Tax Tips

The Stimulus Payment

IRS Notice 1444 – Keep it If you received a Stimulus payment in 2020 you should have received a Notice 1444 from the White House. It looks like a letter and shows how much you received. Hold onto this notice and provide it to us when we are preparing your tax return for 2020. You […]

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Cares Act

Following are some provisions in the Cares Act: Changes related to distributions from retirement accounts The tax can be paid ratably over a 3 year period instead of all in the year of distribution The 10% early withdrawal penalty is waived for distributions up to $100,000 for coronavirus related purposes during 2020 The purposes include […]

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Child Tax Credit

Taxpayers may be able to claim the child tax credit if they have a qualifying child under the age of 17. Part of this credit can be refundable, so it may give a taxpayer a refund even if they don’t owe any tax. The taxpayer’s qualifying child must have a Social Security number issued by […]

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Benefits to Direct Deposit Income Tax Refunds

Are you expecting a income tax refund. There are benefits to choosing direct deposit for your refund as opposed to a refund by check. Here are 10 quick facts about direct deposit. It’s the best and fastest way for taxpayers to get their tax refund. It’s free. It’s secure. Combining direct deposit with IRS e-file […]

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Don’t Lose Your FSA Funds

Do you hold a Flexible Spending Account (FSA) for health care expenses? If so, you will need to incur qualifying expenses by December 31st in order to use remaining funds in your FSA account. An FSA allows employees to use tax free dollars to pay medical expenses not covered by other health plans. For 2019, […]

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FAFSA Application is Open

The Free Application for Federal Student Aid (FAFSA) is now available for the 2020 – 2021 school year. The FAFSA form is completed for current and incoming college students to determine eligibility for student financial aid.  It is recommended that everyone file a FAFSA, even if you are unsure if you will be eligible for […]

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Charitable Distribution from Your IRA

Due to the tax law changes implemented in 2018 that included a significant increase in the standard deduction, far fewer taxpayers are itemizing their deductions.  For most taxpayers who take the standard deduction, charitable contributions are not deductible.  However, if you are 70 1/2 or over, you may still be able to reduce your tax […]

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New Simplified 1040-SR for Seniors

The IRS has released a draft of Form 2019 1040-SR.  This is a U.S. tax return for seniors (individuals age 65 or older).  This is a simplified form (similar to the former 1040-EZ, but will be for seniors only). However, unlike the 1040-EZ, Social Security and distributions from qualified retirement plans, annuities or similar deferred-payment arrangements […]

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Is Summer Camp Deductible?

Summer Camp May Qualify for the Child and Dependent Care Credit Has your child attended day camp this summer?  If so, you may qualify for the Child and Dependent Care Credit. Following are some requirements to qualify: the child is under the age of 13 at the time of the camp  – or –  the child can […]

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Happy Summer! Did your income change this year?

Keep in mind that income tax is a “pay as you go” system. If your income changed during the year compared to last year then it may be necessary to set up or change estimated tax payments. We are here year round so don’t hesitate to call us if you have any questions or would […]

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