904-356-0349 info@nedjacksontax.com

New Filing Requirements – 2024 Tax Year

Welcome to Ned’s Blog Spot, where you can find all your tax filing tips and tricks. While our tax deadline is still a way away, there are some new filing requirements that you’ll want to know of and prepare for before the new year. Wondering if this applies to you? Keep reading to find out!

This new filing requirement is brought to us by “The Corporate Transparency Act.” This act requires certain types of U.S. and foreign entities to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Beneficial ownership information is information about the entity, its beneficial owners, and in certain cases its company applicants. Beneficial ownership information is reported to FinCEN through Beneficial Ownership Information Reports (BOIRs). This will include all companies registered with secretaries of the states, such as LLC, CORP, S.CORP, and PARTNERSHIPS.

Due Dates:

– Established before Jan 1,2024 = Due Jan 1, 2025
– Established on or after Jan 1, 2024 = Due w/in 90 days
– Established on or after Jan 1, 2025 = Due w/in 30 days

Filing Instructions:

https://boiefiling.fincen.gov/resources/BOIR_Filing_Instructions.pdf

Application Site:

https://www.fincen.gov/boi

We hope you find this information helpful as you begin to prepare for the upcoming tax season. If you have any questions, the information for our downtown office will be listed below and don’t forget to check back for more!

Ned Jackson Downtown Office

Address
255 N Liberty Street
Jacksonville, FL 32202

Phone
(904) 356-0349

Email
info@nedjacksontax.com

Extra! Extra! Read all about it!

Welcome back to Ned’s Blog Spot, where you can find all your tax tips and tricks. Our tax deadline is quickly approaching, and we want to make sure we provide you with all the information we can, for your filing to be as quick and painless as possible. Below you’ll find a few quick tidbits about the upcoming tax season.

ESTIMATED TAX PAYMENTS: DUE JAN 16!!

Reminder for taxpayers who didn’t pay enough tax during 2023 to make their final fourth quarter estimated tax payments on or before Jan 16, 2024, to avoid possible penalties or a tax bill when filing this year.

VACATION HOMES

If you own a vacation home, it may have crossed your mind to rent it out occasionally. It’s important to know; proceeds from a vacation home that’s been rented out 14 days or less per year will be tax-free, despite the amount charged. To qualify, the home must be your personal residence. The IRS definitely of “personal residence” is broad, and more information on this can be found on the IRS website (https://www.irs.gov/publications/p523#:~:text=If%20you%20own%20and%20live,factors%20are%20relevant%20as%20well.) On the contrary, renting out the home for more than 14 days per year, makes the rent subject to be taxed. Of course, like any other rental your expenses may be deducted. How much you’ll be able to deduct will be determined by dividing the number of days you rented the home by the combined total days of personal and rental use. In the event your rental activity generates a loss, the tax laws prohibit deducting rental losses for a personal residence, but the loss isn’t completely gone. This loss can be carried over and used to offset future rental income. If the vacation home is not a personal residence and you actively participate in the rental activity you’ll be able to deduct $25,000 of rental losses against your other income.

MILEAGE RATES

Good news! The standard mileage allowance for business driving is being raised in 2024. The rate will increase by $0.67/mile. If you use the standard mileage rate, you must reduce the basis of the vehicle by the depreciation component, which is, $0.30/mile. Make sure you’re keeping a detailed log of the business miles driven.

The rate for medical travel and military moves is $0.21/mile. You can also claim the cost of parking and tolls but cannot add the cost of fuel or repairs.

CHARITY/VOLUNTEERING

If you are able to itemize on the Schedule A, you can deduct $0.14/mile for charitable driving, plus what you pay for parking and tolls. This rate is fixed by law and doesn’t go up or down annually based on pump prices. Additionally, you can take a write-off for other expenses you accrue while doing charity/fundraising, such as the cost of stamps for a mailing, items bought for a bake sale, or auto cleaning supplies for a car wash. However, you will not be able to deduct the value of your time spent doing this work.

TENNESSEE STORM VICTIMS RELIEF

If you are an individual or business affected by the severe storms and tornadoes in Tennessee on December 9, you will have until June 17, 2024, to file taxes and make tax payments. Relief is available to locations that have been designated as disaster areas by the Federal Emergency Management Agency (FEMA); this includes Davidson, Dickson, Montgomery, and Sumner counties.

We hope you find this information helpful as you begin to prepare for the upcoming tax season. If you have any questions, the information for our downtown office will be listed below and don’t forget to check back for more!

Ned Jackson Downtown Office

Address
255 N Liberty Street
Jacksonville, FL 32202

Phone
(904) 356-0349

Email
info@nedjacksontax.com

Tax Time Checklist

Welcome back to Ned’s Blog Spot, where you can find all your tax tips and tricks. In the words of the infamous Mariah Carey, “ITS (almost) TIME!!!.” With tax season right around the corner, your favorite tax preparers wanted to equip you with a list of everything you need to bring with you to ensure your tax filing is successful and can be done in one trip. Before we get to the checklist, I wanted to share the good news… You can rock around your Christmas tree this year knowing Santa is bringing you higher standard deductions! That’s right, the standard deduction has increased in every filing category, and those are listed below. (Just in case you’re a first-time tax filer this year, the standard deduction is the amount of money you can make before your money starts being taxed.)

Standard Deduction
MFJ: $27,700
HOH: $20,800
S and MFS: $13,850

Now, let’s move on to your tax filing checklist. There will be different things needed for different filing categories. If you have any questions about what you need after referencing the list below, you can call our downtown office for clarification. Please feel free to print this out and check off as you go!

Baseline
o Identification w/ your current address, of both parties filing
o W-2
o 1099
o Social Security Statement
o College Tuition (1098-T)
– This can be obtained from the school or the student’s online account
o Interest Expense

Claiming Dependents
o Proof of Residence
– This can be any of the following, but not limited to: doctors note, report card, school document, birth certificate,

Itemizing Filers
o Charitable donations
o Medical expenses
o Property tax
o Mortgage interest statement

HOH Filers
o Mortgage interest
o Power/Utility bill
o Landlord Statement

Self Employed
o List of income and expenses

Rentals
o List of income and expense for rentals

Daycare Credit
o Statement from daycare with child’s name

We hope you find this information helpful as you begin to prepare for the upcoming tax season. We can’t wait to service you in this upcoming tax season, and want to wish all our clients a Merry Christmas and Happy New Year!! If you have any questions, the information for our downtown office is listed below. Don’t forget to check back for more!

Ned Jackson Downtown Office

Address
255 N Liberty Street
Jacksonville, FL 32202

Phone
(904) 356-0349

Email
info@nedjacksontax.com

UPDATE ON REPORTING THIRD PARTY PAYMENTS

IRS has announced that that the 3rd party platform payments has been delayed until 2024. For those who use Paypal, Venmo and others in 2023, you will only get a K1 for amounts over $20,000 or over 200 transactions. In 2024 that threshold will fall to $5000 and include any transaction of $600 or more to one person. We will keep you posted on the new law as it starts to take affect.

 

Tax Planning for 2023

 

Welcome back to Ned’s Blog Spot. The goal each year is to lower your tax liability and we are here to help with some useful information.

For Itemizers, there are a few things you can do to increase your itemized deductions on your taxes.

  • Mortgage Interest: If you pay your January bill in December you can deduct the additional interest on your schedule A of your 2023 taxes.
  • If you are not already over the $10,000 cap on your state, personal and sales tax deduction, Paying your property tax in December 2023 instead of January 2024 will increase your deduction in 2023.
  • Large purchases such as Automobiles, RV’s, Home Additions and Building a home, can increase the sales tax deduction that is automatically given when Itemizing. If you are thinking of making a large purchase next year, consider how it may help you to buy in 2023 instead.

Other Deductions that can help are:

  • Max out your IRA (through April 15th deadline) before you file your tax return and your 401K contributions (must be made by December 31,2023).
  • If you are considering going Green, there are many tax credits that you can take advantage of. These credits include EV credits, Solar Credits, Certain types of Roof replacements and AC Units can also help you to reduce your tax liability.

Feel free to reach out to us with any questions that you may have before the end of the year.

Merry Christmas to All

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