Dear Client, Tax season always brings out the scammers who are trying to get your personal information. Each year the Internal Revenue Service publishes the list of the “Dirty Dozen” top scams. This list is updated each year, with new scams popping up every year, but there are some common ones that persist year after year. Summer is a good time to review your tax situation. We are available year-round to help with ongoing tax issues or new situations as they arise. This can include income from the sale of an asset, an inheritance, or income earned from gambling or… Read more: Tax News Spring 2024
Dear Client, Best wishes for a wonderful holiday season and a very happy new year as we move from 2023 to 2024. We appreciate your business throughout the year and look forward to working with you in the upcoming tax season.We are available to help you with your year-end tax planning for your individual tax situation and business strategies. In this newsletter we have included information to consider for your personal income tax return and business considerations for the self-employed taxpayer. Some of these issues are time sensitive and need to be acted upon by the end of the year.On… Read more: Tax News Winter 2023
Dear Client: Now is the time of the year we start planning for your year-end taxes. To be sure there are no surprises when your taxes are prepared, it is time to verify your payroll withholding or estimated tax payments prior to the September 15th deadline. For our clients who do not have a business, in this issue we review the education credits, what is the kiddie tax and is your family subject to this additional tax, and the traditional IRA vs. the Roth IRA. For our business clients we look at what is needed for your small business tax… Read more: Tax News Fall 2023
Dear Client: Best wishes for a wonderful holiday season and a very happy new year as we move from 2022 to 2023. We appreciate your business throughout the year and look forward to working with you in the upcoming tax season. We are available to help you with your year-end tax planning for both your individual tax situation and business strategies. In this newsletter we have included information to consider for both your personal income tax return and business considerations for the self-employed taxpayer. Some of these issues are time sensitive and need to be acted upon by the end… Read more: Winter 2022/2023
So far this year, both Congress and the IRS have been quiet with no new legislation or significant tax changes to report. There are some bills going through Congress at this time proposing changes to retirement plans and changes to tax filings, but there are still several hurdles to cross before they are signed into law. So, at this time we will revisit some provisions that were an issue for clients during the most recent tax season. We will look at ways to reduce your tax liability for 2022 – planning should start now! In some instances, if you are… Read more: Dear Client:
As we reach the end of the year, now is the time to start sorting your tax documents for an on-time filing of your individual income tax return. Following is a listing of items to consider when preparing for the preparation of your individual tax return: Note any changes to your marital status, or the birth (or death) of dependent children. For divorced clients, please submit a copy of the divorce decree and child support agreement. Did you receive or pay alimony payments? Depending on the date of the divorce, this may no longer be a tax consideration. At any… Read more: INDIVIDUAL TAX CONSIDERATION FOR 2021
Update Portal helps families monitor and manage Child Tax Credit payments IR-2021-130, June 22, 2021 WASHINGTON — The Internal Revenue Service today launched two new online tools designed to help families manage and monitor the advance monthly payments of Child Tax Credits under the American Rescue Plan. These two new tools are in addition to the Non-filer Sign-up Tool, announced last week, which helps families not normally required to file an income tax return to quickly register for the Child Tax Credit. The new Child Tax Credit Eligibility Assistant allows families to answer a series of questions to quickly determine whether they… Read more: Child Tax Credit Eligibility Assistant
WASHINGTON – The Internal Revenue Service will begin issuing refunds this week to eligible taxpayers who paid taxes on 2020 unemployment compensation that the recently-enacted American Rescue Plan later excluded from taxable income.The IRS identified over 10 million taxpayers who filed their tax returns prior to the American Rescue Plan of 2021 becoming law in March and is reviewing those tax returns to determine the correct taxable amount of unemployment compensation and tax. This could result in a refund, a reduced balance due or no change to tax (no refund due nor amount owed).These corrections are being made automatically in a phased… Read more: IRS begins correcting tax returns for unemployment
The IRS announced last week that, as required by law, all legally permitted first and second round of Economic Impact Payments have been issued. Get My Payment was updated on January 29 to reflect the final payments and will not be updated again. If individuals didn’t receive all or part of their payment, they may be eligible to claim the Recovery Rebate Credit with their 2020 tax return. Important Notes: Claiming the wrong amount of the Recovery Rebate Credit will cause the return to require additional IRS review which will delay refund processing. Taxpayers can confirm their stimulus payments either… Read more: Recovery Rebate Credit
WASHINGTON – Starting this week, the Treasury Department and the Internal Revenue Service are sending approximately 8 million second Economic Impact Payments (EIPs) by prepaid debit card. These EIP Cards follow the millions of payments already made by direct deposit and the ongoing mailing of paper checks that are delivering the second round of Economic Impact Payments as rapidly as possible. For those who don’t receive a direct deposit, they should watch their mail for either a paper check or a prepaid debit card. To speed delivery of the payments to reach as many people as soon as possible the Treasury’s… Read more: Treasury issues millions of second Economic Impact Payments by debit card
Due to the Coronavirus pandemic, millions of Americans received or are currently receiving unemployment compensation, many of them for the first time. It’s important for these individuals to know that unemployment compensation is taxable. People can have taxes withheld from this compensation now to help avoid owing taxes on this income when they file their income tax return next year. By law, these benefits are taxable and must be reported on a federal income tax return for the tax year it was received. Taxable benefits include any of the special unemployment compensation authorized under the Coronavirus Aid, Relief, and Economic Security… Read more: Withhold tax from unemployment now to avoid a tax-time surprises!
COVID Tax Tip 2020-101 Using the IRS Tax Withholding Estimatorcan help taxpayers have the right amount of tax withheld and avoid surprises when filing next year. Income taxes are pay-as-you-go. By law, taxpayers are required to pay most of their tax as income is received. There are two ways to do this: Through withholding from paychecks, pension payments, Social Security benefits or certain other government payments including unemployment compensation. Making quarterly estimated tax payments for income not subject to withholding. Income tax withholding is generally based on the taxpayer’s expected filing status and standard deduction. Adjusting withholding on their paychecks or the… Read more: How using the Tax Withholding Estimator will help taxpayers avoid surprises next year
IRS Tax Tip 2020-100, August 11, 2020 Now is a good time for people to begin thinking about next year’s tax return. While it may seem early to be preparing for 2021, reviewing your recordkeeping now will pay off when it comes time to file again. Here are some suggestions to help taxpayers keep good records. Taxpayers should develop a system that keeps all their important information together. They can use a software program for electronic recordkeeping. They could also store paper documents in labeled folders. Throughout the year, they should add tax records to their files as they receive them. This… Read more: Good recordkeeping is an essential element of tax planning
COVID Tax Tip 2020-97 This is the second of two tips exploring the IRS Dirty Dozen tax scam list. Tax scams tend to rise during tax season or during times of crisis. Scam artists are using the COVID-19 pandemic to try to steal money and information from taxpayers. Taxpayers should watch out for these scams. Scammers targeting individuals with limited English proficiency:IRS impersonators and other scammers are targeting groups with limited English proficiency. These scams are often threatening in nature. Phone scams pose a major threat to people with limited access to information, including individuals not entirely comfortable with the English language.… Read more: Dirty Dozen Scams – Part 2
COVID Tax Tip 2020-96 All tax scams put taxpayers at risk. This is the first of two tips taking a closer look at the IRS Dirty Dozen tax scam list. This year, taxpayers should be especially, watchful for aggressive schemes related to COVID-19 relief, including Economic Impact Payments. Here is a recap of the first six scams in this year’s Dirty Dozen. Phishing: Taxpayers should be alert to potential fake emails or websites looking to steal personal information. The IRS will never initiate contact with taxpayers through email about a tax bill, refund or Economic Impact Payment. Don’t click on links claiming to… Read more: Dirty Dozen Scams – Part 1
COVID Tax Tip 2020-79, July 2, 2020 As part of its response to COVID-19, the IRS has postponed several tax deadlines until Wednesday, July 15, 2020. These postponements generally apply to all taxpayers with a filing or payment deadline between April 1 and July 15, 2020. This relief includes individual and corporate quarterly estimated tax payments. Any taxpayer making payments received by July 15, 2020 will not be charged late-filing, late-payment or interest fees. What taxpayers need to know The due date for filing estimated tax forms and paying estimated taxes has been automatically postponed to July 15, 2020. Taxpayers who still owe 2019 income… Read more: Deadline for estimated tax payments postponed until Wednesday, July 15
COVID Tax Tip 2020-74 People who receive an Economic Impact Payment this year should keep Notice 1444, Your Economic Impact Payment, with their tax records. This notice provides information about the amount of their payment, how the payment was made and how to report any payment that wasn’t received. For security reasons, the IRS mails this notice to each recipient’s last known address within 15 days after the payment goes out. It’s especially important for people to keep this notice if they think their payment amount is wrong. When they file their 2020 tax return, they can refer to Notice 1444 and claim… Read more: Keep Economic Impact Payment notice with other tax records
Following is guidance put out this evening from the IRS regarding the stimulus payments. Note, despite prior indications, everyone will be required to file a tax return to receive the stimulus payment (see the 4th question). Stay tuned for further developments. Economic impact payments: What you need to knowCheck IRS.gov for the latest information: No action needed by most people at this time IR-2020-61, March 30, 2020 WASHINGTON – The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action… Read more: Breaking News from the IRS
Dear Client We are providing this special edition of Tax News to try and make sense of the recent actions and legislation that have been put into place. Almost daily we have been seeing new announcements and new legislation being offered by both Congress and the Internal Revenue Service (IRS). We are providing information on the first two initiatives to help both businesses and their employees. The recent bill being debated in Congress may provide some additional relief and we are watching the deliberations. Please click the link below to continue to read the Spring Client Newsletter in full. https://www.nstp.org/docs/client_newsletter/2020/2020-Spring-Client-Newsletter.pdf
The Taxation and Revenue Department (TRD) will not impose a late-filing and late-payment penalty associated with the return filing and payments set forth below: • New Mexico personal income tax returns and payments due between April 15, 2020 and July 15, 2020 may be submitted without penalty no later than July 15, 2020; • New Mexico corporate income tax returns and payments due between April 15, 2020 and July 15, 2020 may be submitted without penalty no later than July 15, 2020; and • Withholding tax returns and payments due between March 25, 2020 and July 25, 2020 may be… Read more: Update from the Taxation and Revenue Department
The Treasury Department and the Internal Revenue Service are providing special payment relief to individuals and businesses in response to the COVID-19 Outbreak. Highlights Filing DeadlineThe filing deadline for tax returns remains April 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can’t file by the April 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request a six-month extension to file their return. Payment Relief – IndividualsIncome tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended… Read more: IRS NOTICE: Treasury and IRS Issue Guidance on Deferring Tax Payments Due to COVID-19 Outbreak
Today, during the daily White House briefing on the coronavirus, the Secretary of the Treasury Mnuchin announced that IRS payments can be deferred for 90 days interest and penalty free. He stressed that tax returns still be filed timely, especially if a refund is expected. File electronically and process through direct deposit for the most efficient way to receive the refund. Stay tuned for more information as it become available from the IRS and Congress. We at Aces & Associates, LLC are working to stay updated on all developments pertaining to any tax related changes. If you have questions, please… Read more: Treasury Announces Tax Payment Deferral Available
From the State of New Mexico Taxation & Revenue Department The New Mexico Taxation and Revenue Department is advising taxpayers to review the withholding information they have chosen on their W-4s because of changes in federal and state tax laws. New Mexico uses the federal W-4 for determining withholding amounts for state income tax, but the forms employees have on file with their employers may be outdated. The older federal form will be phased out and replaced with the 2020 federal form for those beginning new jobs or updating their withholding amounts. Taxpayers who owed significant payments or who were… Read more: New Mexico Taxpayers Advisement
Looking for a useful tool? You’re in luck! Here is the most recent Tax Withholding Estimator. The IRS encourages everyone to use the Tax Withholding Estimator to perform a “paycheck checkup.” This will help you make sure you have the right amount of tax withheld from your paycheck. There are several reasons to check your withholding: Checking your withholding can help protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year. At the same time, you may prefer to have less tax withheld up front, so you receive more in… Read more: Updated Tax Withholding Estimator
IRS Tax Tip 2020-04 The tax filing season is upon us, and many people will be looking for someone to help them file a tax return. These taxpayers should choose their tax return preparer wisely. This is because it’s ultimately the taxpayer who is responsible for all the information on their income tax return. It’s important for people to remember that this is true no matter who prepares the return. Here are some tips for folks to remember when selecting a preparer. Taxpayers should: Click here to Continue Reading the Article… Thank you for choosing Aces & Associates, LLC for… Read more: Taxpayers should remember these tips when searching for a tax preparer
WASHINGTON — With tax season beginning soon, the Internal Revenue Service reminds taxpayers that choosing to have their tax refund directly deposited into their checking or savings account is the fastest way to get their money. It’s simple, safe and secure. Taxpayers can also get their refund deposited into one, two or three different accounts, if desired. Eight out of 10 taxpayers get their refunds by using direct deposit. The IRS uses… Continue Reading Article. Questions? Feel free to Contact Us Today at Aces & Associates, LLC. We are here for all your tax related needs!
Dear Client, With so much happening in the tax world it is hard to pin down the one item that will make a difference this tax season. We encourage you to contact the office if you have had change in the past year —whether it be a life change such as a marriage, divorce, birth or death; or if your income has substantially changed—either increased or decreased. Did you start a new business this year or shut down an existing business? There are so many areas that the new tax laws have touched that we want to be sure you… Read more: 2019 Winter Client Newsletter
Dear Client, On July 1st, The Taxpayer First Act of 2019 was signed into law by President Trump. This bill provides for improvements to the operations of the Internal Revenue Service, better interactions with taxpayers, and more safeguards to protect the integrity of the tax system. We have provided some of the key points from the bill, which impact all taxpayers. Continue to read 2019 Fall Client Newsletter…Click Here
Small business owners, self-employed people, and some wage earners should look into whether they should make estimated tax payments this year. Doing so can help them avoid an unexpected tax bill and possibly a penalty when they file next year. Everyone must pay tax as they earn income. Taxpayers who earn a paycheck usually have their employer withhold tax from their checks. This helps cover taxes the employee owes. On the other hand, some taxpayers earn income not subject to withholding. For small business owners and self-employed people, that usually means making quarterly estimated tax payments. Here’s some information about… Read more: 2019 Estimated Tax Payments – Here’s what you need to know
Upcoming quarterly deadlines include September 16 and January 15, 2020 IR-2019-105, June 6, 2019 WASHINGTON – The Internal Revenue Service today reminded taxpayers who pay estimated taxes that Monday, June 17, is the deadline for the second estimated tax payment for 2019. Examples of those who often need to pay quarterly estimated taxes are self-employed individuals, retirees, investors, and…Continue Reading We take the guess work out of your taxes, let us file for you today! Contact Aces & Associates, LLC to schedule your appointment.
All taxpayers should check their withholding – also known as doing a Paycheck Checkup – as soon as possible. They should do a checkup even if they did one last year. By checking their withholding, taxpayers can make sure…Continue Reading Aces & Associates, LLC cares for all your tax needs and we strive to make sure you have up-to-date and accurate information. We are happy to assist you with any and all tax concerns or needs! Contact Us TODAY to schedule an appointment or to get assistance
The IRS recommends that taxpayers use the Withholding Calculator on IRS.gov to do a “paycheck checkup” to check that their employers withhold the correct amount of income tax from their paychecks. The Withholding Calculator can help prevent employees from having too little or too much withheld from their paycheck. Having too little tax withheld can mean an unexpected tax bill or potentially a penalty at tax time in 2019. And with the average refund topping $2,800, some taxpayers might prefer to have less tax withheld up front and receive more in their paychecks. Here are some tips for using the… Read more: Tips for Using the Withholding Calculator
As tax filing season approaches, the Internal Revenue Service has information for taxpayers who wonder how long to keep tax returns and other documents. Generally, the IRS recommends keeping copies of tax returns and supporting documents at least three years. Some documents should be kept up to seven years in case a taxpayer needs to file an amended return or if questions arise. Keep records relating to real estate up to seven years after disposing of the property. Health care information statements should be kept with other tax records. Taxpayers do not need to send these forms to IRS as… Read more: Tax Preparedness Series: Tax Records – What to Keep
The end of the year is just a few days away. Our informative 2016-winter-client-newsletter is sure to answer your last minute 2016 tax related questions. Don’t forget about Deductions such as Charitable Contributions, IRA and Pensions, Mortgage Interest, Education Credits and Deductions, and any Lifestyle Changes or Events. We hope your Winter Holidays were wonderful and we wish you a very Happy New Year. Here’s to 2017! Warmest Wishes, Susan & Amanda and the Aces & Associates, LLC. Team Questions? Contact Aces & Associates, LLC to schedule your appointment.
