Shoreline Tax Solutions LLC

03/04/2024

IR-2024-57, March 1, 2024 — To help taxpayers with filing, the Internal Revenue Service today debunked some common myths to help taxpayers understand what to do with Form 1099-K.

05/15/2021

https://www.cbsnews.com/news/tax-refund-delay-backlog-returns-growing-irs-2021-05-15/

Almost 31 million returns are being held for manual review, delaying refunds. "I depend on that money," one taxpayer says.

04/25/2021

https://www.cbsnews.com/news/tax-refund-delay-irs-holding-returns/?utm_source=facebook&utm_medium=news_tab&utm_content=algorithm

People usually get their refunds within three weeks, but this year is proving complicated for many tax filers.

03/17/2021

IRS Said to Delay Tax-Filing Deadline Until Mid-May
Lawmakers, accountants had pressed agency to grant extension

The tax-filing season started later than usual and has been messy as taxpayers deal with the ripple effects from the pandemic and late changes to the tax law.
The tax-filing season started later than usual and has been messy as taxpayers deal with the ripple effects from the pandemic and late changes to the tax law.
PHOTO: ERIN SCOTT/REUTERS
By Richard Rubin
March 17, 2021 2:17 pm ET
WASHINGTON—The Internal Revenue Service will delay the April 15 tax-filing deadline until mid-May, according to a congressional aide briefed on the decision.

Lawmakers and accountants have pressed the government for more time. The tax-filing season started later than usual and has been messy as taxpayers deal with the ripple effects from the pandemic and late changes to the tax law. That includes a retroactive exemption for up to $10,200 in unemployment benefits.

Bloomberg News first reported the delay. The IRS and Treasury Department didn’t immediately comment Wednesday.

05/29/2020

IRS Rule Shift Lets Workers Make Benefits Changes Midyear — If Their Employer Agrees

May 29, 20205:00 AM ET
MICHELLE ANDREWS
FROM
Kaiser Health News

The IRS has announced that with employer approval, employees will be allowed to add, drop or alter some of their benefits — including flexible spending account contributions — for the remainder of 2020.
Virojt Changyencham/Getty Images
The economic upheaval and social disruption caused by the coronavirus pandemic have upended the assumptions that many people made last fall about which insurance plan to sign up for or how much of their pretax wages to sock away in flexible spending accounts devoted to health care or dependent care.

You may find yourself in a high-priced health plan you can no longer afford because of a temporary pay cut, be unable to get the medical care you might have planned and budgeted for or not be sending the kids to day care. Normally you'd be stuck with the choices you made unless you had a major life event such as losing your job, getting married or having a child. But this year, things may be different.

This month, the IRS announced that it would let employees add, drop or alter some of their benefits for the remainder of 2020. But there's a catch: Your employer has to allow the changes.

The new guidance applies to both employers that buy health insurance to cover their workers and those that pay claims on their own, called self-insuring. It's unclear how many employers will take advantage of the new flexibility to offer what amounts to a midyear open-enrollment period. If you're wondering what your company will do, ask.

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"If a consumer finds themselves economically strapped and their finances have changed, and they're in a situation where they really would like to rethink their coverage, they may want to approach their employer and see if they're planning to adopt any of these changes," says Jay Savan, a partner at human resources consultancy Mercer.

Some health care policy experts are unimpressed with the new coverage options, noting that earlier this spring the Trump administration opted not to create a special enrollment period for uninsured workers to buy subsidized health insurance on the Affordable Care Act's health insurance marketplaces.

"It's not likely that many people will take up this new coverage opportunity, and it won't address the problem of lack of coverage that many people are facing," says Sabrina Corlette, a research professor at Georgetown University's Center on Health Insurance Reforms.

Assuming you're a worker who still has employer-sponsored coverage, here are examples of circumstances you may face and what the IRS changes could mean for you.

You want to switch to a cheaper plan to put more money into savings during these uncertain times. Can you do that?

If your employer decides to allow it, you can.

One consideration: If you switch plans midyear, you may have to start all over again with paying down your deductible and working toward reaching your annual out-of-pocket maximum spending limit for the year, says Katie Amin, a principal at Groom Law Group in Washington, D.C., a firm that specializes in health care and benefits.

"Some employer plans would credit you under the new option if you switched plans," Amin says. "It depends."

You've got a high-deductible plan and are worried about high medical bills if you get COVID-19. Can you switch to a plan with more generous coverage?

The IRS guidance allows it, but your employer probably won't, say experts. It's impossible for workers or their bosses to know who will develop COVID-19. But the concern among employers is that people willing to pay more for generous coverage may be sicker and have higher health care costs than other workers, and therefore could cost the plan more — a phenomenon called adverse selection.

In addition to evaluating whether employees could benefit from midyear changes, an employer will weigh financial considerations, says Steven Wojcik, vice president of public policy at the Business Group on Health, which represents large employers.

They'll ask, "What is the adverse-selection risk, and what is going to be the uptake [in coverage] if you open up enrollment?" he says.

Under the new rules, if you haven't had health insurance on the job before but would like to sign up now, you can do that too, if your employer decides to permit it.

What if one spouse gets laid off but the other is still employed? Can the couple switch its family coverage to the employed spouse's plan?

Yes. But this was already allowed before the new IRS guidance came out. Under long-standing rules, if workers have a qualifying life event, they're entitled to change their coverage during the year.

Can you drop your employer coverage altogether?

Yes, if your employer permits it. Normally, once you sign up for health insurance through your employer and agree to have your premiums deducted from your paychecks, you can't drop coverage during the year unless you experience a qualifying life event. Under the new IRS rules, you can drop your coverage, but only if you replace it with another form of comprehensive coverage, such as coverage through a health insurance exchange or Tricare, the military health insurance program.

One thing that won't qualify as comprehensive coverage, according to Amin: a short-term plan. The Trump administration has encouraged the adoption of limited-duration plans with terms that can last for nearly a year. But these plans don't typically cover preventive care or preexisting conditions, and renewal is not guaranteed.

You've put thousands of dollars into a flexible spending account to cover day care expenses this year, but now the kids are home full time. Can you change the amount?

Yes, but once again this is allowed only if your employer agrees to it. Likewise, if you want to increase your pretax contribution because you need to hire someone to care for your kids at home while you work, you can do that too. You can also establish a new FSA for dependent care expenses in 2020 if you don't already have one.

Employees are legally entitled to put up to $5,000 annually into a dependent care FSA to pay for day care, preschool, after-school programs or summer camp.

"Since it's the employees' money, my guess is employers will allow them to make changes," said David Speier, who is in charge of the benefit accounts group at human resources consultancy Willis Towers Watson.

You planned to use money left over in last year's FSA to cover the cost of a medical procedure in early March. But that procedure was postponed because of the coronavirus crisis and you've missed the March 15 deadline for using those funds. Do you have any recourse?

Under the new IRS guidance, employers can opt to extend the grace period for using leftover 2019 FSA funds through the end of 2020. Typically, those funds would have disappeared under "use it or lose it" rules if they hadn't been used by March 15. In 2019, the maximum pretax contribution to a health care FSA was $2,700; this year it's $2,750.

Similar to the changes now permitted for dependent care FSAs, employers can also decide to permit workers to prospectively decrease or rescind their elected health care FSA amounts altogether.

If you decide to stop contributing to your FSA, you can spend down the money that's accumulated there on health care expenses, but you can't cash out the account, says Amin. For example, if you've accumulated $500 in your FSA, you can use that money for eyeglasses or other approved expenses through the end of the year. But your employer can't give you the $500 outright, essentially cashing out the account.

Employers have expressed a lot of interest in implementing the flexible spending account changes, says Mercer's Savan.

"We expect them to have a lot of traction," he says.

Kaiser Health News is a nonprofit, editorially independent program of the Kaiser Family Foundation. KHN is not affiliated with Kaiser Permanente.

04/13/2020

Treasury: 80 million Americans will get coronavirus payments this week

About 80 million Americans will get their coronavirus payments this week, and a "large majority" of eligible Americans will get them within the next two weeks, the Treasury Department said. The first payments, which started going out Friday, are going to people who filed 2018 or 2019 tax returns and got their refunds by direct deposit.

The IRS is also set to have a new web portal up and running later this week, called "Get My Payment," where you can check the status of your payment. There will be a feature there where you can enter your bank account information— if the IRS doesn’t have it from your 2018 or 2019 refund— so that you can get the payment direct deposited.

04/13/2020

The IRS urges taxpayers to be on the lookout for scam artists trying to use the economic impact payments as cover for schemes to steal personal information and money. Remember, the IRS will not call , text you, email you or contact you on social media asking for personal or bank account information – even related to the economic impact payments. Also, watch out for emails with attachments or links claiming to have special information about economic impact payments or refunds.

04/13/2020

IRS
Filers: Get Your Payment
Use the "Get My Payment" application (coming mid-April) to:

Check your payment status
Confirm your payment type: direct deposit or check
Enter your bank account information for direct deposit if we don't have your direct deposit information and we haven't sent your payment yet

04/13/2020

Economic Impact Payment Information Center

More In News
Here is what you need to know about your Economic Impact Payment. For most taxpayers, payments are automatic, and no further action is needed. This includes taxpayers who filed tax returns in 2018 and 2019 and most seniors and retirees.

Who is eligible?
U.S. residents will receive the Economic Impact Payment of $1,200 for individual or head of household filers, and $2,400 for married filing jointly if they are not a dependent of another taxpayer and have a work eligible Social Security number with adjusted gross income up to:

$75,000 for individuals
$112,500 for head of household filers and
$150,000 for married couples filing joint returns
Taxpayers will receive a reduced payment if their AGI is between:

$75,000 and $99,000 if their filing status was single or married filing separately
112,500 and $136,500 for head of household
$150,000 and $198,000 if their filing status was married filing jointly
The amount of the reduced payment will be based upon the taxpayers specific adjusted gross income.

Eligible retirees and recipients of Social Security, Railroad Retirement, disability or veterans' benefits as well as taxpayers who do not make enough money to normally have to file a tax return will receive a payment. This also includes those who have no income, as well as those whose income comes entirely from certain benefit programs, such as Supplemental Security Income benefits.

Retirees who receive either Social Security retirement or Railroad Retirement benefits will also receive payments automatically.

04/13/2020

Treasury, IRS launch new tool to help non-filers register for Economic Impact Payments
EnglishEspañol中文 (繁體)
More In News
IRS.gov feature helps people who normally don't file get payments; second tool next week provides taxpayers with payment delivery date and provide direct deposit information
IR-2020-69, April 10, 2020

WASHINGTON — To help millions of people, the Treasury Department and the Internal Revenue Service today launched a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return.

The non-filer tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don't have a return filing obligation, including those with too little income to file. The feature is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.

"People who don't have a return filing obligation can use this tool to give us basic information so they can receive their Economic Impact Payments as soon as possible," said IRS Commissioner Chuck Rettig. "The IRS and Free File Alliance have been working around the clock to deliver this new tool to help people."

The IRS reminds taxpayers that Economic Impact Payments will be distributed automatically to most people starting next week. Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those people receiving Social Security retirement, survivors, disability (SDDI), or survivor benefits and Railroad Retirement benefits.

How do I use the Non-Filers: Enter Payment Info tool?

For those who don't normally file a tax return, the process is simple and only takes a few minutes to complete. First, visit IRS.gov, and look for "Non-Filers: Enter Payment Info Here." Then provide basic information including Social Security number, name, address, and dependents. The IRS will use this information to confirm eligibility and calculate and send an Economic Impact Payment. Using the tool to get your payment will not result in any taxes being owed. Entering bank or financial account information will allow the IRS to deposit your payment directly in your account. Otherwise, your payment will be mailed to you.

"Non-Filers: Enter Payment Info" is secure, and the information entered will be safe. The tool is based on Free File Fillable Forms, part of the Free File Alliance's offerings of free products on IRS.gov.

Who should use the Non-Filers tool?

This new tool is designed for people who did not file a tax return for 2018 or 2019 and who don't receive Social Security retirement, disability (SSDI), or survivor benefits or Railroad Retirement benefits. Others who should consider the Non-Filers tool as an option, include:

Lower income: Among those who could use Non-Filers: Enter Payment Info tool are those who haven't filed a 2018 or 2019 return because they are under the normal income limits for filing a tax return. This may include single filers who made under $12,200 and married couples making less than $24,400 in 2019.

Veterans beneficiaries and Supplemental Security Income (SSI) recipients: The IRS continues to explore ways to see if Economic Impact Payments can be made automatically to SSI recipients and those who receive veterans disability compensation, pension or survivor benefits from the Department of Veterans Affairs and who did not file a tax return for the 2018 or 2019 tax years. People in these groups can either use Non-Filers: Enter Payment Info option now or wait as the IRS continues to review automatic payment options to simplify delivery for these groups.

Social Security, SSDI and Railroad Retirement beneficiaries with qualifying dependents: These groups will automatically receive $1,200 Economic Impact Payments. People in this group who have qualifying children under age 17 may use Non-Filers: Enter Payment Info to claim the $500 payment per child.

Students and others: If someone else claimed you on their tax return, you will not be eligible for the Economic Impact Payment or using the Non-Filer tool.

Coming next week: Automatic payments begin

Eligible taxpayers who filed tax returns for either 2019 or 2018 and chose direct deposit of their refund will automatically receive an Economic Impact Payment of up to $1,200 for individuals or $2,400 for married couples and $500 for each qualifying child. Individuals who receive Social Security retirement, survivors or disability benefits, SSDI or who receive Railroad Retirement benefits but did not file a return for 2019 or 2018 will automatically receive a payment in the near future.

Coming next week: Get My Payment shows Economic Impact Payment date, helps with direct deposit

To help everyone check on the status of their payments, the IRS is building a second new tool expected to be available for use by April 17. Get My Payment will provide people with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them.

An additional feature on Get My Payment will allow eligible people a chance to provide their bank account information so they can receive their payment more quickly rather than waiting for a paper check. This feature will be unavailable if the Economic Impact Payment has already been scheduled for delivery.

More Information on Economic Impact Payments

The IRS will post additional updates on IRS.gov/coronavirus on these and other issues.

We are offering help for taxpayers, businesses, tax-exempt organizations and others – including health plans – affected by coronavirus (COVID-19).

04/09/2020

Covid-19 Tax Updates

Shoreline Tax Solutions wishes you medical and mental health during this crisis. As, you know, there is now government stimulus covid programs and Washington state disaster relief programs available for individuals, 1099 workers and businesses. Many of the protocols, requirements, and implementation of the programs are changing daily. But, here is a review of what we know now.

Individual Covid-19 Help

Extended Federal Income Tax Filing

The Treasury Department and Internal Revenue Service announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, as well as those who pay self-employment tax.

Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.

Economic Impact Payment

The IRS announced on March 30th 2020 an economic impact payment for individuals with distribution in the next three weeks. The monies will be distributed automatically for most people. However, some taxpayers may need to file tax returns although they are not required to do so normally.

Eligibility for the economic impact payment per the IRS:

Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. The IRS states that they will use the information on the Form SSA-1099 or Form RRB-1099 to generate Economic Impact Payments to recipients of benefits reflected in the Form SSA-1099 or Form RRB-1099 who are not required to file a tax return and did not file a return for 2018 or 2019. This includes senior citizens, Social Security recipients and railroad retirees who are not otherwise required to file a tax return.

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.

The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed. If you did not file a return in 2018 or 2019 and you have dependent children, you will need to file a 2019 tax return to list those dependents and to receive the payment(s) for the qualifying children. There are free electronic filing options on the IRS website. You will to need file immediately and make sure you include your direct deposit information. .

If you have filed a return, but the return did not include your direct deposit information, there will be a web-based portal to provide the IRS with this information on the IRS web site in mid-April. . If you do not provide the direct deposit information via a tax filing in 2018 or 2019 or by providing the IRS the information, you will receive your payment via a check by mail. www.irs.gov



Washington State Unemployment

There are a few big changes:

Eligibility for unemployment benefits is expanded to include many Washingtonians currently not eligible, including many self-employed people and those that don’t have the typically required 680 hours.
An additional $600 per week will be available to everyone on unemployment from March 29 through week ending July 25.
Benefits will be extended by 13 weeks, for a maximum of 39 (which is about nine months). This includes people who were already on unemployment as well as those who are newly eligible.
Under the federal CARES Act, those on unemployment will receive an additional $600 per week for up to four months. We are working as fast as we can to implement these changes in our system and you will start receiving that extra money in mid-April. You won't lose out on payments though - once the system is updated they will be provided retroactive from the time the legislation went into effect on March 29.
There are other resources on the Washington State website coronavirus.wa.gov



Business and 1099 employee Covid -19 Help

Extended Federal Income Tax Filing

The Treasury Department and Internal Revenue Service announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.

Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.



Business Covid-19 Loans

The Small Business Association has special Covid-19 programs for small businesses and the self-employed. These programs can be sourced through the SBA website.

Economic Injury Disaster Advance Loan:
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.

This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. This loan advance will not have to be repaid.

The Paycheck Protection Program:

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.

Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.

Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.

Who Can Apply
The following entities affected by Coronavirus (COVID-19) may be eligible:

o Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)

o Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:

o 500 employees, or

o That meets the SBA industry size standard if more than 500

o Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location

o Sole proprietors, independent contractors, and self-employed persons

Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of 1%.

There is more information and other programs on the SBA web site. www.sba.gov



As we said, protocols are changing for some of these programs, so please check the government websites for current information.



We hope this information is helpful to you and we continue to strive to service your Tax needs to the best of our ability. We are thinking of you. Please let us know what we can do to help.



Best regards,

The Team at Shoreline Tax Solutions

Cell 206.503.1727 for voice message or text
Fax 206.432.9389
Current office hours;
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For emergency tax help during the off hours , please leave a message or text at 206.503.1727

We support America's small businesses. The SBA connects entrepreneurs with lenders and funding to help them plan, start and grow their business.

03/23/2020

We are a virtual tax accountancy firm.