2020 newsletter

To all our loyal clients: Thank you again for your confidence in us during the 2018 tax season!

2019 Individual tax return filing starts: January 27, 2020 & are due April 15, 2020

REFUNDS CANNOT BE ISSUED BEFORE mid February on returns with EIC or Child tax credits

     We are excited to offer more tax planning and saving ideas. We want to have a consistent, long term focus on tax planning strategies to help you minimize your taxes. Call for a tax planning appointment now: can be by phone, video-chat or in person.

We are taking more advantage of technology this year to save time & add convenience for you!

Intuit Link: secure website to easily & securely upload your tax documentation online questionnaire/tax organizer to make sure we have all the necessary information send documents before appt- saves time and errors- eliminates missing documents tax return finished before your first appt.             **** (call or email us if you want on our mailing list)

E-signature:  securely sign your return for us to Efile your return more quickly and safely

Video-Chat Advising Sessions: convenient meetings to examine your individual/business returns to plan for the future and help minimize taxes

Cloud-based Accounting Software: business clients love the advantages & accessibility of QuickBooks online to manage their books. New subscription discounts available to our clients.

Video-tutorials: business clients will receive helpful videos when needed to guide you

Newsletters: join our mailing list for helpful hints, and tools to save your tax money throughout the year

Credit Cards: we now accept credit card payments

Encrypted documents: all data-sensitive documents sent will be encrypted and password protected

Tax Preparer training: our firm has attended many IRS Webinars to learn updated tax laws & strategies to benefit you, and your business.  We are committed to put this information to work for you!

Standard Deduction:  2019

Single or MFS………………………….. $  12,200.

MFJ or QW………………………………….$ 24,400.

HOH……………………………………………$  18,350.

Personal Exemptions: ………………………….NONE

2019 Estate tax exemption: $11.4 million single & 22.8 million Married.

2019 Gift tax annual exclusion: $15,000 not yet given but expected.

Standard Mileage Rate Per Mile:  2019 Business: 58¢; Medical & Moving: 20¢;  Charitable 14¢

HEALTH INSURANCE: 2019:   – There is no penalty for not having health insurance .

COLLEGE TUITION & FEES: Must provide detailed educational expense receipts to receive credits.

ALIMONY PAYMENTS: For Divorces or modified agreements after December 31, 2018:  no longer can deduct alimony payments from taxable income, and the recipient does not have to claim alimony as income.

CHILD TAX CREDIT: $2,000 for children under 17. Elderly Dependent & child dependent over age 16 can qualify you for a $500 credit, same income thresholds apply.

VIRTUAL CURRENCY:  if you bought or sold anything with virtual currency it needs to be claimed on your tax return starting this year, we have to answer Yes/No on the tax return in regards to this

WORKING WHILE RECEIVING SOCIAL SECURITY BENEFITS?

Max earnings and still receive FULL SS benefits: $17,640(under full retirement age) $46,920 (year of full retirement age; No limit after full retirement age

REQUIRED MINIMUM DISTRIBUTIONS: RMD

A new bill was just passed that moved the age from 70 1/2 to 72 years of age for the RMD

PENALTY FREE WITHDRAWAL FROM RETIREMENT SAVINGS- for birth

$5000 penalty free for qualified birth or adoption distribution with optional repayment treated as rollover

SCHEDULE A- ITEMIZED DEDUCTIONS CHANGES:

Medical expenses are deductable, to the extent that they exceed 7.5% of AGI no matter the age of the taxpayer in 2019.

Charitable Contributions: Need Receipts & must have written letter for any contribution of $250 or more. If over 70 1/2 years old and not itemizing, ask us about a new deduction you may qualify for your charitable contributions.

State and local taxes: including sales, state income, and property taxes, is now limited to $10,000.

Home Equity Line of Credit: interest only deductible if adding to the basis of the home

GET REFUND QUICKER!

Make sure all of your tax documents that you receive have the correct spelling of your name, correct social security number, and correct address. 

Have you moved?  Make sure to give us your updated address so we can change it with the IRS, and contact the social security office to update your address.

Own a business? Thinking of starting a business?  Ask us to put you on our Business Newsletter list

RECORDS TO BRING WITH YOU if not previously uploaded to Intuit Link:

• prior year federal and state return (new client only)
• W-2s for wages, salaries, tips, and pensions
• 1098s for mortgage interest paid to financial institutions
• 1099s for interest, dividends, state tax refunds, and other payments
• K-1s from partnerships, S corporations, estates, and trusts
• Letters & receipts for charitable contributions
• additional correspondence from tax agencies, if any
• 1098-T Tuition Statement and ALL expense receipts.
• COPY OF YOUR DRIVERS LICENSE– to verify identity to IRS
• Form 1095-A, 1095-B, or 1095-C – if you had health insurance
• IP pin for ID (if applicable, new one sent each year)
• PROOF of dependency to qualify for Child tax credit, EIC, HOH

IRS SCAMS:  please be aware- IRS will NOT call you or email you and threaten you or demand money under any circumstances!!!  IRS always sends a letter first, many times trying to contact you by letter.  If you receive a phone call or email such as this please help by reporting this to the IRS scams alert.

IRS LETTERS:  If you receive a letter from the IRS, please send us a copy and we will help you to resolve the issue.  We will now be charging to resolve those issues- starting at $35 per letter to the IRS.

IDENTITY THEFT:  If you have been a victim of IRS Id theft: the IRS will send you a new IP Pin each year in December, please provide that to us.    If you are a victim of CC fraud or ID theft: 1) report to the police 2) contact CC company 3) Call credit reporting bureaus 4) Notify SSA office (if SS# used fraudulently) 800-269-0271 5) File a complaint with Fed Trade Commission 877-438-4338 6) Call ID Protection Specialized Unit IRS 808-908-4490

As a firm, we have a written security plan in place as required by the IRS, to help protect your secure data.

Thank you again for a successful tax year,

Rose & Kristin Grimm