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Connie Tax, LLCConnie S. Stimart104 LaSalle Street, Waukesha, WI 53188262-547-2929 phone & faxCell # 262-622-5660& textConnieTaxllc@ & tiprs@ & http:SOS-Happy New Year! 2021 has GOT to be a better year! I hope you are healthy, happy and have survived.COVID-19. I’m sure that you have lost friends and loved ones to the virus and hope for life to be normal. Tax season is here already, and congress has been VERY busy making changes for your 2020 tax filing season. If our new President makes tax law changes, as he said he would our tax year might start even later. But as it stands right now the IRS will be accepting federal individual tax returns on February 12, 2021 and not to expect refund until the first week in March if you receive certain credits.I formed an LLC this year Connie Tax, LLC and have a new Face Book page where we are post interesting law changes, grant opportunities and a variety of other information. There have been so many law changes and opportunities for small businesses and the self-employed that is has been increasingly difficult to email everyone opportunities the 2nd Round of PPP loans or grant opportunities and still maintain the privacy of everyone’s email address I decided to create a Face Book page, Connie Tax, LLC. Other changes include not scheduling any in-person appointments or sending organizers through the mail. We are Zooming these days for social distancing but if you need an appointment or a paper organizer, please don’t hesitate to call and I’d be happy to accommodate. A fillable organizer is included here.You will need to know the exact amount of the 1st and 2nd stimulus checks that you received, it was listed on notice #1444 that came in the mail shortly after the 1st stimulus but if you are like me, you through it away. The new “Recovery Rebate Credit” will compensate you if you didn’t receive the correct amount and are due more and no one will have to pay money back if they received too much. Stimulus received for deceased persons for the first stimulus is/was supposed to be paid back. Special circumstances apply, and the rules are not the same for the 2nd stimulus that is still coming out now. This one does NOT have to be paid back for a deceased person.Changes have been made to the “earned income” for various tax credits, the Child Tax Credit, and Earned Income Credit to allow you to use the amount from 2019 if your income had decreased in 2020 as this would have reduced the money you would receive.Self-employed and small business will need to contact me before you finalize your accounting as some of the grants, WI “Were all in it together” will be taxable and others the federal EIDL is not taxable for federal but taxed for Wisconsin unless WI votes to follow federal before the tax season starts. Please urge your congressmen for a special session to vote to follow federal law as other programs like the PPP loans from SBA do NOT have the same tax treatment under current law. Self employed persons who couldn’t work due to Covid-19 or had to take care of loved ones in 2020 will be able to reduce their taxable income the same as people who worked for an employer.Self employed who need to issue 1099’s for subcontractors who earned over $600 will need to find the new, 1099 NEC which was an “old form from the past” brought back and must be filed by January 31, 2021. The 1099 MISC for other non-employee compensation like rent or prizes has until February 28, 2021 to be filed.Self-employed (if you’re income remained the same) can enjoy additional deductibility of meals to benefit and encourage us to spend money at the restaurants and food establishments. Entertainment for federal is still NOT deductible but is for WI.Charitable cash donations up to $300 for 2020 (married or single) can be added to your standard deduction so even if you cannot itemize, there is a benefit to giving. The special deduction also applies to 2021 but doubles to $600 if you are married and filing jointly.Many of the tax extenders are back too so your PMI, (mortgage insurance premiums), energy credits, educator expense deduction and the exclusion of income of the debt cancellation for loss of your homestead, to name a few. (rules of course apply) Wisconsin did not adopt the PMI or cancellation of debt polices.Special retirement plan distributions were allowed this year with a three-year payback option if you were affected by COVID-19 or alternatively could have elected to report 100% of the withdrawal in income but penalty free withdrawals.If you were collecting federal & state Unemployment remember that it is taxable even if you did not have taxes withheld it will be added to your income and taxed when you file your taxes. It will be reported of a 1099G provided by WIDWD & you will have to download it from your account from the website They are available now. you end up owing money when you file your 2020 income taxes federal is softening their collection rules and a few but not all of the changes include allowing you 180 days to pay without and installment agreement, and IA fees. They are waiving the need for submitting financials for amount owed under $250,000 and will not file a tax lien or take away your passport if this is the first year that you have owed. Other opportunities exist so don’t be afraid to file your tax returns if you owe money as you will save the penalty for not filing and start the 10-year statute, of which they must collect during the 10-year period or forfeit. If you currently have an installment agreement and end up owing money in 2020 it would normally default the agreement but now, they will add the balance to your existing installment agreement. (rules apply)Security for tax professional remains a HOT topic so PLEASE do not send me any tax documents without going through a secure portal. My computers have just been examined by a professional and deemed clean! I can send you an invitation to my secure portal, Verifyle which is free and secure. I have a secure portal, a fax, and a locking mailbox so PLEASE be aware that the cyber criminals are out there, and they are REAL. Be on guard. As always, feel free to call me and discuss your concerns or if you have any questions. Thank you in advance for your business, I appreciate every one of you!Sincerely,Connie Stimart, EAConnie Tax, LLC ................
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