]()
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Please plan accordingly if you need us to file an extension for you. Tick tock, tick tock 3 days to go......
*** Tax Tip Tuesday ***![]()
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The countdown is on....have you filed yet? T-minus 13 days.....
*** Worry Free Wednesday ***![]()
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State Minimum Wage Increases:![]()
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Arizona - $12.80; tipped employees $9.80![]()
Flagstaff $15.50![]()
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California - $15.00 for businesses with 26 or more employees; up to 25 employees $14.00![]()
Oakland $15.06![]()
San Diego $15.00![]()
San Jose $16.20![]()
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Montana - $9.20![]()
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Oregon - As of July 1st $13.50![]()
Portland metro as of July 1st $14.75![]()
Nonurban Employers $12.50![]()
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Washington - $14.49![]()
Seattle $17.27 for business with more than 500 employees; $17.27 for businesses with up to 500 employees and do not offer medical benefits; $15.75 for business up to 500 employees and do offer medical benefits.![]()
SeaTac $17.54
*** Just IN ***![]()
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For the first time, maximum educator expense deduction RISES to $300 in 2022. The $250 limit still remains in effect for filing season 2021.![]()
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What is deductible:![]()
*Books, supplies and other materials used in the classroom![]()
*Equipment, including computer equipment, software & services![]()
*COVID-19 Protective items![]()
*Professional development courses related to the curriculum they teach or students they teach
*** Tax Tip Tuesday ***![]()
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Business need to retain personnel records for as long as an employee is with your firm plus one year from the date of termination. These documents include but are not limited to:![]()
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Applications![]()
Hiring documents![]()
Disciplinary Actions![]()
Job Descriptions![]()
Raises and decreases in pay![]()
Termination notices
*** Worry Free Wednesday ***![]()
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New Small Business Reporting Requirements:![]()
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C and S Corps, LLC and similar entities with fewer than 20 employees up to $5 million in gross revenues and a physical presence in the US must report Names, addresses, dates of birth, driver's license numbers and other identification numbers of the individuals who control and own the entities. These reports are to be filed with the Treasury's Financial Crimes Enforcement Network. ![]()
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Reporting will start one year after the effective date of the final regulations and for new entities it will be within 14 days of formation.
*** Tax Tip Tuesday ***![]()
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Standard Mileage Rates for 2022:![]()
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Business .585 Cents per mile![]()
Relocation .18 Center per mile![]()
Medical .18 Cents per mile![]()
Charitable .14 Center per mile![]()
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If you plan on claiming mileage in 2022 remember it is important to keep a log that includes the following information:![]()
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* Purpose of driving, starting and ending points, date of the trip, and the reason/client/business verification.![]()
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* You can only deduct either mileage or actual expenses, so if you are depreciating your company vehicle, then mileage is not available.![]()
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For businesses using FAVR, the standard vehicle cost in 2022 my not exceed $56,100.
*** Worry Free Wednesday ***![]()
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Tax filing deadline in T-minus 33 days.....but who's counting? ![]()
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We are happy to file your taxes or extension, contact our offices today!
Position has been filled. Thank you all for the interest! ![]()
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*** JOB OPENING ***![]()
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We are looking for a FULL-TIME, 30 to 40 hours a week, office administrator. Must be local in St Maries, ID![]()
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Responsibilities will include:![]()
Updating client list regularly, checking in tax clients, scanning documents, organizing and filing electronic records, collecting signatures, handling the office phone lines, updating calendars, post office drop offs, and pick ups. ![]()
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A successful candidate will possess the following skills and qualifications:![]()
Attention to detail and accuracy![]()
Able to multi-task, prioritize, work under pressure and meet deadlines![]()
Ability to communicate clearly![]()
Great interpersonal and customer service skills![]()
Computer literate, with the ability to operate excel, google docs, adobe, outlook and a wide variety of office programs.![]()
Must like dogs too! We have an office full on a daily basis, our mascots come to work everyday and love to drool on your clean pants!![]()
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Wage DOE. Looking to have this person start ASAP.![]()
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If you would like to apply, please email your cover sheet and resume to landerson@leahsacct.com, with the subject line, "ADM - Office Admin Position - AND YOUR NAME"
*** Tax Tip Tuesday ***![]()
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TODAY is the filing deadline for Corporations and certain Partnerships. If you have not yet filed and would like to file an extension, contact our offices ASAP!![]()
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Happy Tuesday!
Just in yesterday afternoon!![]()
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Idaho will be issuing tax rebates later this month to people who were full-year Idaho residents for 2020 and 2021 who filed income tax returns for those year. This will included people that filed just to receive the grocery credit. ![]()
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The rebate amount is either $75.00 per taxpayer and each dependent or 12% of there 2020 taxes, whichever is greater. ![]()
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If you were set up for direct deposit from your tax returns, they will issue the rebate directly to the account they have on file. For those that receive paper checks, it will take a little longer, but your check will be mailed. ![]()
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There is an online rebate tool at that can be used to help you track your update status.![]()
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idahotap.gentax.com/tap/_/
idahotap.gentax.com
*** Worry Free Wednesday ***![]()
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Social Security income could be taxable! The portion of benefits that is taxable depends on the taxpayer's income and filing status.![]()
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To determine if your social security income is taxable, taxpayers should take half of the Social Security money they collect during the year and add it to their other income. Other income includes pensions, wages, interest, dividends and capital gains.![]()
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50% of a Taxpayer's Benefits may be taxable if:![]()
* If they are single and that total comes to more than $25,000, then part of their Social Security benefits may be taxable.![]()
* If they are married filing jointly, they should take half of their Social Security, plus half of their spouse's Social Security, and add that to all their COMBINED income. If that total is more than $32,000, then part of their Social Security may be taxable. ![]()
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85% of a Taxpayer's Benefits may be taxable if:![]()
* Filing single, head of household or qualifying widow or widower with more than $34,000 income.![]()
* Married filing jointly with more than $44,000 income.![]()
* Married Filing separately and lived apart from their spouse for all if 2021 with more than $34,000 income.![]()
* Married filing separately and lived with their spouse at any time during 2021.
*** Tax Tip Tuesday ***![]()
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Ever wonder what the IRS has on file for you? With the backlog the IRS is experiencing they are pushing individuals to set up online accounts to be able to verify all personal information on file. This is very helpful with all the credits and stimulus money that has been issued. ![]()
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We encourage you to set up an online account to help answer all those questions:![]()
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www.irs.gov/payments/your-online-account
Your Online Account | Internal Revenue Service
www.irs.gov
Get instructions on your online account. Review the amount you owe, balance for each tax year and payment history.
*** Worry Free Wednesday ***![]()
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Did you form or restructure your business this year to a corporation or LLC? If you want to make the election to be viewed as an S-Corporation for 2022 remember to submit Form 2553 with the IRS by March 15th.
*** Tax Tip Tuesday ***![]()
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Tip income is reportable! For those working in the service industry, tips are income that need to be reported. They are considered taxable income. Don't be intimidated by reporting this additional income...it may actually be beneficial to your refund! ![]()
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Most servers make lower income on their W2's, and by reporting tip income, it puts them into a higher bracket that could potentially increase other credits they may qualify for, such as the Earned Income Credit.
*** Worry Free Wednesday ***![]()
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Filed your tax return and curious where your refund is? You can check the status of your refund on the IRS website by using the Where's My Refund Tool. Simply enter in your social security number, filing status and refund amount. ![]()
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www.irs.gov/refunds
Refunds | Internal Revenue Service
www.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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Idaho Residents - Claim your grocery credit refund, even if you don't have a filing requirement! ![]()
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Idaho provides a refund of $100 for most Idaho residents, plus an additional $100 for each qualifying dependent. If you are 65 or older, the credit is increased to $120. ![]()
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If you know anyone that falls in this category, please refer them to our offices, we like to assist with processing these returns and do not charge a fee if there is no filing requirement.
We have been super quiet on here lately....just in case anyone was curious as to why....Tis the Season, and we aren't talking Christmas! ![]()
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Tax deadlines are coming quickly....26 days until the Corporate deadline and 60 days until Individual Returns are due....but who's counting? Call for an appointment, or feel free to drop your information off.
Good morning! Thank we have made it through January! Up next....tax season is in full swing! Feel free to call for an appointment, or just stop by and drop off your information. ![]()
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If you are expecting a refund, the sooner the better. According to the IRS, it will take longer to receive your refunds this year due to the backlog for the last two years. ![]()
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We will do our best to keep weekly posts through tax season....but if they die down, just know it's because we have our noses to the grindstone! April 18th is only 77 days away, but who's counting? 🤣
Good morning! Due to technical issues out of our control, we will be in and out of the office today. Sorry for the inconvenience, we will be back up and running as soon as possible.
*** Tax Tip Tuesday ***![]()
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Upcoming Due Dates for withholding and Estimated Payments![]()
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Backup Withholding - Sometimes businesses and other payers will withhold taxes from certain payments to individuals. These entities need to be aware of the upcoming deadlines.![]()
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Form 945 Annual Return - Due Monday January 31, 2022. This form is used to report federal income tax withheld form nonpayroll payments.![]()
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1099NEC - and 1099 MISC used to report nonemployee compensation only; Due Monday January 31, 2022.![]()
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1099 MISC for all other types or reportable income; 1099B, 1099 DIV; 1099 G; 1099 INT; 1099 K; 1099 OID; 1099 PATR; and W2G - Due Monday February 28, 2022 for paper filers and Thursday March 31, 2022 for electronic filers
TAX FILING OPENS - January 24th! Get your paperwork and call for an appointment or drop off! Tis the season, taxes are upon us!
*** Worry Free Wednesday ***![]()
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IRS will be sending out letters this year for all the recipients of the advance child tax credit and third economic payment. Letters started going out in December and will continue through January. Make sure to keep these letters along with all your important tax documents for filing taxes this year.
*** Tax Tip Tuesday ***![]()
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IRS has offered some guidance on how to treat the forgiveness of the PPP Loans for tax year 2021. All monies received will be reported in your company's gross receipts as tax-free income. All eligible expenses that were paid with the PPP money are deductible to the company. The forgiveness will be recognized either in the year it was given, or in the year the expenses were paid with the money. If your company does not receive as much loan forgiveness as expected, previous filings will need to be amended.
Happy New Year! We hope you are all safe while ringing in the new year! Our offices will be closed Monday, January 3, 2022.
*** Worry Free Wednesday ***![]()
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Don't forget to take your RMD if you are required! They must be completed by December 31, 2021.![]()
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Required Minimum Distributions (RMD) are minimum amounts that retirement plan account owners must withdraw annually starting with the year they reach 72, or if later, the year they retire. ![]()
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Individuals who reached 70 1/2 in 2019, did not have an RMD for 2020, but will have to take on by December 31, 2021.
*** Tax Tip Tuesday ***![]()
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Work Opportunity Tax Credit for Employers![]()
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The work opportunity tax credit is available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. This includes people with disabilities and veterans.![]()
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The maximum amount of tax credit for employees who worked 400 or more hours of service is:![]()
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$2,400 or 40% of up to $6,000 of first year wages, for qualifying individuals.![]()
$9,600 or 40% of up to $24,000 of first year wages for certain qualified veterans.![]()
A 25% rate applies to wages for individuals who work at least 120 hours but less than 400 hours for the employer.
Merry Christmas! In observance of Christmas, our offices will be closing early today at 11 am thru Monday December 27th so our employees can have a longer weekend with their family. We wish you all a happy, healthy safe holiday!
*** Worry Free Wednesday ***![]()
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California Wildfire Relief![]()
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The IRS has extended the extension due date to January 3, 2022 for various Individuals and business tax returns and payments that were affected by the wildfires in California. This extension has been extended to residences in the following counties: Lassen, Nevada, Placer, Plumas, Tehama and Trinity. If FEMA adds additional jurisdictions to the list, they will automatically be granted the extension of time to file and pay by the IRS. ![]()
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if you have any questions, please contact our office, we are happy to help.
*** Tax Tip Tuesday ***![]()
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We all know that teachers spend their own money on supplies for classrooms and children activities. Teachers are allowed a deduction every year up to $250 per person (teacher) on their income tax returns. ![]()
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For the upcoming tax year, all COVID-19 supplies are being included in these expense deductions. These include, but are not limited to; face masks, disinfectants, hand soap, hand sanitizers, disposable gloves, tape, paint or chalk used to guide social distancing, physical barriers, such as plexiglass, air purifiers, and other items recommended by the CDC for the prevention of the spread of COVID-19.![]()
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Make sure you keep your receipts and documents, because as with all deductions, if you can't prove it you loose it!
*** JOB OPENING ***![]()
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We are looking for a FULL-TIME, Temporary (could become permanent), office administrator for Tax Season. Must be local in St Maries, ID![]()
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Responsibilities will include:![]()
Updating client list regularly, checking in tax clients, scanning documents, organizing and filing electronic records, collecting signatures, handling the office phone lines, updating calendars, post office drop offs, and pick ups. ![]()
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A successful candidate will possess the following skills and qualifications:![]()
Attention to detail and accuracy![]()
Able to multi-task, prioritize, work under pressure and meet deadlines![]()
Ability to communicate clearly![]()
Great interpersonal and customer service skills![]()
Computer literate, with the ability to operate excel, google docs, adobe, outlook and a wide variety of office programs.![]()
Must like dogs too! We have an office full on a daily basis, our mascots come to work everyday and love to drool on your clean pants!![]()
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Wage DOE. Looking to have this person start ASAP as tax season is right around the corner. There will be the potential of overtime, season job that could become permanent.![]()
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If you would like to apply, please email your cover sheet and resume to landerson@leahsacct.com, with the subject line, "ADM - Office Admin Position - AND YOUR NAME"
*** Worry Free Wednesday ***![]()
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The IRS is still making progress on the excessive backlog of individual income tax returns for 2020. As of November 5th, the IRS had 6.8 million 2020 individual returns requiring manual processing. ![]()
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There have also been significant delays in other areas of IRS operations. It is now taking months to process W-7 forms requesting ITIN's. Resolving identity theft cases reported by individuals is taking up to 250 days. Faxes being sent are taking months to process. ![]()
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Remember, be kind....COVID affect ALL industries this year, and some of those not thought of as front line workers, have been and are still putting in long hours to play catch up.
*** Tax Tip Tuesday ***![]()
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Get Ready for Taxes! The season is just around the corner!![]()
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What can you do now to make tax filing easier in 2022?![]()
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- Organize your tax records! ![]()
- Notify the IRS if your address has changed from the last time you filed your tax return. ![]()
- Notify the Social Security Administration of a legal name change![]()
- As forms begin to come in, create a folder or envelop to put them all in. ![]()
- Be on the lookout for W2's, 1099's, 1098, remember NOT all envelops come marked, "Tax Info"![]()
- Set up an online account through IRS e-Services so you can see what has been reported for Economic Impact Payments, Advance of Child Tax Credit, and most recent tax returns you filed.![]()
- Contact your accountant to run some figures and see if you had enough withheld throughout the year, if not, make a payment by January 15th.![]()
- If you have an ITIN, make sure you renew it in time![]()
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If you are one of our clients, we will be mailing out our organizers by the second week of January, be on the lookout! It will help you with providing information on what we used for 2020.
*** Worry Free Wednesday ***![]()
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Are you one of the millions of people that filed taxes and had unemployment income that was reported prior to the passing of the American Rescue Plan Act and you are still waiting for your refund? Don't fret, the IRS is still working on this. So far the Service has issued 11.7 million unemployment benefit tax returns and they plan to have another batch ready before year-end. The IRS focused first on the simplest returns and is now processing the more complex returns. If you were expecting to see a refund, hold tight, it's coming!
*** Tax Tip Tuesday ***![]()
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Business that participated in deferring payment of 2020 Payroll taxes have a due date coming up. The CARES Act allowed employers to defer payment of their 6.2% share of Social Security taxes, and self-employed individuals could defer payment of their portion of SECA tax owed. The first half of the deferred amount is due December 31, 2021 and the other 50% is due December 31, 2022.![]()
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If you are one of these business, make sure to mark your calendar for the due dates! The IRS will be sending notices to these affected as well, be on the lookout for CP256V notices in the mailbox!
*** Worry Free Wednesday ***![]()
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The end of the year is just around the corner! If you haven't been doing this all year, now is the time to review your business profit and loss. There are still ways to take full advantage of the deductions this year, such as accelerated depreciation on that piece of equipment you have been looking at all year!![]()
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Use your annual gift exclusion, you can give up to $15,000 to each person this year without paying gift tax or having it affect your lifetime estate-and-gift-tax exemption. A married couple can give $15,000 EACH, that's a total of $30,000 they can give to individual people.![]()
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Make donations to charitable organizations.![]()
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We have a few more ideas, if you would like to know more call and schedule an appointment, there is still time!
*** Tax Tip Tuesday ***![]()
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You guessed it! More Tax Inflation updates for Tax Year 2022!![]()
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- For 2022 there is no limitation on itemized deductions, that limitation was eliminated by the Tax Cuts and Jobs Act.![]()
- The AMT exemption amount for 2022 is $75,900 and begins to phase out at $539,900 ($118,100 for married couples with phase out beginning at $1,047,200)![]()
- 2022 Maximum Earning Income Tax Credit is $6,935 for qualifying taxpayer who have three or more qualifying children.![]()
- The annual exclusion for gifts increases to $16,000 for calendar year 2022![]()
- The maximum credit allowed for qualified adoption expenses is $14,890 for tax year 2022
***Just in*** ![]()
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It's not a rumor if it's true! My family and I are off on another great adventure! Leah will be out of the office from November 29th returning December 13th. Don't worry, Wendy will be here holding down the fort with all the dogs!
*** Worry Free Wednesday ***![]()
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Don't worry, the pies are in the oven and the side dishes will be done by midnight! We hope you all have a warm and Happy Thanksgiving! We are thankful for all of you, without you there wouldn't be an us. Have a weekend filled with love, laughter and family!
Closed for the Holiday![]()
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Our offices are closing at 11 am today so we can spend time with our families for the Thanksgiving Holiday.
*** Tax Tip Tuesday ***![]()
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Marginal Rates for Individuals for the upcoming 2022 Tax Year:![]()
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- 10% of income for single with $10,275 or less, $20,550 for married filing joint![]()
- 12% of income for single over $10,275, and over $20,550 for married filing joint![]()
- 22% of income for single over $41,775, and over $83,550 for married filing joint![]()
- 24% of income for single over $89,075, and over $178,150 for married filing joint![]()
- 32% of income for single over $170,050, and over $340,100 for married filing joint![]()
- 35% of income for single over $215,950, and over $431,900 for married filing joint![]()
- 37% of income for single over $539,900, and over $647,850 for married filing joint![]()
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Stay tuned for more great updates next week!
*** Worry Free Wednesday ***![]()
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Families can now report income changes using the Child Tax Credit Update Portal. This portal can be access on the IRS website. If families expect or have had changes in income, or changes in which parent is claiming the children this year, be sure to make all updates no later than Monday, November 29th for them to be reflected on the December payment.
*** Tax Tip Tuesday ***![]()
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IRS has provided tax inflation adjustments for Tax Year 2022:![]()
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- Standard Deduction for Married Filing Joint is $25,900![]()
- Standard Deduction for Single and Married filing Separately is $12,950![]()
- Standard Deduction for Head of Households is $19,400![]()
- Personal exemption is still at Zero![]()
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Stay tuned for more updates next week!
*** Worry Free Wednesday ***![]()
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IRS has issued another 430,000 refunds for adjustments that are directly related to unemployment income that was taxed in 2020. So far, the IRS has identified and refunded the money for over 16 million taxpayers that were eligible for the adjustment. Depending on the individuals tax situation, they either received refunds direct deposited, checks in the mail, or the overpayment was applied to taxes due or other debts that can garnish a tax refund. ![]()
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Impacted taxpayers will generally receive letters from the IRS within 30 days of the adjustment, informing them of what kind of adjustment was made and the amount of the adjustment. ![]()
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The IRS is ALSO (this is new) making corrections for Earned Income Tax Credits, Additional Child Tax Credits, American Opportunity Credits, Premium Tax Credits and Recovery Rebate Credit amounts that were affected by the exclusion. The IRS will send notices in November and December to the individuals affected by these changes. The notices need to be RESPONDED to, to determine if they are eligible for the credits, rather than filing an amended return. ![]()
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If you do not receive a notice and think you are eligible for any of these credits, check with your tax preparer, you will need to file an Amended tax return.
*** Tax Tip Tuesday ***![]()
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Updates for 2022 Tax Year!![]()
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Starting in 2022, the 401(k), 403(b) and most 457 plans is increasing to $20,500 up from $19,500 limits for 2019 and 2020.![]()
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Traditional IRA contribution phase out ranges are increasing. If you would like a quick snapshot of the new phase out ranges, send us a message and we will send you the specifics.![]()
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Income phase-our range for taxpayers contributing to Roth IRAS is increasing: $129k to $144k for singles and head of households; $204k to $214k for married filing jointly.![]()
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Income limit for the Saver's Credit is $68k for married filing joint, $51k for Head of Households, $34k for single and married filing separate.![]()
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Contributions to SIMPLE account has increased to $14,000.
*** Tax Tip Tuesday ***![]()
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Retirement Plans - Tips for 2021![]()
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RMDs are back for 2021. In 2020 seniors were allowed to sip Required Minimum Distributions without taking a penalty, but this only applied for one year. Anyone who is at least 72 years old by the end of the year is required to take and RMD for 2021.![]()
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Maximum contributions for 401(k), 403(b) and 457 plans are $19,500 if you were born before 1972 you can add a catch up contribution of $6,500.![]()
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SIMPLE IRA contributions are $13,500 plus an extra $3,000 for people 50 and older![]()
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Traditional IRA and Roth IRA contributions $6,000, plus $1,000 catch up contributions for 50 and older. Income ceiling on Roth IRAs will begin to phase out at AGI's for $198,000 to $208,000 for couples and $125,000 to $140,000 for single.![]()
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Keep in mind you have until April 15, 2022 to take advantage of some of these contributions. Plan ahead, check with your tax professional and see if making a contribution will help with your bottom line.
*** Tax Tip Tuesday ***![]()
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Student Loan Forgiveness -![]()
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Starting in 2021, student loan debt that was canceled, forgiven, or otherwise discharged for less than the amount owed will not be considered income. This change is temporary through 2026. If you have student loans and qualify for any of the cancellations, or forgiveness relief programs, now is the time to act on it!
*** Worry Free Wednesday ***![]()
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When operating a small business, there are some perks to hiring your spouse as an employee. Here are four ways to receive benefits of hiring your spouse as an employee:![]()
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1. Build a retirement nest egg. Following all company qualified retirement plans, the spouse can participate and the company can match the contributions, while electing to defer up to $19,5000 of wages in 2021.![]()
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2. Tax mileage on business travel, traveling with your spouse as an employee, as long as the travel is for business purposes 100% is deductible in 2021. This includes all air fare and lodging. In 2022, the deductible amount is set to revert to 50%.![]()
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3. Health Insurance costs. Your spouse would qualify for health coverage through the company. If your company policy is to pay health coverage for your employees, then up to 100% of the cost can be deducted for covering your spouse. ![]()
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4. Life insurance groups. If you offer life insurance coverage to your employees, you can offer it to your spouse once they are employed. The first $50,000 of employer paid group life-insurance coverage is tax free to the employee.
*** Tax Tip Tuesday ***![]()
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Unemployment income WILL be taxable this year. The exemption from the American Rescue Plan Act made up to $10,200 for unemployment compensation per individual exempt from federal income tax for households with and Adjusted Gross Income less than $150,000. This exemption ONLY applied to compensation received in 2020. If you have been receiving unemployment during 2021, it is highly recommended to withholding taxes. If you have not, estimated tax payments may need to be made.
*** Worry Free Wednesday ***![]()
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2021 has been a record year for a number of things, including math-error correction notices being issued to Individuals by the IRS. About 9 million letters have been mailed to taxpayers from January 1st to July 15th. This is compared to 628,997 of math errors for the prior year in the same time period. The vast majority of the errors have been directly related to the recovery rebate calculations.![]()
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If you receive any of these notices, make sure to keep them with your 2021 tax documents, as your preparer may need to review them prior to preparing your 2021 tax return.
*** Tax Tip Tuesday ***![]()
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ADVANCE Child Tax Credits are just that, an ADVANCE on a credit that can be claimed for dependents. COVID Tax Tip 2021-147 states that parents receiving the ADVANCE of the child tax credit WILL have to pay back any payments that were not entitled to claim. ![]()
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This will be a HUGE issue for parents that alternate claiming their child on their tax returns since the credit is based off what was filed in 2020 and 2019. The election to not receive the payment must be done on a monthly basis. ![]()
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For more information you can read the summary on the following IRS website:![]()
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www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-...
www.irs.gov
ACTC FAQs about Commonly Asked Shared-Custody Questions
Happy Friday!!!!! Just letting people know, if you heard I will be out of the office for a bit, the rumor is true! I am leaving on vacation and will be gone until Thursday October 28th! Crazy....I have never taken this much time off!![]()
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While I'm out, the office will still be up and running, Wendy is holding down the fort and making sure there is no delay for any of our clients, or monthly processes. Be patient with her....she's also in charge of the dog crew while I'm gone!
*** Worry Free Wednesday ***![]()
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COVID Home testing are considered medical expenses. Medical expenses also include personal protective equipment, including face masks and cost associated with making them, hand sanitizers and wipes. These deductions are not just for small businesses, but they can also be claimed by individuals who are able to itemize on Schedule A. The extent of medical costs that exceed 7.5% of adjusted gross income can be deducted. These type of expenses can also be paid for using HSA and health flexible spending accounts.
*** Tax Tip Tuesday ***![]()
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Thinking about starting a new business and not sure where to even start? Here are a few tips from the IRS on starting and setting up a new business.![]()
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1. Choose a business structure. Business structure will determine the type of tax return you are required to file. The most common are: Sole Proprietors, Partnerships, Corporations, S Corporations and Limited Liability Companies.![]()
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2. Choose a tax year. The tax year is the annual accounting period that you want to use when keeping records and filing tax returns. Most business operate on a Calendar year, January to December. A Fiscal Year can be helpful if you are seasonal, farming, or an industry where is it more effective for true revenue recognition to chose another 12 month period.![]()
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3. Apply for an EIN with the IRS. You can due this online which is the fastest, most efficient manner. ![]()
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4. Decide if you are hiring employees. If you are, make sure to set up all state required information, and have employees complete IRS forms I9 ad W4 for withholding.![]()
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5. Decide on how you will be tracking your accounting records, and set up an accurate system.![]()
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If you need any assistance in any of these areas, please feel free to contact our offices. We are happy to get you started in the right direction.
October 15th Deadline![]()
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October 15th is the deadline taking several important actions:![]()
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First and foremost, filing returns. For Individuals and calendar year C-Corporations that are on extension must be filed.![]()
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Setting up SEP-IRAs for your business and contributing money into it for 2020.![]()
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Making a 2020 pay in to a Keogh plan that was established before January 1, 2021.![]()
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Withdrawing excess IRA contributions
*** Worry Free Wednesday ***![]()
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Per Diems for 2022 can be applied to business operations as early as October 1, 2021. In high-cost locales, employees can get up to $296 tax-free daily. The daily stiped is capped at $202 in low cost areas. ![]()
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For meals and incidentals only the rates are $74 a day in high cost areas and $64 per day elsewhere. Self-employed can apply these same rates when traveling to these areas. (for meals, not lodging)![]()
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If you would like to review all rates, please let me know, I'm happy to provide IRS Notice 2021-52.
*** Tax Tip Tuesday ***![]()
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IRS has established contracts with three private collection agencies to collect overdue taxes. Taxpayers with unpaid tax bills may be contacted by one of the following three agencies:![]()
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CBE Group, Inc![]()
Coast Professional, Inc![]()
ConServe![]()
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Keep in mind the IRS will always notify a taxpayer in writing prior to transferring their account to a private collection agency. Don't disregard these notices, or you may be caught off guard.
Looking for some feedback....![]()
What do you enjoy about Tax Tip Tuesday's and Worry Free Wednesday? ![]()
Are there topics that I haven't touched enough on?![]()
Is once a week preferred, or twice a month? ![]()
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With the ever changing laws, rules and regulations, we want to share as much information as we can without overloading your news feeds! ![]()
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We also want to make it as seamless for our staff as possible! There are times during the year that our Facebook feed stops simply because there are not enough hours in the day when working with deadlines.
For those that received our emails, just a reminder, for those that didn't; next week our offices will be closed from Tuesday, September 14th to Friday September 17th. We will have limited access to the internet and phone. Thank you for your understanding!
If you are trying to reach us and the phone keeps on ringing, please send and email. Yesterday there was an incident down the road that caused our phone and internet lines to go down. We are currently operating with a hot spot, so we are able to check email. ![]()
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Fingers crossed Ziply is supposed to be here tomorrow to get us back up and running! Thank you for the understanding.
*** Worry Free Wednesday ***![]()
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PayPal Receipts fall short....![]()
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A self employed recently was denied expenses even after producing receipts from PayPal. Even though the receipts substantiated the amounts, vendors paid and the dates there was no definitive information regarding the type of expense that was being paid thus proving it was ordinary and necessary for operating his business. ![]()
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These type of details are crucial for explaining exactly what is being purchased and how it was used in the operations of the business. It's all in the details! Make notes, document, document, document!
*** Tax Tip Tuesday ***![]()
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Estimated Tax Payments - should I be making them?![]()
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Small business owners, self-employed and some wage earners should be making estimated tax payments depending on each situation. ![]()
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Here are the guidelines if you will be assessed penalties for not making estimated tax payments:![]()
- If you expect to owe $1,000 or more after any withholding![]()
- 100% of the prior year tax must be paid, or 90% of the current year liability. ![]()
- Safe Harbor rule, if your prior year AGI was greater than $150,000, your estimated payments should be the lesser of 110% of the prior year tax liability or 90% of the current year liability.![]()
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Due dates for Estimated payments:![]()
April 15th![]()
June 15th![]()
September 15th![]()
January 15th![]()
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With a due date right around the corner, if you aren't sure where you stand this year, give our office a call, we are happy to run some figures to see where you are at!
Our offices will be closing early today, at noon to allow our employees a little extra time for the holiday weekend! We will be back on Tuesday! ![]()
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We would like to wish everyone a happy, fun and safe Labor Day Weekend! Love lives here, build some memories with those you love!
***Idaho Businesses***![]()
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Idaho Businesses, did you know that the state of Idaho has released a revised Precentage Computation Method and Wage Brackets for payroll withholding tables and supplemental wages? These tax rates are retroactive to January 1, 2021 and the revision was updated 07/07/2021. ![]()
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If you are not using a payroll program, make sure you update your calculations. If you are, make sure you run any and all applicable updates to ensure proper withholding from your employees wages.![]()
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tax.idaho.gov/pubs/EPB00744_07-07-2021.pdf![]()
tax.idaho.gov/pubs/EPB00745_07-13-2021.pdf
tax.idaho.gov
*** Worry Free Wednesday ***![]()
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IRS will be doubling the amount of employees focusing on examining small business activities. What is the IRS out to examine....?![]()
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Employment Taxes - this is one of the major sources of income for the IRS, and it will be a major target. The IRS believes that many employers owe more than they are actually paying.![]()
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Taxes and Penalties - These have been put on the back burner through the pandemic. Beginning soon, the IRS will aggressively begin collections on overdue amounts, levying assets and garnishing salaries and other income. ![]()
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Bottom line, if you get a notice from the IRS, don't ignore it. If your books aren't in order, now is the time to get them in order. Contact our office if you need assistance. We can address organization along with setting up payment plans to avoid levies.
*** Tax Tip Tuesday ***![]()
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Highway Vehicle Use Tax deadline to Pay and File is due today! If you operate a motor vehicle with a gross weight of 55,000 pounds or greater, then you are required to file this form. ![]()
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All taxpayers required to file Form 2290 are encouraged to do so electronically. You will need the following information:![]()
- Your Business EIN; a social security number is no longer and option.![]()
- VIN for each vehicle![]()
- Taxable gross weight of each vehicle
*** Worry Free Wednesday ***![]()
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With all the fires burning through multiple states right now, the last thing on a person's mind when they are told to evacuate are, "better grab those tax records". The reality is, you will need those at some point in the future. ![]()
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After a natural disaster, taxpayers do have the ability to reconstruct some of those tax records. Transcripts can be ordered directly from the IRS by using their online tool, or contacting them at 800-908-9946. ![]()
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People can gather information by contacting banks and credit cards to get statements. Property records can be gathered by contacting the title company or escrow company that handled the purchase and/or sale of their home. ![]()
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Just keep in mind, there are resources and source documents for transactions, it just may take doing some leg work. ![]()
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If you have been affected by any of these natural disasters, please contact our office, we are more than welcome to brainstorm with you to find your solution.
*** Worry Free Wednesday ***![]()
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Here's why taxpayers should have an IRS online account:![]()
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Taxpayers can view: their payoff amounts, balances or each tax year in which they owe taxes, payment history, key information from their most current tax return as originally filed (prior to amendments or changes by the IRS), payment plan details if they have one, digital IRS notices, Economic Impact Payments, and their address on file. Taxpayers can set up electronic payment options, online payment agreements and request transcripts.
*** Tax Tip Tuesday ***![]()
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Tips for working high school and college students. During the summer many students choose to work part-time or full-time jobs. Most parents can still claim their children as dependents that work full-time and part-time summer jobs. Some key things to keep in mind:![]()
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* If they earned less than $12,550 (standard deduction) they do not need to file a tax return.![]()
* To be claimed as a dependent while employed, they must be under 19, or under 24 if a full time student. ![]()
* Students who take on jobs like baby-sitting, lawn care, or gig economy are consider self-employed. ![]()
* Tip income is considered taxable, even if it is not reported to employers or reported on the W2.
Attention FULL Year Idaho Residents for 2019 and 2020![]()
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If you have filed a tax return for 2019 and 2020 and you are a FULL year Idaho resident, starting August 2, 2021 Idaho State Tax Commission will start sending out Tax Rebates.![]()
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You are only eligible if you were a Full-year Resident in both 2019 and 2020 AND filed an Idaho Individual Income Tax Return or Grocery Credit Refund Return.![]()
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The amount of the tax rebate is based on your 2019 Tax Return information and it's one of the following, whichever is greater:![]()
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* $50 per taxpayer and each dependent![]()
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* 9% of the tax amount reported on Form 40, line 20 or line 42 for eligible Idaho residents and service members using Form 43.![]()
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For those that had direct deposit, the rebate will be processed the same way. All other taxpayers will receive a check sent to the most recent address on file.
*** Worry Free Wednesday ***![]()
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Where’s my Refund????![]()
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Still waiting for your tax refund on your timely filed 2019 or 2020 return? MILLIONS of taxpayers are in the same boat, if that makes you feel any better. ![]()
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As of June 25, IRS has a backlog of 16.7 million 2019 and 2020 individual returns that require manual processing by agency employees. Some of these are paper returns, other’s were suspended during electronic processing and need further review. ![]()
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Unfortunately, there is not much that taxpayers or preparers can do about the delays. IRS expects to complete the processing of 2019 Forms 1040 that were filed on paper sometime this summer. ![]()
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Bottom line, just hang in there…COVID affected every industry….including tax returns. They are working as quickly as possible to catch up!
*** Tax Tip Tuesday ***![]()
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The IRS urges families to use a special online tool, available only on IRS.gov, to help them determine whether they qualify for the child tax credit and the special monthly advance payments beginning July 15.![]()
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The Child Tax Credit Eligibility Assistant is interactive and easy to use. By answering a series of questions about themselves and their family members, a parent or other family member can quickly determine whether they qualify for the credit.
Our offices will be closed on Monday, July 5th to observe the holiday. We hope everyone has a fun and safe holiday weekend! Stay cool out there!
*** Worry Free Wednesday ***![]()
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Construction Industry Audits![]()
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The IRS has updated a guide for examining the construction industry with a big focuse on accounting methods. Agents auditing construction companies are looking to ensure that companies are properly reporting income from long term contracts.![]()
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Agents are also focusing on unreported income and improper deductions. If you are operating a construction business and have questions about how to properly record income and expenses, contact our office we are happy to offer guidance and recommended bookkeeping practices.
*** Tax Tip Tuesday ***![]()
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American Rescue Plan Affect on 2021 Taxes![]()
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For 2021 only, the earned income credit has been expanded to more workers without qualifying children. This is a fully refundable tax benefit that helps low and moderate income workers. For the first time, there is no age limit cap on claiming the Earned Income Credit.![]()
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For 2021, EITC is available to filers without qualifying children who are at least 19 years old with earned income belwe $21,430; $27,380 for spouses filing a joint return. The maximum EITC with no qualifying children is $1,502.![]()
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Effective for tax years 2020 and 2021 individuals can use their 2019 Earned Income if it was higher than the current year, to calculate claiming the earned income credit. In some instances this could provide a larger refundable credit.
*** Worry Free Wednesday ***![]()
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Amended Returns![]()
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Amended income tax returns can now be electronically filed in most situations. If filing an amended return reflects a different social security number or filing status, it must be filed on paper. ![]()
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It can take up to 16 weeks for an Amended return to be processed by the IRS. In the Post-COVID world, this timeframe has been significantly increased to 24 to 36 weeks.![]()
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You generally have 3 years from the date you filed your original return to amend or claim a refund. If amending for multiple years, each amended return must be filed on their own 1040X.
*** Tax Tip Tuesday ***![]()
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American Rescue Plan Affect on 2021 Taxes![]()
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Child and dependent care credit is increased for 2021 only. Eligible taxpayers can claim qualifying employment related expenses up to $8,000 for one qualifying individual (up from $3,000) or $16,000 for two or more qualifying individuals (up from $6,000). ![]()
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The credit is fully refundable for the first time in 2021. This means that the taxpayer can receive it, even if they own no federal income tax.
*** Worry Free Wednesday ***![]()
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Working College Grads![]()
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Just graduated and looking to work this summer? Talk to your employer about using part-year withholding to have less taxes withheld. Most payroll programs assume that you will have a full year of income, and these figures are used to calculate the tax liability and withholding from payroll. Select the part year method, and your withholding will be according to what you earn during the part of the year you are actually working, instead of the full year. ![]()
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Most students, high-school and college, who choose to work during the summer are exempt from income tax withholding. If you fall in this category, you can simply write "Exempt" on your W4 submitted to your employer and no taxes will be withheld![]()
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If you have any questions if you are exempt, or how much should you withhold, feel free to contact our offices, we are happy to assist with estimating tax liabilities.
*** Tax Tip Tuesday ***![]()
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Taxpayers assistance on paying the right amount of tax![]()
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Federal taxes are considered a pay as you go. This means that as you are making income, you should be making payments on the tax liability that will be due when filing tax returns for the year. This can be done through employee withholding, or estimated tax payments on a quarterly basis. ![]()
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Taxpayers can use the IRS Tax Withholding Estimator to decide if they should make estimated payments, increase or decrease their withholding from wages. If you need assistance or have more complex situations, contact our office, we are always happy to help with Tax Planning.![]()
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www.irs.gov/individuals/tax-withholding-estimator
Tax Withholding Estimator | Internal Revenue Service
www.irs.gov
Check your tax withholding with the IRS Tax Withholding Estimator, a tool that helps ensure you have the right amount of tax withheld from your paycheck.
Good morning! Happy first day of June! I keep asking myself how did that happen? ![]()
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We made it through tax season, and now we are busy playing the catch up game on everything around the office. The plan is to start up Tax Tip Tuesday's and Worry Free Wednesday's again next week!![]()
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Thank you for all the support! It's you that makes this small business thrive!
Even on Vacation we get updates.....A few more changes that were implemented with the passing of The American Rescue Plan Act of 2021:![]()
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IRS suspends requirement to repay excess advance payments of the 2020 Premium Tax Credit![]()
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Taxpayers with excess advance payments of the Premium Tax Credit (excess APTC) for 2020 are not required to file Form 8962, Premium Tax Credit, or report an excess APTC repayment on their 2020 Form 1040 or Form 1040-SR, Schedule 2, Line 2, when they file. The American Rescue Plan Act of 2021 suspends the requirement that taxpayers increase their tax liability by all or a portion of their excess advance payments of the Premium Tax Credit (PTC) for tax year 2020. The process remains unchanged for taxpayers claiming a net PTC for 2020. They must file Form 8962 when they file their 2020 tax return. Taxpayers who have already filed their 2020 tax return and who have excess APTC for 2020 don’t need to file an amended tax return or contact the IRS. The IRS will reduce the excess APTC repayment amount to zero with no further action needed by the taxpayer.
*** Tax Tip Tuesday ***![]()
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Unclaimed 2017 Tax Refunds. The IRS has announced they have an estimated 1.3. million taxpayers that did not file a 2017 Form 1040 Individual Income Tax Return and are due a refund.![]()
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If you fall in this category, here are the key points you need to know:![]()
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* In order to collect the refunds, you must file your return by this year's tax deadline, May 17th.![]()
* The law requires taxpayers to properly address and mail the tax return to the IRS. It must be postmarked by the May deadline.![]()
* The IRS may hold the 2017 refunds of taxpayers who have not filed tax returns for 2018 and 2019.![]()
* Taxpayers who are missing forms W2, 1098, 1099 or 5498 for the 2017 tax year should request copies from their employer, bank or other payer. If they are unable to get the forms from those outsources, they can order a free wage and income transcript from the IRS online.![]()
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If you need help with any of these processes, please feel free to contact our office, we are always happy to help!
We have been a little quiet the last couple weeks. Have our noses to the grindstone around here! ![]()
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Just announced by the IRS - they will be taking the steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation. Once this is completed, it is up to the taxpayer to determine if they return then needs to be amended to receive any additional federal credits and deductions not already included on the original tax return. ![]()
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If you fall into that category...give our office a call, we are happy to help.
Changes every second of every day around here.....Just in.....![]()
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Idaho’s income tax, property tax relief applications deadlines extended to May 17![]()
Mar 25, 2021 03:13 am![]()
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BOISE, IDAHO — March 25, 2021 — The Idaho State Tax Commission voted today to extend the 2020 Idaho income tax filing and payment deadlines from April 15, 2021, to May 17, 2021, to match the federal extended deadline. ![]()
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The extension applies to all taxpayers subject to Idaho’s individual income tax (i.e., individuals, trusts, and estates), regardless of the amount owed. Penalty and interest won’t apply if taxpayers file their return and pay the income tax they owe by May 17.![]()
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What does this mean for my clients.....? NOTHING is changing. I am still focused on getting you completed or on extension by April 15th. I need a vacation like no other right now!!!!!
It has been crazy busy around here this week, so we didn’t get our normal postings out. For the local people we did get this out in the paper!!! ❤️❤️❤️❤️ our shop dog!
IRS to Handle Unemployment Returns, Don't Amend![]()
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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.![]()
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The IRS has not yet communicated a timeline for making adjustments and sending refunds.![]()
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States are still making decisions on whether to follow....As of my last update, Idaho will be taxing the unemployment, but this could change.....