Simplitax

Working with you this past year has been an amazing venture. Best wishes for a merry Christmas and a new year of continued teamwork.

November is the time to be thankful, a time to remember, and to embrace those who enrich our lives. We are thankful for a lot of things, but most of all our wonderful clientele!

Thank you for another great year.

A big tax bill (or a large refund) may mean you don’t have the proper amount of tax withheld from your paycheck. Here’s how to make sure that doesn’t happen next year.

- https://simplitaxusa.com/2022/08/02/is-your-withholding-adequate/

“They say a person needs just three things to be truly happy in this world: someone to love, something to do, and something to hope for.” ― Tom Bodett

We hope you find everything you need today. Happy Easter!

After filing a 2021 tax return, keep these three issues in mind:

1) You can check on your refund by going to irs.gov. Click on “Get Your Refund Status.”

2) Some tax records can now be thrown out. You should generally save statements, receipts, etc. for three years after filing (those related to the 2018 tax year). However, keep the actual returns indefinitely. There are exceptions to the general rule.

3) If you forgot something, you can file an amended tax return.

In general, you can file Form 1040-X to claim a refund within three years after the date you filed the original return or within two years of the date you paid the tax, whichever is later. Questions? Contact us.

For tax purposes, the rules involved in selling mutual fund shares can be complex. If you sell appreciated fund shares that you’ve owned for more than one year, the profit will be a long-term capital gain. The top federal income tax rate will be 20% and you may also owe the 3.8% net investment income tax. One challenge is that certain mutual fund transactions are treated as sales even though they might not seem like it. For example, many funds provide check-writing privileges. Each time you write a check on your fund account, you’re selling shares. Another problem may arise in determining your basis for shares sold. We can explain in greater detail how the rules apply in your situation.

What are the tax consequences of renting out a vacation home part of the year?

It depends on how many days it’s rented and your level of personal use. Personal use includes vacation use by your relatives and use by nonrelatives if market rate rent isn’t charged. If you rent the property for less than 15 days during the year, it’s not treated as rental property. Any rent received isn’t included in your income for tax purposes. But you can only deduct property taxes and mortgage interest. If you rent the property for more than 14 days, you include the rent you receive in income and you can deduct part of your operating expenses and depreciation, subject to several rules.

Questions? Contact us.

Wishing for your maximum tax return amount can only get you so far. Count on the experts at Simplitax to take you the rest of the way.

🍀 Happy St. Patrick's Day 🍀

If you’re laid off or terminated, taxes are probably the last thing on your mind. However, there may be tax implications.

For example, what’s the best option for amounts you’ve accumulated in a retirement plan sponsored by a former employer? For most, a tax-free rollover to an IRA is the best move.

You may continue group health coverage under COBRA. The cost of premiums paid for health insurance is a medical expense, which is deductible if you itemize deductions and your total medical expenses exceed 7.5% of adjusted gross income. Complex situations arise if you have incentive stock options or a “golden parachute payment.” We can help you chart the best tax course during this time.

The credit for increasing research activities, often referred to as the research and development credit, is a valuable tax break for eligible businesses.

Claiming the credit involves complex calculations, which we can take care of for you. But in addition to the credit itself, be aware that it also has a feature that is especially favorable to certain eligible small businesses. The credit can be used against the employer’s Social Security payroll tax liability.

To qualify for the election a taxpayer: 1) must have gross receipts for the election year of less than $5 million and 2) be no more than five years past the period for which it had no receipts (the start-up period).

Contact us about whether you can benefit from the payroll tax election and the research tax credit.

Fun fact: Outrageous real-life employee expense claims.

1. An estimated $604 million dollars will be spent on turkeys this year in America.

2. According to American Farm Bureau, the average cost for a turkey is up 24% from last year at $23.99 for a 16-pound bird.

Number 3 will shock you! Visit our company site to read the rest - https://simplitaxusa.com/2021/11/25/5-fun-financial-facts-about-thanksgiving/

Due to a backlog of tax returns held by the IRS, millions of Americans are experiencing weeks-long delays in re­ceiving their tax refunds, far beyond a typical turnaround time of 3 weeks. The IRS has acknowledged the delay, but when can you expect your refund? While the IRS says it's been turning around 90% of tax returns within 3 weeks, up to 29 million returns are flagged for manual processing, which has, so far, led to de­lays of up to ten weeks. You can check the status of your refund with the IRS' Where's My Refund? tool at IRS.gov.

Source: Business Digest

The Treasury Department and IRS announced Wednesday that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.

IRS Extends Filing and Payment Deadline | Simplitax Tax filing and payment deadline extended to May 17, 2021.

Wondering when you'll be receiving your stimulus payment or tax refund? The status of these can now be tracked on the IRS website. Find more info and the links here:
https://simplitaxusa.com/2021/03/16/irs-launches-tracking-tools/