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

THIS JUST IN: NEW FOR 2023

Welcome back to Neds Blog Spot, where you can find all your tax tips and tricks from your favorite tax preparers! 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. Keep reading for some changes we’ve just learned about.

First, reporting rules for Form 1099-K have changed. You should have received a Form 1099-K, Payment Card, and Third-Party Network Transactions by January 31, 2023, if you received payments exceeding $600 for tax year 2023. The taxability of income will not change; all income is still taxable. Be cautious, especially “early filers,” to have your key income documents before submitting your tax return, to avoid having to file an amendment. Additionally, if anything on your 1099-K is incorrect, taxpayers should contact the payer immediately. The payer will be in the top left-hand corner of the form. Please understand, the IRS cannot correct information on this form.

Next, let’s look at some changes that are happening to credits. There are some tax credit rates that have returned to 2019 levels. Unfortunately, this means affected taxpayers will more than likely receive a smaller refund compared to the previous tax year. The changes are happening to the Child Tax Credit, Earned Income Tax Credit, and Child & Dependent Care Credit and they are as follows:

• Those who got $3,600 per dependent in 2021 will get $2,000 for the 2023 tax year
• For the EITC (Earned Income Tax Credit), eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2023
• The Child and Dependent Care Credit returns to a maximum of $2,100 in 2023 instead of $8,000 in 2022

AVOID REFUND DELAYS

Many different factors can affect the timing of a refund after the IRS receives a return. Although the IRS issues most refunds in less than 21 days, the IRS cautions taxpayers not to rely on receiving federal tax returns by a certain date, especially when making major purchases or paying bills. Some returns require additional review and will take longer to process. Other reasons your refund could be delayed are, but not limited to: the IRS system could detect a possible error, the return is missing information or there is a suspicion of fraud or theft.
Additionally, the IRS cannot issue refunds for people claiming Earned Income Credit or Additional Child Tax Credit before the middle of February. The law requires the IRS to hold the entire refund – not just the portion associated with EITC or ACTC.

We hope you find this information helpful as you begin to prepare for the upcoming tax season. You can find additional information related to the topics above here: https://www.irs.gov/newsroom/get-ready-for-taxes-whats-new-and-what-to-consider-when-filing-in-2023. 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

Educator Expenses

Welcome back to Ned’s blog spot, where you can find all the answers to your tax questions. Teachers, this one is for you! First and foremost, we want to give a HUGE shoutout from your crew at Ned Jackson to all our educators out there, thank you for all your do to keep our kids sharp and safe!

With the new school year in full swing, we wanted to take a moment to remind you about your annual maximum deductions. You will be able to deduct $300 of out-of-pocket classroom expenses on your 2023 income taxes. If you are married filing jointly, and your spouse is also an educator this limit increases to $600. However, in this situation, no more than $300 for each spouse. Of course, with any deduction, we want to gently remind you to please keep good records of receipts, check stubs, cancelled checks, etc…

Who Qualifies?
Any educator K-12; teacher, instructor, counselor, principal, or aide. You must have worked at least 900 hours during the school year. Public and private school educators are included in this deduction.

What Can I Deduct?

Per the IRS, educators can deduct the cost of:

– Books, supplies, and other materials used in the classroom
– Equipment, including computer equipment, software and services
– COVID protective items to stop the spread of disease; face masks, sanitizer, gloves, soap, tape, physical barriers, air purifiers and items recommended by the CDC.
– Professional development courses related to the curriculum they teach or the students they teach. However, the IRS does warn it may be more beneficial to claim that as a lifetime learning credit (be sure to ask your tax expert which way would be more beneficial for your individual circumstance)

*Qualified expenses DO NOT include the cost of homeschooling or nonathletic supplies for courses.

You can read more about this at the link below:

https://www.irs.gov/newsroom/new-school-year-reminder-to-educators-maximum-educator-expense-deduction-is-300-in-2023

We hope you find this information helpful as you begin to prepare for the upcoming tax season. And as always, the information for our main office downtown will be listed as well. 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

FRIENDLY REMINDERS

Just a friendly reminder from your favorite tax preparers. Tax season is just around the corner and there’s still time to make withholding adjustments if needed, to ensure the best outcome on your 2023 tax preparation. We wanted to remind you of a few things you can do to get prepped for the upcoming season and make sure you have everything you need when you come in to see us.

  1. Check on your W-4 with your employer
  • Your payroll department should be able to provide you with a projection of your annual gross pay by years end, and help you make adjustment to your withholding accordingly. Before you do this, you’ll want to know what tax bracket you are in to make sure you know how much you should be withholding. Remember, you are taxed based on where you fall on the bracket based on your annual income.

 

  1. Keep your standard deduction in mind / Increase Donations
  • In previous years, you were able to take a certain percentage of your charitable donations even if you couldn’t itemize, but those days are sadly over. You will only be able to take your charitable donations if you have more donations than your standard deduction. You can find your standard deductions for this upcoming tax season below.
Filing status 2023 standard deduction
Single $13,850.
Married, filing separately $13,850.

Married, filing jointly; qualified widow/er

$27,700.
Head of household $20,800.

 

  1. Consider your spouse / partners income if married filing jointly
    • If you are trying to figure out how you will come out based on your tax bracket, standard deduction and withholding, do not forget other income if your spouse or partner also works. Your tax bracket will be calculated on your COMBINED income.
  1. Come in as soon as you have all your documents
    • It’s always better to come in sooner, than later. Our preparers get busier as the deadline approaches and the sooner you come in, the less time you will have to wait for your return to be completed. You DO NOT need an appointment to have your taxes prepared.

We hope you find this information helpful as you begin to prepare for the upcoming tax season. The contact information is listed below. Our preparers are in the office weekly and would be happy to assist you with any questions you may have. 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

 

 

SAFETY, SECURITY & SCAMMERS

A new security scam has been identified by the IRS, that you may want to keep an eye out for. The new scheme is coming in the mail in a cardboard envelope. It will include IRS letterhead and will state it is “in relation to your unclaimed refund.” The letter will also include contact information and a phone number that do not belong to the IRS and may even include sensitive information like a picture of your driver’s license. IRS Commissioner Danny Werfel says, “This is just the latest in the long string of attempts by identify thieves posing as the IRS in hopes of tricking people into providing valuable personal information to steal identities and money, including tax refunds. These scams can come in through email, text, or even special mailings. People should be careful to watch out for red flags that clearly mark these as IRS scams.”

The letter you receive in the mail tell recipients they need to provide “Filing Information” for their refund and include some awkwardly worded phrases like these:

“A clear Phone of Your Driver’s License That Clearly Displays All Four (4) Angles, Taken in a Place with Good Lighting.”

“You’ll need to get this to get your refunds after filing. These must be given to a filing agent who will help you submit your unclaimed property claim. Once you send all the information please try to be checking your email for response from the angels. Thanks.”

The IRS warns that “Individuals should never respond to tax-related phishing or smishing or click on the URL link. Instead, the scams should be reported by sending the email or a copy of the text/SMS as an attachment to phishing@irs.gov. The report should include the caller ID (email or phone number), date, time and time zone, and the number that received the message.” You can also report this scam and any others you may come across to the ‘Treasury Inspector General for Tax Administration’, ‘Internet Crime Complaint Center.’

We hope you find this information helpful as you begin to prepare for the upcoming tax season. Listed below, you will find some links with commonly asked questions about this scam. And as always, the information for our main office downtown will be listed as well. Don’t forget to check back for more!

LINKS
o https://www.irs.gov/newsroom/irs-security-summit-partners-warn-taxpayers-of-new-scam-unusual-delivery-service-mailing-tries-to-trick-people-into-sending-photos-bank-account-information#main-content
o https://www.tigta.gov/irs-scam-resources
o https://www.ic3.gov

Ned Jackson Downtown Office
Address
255 N Liberty Street
Jacksonville, FL 32202

Phone
(904) 356-0349

Email
info@nedjacksontax.com

Child Tax Credits

Welcome back to Ned’s blog spot, where you can find all the answers to your tax questions. This will be our last blog post until after tax season, and with that, we want to wish all of you the Merriest Christmas from our Ned Jackson Family, to yours! In today’s blog topic, we will be discussing child tax credits, additional child tax credit, and other dependent credits.

The biggest change for the 2022 tax year, will be the extinction of the Advanced Child Tax Credits. However, along with getting rid of those advanced payments, also reduced the rate of tax amount per child. For the 2022 tax year, the new rate will be as follows: $2,000 per qualifying child (under the age of 17) and has a refundable component or the additional child tax credit of up to $1500, subject to MAGI (Modified Adjusted Gross Income) phaseouts. Your contributions are phased out if your MAGI exceed the allowed limits. The eligibility for the child tax credit remains the same; each qualifying child claimed on the tax return must have a social security number.

Dependents not eligible for the child tax credit, may be eligible for the other dependent credit (ODC) of $500. Dependents qualifying for the ODC include qualifying children aged 17 and older, dependents without a social security number, or qualifying relatives. Please remember when claiming the CTC or ODC, we must see proof the dependent lived with you for more than half the year. There are many ways to prove this such as, but not limited to: statements from school, medical, daycare, church, etc…

We hope you find this information helpful as you begin to prepare for the upcoming tax season. And as always, the information for our main office downtown will be listed as well. 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

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