Taxsavers2.com



January 12, 2021Greetings and Happy New Year 2021! This tax season promises to be a busy and complicated one. Rest assured that we will be working diligently to stay up to date on any changes that might get implemented retroactively to 2020. Not likely, but there is always the chance. Also, most clients will see a rise in their tax preparation fee this year. Historically our fees have been below the average and while we won’t be making drastic changes you should expect a slight increase this year. If you have any questions or would like an estimate, please give us a call prior to your appointment. The stimulus checks and their reconciliation on the 2020 tax return will be a large focus on every tax return that those apply to. This will be affected by the initial $1,200 stimulus check, deposit, or bank card. The most recent $600 will also flow through to the tax return as a credit if the AGI numbers line up and you haven’t received any checks yet this year. Please be sure to bring in the letter that followed the $1,200 payment if you still have it, Notice 1444. We are hoping the IRS devises a system that will be able to tell us what amount you got in case that letter never made it to you. The other significant matter will be if you are under age 59 ? and took money out of any retirement accounts for living expenses because of Covid related reasons and how or if you plan on paying that back. If you took money out of your 401k, then we can discuss the repayment and how to avoid any extra tax on that distribution. We can spread out the distribution over 3 years as well, so the taxes aren’t all lumped into 2020 taxes. IRA RMD distributions were waived for the entire year and the deadline for replacing those funds has come and gone.We don’t really anticipate any immediate change to the tax brackets or laws with the new presidency but will be more than ready and happy to conduct tax planning conversations if/when changes occur. Other updates$300 cash charitable contribution deduction, even if you don’t itemizeAmended returns can now be filed electronicallyResidential solar energy credit reduced to 26% for 2020Standard mileage rate drops ? cent to 57.5, medical also declines 3 cents to 17 centsFines for late filed returns are moving up as well. We strongly recommend on time filing or at least an extension to September or October depending on your tax returnTo ensure a smooth filing process:1. Consolidate all tax forms, summarize all business expenses (Schedule C, S-Corp, partnerships) and Itemized Deductions (Schedule A) using the enclosed organizer.2. Call and set your appointment. We will be taking appointments Monday through Friday from 9:00 a.m. until 4:00 p.m. and Saturday from 9:00 a.m. until 1:00 p.m. OR3. Utilize our client portal through our website at . We really enjoy our face-to-face interactions but are confident in the security and ease of use with this method of file sharing and tax preparation. Just contact us if you would like a profile setup for your 2020 Tax Documents. Please bring, mail, or upload all 2020 - W2s, 1099s, and 1098s that you get from employers, pensions, banks, insurance companies, brokers, mutual funds, mortgage companies, etc. The enclosed checklist does not need to be filled out; it is for your use to help you gather all required information documents for completing your tax return. For those who itemize, I am enclosing a page of the most common deductions that can be itemized. On November 1st Pete handed the reins of Taxsavers II Financial Services to Rich; however, Pete (Grandpa) will be available to assist Rich during this tax season. He adds, “Rich has been with me for four years and is ready. I’m not sure I am.”We especially want to thank you for your business and for referring your friends, family, and associates to us. Your satisfaction with our services is important to us. Please call Debi to set up your tax appointment at 303-597-0244. If you have questions or need assistance gathering information, do not hesitate to ask.Thank you for your business and Happy New Year! The McNaughton’sPeteRich ................
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