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.
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.
Other Deductions that can help are:
Feel free to reach out to us with any questions that you may have before the end of the year.
Merry Christmas to All
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
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:
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
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.
| 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. |
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
info@nedjacksontax.com
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
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
Welcome back to Ned’s blog spot, where you can find all the answers to your tax questions. In today’s blog topic, we will be discussing social security and how it will be changing in the year 2023.
In the year 2023, there will be an increase in the cost-of-living-adjustment (COLA), payable to over 65 million social security beneficiaries. The increase will be 8.7%, equating to more than $140 per month starting in January 2023. Beneficiaries turning 66 years of age next year, will not lose any benefits if they earn $56,520 or less before reaching 66. Individuals who are 62-65 years of age by the end of next year, will make up to $21,240 before losing any benefits. Additionally, once a beneficiary turns 66, there will be no earnings cap.
With an increase in COLA, there will also be an increase in the maximum amount of earnings subject to social security tax. The new maximum amount will be $160,200, a $13,200 hike from years past. Employers and employees will continue to pay 1.45% Medicare tax on all compensation, with no cap. Employees also pay a 0.9% Medicare surtax on wages and self-employment income over $200,000 for singles and $250,000 for couples. The surtax does not apply to employers.
The Acting Social Security Commissioner, Kilola Kijakazi, has released the following statement regarding the above changes (there is a link below to watch the full press release)
“Medicare premiums are going down and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room. This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned,”
LINKS
https://www.ssa.gov/cola/
https://www.ssa.gov/news/press/releases/2022/#10-2022-2
www.youtube.com/watch?v=Vgm5q4YT1AM.
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
Welcome back to Ned’s blog spot, where you can find all the answers to your tax questions. We’ll be ending October with information regarding the effects Hurricane Ian has on taxpayers. We offer our deepest condolences to our clients impacted by the storm and have some great news regarding deadlines.
Hurricane Ian began its path of destruction September 23, 2022. Sweeping across Cuba, Florida, and the Carolinas, it destroyed many homes, took many lives, and left many without food, water, and power. Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), the IRS has announced that victims of Hurricane Ian will now have until February 15, 2023, to file individual and business taxes. The deadline also applies to estimated tax payments due January 17, 2023, plus payroll and excise tax returns. As with anything, here is the “fine print.” To be eligible for the new deadline, there must be a valid extension filed on or before April 18, 2022. The deadline also applies to the quarterly estimated tax payments, usually due January 17, 2023, and the quarterly payroll and excise taxes, usually due October 31, 2022 and January 31, 2022. Losses from Ian can be deducted on either your 2021 or 2022 tax return. If you’ve already filed your 2021, you may consider amending it to take the write-off. All the limitations and rules for taking the losses will still apply.
The IRS will automatically be providing filing and penalty relief to any taxpayer with an IRS address located in the disaster area. However, if you are an affected taxpayer and receive a late filing or late payment penalty notice from the IRS, you are encouraged to call the IRS and have the penalty removed. Below you will find links to further information provided by FEMA and the IRS, relating to disaster relief as well as a map of the affected areas. 
LINKS
https://www.irs.gov/newsroom/help-for-victims-of-hurricane-ian
https://www.irs.gov/newsroom/help-for-victims-of-hurricane-ian
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
info@nedjacksontax.com
Welcome back to Ned’s blog spot, where you can find all the answers to your tax questions. The IRS has advised that improperly forgiven Paycheck Protection Program (PPP) loans, are taxable. If you received PPP for your small business during the pandemic, please continue reading. The following information WILL affect your tax return for this upcoming tax year.
The Paycheck Protection Program (PPP) was established by the CARES Act to assist small businesses negatively affected by COVID-19. Many loan recipients who received forgiveness were qualified and used the loan to pay expenses. Since then, the IRS has discovered some recipients did not meet one or more of the eligible requirements. These specific recipients received forgiveness of their PPP loan via misrepresentation or exclusion and didn’t qualify for or misused the loan funds.
On September 21, 2022, the IRS issued an article of guidance confirming that, “when a taxpayer’s loan is forgiven based upon misrepresentations or omissions, the taxpayer is not eligible to exclude the forgiveness forgiven based upon said misrepresentation or omissions.” In layman’s terms, if you received a PPP loan and weren’t eligible, that loan will be taxable on this year’s tax return. Taxpayers who did not qualify or misused funds are being encouraged to file an amendment on returns that include forgiven loan amounts, as income. The following is a statement from IRS Commissioner, Chuck Rettig on the matter:
“This action underscores the Internal Revenue Service’s commitment to ensuring that all taxpayers are paying their fair share of taxes, we want to make sure that those who are abusing such programs are held accountable, and we will be considering all available treatment and penalty streams to address the abuses.”
HOW DO I KNOW IF THIS APPLIES TO ME?
Listed below you will find the three requirements to have complete loan forgiveness, as are stated on the IRS website. If all three requirements are met, the forgiven portion is excluded from income. If the conditions were not met, the forgiven amount must be included as income and will be taxable.
1. An eligible loan recipient:
a- Is a small business, independent contractor, eligible self-employed individual, sole proprietor, business, or a certain type of tax-exempt entity.
b- Was in business on OR before February 15, 2020
c- Had employees or independent contractors who were paid for their services, or was self-employed individual, sole proprietor, or independent contractor.
2. The loan proceeds had to be used to pay eligible expenses, such as payroll costs, rent, interest on the business’ mortgage, and utilities.
3. The loan recipient had to apply for loan forgiveness. The loan forgiveness application required a loan recipient to attest to eligibility, verify certain financial information, and meet other legal qualifications.
For more information, please visit the IRS website directly here:
https://www.irs.gov/newsroom/irs-advises-that-improperly-forgiven-paycheck-protection-program-loans-are-taxable
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
Call for an appointment