Weivoda Financial Ltd

07/15/2025

I've done my first education on the new One Big Beautiful Bill (OBBB). Some things to consider for your 2025 taxes:

1. This bill makes permanent the tax brackets and termination of personal exemptions that have been in effect since 2018. They were set to expire 12/31/25.
2. Energy and Electric Vehicle credits are disappearing. EV credits will not be available for vehicles purchased after 9/30/25 and Energy credits (insulation, furnaces, air conditioner, solar) after 12/31/25.
3. There is an increase to the Child Tax Credit. Maximum credit is now $2,200 starting with 2025 tax year.
4. Child & Dependent Care credit is also increased. Maximum credit increases from 35% to 50% depending on AGI. This change goes into effect for tax year 2026. And the maximum amount to employer pre tax plans is increasing from $5,000 to $7,500. Also starts in 2026 tax year.
5. MN is a higher income tax state. Because of the $10,000 State and Local Tax (SALT) limit, most people haven't itemized deductions since 2018. The new SALT limit in place (for tax years 2026 - 2029) is $40,000. AGI needs to be under $500,000 or the cap reverts to $10,000.
6. No tax on tips. This is available for tax years 2025 - 2028. It applys to individuals who receive tips in an occupation that customarily and regularily receive tips. Both employees and self employed individuals are eligible. The deduction is capped at $25,000. Married individuals must file jointly (MFJ) to get the deduction and income is limited to $150,000 for individuals and $300,000 for MFJ.
7. No tax on overtime. The deduction is a maximum of $12,500 for single and $25,000 for MFJ. AGI limits are $150,000 single and $300,000 MFJ. The deduction is for the rate paid above your regular rate of pay. So let's say you earn $20/hr regular and $30/hr overtime. You worked 250 overtime hours. The deduction is $10 (30-20) x 250 = $2500. I know it doesn't seem right, but maybe more guidance will come out later.
8. Car interest is deductible again! For tax years 2025-2028, interest paid on a loan to purchase a qualifying vehicle may be deducted (up to $10,000 interest). This is available regardless of whether you itemize deductions. But a qualifying vehicle needs to be one assembled in the US and have GVWR less than 14,000 lbs.
9. Charitable deductions can be deducted again even if you don't itemize. Starts with 2026 tax year. Allowable amount is contributions in excess of .5% of AGI up to $1,000 for single and $2,000 for MFJ.
10. Itemized deduction changes made permanent. Miscellaneous itemized deductions are permanently eliminated. And mortgage interest limitations are permanently changed to current rules. However, educators can deduct out of pocket expenses in excess of the $300 currently allowed without itemizing. This is the only special "carve out" for miscellaneous deductions.
11. A new Trump Account has been established to promote financial education, retirement readiness and asset accumulation for individuals under 18. A one-time deposit will be made into accounts opened for qualifying children (born between 1/1/25 and 12/31/28). Ask about this as more guidance will be forthcoming.
Section 529 plans expand expenses for K-12 expenses. Newly eligible expenses include: tuition, books/materials, tutoring, standardized testing fees, or educational therapies for students with disabilities. Also, New post secondary expenses include testing fees and continuing education to maintain credentials.
12. Exclusion for employer payments of student loans. Prior to this change, employers could exclude up to $5,250 of education assistance from employee income. Beginning in 2027, the amount will index each year and the money can be used to repay student loans vs only for new educaiton and still be excluded from income.

This isn't a full list, but I thought would impact the most people. Be sure to look into anything that seems like it applies to you!

10/21/2024

https://www.msn.com/en-us/money/taxes/don-t-wait-to-find-a-tax-preparer-for-2025-why-one-expert-would-100-recommend-starting-now/ar-AA1sFogg?ocid=msedgntp&pc=HCTS&cvid=501216abcd6c4f93ac0c918560d8076d&ei=16

If you need a tax preparer for the 2025 filing season, now is the time to start looking, experts say. Here are the key things taxpayers need to know.

12/08/2023

What's on your financial to do list before the end of 2023?

1. Take your RMDs. If you're 73 or older you must take minimum distributions from your tax deferred accounts by 12/3.
2. Maximize your 401(k). In 2023 the maximum amount is $22,500 ($30,000 if 50 or older).
3. Consider a ROTH conversion. Conversions are on a calendar year basis. If you're thinking about it for 2023, conversions need to be done by 12/31.
4. Optimize your giving. Generally cash donations up to 60% of your AGI is allowed currnet year (if you itemize). And donating appreciated investments is especially tax efficient because you don't need to recognize the capital gains and you still receive FMV for the full value. And if you're 70 1/2 or older, QCDs of up to $100,000 satisfy your RMD requirement AND do not add to your taxable income!
5. Have any losses to realize? Now is the time to do it! Remember you have to wait 31 days to buy back that stock in order to pass the "wash sale" rules.
6. Exercise nonqualified stock options (NSOs). By waiting until year end you can calculate how much you can sell and stay in your tax bracket. That keeps your taxes lower than if you exercise all at once.
7. Maximize other tax deferred savings accounts. HSA limits are $3,850 for individuals ($4,850 if 55 or older) and $7,750 for families ($8.750 if 55 or older). HSAs are a GREAT way to set aside tax deferred money for medical expenses. It's not a "use it or lose it"! And Traditional IRA contributions are up to $6,500 ($7,500 if 50 or older). However, if you or your spouse are covered by a pension plan this deduction could be limited.
8. A final idea, if you can give money away, you can gift up to $17,000 per person to an unlimited number of people without eating into your lifetime estate. It's a great strategy to strategically transfer wealth to your heirs tax free.

03/28/2022

IRS reminds taxpayers an extension to file is not an extension to pay taxes

For most individual taxpayers the tax filing and payment deadline is Monday, April 18, 2022. Those who need more time to file can request an extension to file. Taxpayers must request an extension to file by April 18, or they may face a failure to file penalty. This extension gives them until October 17 to file their tax return. An extension to file is not an extension to pay.

Most taxpayers must pay taxes by April 18 to avoid penalties and interest on the amount owed after that date. Taxpayers in Maine and Massachusetts have until April 19 to pay to file their returns due to the Patriots' Day holiday in those states.

01/29/2022

legacy of problem solving at North End Hardware
Posted on January 27, 2022 by Staff in Front Page

This article was written by Ry Edwards

If Darryl Weivoda’s life was a movie you would likely see the baseball first. As the camera panned back you would see Darryl as a boy playing with his friends just down the street from his house in North Minneapolis. Then–just as you would guess–the baseball crashes through a neighbor’s window.

Seeking a fix for this problem put Darryl on a path to meeting the most prominent character of his life. No, not a girl. Not a mentor. Darryl took the measurements for a replacement window right up to this unsuspecting character born back in 1927 on the corner of Penn and Lowry and has remained there to this day. It’s a place called North End Hardware.

Not since the Cathedral itself in The Hunchback of Notre Dame, has there been a place so central to a character’s story. North End Hardware became a familiar place during Darryl’s high school career where he met a young Miss Killian who would later become his first wife. Coincidentally, her dad was Joe Killian–the owner of North End Hardware. Darryl would also become good friends with his future brother-in-law, Randy Killian.

Darryl was working construction when his father-in-law encouraged him to pick up some part-time hours in the hardware store. Darryl immediately enjoyed meeting customers who brought him their malfunctioning small engines. He liked the challenge of troubleshooting the machines, but more importantly he enjoyed solving the customer’s problem.

When the small engine area was slow, Darryl was quick to hop over to hardware to assist customers. Darryl’s friendly demeanor and outgoing personality was a welcome addition to North End Hardware, but combined with his construction expertise and eagerness to help, Darryl’s customer service was second to none. He quickly gained a full-time position and after both Joe Killian and his son Randy finished their turns running the store, Darryl was naturally the prime candidate to take over.

Here’s where things really got rolling.

When Darryl purchased the hardware business from his good friend and boss, it became the epicenter for Darryl’s community development. He immediately took the opportunity to address a problem he had witnessed for years: parking. He purchased the house behind the hardware store and hired a professional to design a parking lot.

Then in a testament to Darryl’s fortitude, he worked tirelessly with the City of Minneapolis to get the parking lot approved. He applied for the permit in May. However, after six months of trying to incorporate the city’s “suggestions” for a different pitch or additional holding ponds, the city finally scrapped their 12 separate revisions and approved the original design. However, by then it was October, which means it was too close to winter to build. It would have to wait until spring.

This wasn’t the only time Darryl partnered with the city, but it gave him an idea of what the relationship would look like. Yet, in spite of the challenges, Darryl continued to show his character as he invested in the community with contributions including:

• Buying the lot from a burned-down business and creating a Community Garden

• Sponsoring the “Live on the Drive” summer concert series

• Leading the Lowry Corridor Business Association

• Helping attract the $8 million shopping center that brought the ALDI grocery store into a previous food desert

• Creating the Harvest Festival on Lowry Ave in 2009 and later expanding it with Open Streets Minneapolis in 2012

• Starting the Lowry Cafe in 2011 where they not only hosted karaoke and open mics, but meals with local politicians from the city council

Darryl has had to answer an innumerable amount of questions for all of his different ventures from parking lot designs to festivals to restauranting. Many of those expensive and challenging projects have now ended or changed hands and, thankfully, many of those questions have ceased. But as Darryl makes his way toward retirement in the coming months at North End Hardware, he beams a confident smile when I ask a question that he’s been asked hundreds of times over the last 40 years.

“Why should I buy this [tool, tape, tarp, or hardware] at North End Hardware, when I can get it cheaper at Menards or Home Depot?”

“Odds are, you can’t,” he says. Then he leans in slightly just as any passionate teacher does when teaching a favorite lesson, “First,” he says, raising both eyebrows, “be sure it’s the same quality.”

He explains to me that the parts carried by North End Hardware are up to code for Minneapolis– which is generally more strict than neighboring suburbs where the big box retailers are located. This is very important for renting because if the inspector finds anything not up to code, then you have a problem: you can’t rent it until it’s brought up to code.

“Then,” the eyebrows come down pointedly, “Look for someone who knows how to do the project you’re working on.”

He mentioned some different in-store marketing tactics he has learned about over the years that big box retailers use to make customers believe that they always give the best value. For instance, they’ll put up a big shiny case in front of the store that advertises Tarpaulin Tape for 29¢ a roll. You won’t find that at North End Hardware. North End sells a roll for $2.98. But the difference is that the 29¢ roll likely isn’t enough to do the job. You might have to buy five rolls and carry them around; whereas, the $2.98 roll may last you five projects.

“Now, hopefully,” Darryl says, “you can find someone in the store who knows what you need for the project so they can advise you how much tape you need. Otherwise, you might have to make multiple trips back to the store.” He continues, “At North End Hardware there’s always somebody who knows what kind of project you’re working on and they’re happy to help solve your problem.”

Solving problems is a tradition that will continue after Darryl sells the business to John Guion. How can Darryl be so confident that the problem-solving legacy will continue under new ownership? John Guion has worked with Darryl at North End Hardware for 20 years building out the highly successful equipment-rental portion of the business.

Darryl envisions himself continuing to work at the store part-time through the transition of ownership. After that, the only problem Mr. Weivoda will need to solve is: what to do with his retirement.

09/17/2021

Does your small business still need assistance? I got this today:

EIDL Loans Expanded to $2 Million

The U.S. Small Business Administration (SBA) has announced enhancements to the COVID Economic Injury Disaster Loan (EIDL) program, a federal disaster relief loan designed to better serve and support our small business communities still reeling from the pandemic, especially hard-hit sectors such as restaurants, gyms and hotels.

The SBA increased the borrowing limit from $500,000 to $2 million, is offering 24 months of repayment deferment and expanding flexibility to allow borrowers to pay down higher-interest business debt. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment and paying debt.

To ease the EIDL application process for small businesses, the SBA has established more simplified affiliation requirements to model those of the Restaurant Revitalization Fund. The SBA is ready to receive new applications immediately from small businesses looking to take advantage of these new policy changes. The last day that applications may be received is Dec. 31, 2021.

07/14/2021

Are you still waiting on your Federal tax refund? I got this in one of my newsletters today!!!

Still waiting for your tax refund on your timely filed 2019 or 2020 return?
Millions of others are in the same boat, if that makes you feel any better.
As of June 25, IRS had a backlog of 16.7 million 2019 and 2020 individual returns
that require manual processing by agency employees. Some of these are paper returns.
Others were suspended during electronic processing and need further review.
Unfortunately, there is not much that taxpayers or preparers can do about the delays.
But there are reasons for some hope. IRS expects to complete the processing
of 2019 Forms 1040 that were filed on paper sometime this summer. And new returns
are now trickling into IRS at a slower rate than during the midst of filing season

06/01/2021

Here is an update on the status of the MN Legislative session. I know many of you are waiting for the special session so we can complete your 2020 taxes.

On May 17, the Minnesota Legislature adjourned the 2021 legislative session, as required by the state constitution. Before adjournment, Governor Tim Walz, Senate Majority Leader Paul Gazelka, and Speaker Melissa Hortman announced they had reached a bipartisan budget agreement to fund the FY22-23 state budget which begins on July 1.

This budget agreement announced May 17 only reflects how much they will spend on each budget area, like higher education, transportation, public safety, etc. It is not a detailed agreement on every budget or policy provision.

According to the budget agreement, House and Senate committee chairs were asked to meet and finalize the details within their budget bills by Friday, May 28; however, as of this writing, no details around those agreements are public, meaning it is unclear if those committee agreements were reached or when legislative leaders will release this information. According to legislative leaders, negotiations on the higher education bill may be further along than most budget areas.

The governor and legislative leaders are aiming for a one-day special session on June 14. Outside of a regular legislative session, the governor must call a special legislative session every thirty days to renew their peacetime emergency powers. In order to avoid a government shutdown, the budget bills must be passed by June 30.

Once the legislature completes their work, MN Dept of Revenue and my software will both need to update computers and software to make 2020 returns file properly. Once that happens I will be in touch to finalize returns that are being held for unemployment income in 2020.

06/01/2021

This in from IRS today. It's especially important with all the people trying to steal our personal information!

Identity theft protection for taxpayers in six steps

Thieves are actively working to steal the taxpayer information and identities. Everyone should do everything they can to prevent identity theft.

Tax-related identity theft occurs when someone uses a taxpayer's stolen personal information, such as a Social Security number, to file a tax return claiming a false refund.

The IRS and its partners are working hard to prevent these types of crimes, and taxpayers can help by doing their part in stopping identify theft.

Here are some tips to help taxpayers protect themselves against identity theft. Taxpayers should:

• Always use security software. This software should have firewall and anti-virus protections.

• Use strong, unique passwords. They should also consider using a password manager.

• Learn to recognize and avoid phishing emails, threatening calls and texts from thieves. These scammers pose as legitimate organizations such as banks, credit card companies, and even the IRS.

• Don’t click on links in unsolicited emails or messages from unknown senders. People shouldn't click on links or download attachments from emails that seem suspicious, even if they appear to be from senders they know.

• Protect personal information and that of any dependents. For example, people shouldn't routinely carry around their Social Security cards. They should also make sure tax records are secure.

• Get an Identity Protection PIN. The Identity Protection PIN is a six-digit code known only to the taxpayer and to the IRS that helps prevent identity thieves from filing fraudulent tax returns using a taxpayer’s personally identifiable information.

03/31/2021

Hot off the electronic news press:

IRS to recalculate taxes on unemployment benefits; refunds to start in May

WASHINGTON – To help taxpayers, the Internal Revenue Service announced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan.

The legislation, signed on March 11, allows taxpayers who earned less than $150,000 in modified adjusted gross income to exclude unemployment compensation up to $20,400 if married filing jointly and $10,200 for all other eligible taxpayers. The legislation excludes only 2020 unemployment benefits from taxes.

Because the change occurred after some people filed their taxes, the IRS will take steps in the spring and summer to make the appropriate change to their return, which may result in a refund. The first refunds are expected to be made in May and will continue into the summer.

For those taxpayers who already have filed and figured their tax based on the full amount of unemployment compensation, the IRS will determine the correct taxable amount of unemployment compensation and tax. Any resulting overpayment of tax will be either refunded or applied to other outstanding taxes owed.

For those who have already filed, the IRS will do these recalculations in two phases, starting with those taxpayers eligible for the up to $10,200 exclusion. The IRS will then adjust returns for those married filing jointly taxpayers who are eligible for the up to $20,400 exclusion and others with more complex returns.

There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.

For example, the IRS can adjust returns for those taxpayers who claimed the Earned Income Tax Credit (EITC) and, because the exclusion changed the income level, may now be eligible for an increase in the EITC amount which may result in a larger refund. However, taxpayers would have to file an amended return if they did not originally claim the EITC or other credits but now are eligible because the exclusion changed their income.

These taxpayers may want to review their state tax returns as well.

According to the Bureau of Labor Statistics, over 23 million U.S. workers nationwide filed for unemployment last year. For the first time, some self-employed workers qualified for unemployed benefits as well. The IRS is working to determine how many workers affected by the tax change already have filed their tax returns.

The new IRS guidance also includes details for those eligible taxpayers who have not yet filed.

The IRS has worked with the tax return preparation software industry to reflect these updates so people who choose to file electronically simply need to respond to the related questions when electronically preparing their tax returns. See New Exclusion of up to $10,200 of Unemployment Compensation for information and examples. For others, instructions and an updated worksheet about the exclusion were available in March and posted to IRS.gov/Form 1040. These instructions can assist taxpayers who have not yet filed to prepare returns correctly.

Access IRS forms, instructions and publications in electronic and print media.

03/19/2021

YEA! MN has moved the tax filing deadline to match the IRS.

In following with the IRS, the Minnesota Department of Revenue has announced a grace period for taxpayers filing their annual Minnesota Individual Income Tax return for tax year 2020. Those taxpayers now have until May 17, 2021, to file and make their payments without any penalty or interest.

“This grace period for the individual tax filing and payment deadline provides timely relief to Minnesota families,” said Governor Tim Walz. “As we work to get through the COVID-19 pandemic together, my Administration will do everything we can to ease the burden on Minnesotans.”

Minnesota is allowing additional time for making 2020 state individual income tax filings and payments to May 17, 2021, without any penalty and interest being applied.

This grace period does not include individual estimated tax payments. The first estimated payments are due April 15, 2021.

“As Minnesota continues to respond to the COVID-19 pandemic, we will again provide a grace period for filing and paying 2020 individual income taxes,” said Revenue Commissioner Robert Doty. “You do not have to wait until May 17, 2021, to file your return. The sooner a return is filed, the sooner the department can review and process the return.”

03/17/2021

It's official. IRS has extended the due date for 2020 individual income tax returns. Q1 2121 Estimated payments are still due 4/15. Hopefully MN will follow suit!

WASHINGTON — The Treasury Department and Internal Revenue Service announced today 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. The IRS will be providing formal guidance in the coming days.

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig. “Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.

Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 gives taxpayers until Oct. 15 to file their 2020 tax return but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.

The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days.

This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to the IRS by people whose income isn't subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.

State tax returns

The federal tax filing deadline postponement to May 17, 2021, only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021, not state tax payments or deposits or payments of any other type of federal tax. Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline. The IRS urges taxpayers to check with their state tax agencies for those details.