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TaxMama’s® TaxQuips
GOOD BYE 2021
(and good riddance?)


 
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Note: Please do NOT reply to this email.
Post all comments and questions here:
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AFSPs - Still time to get the credits you need
http://iTaxMama.com/Lambers_AFTR_Class

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Listen to the Podcast

Watch the Podcast (on 12/28)
 

It's TaxQuips time from TaxMama.com® -
Today TaxMama® wants talk to you about some year-end tips and ideas to get ready for next year.


 

Dear Family,

This year is coming to a close remarkably fast. It seems it was just January one blink ago – and now, it’s nearly over.

This year has been filled with lots of small and major successes for my students, family and friends. Tinged with a great deal of sadness, illness, and death. The Yin/Yang of life.

We still have a few days to take some steps to minimize taxes this year. So let’s look at some of those ideas first. Then I will give you some ways to make next tax season easier.

Year-end Tips

  • Taxpayers who do not itemize can deduct up to $300 worth of cash donations per person ($600 on a married filing jointly return).
  • If you are using itemized deductions be sure to get receipts dated in 2021.
    • Make your charitable contributions before year-end.
    • Go through the house and closets to clear out anything you haven’t used for a year or more. If the clothing, appliances, furniture, pictures, etc., are in good condition – take pictures or video to prove it. Then donate them to your favorite charity.
    • If you want to make a really big donation, but don’t have time to make the arrangements, consider having your brokerage or financial institution open a donor-advised fund.  You can fund it before year-end and distribute the donations to your charities in 2022.
    • Pre-pay your 2022 installment of property taxes (unless you have already reached the $10,000 State and Local Tax (SALT) deduction limit.
      • Will the Build Back Better Act ever pass, raising the limit?
        Not in time. But when it does, those who pay much more than $10,000 in the first place will get the benefit of the higher deduction.
    • Everyone aged 72 and over must take their Required Minimum Distributions (RMDs) from their IRAs and retirement accounts. (In 2020, we didn’t have to do it – we do now.)
      • There is a 50% penalty (excise tax) for failing to draw the funds.
      • If you don’t really need to use that money, and don’t want to add it to your adjusted gross income for the year, consider sending the amount of your RMD directly to your favorite charity.
    • Divorced parents dealing with an aggressive ex who doesn’t support your children, but claims them anyway. Get an IP PIN for each child, so that only you can claim the child on an electronically-filed tax return. Do it as soon as the portal opens in January – gather all the information now - http://iTaxMama.com/IRS_IP_PIN
    • Business assets – buy things you are going to need for next year. But start to put them to use this year, or you won’t be able to get the deduction until next year.

Tips for the next filing season

The IRS finally published the mileage rates for 2022  https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2022
When they update their website, you will find 2022 - 2011 here: https://www.irs.gov/tax-professionals/standard-mileage-rates

To survive all the information, transcript and taxpayer account-related needs during 2022, do this:

For Tax Pros – What’s in it for you? This will make it possible to quickly activate a Power of Attorney (Form 2848) or Information Authorization Request (Form 8821), instead of waiting weeks for the Central Authorization Filed (CAF) unit to record your authority.

For Taxpayers – This will give you access to your transcripts, payments and so much more without having to sit on hold with the IRS for hours.

Expect Letters from the IRS in January:

Tell your clients to save these letters – very important.

It’s going to be bumpy this coming tax season as we try to reconcile all the payments received – and that were not received.

And remember, you can find answers to all kinds of questions about taxes and business issues, and EA Education, free. Where? Where else? At http://iTaxMama.com/AskQuestion

To make comments please drop into the TaxQuips Forum.

 


 

Follow TaxMama’s® on Twitter  @TaxMama   
https://twitter.com/TaxMama  
Follow TaxMama on YouTube - 
https://www.youtube.com/taxmama

 

Please feel free to share
 



The Enrolled Agents Examination – PLEASE JOIN US

The new 2021-2022 exam will include all the CARES Act laws, the PPPs,
and the tax laws in the latest 5.593 page  Consolidated Appropriations Act! 

The live class is over, but everything has been recorded.
After you take your October 15th break - come and study to pass the EA exam this year.
Your clients will need your help next year.


 https://irsexams.school/signup/

Anyone signing up now gets access to over 40 educational tax videos (and downloadable MP3 files), as well as 12  3.5-hour Final Review sessions that specifically teach you how to answer the exam questions. And you remain in the class, at no additional charge to attend or view our sessions, until you pass - or even beyond.
(Just don't unsubscribe from the class emails)

Remember, if you are presently unemployed, check with your  unemployment office or business insurance coverage – they just might be able to pay your tuition. 
This is a great time to improve (or develop) your skills as a tax professional.

 




Everything You Wanted to Know About the 2021-2022 Enrolled Agent Exam.
Get all the information you need about this year's Special Enrollment Examination here.
https://taxmama.com/tax-quips/everything-you-want-to-know-about-the-ea-exam/

Watch this before you ask me questions, please.


And remember, you can find answers to all kinds of questions about taxes and business issues, and EA Education, free. Where? Where else? At http://iTaxMama.com/AskQuestion

To make comments please drop into the TaxQuips Forum.

Hugs

Eva


 


 

Some Helpful IRS Links

IRS CoronaVirus updates
https://www.irs.gov/coronavirus

Which IRS services are open and available – keep an eye on this link 
https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

IRS Electronic Options
https://www.irs.gov/newsroom/irsgov-helps-taxpayers-get-tax-information-they-need-find-tools-for-filing-paying-checking-accounts-and-answering-questions

IRS Online Assistance Available
https://www.irs.gov/newsroom/irs-urges-taxpayers-to-use-electronic-options-outlines-online-assistance

Dealing with audit or collections issues – IRS is keeping this page up to date
https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program

Of course, all the filing and paying deadlines - including taxpayers overseas whose June 15th filing deadline has been pushed back to July 15th.
https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers?

And a great chart: How to Use the Tools on IRS.gov to Get Your Economic Impact Payment  https://www.irs.gov/newsroom/how-to-use-the-tools-on-irsgov-to-get-your-economic-impact-payment

There are lots more things going on – watch the information in the IRS Newsroom -  https://www.irs.gov/newsroom  and TaxMama.com  

 

California Resources

Unemployment Code Section 1126  https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV&sectionNum=1126

EDD AB 5 – Employment Status
https://edd.ca.gov/Payroll_Taxes/ab-5.htm

CA Labor and Workforce Development Agency

https://www.labor.ca.gov/employmentstatus/

 EDD -  DE 40 tax audit guidelines
https://www.edd.ca.gov/pdf_pub_ctr/de40.pdf

To make comments please drop into the TaxQuips Forum.


Incidentally, I don't know if you know - TaxMama.com® is a free resource for people to get answers to tax questions BEFORE they make major, costly moves.

To make comments please drop into the TaxQuips Forum.
 




Small Business Taxes Made Easy

Well, my friends, the book is out and healthy.
The Kindle and audio versions are available.  

 You can get the audio book wherever audiobooks are sold - http://iTaxMama.com/4thEdition_Audio 

 

I would really appreciate it if you have the book and like it –
to please post a
review at Amazon.com .
   This is the best version of the book ever. 

 

And for those people in business, or starting a business,
or with clients who operate a business, we have completed the
12-week course based on the book, at CCH CPE Link.
It turned out really well and people found the information extremely helpful!
The course follows each chapter of the book – but also provides help to deal with your business issues during this COVID19 shutdown and quarantine. Who knows, it might help you  save your business – or your finances!


Copyright © 2021 Tax Anxiety Inc., All rights reserved.


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