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Archive for December, 2021

What is new for your 2021 tax return: advance Child Tax credit payments

Monday, December 13th, 2021

One new aspect you may possibly have on your 2021 tax return is the advanced child tax credit payments you may have received. Mid year the IRS began sending out checks to families that had previously qualified for the child tax credit. Taxpayers needed to go on the IRS portal in order to opt out of getting these payments. So if you qualified and didn’t opt out, you need to check whether you received the payments or not. The IRS mailed out checks or sent direct deposits each month as soon as the payments started.

If you received payments you need to find the total you received in 2021 and compare it to what you qualified for (which you will know once you are almost ready to finalize your 2021). If you received less than you qualified for, you will get the difference on your return. If you received more than you were qualified for, you may have to pay some of it back with your tax return.

The IRS will send out Letter 6419 in January of 2022 which has the amount the taxpayer received in 2021. You should save this letter because your accountant will need it.

The information provided in this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. Please consult your tax advisor on all the above issues.

It’s never too early to start getting ready to file your taxes in 2022

Tuesday, December 7th, 2021

Putting together your tax documents for your accountant can be a stressful time of year for you. The best way to help you get through it is to start planning and gathering your documents as early as you can. The IRS offers a page on their website titled “Steps to Take Now to get a Jump on Your Taxes”:

https://www.irs.gov/individuals/steps-to-take-now-to-get-a-jump-on-next-years-taxes

This webpage has various tools to help you through the process and hopefully make it smoother.

Organization is the key to start getting your information ready. Having all the documents yourself or your accountant needs is very important in filing an accurate return in a timely manner. One of the main reasons why a tax return gets held up is because there are missing documents so the return cannot be finalized. One way to help with the process is to simply get an empty folder and mark in “Taxes 2021” and start putting the documents there as they start coming in the mail. Examples of documents you want to look are:

• Form W-2’s from your employer(s)
• Any 1099’s from banks, financial institutions, etc.
• Form 1099-INT showing any interest income you received
• Other income documents and records of virtual currency transactions

New items for your 2021 tax return include advance payments of the child tax credit and premium tax credit, which your accountant will need the amounts you received in 2021. There are three different letters that you may receive that you will want to give to your accountant:

• Letter 6419 – your 2021 total Advance Child Tax Credit Payments
• Letter 6475 – your 2021 Economic Impact Payment
• Form 1095-A – Health Insurance Marketplace Statement

If you moved during the year you want to make sure to file Form 8822,
Change of Address form and send it to the IRS.

The information provided in this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. Please consult your tax advisor on all the above issues.

Watch out for Gift Card Scams this Holiday Season

Friday, December 3rd, 2021

With the holiday season upon us who doesn’t like getting gift cards? I am sure most you agree that you love getting them; unfortunately scammers love them as well. For many scammers, that is their preferred payment method. They will often try to impersonate an IRS agent in an attempt to get you to pay a tax bill that doesn’t really exist with a gift card. Make sure to keep in mind that the real IRS will never ask you to pay a tax bill using gift cards. Here are some highlighted facts about this scam:

• Scammers will typically try to pull this scam off with a phone call, but they will also use text messages, emails, and social media.
• The scammer may leave you a voicemail saying one of your accounts has been compromised.
• The scammer will often be threatening or harassing in nature.
• The scammer will claim you have an outstanding tax liability that needs to be paid via gift cards from various stores. The scammer will then ask you to provide the gift card number and PIN.

There are different forms of this scam, such as a person claiming they are from your utility company and are going to cut your power if you do not pay them gift cards, so you always need to be on alert for it.

If you believe you have been targeted by a scammer you can report it on the IRS impersonation Scam Reporting webpage at:

https://www.treasury.gov/tigta/reportcrime_misconduct.shtml

The information provided in this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. Please consult your tax advisor on all the above issues.

Scam Alert!

Wednesday, December 1st, 2021

A client of ours recently contacted us about this scam because it popped on his MAC while he was gathering his documents for us a complete a tax project for him. The pop up said his computer was infected with a virus/malware, gave off a loud siren noise and to call a number in order to resolve the situation. The pop up also had a cursor moving around to make you think that your computer has been taken over. Our client called the number and while it was ringing he started to question what was happening and luckily hung the phone up. The scammers were hoping he was going to make that call.

Once the unsuspecting victim calls the number the scammer then attempts to get information from you in order to steal your money, they will say such things as the service to fix your computer costs x amount of dollars. This is naturally a fake service in an attempt to steal your hard earned money.

In this case our client closed out the window then did a virus/malware scan and luckily nothing infected his computer. This image is what the screen looked like for our client. Always remember never to give any personal or financial information to any unsolicited sources. In this instance, a quick Google search of the number the pop up wanted this person to call would reveal that it was a scam.

The information provided in this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. Please consult your tax advisor on all the above issues.