Engelbert Tax Services

01/12/2021

Well 2020 is past and that was insane. I never thought I would ever have to order a Margarita to go in a sippy cup, stand in line for toilet paper or struggle with 7th grade Algebra again. So as we learned how to Social Distance and have Cocktail Hour by Zoom, I can only hope you and your families were not impacted by the virus. I have sent organizers to everyone's online web portal and if you have not received it let me know.

02/11/2020

Hi,
So working on taxes for the last two weeks and the one question I am still being asked is "Do I need to show proof of Insurance?" The easiest answer is "it depends".
Under the previous changes of tax law, for the Calendar Year 2019, the Individual Mandate Penalty was reduced to zero, meaning, it did not matter if you had Health Insurance or not, there is no longer a Federal penalty for failing to provide proof.
However, if you used Covered California or any other States Marketplace Exchanges to purchase Health Insurance and you received a Form 1095-A, then you have to provide the form showing the amounts you received as credit to calculate your cost of insurance (either you received too little credit and you get a refund, or too much credit and you owe that back to the Federal Government).
Now, this is where I would have another 'However', but it seems redundant, so....
If you reside in the State of California, beginning this calendar year, you are required to have Health Insurance and if you don't, in 2021 when filing your 2020 California Tax Return, you will have a new California Individual Mandate Penalty assessed against you during the preparation of your Taxes. The Penalty will be $695.00 per adult in the household ($347 per child) OR 2.5% of annual household Income, WHICHEVER IS GREATER. So for a family of four without health insurance according to the California Franchise Tax Board, the penalty could be up to $2,085.00 a year. Again, this is based on the penalty per person and not the 2.5% of annual household income, which for a household with taxable income of $100,000.00, the penalty would be $2,500.00.
I hope everyone is having a great February so far and I look forward to seeing you this tax season.

John Engelbert

Hi, So working on taxes for the last two weeks and the one question I am still being asked is "Do I need to show proof of Insurance?" The ea...

02/04/2020

02/26/2018

Have you wondered what your taxes would look like if you filed under next year's tax law changes? Ask your tax preparer/CPA/EA for a proposed tax return based on next year's tax law. All of the software companies have implemented a simple program to give you an idea so you can plan your taxes. This tax year of 85 clients, I have only one who would owe under the next tax law changes. 84 has seen an increase from $4.00 to $4,500.00. Make sure to ask.

12/04/2017

Hi,

It has been a while since I posted to Engelbert Tax Services and I need to get this out. Everyone has probably heard/read/listened to/inundated with the tax law changes coming down the pipeline.

What this means to you:
1. The Senate passed their bill on Saturday the 3rd of December. The House passed their bill previously.
2. The two bills are close, but in the tax world, close is not good enough (only in hand grenades and horseshoes). They will now have a Joint Committee on Taxation (the JCT) meeting and reconcile the two tax bills.
3. Please avoid listening to the media (both mainstream and alternative). Their is just too much misinformation out in the public, it does you nothing to listen to.
4. Stay tuned. If you really really need something to read please visit www.forbes.com and read anything from Kelly Erbs or twitter taxgirl.

I hope this Holiday Season is finding everyone well and stay tuned to more tax information coming from Engelbert Tax Services.

12/13/2016

With tax law changes hitting the new year, small business owners want to avoid getting caught in new regulations that will easily overwhelm them.

A full service accounting and tax return preparation service.

01/15/2016

and it begins! First tax return for 2015 has been completed

01/21/2015

Quick, name a form you work with that is one page long, but needs 11 pages of instructions to properly calculate or you will be subject to receiving a penalty that is equal to 1% of your Adjusted Gross Income? Have fun with those off the shelf tax preparation software. (FYI, the Form 8965 Health Coverage Exemption is the dastardly slayer of time management).

12/17/2014

In the recently enacted "Tax Increase Prevention Act of 2014," Congress has once again extended a package of expired or expiring individual, business, and energy provisions known as "extenders." The extenders are a varied assortment of more than 50 individual and business tax deductions, tax credits, and other tax-saving laws which have been on the books for years but which technically are temporary because they have a specific end date. Congress has repeatedly temporarily extended the tax breaks for short periods of time (e.g., one or two years), which is why they are referred to as "extenders." The new legislation generally extends the tax breaks retroactively, most of which expired at the end of 2013, for one year through 2014.

If you would like more details about these changes or any other aspect of the new law, please do not hesitate to call.