My Gal Friday

02/20/2023

The worst time to know about new tax laws is when it is too late to do anything about it. Here is a summary of the most impactful changes this year as we know them in early 2022.

02/11/2022

CNN: Don't panic if you got a scary IRS notice.

Imagine having filed and paid your taxes on time, then months later you get a notice in the mail from the IRS suggesting you didn't. That's what's happening to many taxpayers this year thanks to automated notices being sent out from a backlogged IRS.

02/07/2022

Tired of learning about tax law changes when it's too late to do anything about them? Check out what's new for 2022 and be prepared

2022 Individual Tax Highlights: The worst time to know about new tax laws is when it is too late to do anything about it. Here is a summary of the most impactful changes this year as we know them in early 2022.

02/07/2022

Getting a letter from the IRS is rarely a good thing, but several letters have gone out in the last few weeks that will help make tax time easier. If you get any of these letters, hold on to them; you'll need them to complete your return.

Letter 1444-C helps you to accurately file your 2021 federal tax return. It’s used to check whether you received the relief payments and how much you got. If you don’t have your Notice 1444 but do know how much you received, your tax return won’t be inaccurate if you enter the amount that you received.

There is a chance that information may not match up in their system. For example, if you never received a payment they sent or if you had changes in your eligible dependents. If you lost or didn’t get your notice, didn’t save the letter that came with your check, or don’t have the bank statement with your stimulus payment, you can still find your payment amount.
1. Go to the IRS website
2. Click View Your Account
3. Click Tax Record (Transcript)
4. Follow the steps to request your 2020 tax transcript which will have your stimulus payment

02/04/2022

Updates on Child Tax Credit letter 6419.

As it turns out, the information on the letter you receive may be incorrect. Check your https://www.irs.gov/payments/your-online-account for the correct amount received.

"What if Letter 6419 has a different advance payment total than expected?
For the majority of taxpayers, the advance payments total in Letter 6419 will match the total in the IRS Online Account.

If the advance payments total differs between their Letter 6419 and their IRS Online Account, they should rely on the total in their Online Account. If the person believes they received a different amount than what the letter indicates, they should check the IRS Online Account; this is the information the IRS has on file. Submitting a different amount on the tax return could mean additional IRS review is needed and could mean a refund delay.

The IRS Online Account has the most current advance payment information. Caution: Do not rely on the Child Tax Credit Update Portal or Tax Transcripts for the advance payments total; this information may be outdated."

Get instructions on your online account. Review the amount you owe, balance for each tax year and payment history.

01/27/2022

More information about the expanded Child Tax Credit.

Expansion of Child Tax Credit: In 2021 a newly expanded Child Tax Credit will impact millions of families. Unfortunately, the rules are anything but simple. Spend a couple of minutes to understand what, exactly is changing.

01/27/2022

For the year 2021, the Child Tax Credit (for eligible taxpayers) increased from $2,000 for children under 17 to $3,000 for children 6 through 17, and $3,600 for children under 6. Many took advantage of the advanced tax credits offered from July through December of 2021. Those of you who did will receive a letter from the IRS (Letter 6419) that provide the total amount of the Advance Child Tax Credit disbursed to you in 2021. Keep this letter handy to give to us when we prepare your tax return.

01/26/2022

Covid is still a fact of life for at least the foreseeable future. Again this year we're offering Virtual Tax Preparation. Services include: a secure portal for delivering (and receiving) tax documents, Zoom meetings to gather information and go over your return, and pick-up and mail service for those who need different arrangements.
Watch this spot for videos containing useful tips regarding Covid tax issues, personal and business tax planning. As always you can contact me by phone or email.
I'm looking forward to seeing you this year!

01/26/2022

Welcome to tax season 2022! LOTS of changes and monkey wrenches thrown into this year's mix. Watch for answers to the burning questions on your mind! Wondering where your refund is from last year? Received a letter from the IRS (6419) about your advance Child Tax Credit and you're wondering what to do with it? What about changes to the Child and Dependent Care Credit, Education Credits or Earned Income Tax Credit?

Answers to this and much more are coming in the next few days. Watch this space for the answers to your questions, informational videos and tax planning advise for 2022.

08/10/2021

Advance Child Tax Credit Warning
Should Some Taxpayers Decline?
From the National Association of Tax Professionals
Why taxpayers might consider declining the advance credit:
• Income is too close to the threshold-you might need to repay
• Withholding takes into consideration that you will receive the full CTC
• You will be claiming fewer children in 2021
• Your estimated tax payments are based on receiving the full CTC
• You desire a larger refund in a lump sum next year
If you are having difficulty with the ACTC website to opt out, contact:www.irs.gov/childtaxcredit2021
How to Return an Advance Child Tax Credit Payment
If payment was a paper check:
• Write void in the endorsement section on the back.
• Mail the voided check to:
o Kansas City Internal Revenue Service
o 333 W Pershing Rd
o Kansas City, MO 64108
• Don’t staple, bend or paper clip the check
• Include a brief description why you are returning the check

If the payment was by direct deposit or the check has been cashed
• Submit a personal check/money order immediately to the above address:
• Make the check payable to the US Treasury
• Write 2021 Advance CTC and Social Security Number of the recipient of the payment
• Include a brief explanation of the reason for returning the ACTC

08/10/2021

“Michigan and Unemployment
(from the National Association of Tax Professionals)
Remember back in April? We were originally told by Michigan not to file an amended return? Well guess what!
From the Michigan website (www.michigan.gov.)
Lansing, Mich.- Taxpayers who filed their state individual income tax returns and collected unemployment benefits in 2020 should consider filing an amended return if they haven’t yet received their entitled tax relief, according to the Treasury.
“W have been waiting for the Internal Revenue Service to provide in guidance so we can determine the best way to provide taxpayers tax relief without requiring additional paperwork,” State Treasurer Rachael Eubanks said. “However, we still do not have clear guidance from the IRS. We don’t want to wait any longer to get refunds in taxpayers’ hands during this extraordinary time. That’s why we’re encouraging individuals to file an amended return.”
Taxpayers who efiled their original state return should efile their amended. This includes checking the “other” box on the AMD and outline the reason for the amended return as “Unemployment” in the explanation of change field.”
Please reach out to Roxanne, your Gal Friday, if you need help or any more information. (248)892-9150