tag:blogger.com,1999:blog-67479296614644117002023-11-16T13:35:36.799-05:00The Super Tax GeniusTax guides, tax advice, and tax news...all in English!
Real Estate Agents, MLM business owners, military and contractors will all find great information here.
If you had canceled debt, you will find useful advice here.
All of this written by the author of The Best Tax Book Nobody Buys!Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.comBlogger186125tag:blogger.com,1999:blog-6747929661464411700.post-86731856720981747172023-01-16T19:00:00.001-05:002023-01-27T15:25:27.331-05:00Master Index of Posts<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhbI2uv2bUxHSjRfmI_j9wuwA_VNHnpJ-n1_IzSn3szWAs01p0wjETPTcrnpKVbmeruwKAz1aP1gkzp6LpP9cKkO18H8LSqgKo-I7OXzKPNFq4ydFDSVV0aEK9c9NBMcrWfHHqkJbxP9N8zHWBKNxt4awqFyixhlz_TFwPo3JQcmt5Gwhc9IPIT_s2L=s900" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="215" data-original-width="900" height="76" src="https://blogger.googleusercontent.com/img/a/AVvXsEhbI2uv2bUxHSjRfmI_j9wuwA_VNHnpJ-n1_IzSn3szWAs01p0wjETPTcrnpKVbmeruwKAz1aP1gkzp6LpP9cKkO18H8LSqgKo-I7OXzKPNFq4ydFDSVV0aEK9c9NBMcrWfHHqkJbxP9N8zHWBKNxt4awqFyixhlz_TFwPo3JQcmt5Gwhc9IPIT_s2L=s320" width="320" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Kirk Taylor, EA is a member of The NAEA</td></tr></tbody></table><br /><div style="text-align: center;"><br /></div>I've compiled a Master List of my posts for easy reference. Not every post is included, and I have changed the order to put the most important or timely ones on top, and to group some based on categories (Military, Obamacare, Tax Software). I will try to keep this updated and just below the latest post. Please let me know in the comments if I screw up a link :) Some of the posts are OLD so be careful assuming the information is current - I recently cleaned some out of it.<br />
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If you have a Kindle, you can get a copy of my entertaining and useful book, <a href="http://www.amazon.com/dp/B01MS8Y3ET/?tag=suptaxgen-20">The Short, Cheap Tax Book for Everyone</a> for only $2.99!<br />
<br />
For ALL the details, neatly sorted by life events, you want The Best Tax Book Nobody Buys - the one pictured to the right - just click on it!<br />
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If you like the blog, buy my other books: <a href="http://amazon.com/author/kirkea">Kirk Taylor, EA Author Page</a><br />
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<b>Facebook Reel Posts:</b><div><b><br /></b></div><div><a href="https://supertaxgenius.blogspot.com/2022/12/fb-reel-20221220-tax-advice-1-change.html">20221220 Advice #1: Change Your Address with the IRS</a></div><div><a href="https://supertaxgenius.blogspot.com/2022/12/fb-reel-20221221-tax-advice-2-print.html">20221221 Advice #2: Print a Copy of Your Tax Return</a></div><div><a href="https://supertaxgenius.blogspot.com/2022/12/fb-reel-20221222-tax-advice-3-set-up.html">20221222 Advice #3: Set Up and IRS Account</a></div><div><div><div><div><div><div><br />
<strong>New, Important or Time Sensitive Posts</strong></div><div><a href="The big increase in Social Security payments comes with a tax catch: https://supertaxgenius.blogspot.com/2022/11/about-that-big-raise-for-social-security.html"><br /></a></div><div><a href="https://supertaxgenius.blogspot.com/2023/01/what-does-tax-pro-need-based-on-life.html">What Does a Tax Pro Need Based on Life Events</a></div><div><a href="https://supertaxgenius.blogspot.com/2022/11/do-i-really-pay-taxes-on-600-of-venmo.html">Do I Really Pay Taxes on $600 of Venmo Transactions?</a></div><div><a href="The big increase in Social Security payments comes with a tax catch: https://supertaxgenius.blogspot.com/2022/11/about-that-big-raise-for-social-security.html">About that Big Increase in Social Security</a><br /><a href="https://supertaxgenius.blogspot.com/2022/10/inflation-reduction-act-changes-to.html">Home Energy Credits: Changes from the Inflation Reduction Act</a></div><div><a href="https://supertaxgenius.blogspot.com/2022/10/electric-vehicle-credits-after.html" target="_blank">Electric Vehicle Credits after the Inflation Reduction Act</a></div><div><a href="https://supertaxgenius.blogspot.com/2022/01/one-of-irs-dirty-dozen-tax-scams-offer.html">Offer in Compromise Mills</a><br /></div><div><a href="https://supertaxgenius.blogspot.com/2021/12/setup-irs-account-today.html">Setup and Verify an IRS account</a></div><div><a href="https://supertaxgenius.blogspot.com/2021/11/the-cryptocurrency-post.html">The Cryptocurrency Post</a><br /><a href="https://supertaxgenius.blogspot.com/2020/01/single-and-0-no-longer-exists-new-w-4.html">Single and 0 No Longer Exist - The New W-4</a><br /><a href="https://supertaxgenius.blogspot.com/2019/10/the-10000-question-for-students-and.html">The $10,000 Question for Students and Parents</a><br />
<a href="https://supertaxgenius.blogspot.com/2019/08/my-advice-on-iras.html">My Advice on IRA's</a><br /><a href="https://supertaxgenius.blogspot.com/2018/11/wants-and-needsand-kids.html">Wants and Needs and Kids</a><br />
<a href="http://supertaxgenius.blogspot.com/2018/08/more-emergency-fund-advice.html">Emergency Fund Advice</a><br />
<a href="http://supertaxgenius.blogspot.com/2018/03/solar-credits-and-solar-sales-people.html">Solar Credits and Solar Sales</a><br />
<a href="http://supertaxgenius.blogspot.com/2017/01/the-dreaded-cp2000-letter-from-irs.html">The Dreaded CP2000 Letter from the IRS</a><br />
<a href="http://supertaxgenius.blogspot.com/2015/02/the-irs-did-not-call-you.html">The IRS did NOT Call You!</a><br />
<a href="http://supertaxgenius.blogspot.com/2013/06/i-got-e-mail-from-irs.html">I Got an E-mail from the IRS!</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2015/10/i-want-to-lower-my-taxes.html">I Want to Lower my Taxes!</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2013/12/10-simple-pieces-of-tax-advice.html">10 Simple Pieces of Tax Advice</a><br />
<a href="http://supertaxgenius.blogspot.com/2016/04/10-tax-things-everybody-should-do-but.html">10 Things Everybody Should Do</a><br /><br /><b>Military </b><br />
<b></b><br />
<a href="https://supertaxgenius.blogspot.com/2019/01/military-spouses-residency-relief-act.html">Military Spouses Residency Relief Act 2018 Change</a><br />
<b> </b> <a href="http://supertaxgenius.blogspot.com/2015/12/military-spouses-residency-relief-act.html">Military Spouses Residency Relief Act Details and Matrix</a>
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<a href="http://supertaxgenius.blogspot.com/2013/05/retiring-from-military-tax-warnings.html">Retiring from the Military? Tax Warnings!</a>
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<a href="http://supertaxgenius.blogspot.com/2014/10/reenlistment-bonus-social-security.html">Reenlistment Bonus, Social Security, Compensation Repayment and Taxes</a> </div><div><a href="https://supertaxgenius.blogspot.com/2022/11/2022-military-state-by-state-tax-guide.html">2022 Military State by State Tax Guide</a></div><div><a href="https://supertaxgenius.blogspot.com/2021/12/2021-military-state-by-state-tax-guide.html">2021 Military State by State Tax Guide</a></div><div><a href="https://supertaxgenius.blogspot.com/2020/12/2020-military-state-tax-guide.html">2020 Military State by State Tax Guide</a><br /><br />
<strong>Tax Software</strong>
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<a href="http://supertaxgenius.blogspot.com/2016/01/turbotax-admits-that-easy-is-better.html">TurboTax Admits That Easy Is Better Than Accurate</a><br />
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<strong>Business Guides</strong><br /><br />
<a href="http://supertaxgenius.blogspot.com/2014/03/avon-pampered-chef-party-lites-amway.html">Avon, Pampered Chef, Party Lites, Amway, etc. MLM Tax Guide</a> <br />
<a href="http://supertaxgenius.blogspot.com/2016/03/uber-driver-tax-guide.html">UBER Driver Tax Guide</a><br />
<a href="http://supertaxgenius.blogspot.com/2013/05/tax-guide-for-contractors-or-1099misc.html">Tax Guide for Contractors - or - 1099MISC WTF?</a> <br />
<a href="http://supertaxgenius.blogspot.com/2013/05/real-estate-agent-tax-guide.html">Real Estate Agent Tax Guide</a><br />
<a href="http://supertaxgenius.blogspot.com/2012/03/rental-property-guide-for-homeowners.html">Rental Property Guide for Homeowners</a><br />
<a href="https://supertaxgenius.blogspot.com/2018/11/rental-property-sale-worksheet.html">Rental Property Sale Worksheet</a><br />
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<strong>General Posts</strong><br />
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<a href="http://supertaxgenius.blogspot.com/2016/03/getting-married-one-piece-of-critical.html">Getting Married? One Piece of Important Tax Advice.</a><br />
<a href="http://supertaxgenius.blogspot.com/2017/01/the-dreaded-cp2000-letter-from-irs.html">The Dreaded CP2000 Letter from the IRS</a><br />
<a href="http://supertaxgenius.blogspot.com/2015/12/investing-and-taxes-primer.html">Investing and Taxes - A Primer</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2015/01/how-much-does-it-cost-to-file-taxes.html">How Much does it Cost to File Taxes?</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2014/10/reenlistment-bonus-social-security.html">Reenlistment Bonus, Social Security, Compensation Repayment and Taxes</a>
<br /><a href="http://supertaxgenius.blogspot.com/2014/08/foreign-earned-income-exclusion.html">Foreign Earned Income Exclusion Warnings - Update</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2014/08/charity-made-simple.html">Charity Made Simple</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2014/06/how-fast-can-i-get-my-refund.html">How Fast Can I Get my Refund?</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2014/05/make-estimated-tax-payments-easy-way.html">Make Estimated Tax Payments the Easy Way</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2014/04/depreciation-recapture-inaccurate.html">Depreciation Recapture - an inaccurate description</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2014/02/dont-touch-that-401k-or-ira.html">Don't Touch that 401K or IRA!!</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2014/02/what-do-you-do-with-that-big-tax-refund.html">What do you do with that Big Tax Refund?</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2014/02/its-okay-to-get-big-refund-really.html">It's Okay to Get a Big Refund - Really...</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2014/01/common-tax-return-errors-updated.html">Common Tax Return Errors - Updated</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2012/03/common-tax-return-errors.html">Common Tax Return Errors</a> <br />
<a href="http://supertaxgenius.blogspot.com/2013/11/mortgage-tax-credit-information.html">Mortgage Tax Credit Information</a><br />
<a href="http://supertaxgenius.blogspot.com/2013/10/lesson-from-government-shutdown.html">Lesson from the Government Shutdown - Emergency Fund</a>
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<a href="http://supertaxgenius.blogspot.com/2013/10/dont-pay-capital-gains-taxes-if-you.html">Don't Pay Capital Gains Taxes if You Don't Have To!</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2012/03/i-got-1099c-now-what.html">I got a 1099C - Now What?</a> <br />
<a href="http://supertaxgenius.blogspot.com/2012/10/cancelled-debt-and-insolvency.html">Cancelled Debt and Insolvency</a>
<br /><a href="http://supertaxgenius.blogspot.com/2013/01/250-donation-acknowledgement.html">>$250 Donation Acknowledgement</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2013/01/drop-box-donations-us-marines.html">Drop Box Donations - US Marines</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2012/03/tax-scams.html">Tax Scams</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2012/09/taxes-and-divorce.html">Taxes and Divorce</a><br /><a href="http://supertaxgenius.blogspot.com/2012/05/taking-care-of-client.html">Taking Care of the Client</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2012/05/warning-tax-resolution-scams.html">Warning - Tax Resolution Scams</a>
<br />
<a href="http://supertaxgenius.blogspot.com/2012/04/foreign-earned-income-exclusion.html">Foreign Earned Income Exclusion - WARNINGS!</a></div><div><br /><br /><br /></div></div></div></div></div></div>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-51321382195631574952023-01-05T15:56:00.000-05:002023-01-05T15:56:01.331-05:00What Does a Tax Pro Need Based on Life Events<p style="text-align: left;"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">The
below list is NOT what you need to prove the information to the IRS but is
instead the information your Tax Pro needs, in the form they will most likely
want it that will avoid additional charges for accounting or organizing your
information. Your Tax pro can discuss what you should retain as evidence of
these deductions but, counterintuitively, the evidence can be much less
organized than the below information (as long as it exists and you have access
to it).</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">Unless
the preparer is also your accountant who maintains your bookkeeping the totals
for businesses and rentals should be just that: totals for the category and not
individual receipts. Many categories are ambiguous and confusing but don’t
sweat if you get it perfect. Just make sure the totals are correct.</span><span style="font-family: "Times New Roman", serif; font-size: 12pt; text-align: center;"> </span></p>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody><tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><b><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Life
Event<o:p></o:p></span></b></p>
</td>
<td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><b><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Forms
or Information Needed<o:p></o:p></span></b></p>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Purchase
a Home<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
The Master Settlement Statement from Closing<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
A 1098 form from EVERY mortgage company that owned your loan during the year<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
Potentially information for itemizing: cash/check/charge payments to charity,
list of Goodwill type items donated, taxes paid to register cars, medical
expenses paid if large<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Own
a Home<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
1098 Forms for every mortgage company who held your mortgage during the year<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Master Settlement Statement if you refinanced<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
Information for itemizing: Charity as discussed in Contribute to Charity in
this document, car taxes paid, medical expenses if very large.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 3;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Contribute
to Charity<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
The total amount contributed during the year in cash/check/charge or an
itemized list of how much donated to each charity<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
A list of items donated to Goodwill type charities, organized by date
donated, organization donated to, address of the organization and an itemized
list of donated items for each date with it’s condition (good or better). The
more detail you provide the better the value can be determined. Some Tax Pros
will want you to provide a value, others will determine it for you.
Obviously, high value items should have sufficient detail or pictures that
allow good determination.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
Miles you drove for donating or volunteering for charity.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 4;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Get
Married<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
Marriage date<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
A copy of your new spouse’s Social Security Card<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
A copy of your new spouse’s picture ID<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
The tax pro will likely assume you will file jointly and this is usually the
best idea. They will check to see if separate works best and inform you. If
you do not want to file jointly you should tell your Tax Pro and discuss why
that is.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 5;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Have
a Child<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
Copy of Social Security Card<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Copy of Birth Certificate (just providing the birthday is usually enough but
a birth certificate covers any due diligence requirements)<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 6;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Collect
Unemployment<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1099G
from the State website or mailed to you<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 7;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Pay
on Student Loans<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1098E
Form or equivalent (they often send a letter vice a 1098E<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 8;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Plan
to Attend College (talk to Tax Pro EARLY)<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
A 1098T from the institution<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
An account transcript from the institution<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
Receipts for books and other costs for supplies that are required for a
specific course or course of study (generally not generic supply expenses).
That said, when in doubt, include the cost on a list with a description so
your Tax Pro can sort it out.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
The total scholarships or grants you received aren’t on the 1098T (normally
ones sent directly to you). What we are looking for is to determine which
scholarships were required to be used for tuition and which are not. Normally
the ones on the 1098T have to be used for tuition, but not always.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">5.
The amount the college refunded to you out of excess scholarships<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">6.
Any 1099Q forms from college savings plans<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">7.
The amount of Savings Bonds redeemed for college and the associated 1099INT<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">8.
Any VA benefits used for college<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">9.
The cost for room and board, if any.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*You
really want to have a good talk with your Tax Pro before paying for college
or accessing funds for college. In some cases you can lose out on up to
$10,000 of credits over 4 years if you don’t plan properly.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 9;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Withdraw
from a College Savings Plan<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
Form 1099Q<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
What the money was used for and/or the amount you spent on private school
tuition, paying student loans or higher education expenses (even if not
directly spent from the 529 withdrawal)<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 10;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Adopt
a Child<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
Date Adoption process started<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Date Adoption was final<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
Adoption expenses and year paid<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
If the adoption was domestic or foreign<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">5.
If the child was designated as special needs by the State<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">6.
Copy of Social Security Card<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">7.
Copy of Birth Certificate (just providing the birthday is usually enough but
a birth certificate covers any due diligence requirements)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">8.
A copy of the adoption certification might be required to comply with due
diligence requirements<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 11;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Foster
a Child<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
Dates the child lived with you during the year<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
What agency placed the child with you<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
Copy of Social Security Card<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
Copy of Birth Certificate (just providing the birthday is usually enough but
a birth certificate covers any due diligence requirements)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">5.
Your biological relationship to the child, if any<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">6.
A copy of the Foster Child certificate or documentation may be required for
due diligence considerations<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 12;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Have
a Health Savings Account<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
You should confirm to them that you have a High Deductible Health Plan<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Form 1099SA or the total amount used from the account during the year<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
Either a total for medical expenses for the year or, to make things easy,
simply state that all your HSA withdrawals were used for medical expenses and
that you can either document this with receipts, or your account uses a
method to ensure it is only used for allowable expenses.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
You should discuss the tax advantages and strategies for contributing and
withdrawing from your HSA<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 13;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Invest
in a non-retirement account<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
1099B form if any investments sold or converted during the year<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
1099DIV<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
1099INT<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
You may receive a K-1 if one of your investments is a limited partnership.
Since these sell like stocks, you might not be aware it is a partnership.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*You
may receive all or some of the above, or even a combined 1099 with all the
above information. Your broker or their website should be able to tell you
what to expect and when you will get it. Sometimes these forms take a long
time to arrive, even into March.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 14;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Have
an Interest-Bearing Bank Account<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1099INT<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 15;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Cashed
in Savings Bonds<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
1099INT<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
If you have college expenses discuss this with your Tax Pro<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 16;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Invest
in Cryptocurrency (Bitcoin etc.)<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
1099B Form if any sold or transferred<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
If you don’t use an exchange that provides a 1099B or you mine Crypto or have
other unusual situations your Tax Pro will likely need an easily editable
spreadsheet that shows each transaction that involves a sale or transfer.
Many of these spreadsheets contain extraneous information and your Tax Pro
may charge a lot to organize it. They need date of purchase or sale, type of
coin, amount of coin and dollar amount – that’s generally all. <o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 17;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Invest
in a Retirement Account not through your job<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
You will receive a 5498 after tax season but your Tax Pro does not generally
need this.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
How much you contributed to the account for the current tax year.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
If you withdraw or rollover the account you will receive a 1099R<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
You should discuss withdrawals from these accounts with your Tax Pro BEFORE
making the withdrawal.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 18;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Collect
Social Security<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Form
1099SA either from your ssa.gov account or mailed to you<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 19;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Collect
a Pension or Retirement (in retirement)<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
Form 1099R<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Inform your Tax pro if you ever made non-deductible contributions to the
account<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
For older retirement plans the Tax Pro might need information about your
investment in the plan and the date you first retired. For more recent
retirements this information is not normally necessary. If there is a number
in Box 2 of the 1099R, this information isn’t needed<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
Anything unusual about the account<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 20;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Withdraw
for a Retirement Account (before retirement age)<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
Form 1099R<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
The circumstances for the withdrawal – why you took it and details about what
the money was spent on.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
If it was a Roth IRA they will need the full history of annual contributions
to the account and any previous withdrawals<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 21;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Took
a 401k (or equivalent account) Loan<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Your
Tax Pro does not need anything when you do this but you should let them know
you did it so they can advise you of the potential impact of job loss or
default.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 22;">
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<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Contribute
to a College Savings Plan (529)<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
The amount contributed to the plan during the year and the State that
sponsors the plan<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 23;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">PCS
Transfer with Military<o:p></o:p></span></p>
</td>
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<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
State transferred to/from with new address<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Date of move<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
A copy of your DITY move claim form or a list of expenses for the move (gas,
miles for up to 2 cars by most direct reasonable route, supplies, rentals,
storage, moving services, weigh ticket costs, tolls, shipping and other
moving expenses – provide details!<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
If you didn’t do a DITY move than anything you paid that the military would
not reimburse such as pet shipping costs, too many vehicles or excess weight.
<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*A
detailed listing of all of the above will help your Tax Pro maximize
deductions while preventing unallowed deductions.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 24;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Convert
a Property to Rental<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
The date property was purchased<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
The date the property was made available for rent<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
The original price you paid for the property*<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
The cost of improvements made to the property while owned<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">5.
Any unusual tax assessments or easements from the government<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">6.
Information from below under Ongoing Rental Property Owned<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*The
above assumes the property was purchased. If it was inherited, gifted or
otherwise obtained in a way other than purchase you will need to work with
your Tax Pro to determine your “basis” which is your investment in the
property.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 25;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Ongoing
Rental Property Owned<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
Total rent received for the year<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Security Deposits kept for damages total<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
1098 for any mortgages<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
1099MISC from property manager or government agency if applicable<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">5.
Homeowner’s Insurance cost<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">6.
Property Manager’s Statement* indicating how rent was used to pay expenses.
This is in addition to the 1099MISC above<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*Much
of the below will be on a property manager’s statement. If you use a property
manager only include amounts below that were paid separately from the
property manager.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">5.
Cleaning and Maintenance cost<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">6.
Legal and Professional Fees <o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">7.
Utilities paid by you<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">8.
Repairs cost total of all repairs that were individually less than $2500<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">9.
Individual repair/improvements costs for items costing more than $2500<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">10.
Mileage to or from the property<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">11.
Travel costs to and from the property<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">12.
Management costs (these should definitely be on the property manager’s
statement)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">13.
Advertising cost total<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">14.
Total cost for any supplies including office supplies<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">15.
Any other reasonable expenses should be provided to the Tax Pro in list form<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">16.
If your Tax Pro didn’t prepare the prior year return they will need a copy of
the return which SHOULD have a depreciation schedule included. If not, your
new Tax Pro will want that schedule from your old Tax Pro or will need to
reconstruct it using information about the property purchase, conversion to
rental and any improvements that required depreciating.<o:p></o:p></span></p>
</td>
</tr>
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<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Sell
a House (Primary Home)<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
Master Settlement Statement from the closing<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
The dates the home was owned and lived in by you (and your spouse if
different)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
If the home was used as a rental or business while owned (if yes they will
ask for a lot more)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*Most
homes sold that were owned and lived in for at least 2 years will be tax free
and the above answers will determine that this is the case. The below information
is if the sale is not excludable:<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
Form 1099S<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">5.
The date the home was purchased by you<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">6.
The original purchase price*<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">7.
The cost of any improvements to the property while owned<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">8.
Any unusual tax assessments or easements that occurred while owned.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">9.
If sold before 2 years, the circumstances that caused you to sell the home
such as job move, medical issues, family size change etc.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*The
above assumes the property was purchased. If it was inherited, gifted or
otherwise obtained in a way other than purchase you will need to work with
your Tax Pro to determine your “basis” which is your investment in the
property.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 27;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Sell
a Home (Rental Property)<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
The Master Settlement Statement for the Sale and any costs for the sale not
paid out of sale proceeds via closing.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
If your Tax Pro was not handling the rental they will need a copy of the
prior year’s tax return that SHOULD contain the depreciation schedule for the
rental property.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*Ideally
the sale should be handled by the same preparer who handled your rental
property before the sale. If not, there may be significant issues and
additional information required if the data is not clear on the tax return<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 28;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Sell
a Home (Investment Property)<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
The Master Settlement Statement from Closing and/or any other document that
documents the financial transactions and appropriate details.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
1099S form if received<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
The date the property was purchased<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
The price paid for the property*<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">5.
The cost of any improvements to the property while owned<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">6.
The details of any special assessments or easements on the property<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*The
above assumes the property was purchased. If it was inherited, gifted or
otherwise obtained in a way other than purchase you will need to work with
your Tax Pro to determine your “basis” which is your investment in the
property.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 29;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Inherit
Stuff<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">This
is almost always a tax free situation for the recipient but the below points
highlight possible exceptions and advice for these events:<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
If you inherit tax advantaged retirement or other accounts you should consult
your financial advisor AND your Tax pro before devising a withdrawal strategy
or taking any money out of the accounts.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
If you inherit anything that is likely to increase in value over time you
need to know what it was worth on the date of death. Check with the estate to
see if property was appraised and work with your broker to ensure inherited
investments have their basis properly adjusted. Have an appraisal performed
if not done by the estate, especially for high value property such as real
estate.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 30;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Have
Debt Written Off<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
1099C Form – these can take FOREVER to arrive and sometimes never show up. Be
aware when these events occur and know the date, the amount written off, and
the circumstances.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Your Tax Pro is going to want to try to get you out of paying taxes on this.
They will need the details of the event, especially the nature of the debt,
the reason it was written off, if you are in bankruptcy, your disability
status and might even need to know the value of ALL your assets and debts on
the date the debt was written off. Reach out to your Tax Pro ASAP if you
have, or expect to have debt written off.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
If the is your principal residence, try to talk to your Tax Pro well ahead of
making final decisions on Short Sales or Foreclosures.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 31;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Declare
Bankruptcy<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">The
main issue is the same as above for having debt written off, so be prepared
to provide the above information. They will want to know what chapter you
filed bankruptcy under.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 32;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Get
Divorced<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">You
want to talk to your Tax Pro very early about this. There are big issues
involving kids and filing status that should be talked about EARLY. You might
need to get Form 8332 from your ex-spouse if you are allowed to claim kids that
live more with your ex-spouse.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 33;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Lose
a Child during Child Birth (stillborn)<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Nothing
in this case<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 34;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Lose
a Child during Child Birth (born alive but subsequently died)<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">You
should obtain a Social Security number for the child and provide it, and the
birthdate to your Tax Pro. A child that survives for any amount of time
outside of the womb qualifies as a dependent for the entire year.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 35;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Death
of a Child<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Provide
the date of death to your Tax pro. The child can still be claimed as if it
lived with you all year. <o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Be
aware that due to the way the Social Security Administration reports deaths,
identity theft for a deceased child is much more likely. You should consider
filing as early as possible and be prepared to have some trouble with filing
electronically.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 36;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Death
of a Spouse<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
A copy of the death certificate is not absolutely required but should still
be provided.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Provide the date of death<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Unless
you remarry, you will normally file jointly as a surviving spouse, signing
the return for your deceased spouse and claiming all of their income (up to
the date of death) and deductions.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Your
Tax pro can discuss options regarding inheritance and filing statuses
available going forward, especially if you have children.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 37;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Ongoing
Business<o:p></o:p></span></p>
</td>
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<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
Any Form 1099NEC or other income documents received<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Your total Gross Income (every penny you received before any deductions. If
it is all reported on 1099NEC forms that is fine but you should still track
it yourself.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
Your EIN if applicable and they don’t already have it<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
If you make or buy things to hold for resale (discuss your accounting method
with your Tax Pro when providing these numbers):<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><span style="mso-spacerun: yes;"> </span>A. Beginning Inventory<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><span style="mso-spacerun: yes;"> </span>B. Ending Inventory<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><span style="mso-spacerun: yes;"> </span>C. Returns or Allowances amount<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><span style="mso-spacerun: yes;"> </span>D. The cost of any items purchased for sale
and/or the cost of all materials and other inputs for producing items for
sale (Cost of Goods Sold)*<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*Make
sure not to duplicate any of these expenses below<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">5.
Mileage driven for the business (may need to be split up by date like in 2022
when the mileage amount changes on July 1<sup>st</sup> so they need total
miles before and after)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">6.
A list of major purchases of equipment or items expected to last more than
one year such as machinery or major tools.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">7.
Amount paid to subcontractors and copies of 1099NEC forms you provided to
them.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">8.
Cost of Supplies<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">9.
Cost of office supplies<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">10.
Taxes and License cost<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">11.
Continuing education costs<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">12.
Legal and Professional fees<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">13.
Cost of services<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">14.
Costs to rent equipment<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">15.
Costs to rent vehicles<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">16.
Repairs or Maintenance costs<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">17.
For overnight travel:<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><span style="mso-spacerun: yes;"> </span>A. Hotel costs<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><span style="mso-spacerun: yes;"> </span>B. Rental vehicle cost<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><span style="mso-spacerun: yes;"> </span>C. # of nights away from home (may be
broken down by location if some of them were in high cost areas)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><span style="mso-spacerun: yes;"> </span>D. Plane, train, etc. ticket cost<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><span style="mso-spacerun: yes;"> </span>E. Tips, tolls and other miscellaneous
expenses<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">18.
Cost of meals with clients, employees or contractors<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">19.
Discuss Office in Home with your Tax Pro and provide requested information<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">20.
The cost of health insurance you pay for if you can’t get it from an employer
of you or your spouse<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">21.
A list of any other ordinary and necessary expenses for the business such as
postage<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">22.
Date and amount for all Estimated Tax Payments.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">23.
If your Tax Pro didn’t prepare the prior year’s return, they need a copy of
it and may need additional information such as a depreciation schedule and
information pn prior year losses and elections. Any Tax Pro worth their salt
will have a good discussion or email with you to discuss the nature of your
business to help you provide the best information possible to get the best
result..<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*
A discussion with your Tax Pro about the details of these categories during
the first couple years of your relationship will help you understand what is
and is not deductible. Early in the relationship you should separate expenses
that have some doubt as to their deductibility and provide them separately
from totals.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 38;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Start
a Business<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Review
the Ongoing Business section and talk to a Tax Pro early in your business
formation process to talk about record keeping, estimated taxes and business
entities.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 39;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Driver
for UBER/Lyft<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
They will send you a 1099NEC, a 1099MISC (maybe) and a tax statement. <o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Your Tax Pro needs all of these. They also need a total of miles driven,
which should be much larger than the miles on the company’s report since it
only includes ride miles. KEEP a MILEAGE LOG<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
Unusual vehicle expenses specific to ridesharing such as seat covers,
steering wheel covers, rubber floor mats, barriers, phone mount. Most normal
costs such as car washes, maintenance and gas are included with the mileage
rates.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
Cost for your cell phone bill and percentage used for business<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">5.
Supplies for your customers<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">6.
Talk to your Tax Pro about business use of home.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">7.
Other expenses from the Ongoing Business section, though many won’t apply to
you.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 40;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Made
Estimated Tax Payments<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Date
and amount of each payment (one should be in January of the subsequent year)<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 41;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Exercise
Stock Options with a Cashless Method<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">In
this case they are reported on your W-2 but you will still receive a 1099B
that your Tax Pro needs<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 42;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Receive
Stock Options<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
1099B form if any sold<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Form 3921 and/or 3922 if received<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
A tracker that includes the dates, amount of shares and dollar value for all
shares you received and dates they are allowed to be sold. This list can have
lots sold in prior year’s removed and should indicate which lots were sold in
the current year.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*In
many cases this is overkill, but it is still a good idea to create this kind
of record and provide it to your Tax Pro<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 43;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Get
a State Refund or Rebate<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">This
might be taxable if you itemized in the year the refund is for. If you use
the same Tax Pro or software, a regular refund will be handled automatically
but if you change tax preparation methods<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 44;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Getting
a Weird Form<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Duh,
give it to your Tax Pro </span><span style="font-family: "Segoe UI Emoji",sans-serif; font-size: 12.0pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol-ext; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: "Segoe UI Emoji";">😉</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 45;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Receive
or Pay Alimony<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">If
the divorce was finalized after 12/31/2018 there is no impact on taxes. If it
was before, your Tax Pro needs the date of the divorce, the amount paid or
received during the year, and the name and Social Security Number of the
other party.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 46;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Winning
Lottery or Gambling<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
W-2G Form(s)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Win/Loss Statement if available from the casino or sports book<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
A Win/Loss record maintained by you that documents how much you won or lost
while gambling<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
The cost of lottery tickets that you can substantiate<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*If
you itemize, you can deduct gambling losses up to the amount of your
winnings. <o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 47;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Paid
Back Income that was Already Included on a Tax Return<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">This
could be wages such as bonuses or recruitment pay that had strings, incorrect
amounts of Social Security/Retirement, or Military pay or bonuses taken back.
This process only matters if you pay back more than $3000 in a single year.
In this case you can recoup the taxes paid.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
The amount taken back in the current year<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
The total amount paid back in prior years<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
The tax return for the year the pay was originally received.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 48;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Paid
for Jury Duty<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">The
total amount received for Jury duty<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 49;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Received
a Bonus or Referral Fee<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">They
should provide a 1099MISC Form which your Tax pro will need<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 50;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Received
Lawsuit Settlement or Judgement (consider having your tax pro and lawyer talk
before finalizing a settlement to get the best tax advantage possible)<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
1099MISC or total amount received<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
The settlement documents<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
A breakdown of what the settlement payment covered (lost pay, pain and
suffering, medical expenses etc.)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">*How
much of a lawsuit payment is taxable depends on a variety of factors so the
more details you and your lawyer can provide, the better.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 51;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Made
Money from a Hobby<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Total
received – there are no deductions. Talk to your Tax Pro about making it a
business if possible<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 52;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Get
Insurance from the ACA Marketplace<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">You
should get a 1095A which MUST be on your taxes or the IRS will send you a
letter before you can get your refund<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 53;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Have
a Child in Daycare<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
Daycare provider statement – or:<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Amount paid to provider and provider name, address and EIN<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
If one spouse does not work provide information on job-seeking, disability or
school attendance for non-working spouse<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 54;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Have
a Nanny<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Talk
to your Tax Pro ASAP!<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 55;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Get
a 1099NEC/MISC from Venmo, Paypal or other processor<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">If
you have a business include it with those records. If not, talk to your Tax
Pro about the circumstances of the payment and work with them to ensure it is
handled in a way that will prevent issues with the IRS<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 56;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Bought
an Electric or Alternate Fuel Vehicle<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
The Make, Model and Year of the Vehicle<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
The vehicle VIN<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
Any certification of eligibility received from the dealer<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
In later years you might need a specific code or form from the dealer<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">5.
The amount the dealer kept to apply to the price of the vehicle<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 57;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Installed
Solar Panels<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Total
amount paid for system and date connected to the grid. Documents from Solar
company are helpful.<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 58;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Installed
Energy Efficient Home Improvements<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1.
Amount paid for each category of improvement (wood stove, window, door,
insulation, HVAC, water heater etc.)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
Manufacturer’s certification of qualification if received and/or specific ID
# in later years (2024)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">3.
Energy Star documents for doors and windows (or you can tell us you have
them)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">4.
Energy efficiency details for items that are not doors/windows and for which
you don’t have a manufacturers certification. SEER rating and/or efficiency
percentages<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 59;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Installed
EV Charger<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Cost
of system and date installed<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 60;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Work
as Minister or Clergy<o:p></o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Pending<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 61;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p> </o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p> </o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 62;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p> </o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p> </o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 63;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p> </o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p> </o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 64;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p> </o:p></span></p>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 278.75pt;" valign="top" width="372">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p> </o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 65;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 188.75pt;" valign="top" width="252">
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p> </o:p></span></p>
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<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p> </o:p></span></p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-54382342116625100502022-12-22T21:25:00.005-05:002022-12-22T21:25:30.343-05:00FB Reel 20221222: Tax Advice #3 - Set Up an IRS Account<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyALw73hZ5dploKYD1BLSiIvlkFQlJc-Y2bkQ2Vd_UZTRPSYWtdg0oMtd2rsgCMkyWPKr3ryMF_-oFoJMdHvAXOvVGa_4nfoTj242stHXJNQ0Im55fQ1Bdt2Hb2XYfpR8UZTQx_LtAovXEorkniw6cqSnu1IJrOxp8STMT1cP6fniM2QppklY9iyYC/s180/lores_IRS_logo_blue_PD-1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="180" data-original-width="180" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyALw73hZ5dploKYD1BLSiIvlkFQlJc-Y2bkQ2Vd_UZTRPSYWtdg0oMtd2rsgCMkyWPKr3ryMF_-oFoJMdHvAXOvVGa_4nfoTj242stHXJNQ0Im55fQ1Bdt2Hb2XYfpR8UZTQx_LtAovXEorkniw6cqSnu1IJrOxp8STMT1cP6fniM2QppklY9iyYC/s1600/lores_IRS_logo_blue_PD-1.jpg" width="180" /></a></div>So you can do a lot with an IRS Account and, based on how terrible they are with any non online system, this is the wave of the future. In fact, if you have an IRS Account, chances are you can kinda ignore advice #1 and #2, as long as you keep access to this account up to date. Check the link below to see what the IRS says you can currently do with your account:<p></p><p><a href="https://www.irs.gov/payments/your-online-account">https://www.irs.gov/payments/your-online-account</a><br /></p><p>This is also how to create a new account. Just click the "Sign in to Your account" link on the above page, and you will see the option to create an account. You'll want to have about 15 minutes of time, a phone with a camera, your driver's license and either your Social security Card or Passport in hand. Often times this is easy and simple, but occasionally you have to do a video chat to finalize, and this can take an hour or more. BUT DO IT ANYWAY!!!</p><p>This is less about what you can do now and more about the future. This system is going to be the primary way to interact with the IRS going forward. So...</p><p>Set up an account, keep the password current, and check the account for any new information at least once a quarter. Letters from the IRS will be accessible<br /> here!</p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-21309652469147190812022-12-21T18:07:00.002-05:002022-12-21T18:07:16.606-05:00FB Reel 20221221: Tax Advice #2 - Print Your Tax Return<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCK4jPwIbPS4fWVdfZc1hYikDG4VPj6iSHzzT8dVRG6nVdbNrWGWK4nm5p2MHN2kvHafiyUPiFgy-bKAKRVQI2mmks6k0PbpnzPJTXRLPmVDKUPmQpj2Ip3dywSDmC5cEeZK1HXinAokpSFNhbfDRsK2Livq38DMTZ-xOV-sr45riNiwIiKTnnngNn/s800/save-icon-file-save-icon-disc-icon-save-icon-file-save-icon-disc-icon-vector-icon-124470157.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="800" data-original-width="800" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCK4jPwIbPS4fWVdfZc1hYikDG4VPj6iSHzzT8dVRG6nVdbNrWGWK4nm5p2MHN2kvHafiyUPiFgy-bKAKRVQI2mmks6k0PbpnzPJTXRLPmVDKUPmQpj2Ip3dywSDmC5cEeZK1HXinAokpSFNhbfDRsK2Livq38DMTZ-xOV-sr45riNiwIiKTnnngNn/w200-h200/save-icon-file-save-icon-disc-icon-save-icon-file-save-icon-disc-icon-vector-icon-124470157.jpg" width="200" /></a></div>This one seems even more obvious than #1, but it is the number one request I get outside of tax season. It's a bit more complicated than just printing a copy, so here are the details:<p></p><p>1. Print a physical copy of your tax return and every supporting document that you used. Put it in a safe place that you will always have access to, that goes with you when you move and that is secure. Keep it for at least 4 years, or, do what I do: Keep one of those standup file folder plastic boxes and put the latest one in front and take out the oldest one when it gets a little tight. Shred the oldest one.</p><p>2. Download a pdf version of your tax return from wherever or whoever you prepared it with. Save this, and a digital copy of all your supporting documents on a secure local drive, with backup and/or a secure cloud based storage owned or controlled by YOU. The idea is to ensure you always have access to a full digital copy that is not gate-keeped by some other tax prep company. If you are savvy, you can make one big file with all the documents together.</p><p>If I did your taxes I can quickly get you access to a digital copy of the return and any of the electronic documents you sent, and many other companies can to, but you shouldn't rely on this! Take control and ensure that you always have the ability to reproduce a copy of your re<br />turn at a moment's notice.</p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-90694012591266353042022-12-20T18:42:00.005-05:002022-12-20T18:46:03.312-05:00FB Reel 20221220: Tax Advice #1 - Change Your Address with the IRS<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWtE0PvXjtFJG674Ibmy_ytxEgiUf0ss1-6qcOFTLeBWYAbdHIOIJwEKugcOzY4LDsl3aC_SeYEcoyhlEO07ReItpKdDJJ6dlzgPVUFw3x9u5rJAnB85-AswYm-llN4GufvAhIdqV46ART6Pd03Q1WM09jT3jqP3eWHWNQj13i2c7i-C2pi8RlTo11/s600/depositphotos_49207185-stock-photo-set-of-vintage-paper-labels.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="572" data-original-width="600" height="191" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWtE0PvXjtFJG674Ibmy_ytxEgiUf0ss1-6qcOFTLeBWYAbdHIOIJwEKugcOzY4LDsl3aC_SeYEcoyhlEO07ReItpKdDJJ6dlzgPVUFw3x9u5rJAnB85-AswYm-llN4GufvAhIdqV46ART6Pd03Q1WM09jT3jqP3eWHWNQj13i2c7i-C2pi8RlTo11/w200-h191/depositphotos_49207185-stock-photo-set-of-vintage-paper-labels.jpg" width="200" /></a></div>This is the first of three super easy and simple pieces of Tax Advice that save you an enormous amount of potential trouble with very little effort. If people followed these three pieces of advice, they would eliminate about 75% of the issues I deal with outside of tax season.<p></p><p>This one is easy: Change your address with the IRS when you move. If the IRS thinks your tax return is wrong, they send a letter telling you what they think is wrong and giving you a chance to fix it or argue it. If you ignore the letter (which they hate) they send another where you are no longer arguing and they just want money. Ignore that one, and they start sending more threatening letters and start talking about liens and going after your paycheck or bank account. If they have the wrong address, you might as well be ignoring them. </p><p>Filing a tax return changes your address automatically, so if you move just before filing, you are already okay. If you file just before moving, feel free to use the new address on your return. Otherwise, go to <a href="https://www.irs.gov/forms-pubs/about-form-8822">HERE</a> and fill out Form 8822.</p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-39127654078973796792022-11-29T19:53:00.005-05:002022-11-29T19:55:06.720-05:00Do I Really Pay Taxes on $600 of Venmo Transactions?<p><br />You may have seen, or soon will see, lots of articles and Facebook posts warning you about the change in the way Venmo, Paypal and CashApp like systems will be taxed. I know this, because the rules were supposed to go into effect for 2021, and there were lots of scary articles on the subject back then. The change was postponed and went into affect for 2022, so NOW you need to be worried about it.</p><p>No. Not really. Okay, maybe a little...</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7Bb3ef0z_MJ5fcR8NhHMD8WKw14ME3OIrqQ4GY9hH8wJG075ySJ60IJUk3zrS2Li316LGQ7JDvZk5D-tik8CDLqKueMXOskm8fk-9p5DXQcnG6wgvJ0OpvEU_b2XATGLeuLxQdM5R5ArnXgbiMyxGTEO4nyOYR3YFPLPuX4EcXE7ERA6tfqNRJW8v/s281/download.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="179" data-original-width="281" height="255" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7Bb3ef0z_MJ5fcR8NhHMD8WKw14ME3OIrqQ4GY9hH8wJG075ySJ60IJUk3zrS2Li316LGQ7JDvZk5D-tik8CDLqKueMXOskm8fk-9p5DXQcnG6wgvJ0OpvEU_b2XATGLeuLxQdM5R5ArnXgbiMyxGTEO4nyOYR3YFPLPuX4EcXE7ERA6tfqNRJW8v/w400-h255/download.png" width="400" /></a></div>To answer the question posed by the title, the answer is, as usual, a resounding "MAYBE". For most people the answer is "NO", and that's because, despite the scary articles, nothing has changed with regard to what money transferred via Venmo, Paypal and CashApp (hereafter referred to as VPC) is taxed. All that has changed is the threshold at which VPC have to report the transactions to you, and, more importantly, the IRS. If you make ANY money running a business or selling things, it is taxable, regardless of whether you get a 1099K or not (1099K is the form that will be used to report this to you and the IRS.) Of course, most people don't report what they made unless they get a form, so for those people, this potentially DOES change the taxes they pay, but only ensuring they pay the right amount and can't dodge the taxes. I know it sucks if this applies to you, but it is just the way things are. I know lowering the number from $20,000 to $600 guarantees lots of little people get sucked in, but the reaction to that is political, and this is a TAX blog.<p></p><p>Even so, the other bit of inaccuracy that is glossed over trying to freak you out is that even if you use VPC to send or receive money, the chances are very low that you will get a 1099K unless you are running a business, or sell things through third party sales sites like Amazon, E-bay, ticket resellers or some others. You see, when you use VPC, it will ask you to identify if the transaction is a sale or business transaction. If the payer checks that it is personal, it won't count toward the $600 limit and won't be included even if your business transactions exceed the $600 and are reported. You also don't get buyer protection when you indicate it is personal - just something to be aware of.</p><p>So that leaves us with a few more questions:</p><p>1. What kind of things will I receive a 1099K for (All the below assumes you have more than $600 in transactions from an individual reporting VPC)? </p><p>Answer: If you sell things on one of the popular resale sites, sell something to an individual and they pay via a VPC and indicate it was a sale and not personal, if you resell sports or concert tickets via a website, or if you run a business and accept credit cards or VPC payments.</p><p>2. What kind of things shouldn't generate a 1099K?</p><p>Answer: Using a VPC to split the check at a restaurant, sending money to friends and family via a VPC, and any other sorts of friends/family/personal transactions that don't involve selling things.</p><p>3. How do I report this income? </p><p>Answer: That depends on the nature of the transaction and if you are running a business.</p><p>BUSINESS: If you are running a business you should already be tracking and reporting all of your income and not relying on the 1099 forms. 1099 forms are to help the IRS keep you from cheating and the main thing you should be doing with them is making sure they aren't reporting inaccurate numbers to the IRS. I say again: BUSINESSES SHOULD TRACK INCOME INDEPENDENTLY OF 1099 FORMS! This is not a business post so I'm not going into details on this. I have other posts for that and you should already be aware of those things. Check <a href="https://supertaxgenius.blogspot.com/2013/05/tax-guide-for-contractors-or-1099misc.html">HERE </a>for business info. <a href="https://supertaxgenius.blogspot.com/2013/05/real-estate-agent-tax-guide.html">HERE</a> if you are a real estate agent and <a href="https://supertaxgenius.blogspot.com/2014/03/avon-pampered-chef-party-lites-amway.html">HERE</a> if you have a Multi-Level-Marketing business. Also <a href="https://supertaxgenius.blogspot.com/2012/03/rental-property-guide-for-homeowners.html">HERE</a> if you get a 1099K associated with rental property.</p><p>HOBBY INCOME: If you do something that could be a business, but mostly for fun, it is a hobby and is reported differently. Keep in mind that a business that always loses money risks being classified as a hobby if the IRS decides to come checking. Again, beyond the scope of this post. Anyway, a 1099K received for a hobby just reports the income on Line 8i of Schedule 1 and does not get any deductions.</p><p>SELLING PERSONAL STUFF: If you get a 1099K for selling personal stuff, it is only reportable on your tax return if you sold it at a gain (sold for more than you paid for it). Anything sold at a loss technically doesn't need to be reported, BUT if you get issued a 1099K, you want to report it. It gets reported on Schedule D, with a separate section for Long Term (things you owned more than 1 year) and Short Term. You CANNOT deduct a loss on personal stuff so, effectively, everything you sold at a gain is reported on separate lines from your losses. The big thing is that you want the Gross Proceeds lines to total up to what your 1099K says. I like to report one line of 1099K Gains, with the Gross Proceeds and Basis (what you paid for the item) and another line with 1099K Loss, making Basis match the Gross Proceeds number so it doesn't generate a loss. You technically need a line for every item sold, just make sure to not generate losses. Most software will ask you to identify the type of transaction and will automatically ensure personal item losses aren't deducted. This section is the same you would use for selling concert tickets through a third party vendor. If you have a lot of transactions, you should track each one yourself to make reporting easier, or seek a professionals help -though they will need data on what you sold and what you paid for it.</p><p>SELLING THINGS YOU INVESTED IN WITH THE IDEA OF MAKING A PROFIT: </p><p>These are also reported on Schedule D just like the above, except that in this case you CAN deduct the losses and offset gains with them (or even deduct some off of your regular income if you have an overall loss). There are limits to these losses. You can't just SAY you invested in it to make a profit, especially if it doesn't pass the smell test such as selling things that would obviously not be expected to go up in value such as non-antique furniture you bought and used personally.</p><p>4. What do I do if I get a 1099K when I shouldn't have, or it has the wrong amount on it?</p><p>Again, this depends on if you are a business or not...sort of. Basically, if there are slight discrepancies on a business' 1099K, such as refunded amounts or other accounting differences, you have ways of making the adjustment directly on the business tax return. Obviously a completely wrong 1099K should be corrected by the issuer. For personal stuff, the safest way is to get the issuer to fix the 1099K. This is easier said than done sometimes, and you should track all of your efforts to get it corrected. There should be a number for both the vendor and what is called the Payment Settlement Entity on the 1099K. Contact both and keep copies or notes on all communications. The idea is that the IRS receives the 1099K and if the numbers don't match, you could end up with a letter asking for taxes. If you can't get the form corrected, the IRS says you should add a note to your return explaining the issue. Honestly I would seek a professionals help filing a tax return in this case. </p><p>The biggest mistake you can make is not reporting the 1099K. The IRS uses computers to match values from these information forms and compare them to your tax return. This is the most common cause of correspondence from the IRS and usually results in a CP2000 Letter suggesting changes to your tax return. They aren't the end of the world, but can be a pain with the IRS so far behind right now. Check <a href="https://supertaxgenius.blogspot.com/2017/01/the-dreaded-cp2000-letter-from-irs.html">HERE</a> if you get one.</p><p><br /></p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-31625630170591427752022-11-20T15:15:00.002-05:002022-11-20T15:15:31.478-05:00About that Big Raise for Social Security...<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjJV3BzBIn06109HXzpukvA5QCtSn4B5bWrK-bciUKHzjQojzckfcY1kKIUyOPQNKvyg_4bg7IfayAjAIlP7eLM2g5QghV7fL_zYJ8vDHn7NggyEEsODJSycW0ublzUz1H6U-HvcnnfCmEyvi4czJ71_34-rePAIqQnVWbF-SqfNOfnCTfCohetWc2/s4032/20220422_101212.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="4032" data-original-width="3024" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjJV3BzBIn06109HXzpukvA5QCtSn4B5bWrK-bciUKHzjQojzckfcY1kKIUyOPQNKvyg_4bg7IfayAjAIlP7eLM2g5QghV7fL_zYJ8vDHn7NggyEEsODJSycW0ublzUz1H6U-HvcnnfCmEyvi4czJ71_34-rePAIqQnVWbF-SqfNOfnCTfCohetWc2/s320/20220422_101212.jpg" width="240" /></a></div>So there is a big raise coming for Social Security! <p></p><p>8.7% which will be a monthly increase of $240 for the average recipient, or $2880 per year. Medicare premiums also look to go down slightly, so the net check will be increased by that as well, though that doesn't affect the taxability of Social Security. All this is on top of the nice 5.9% increase in 2021.</p><p>But of course there is a catch...and you need to be aware of it - the raise means there is a higher chance that your Social Security will be subject Federal income tax, and, if it is already subject to tax, more might now be taxed.</p><p>First some history: Until 1984, Social Security was completely tax free. Starting in 1984, up to 50% of your Social Security was subject to tax. In 1993, a formula was created that subjected as much as 85% of your Social Security check to federal taxes. The rationale for these decisions was complicated, and beyond the scope of this post. What is important was that they selected two levels of income, $32,000 for joint filers and $25,000 for other filers as the "base amount" below which Social Security would not be taxed. More on how to compare your income with that number later. The important thing is that those numbers HAVE NOT CHANGED SINCE 1993! This means that any increase in Social Security payments comes with a potential increase in taxes due, and, the bigger the increase, the bigger the tax increase.<br /></p><p>So how do they figure this crap out? First, you take half of your Social Security received for the year (before any deductions). Then you add virtually ALL other income, including tax free interest (such as from municipal bonds or mutual funds investing in them - a lot of retired persons will have some of this). If that total is above $32,000 for Married Joint Filers, or $25,000 for others, Some of your Social Security will be taxable - up to 85%. It gets there fast as well. If you file Married Filing Separately and did not live apart from your spouse the entire year, 85% of your Social Security will likely be taxable right away. As you can see, changes in income can really mess up your taxes if you are in the range where less than 85% of your Social Security is taxed. Working a separate job, selling stocks for a gain or taking more out of a retirement account all create taxable income just by their nature, but combined with their affect on Social Security, the effect is multiplied. It is important to work with a good tax advisor if you are in this situation. Paradoxically, being above the income threshold where 85% of your Social Security is already taxed adds a nice level of stability to your tax life.</p><p>Here are some examples. I'm going to give the scenario of a person or couple's tax situation in 2021, where they receive Social Security and a pension, and nothing else. I'll give taxable amounts of Social Security for 2021, then 2022 based on the Social Security raise of 8.7%, without an increase in pension, and then add in a very modest 5% increase in pension, which is probably conservative, so you can see the combined affect.</p><p>1. Single individual with Social Security of $2500/month and pension of $2500 per month in 2021. Taxable Social Security is $13,850. 2022 taxable Social Security with just the 8.7% Social Security raise: $14,959. With an additional 5% pension raise: $16,234. Keep in mind that the pension increase also increases taxable income.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFA7caVHs37mqab-x_3sVIkeF2LRgXzm5KxLUliw_u0p4FoIq-ZBx0KKW1-4ZfUihnIVbcT5-2yxRN84UpM5VefLO8kvOkA17TNrEv5FMK-SoKKcDJWYnCHu5zNFONlAqEfB0_uRMdj9EllRofyGQoYwX6E6WSgl1U_N4ApbPHxGxqmssD_asXSI1D/s4032/20180610_122113.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="4032" data-original-width="3024" height="364" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFA7caVHs37mqab-x_3sVIkeF2LRgXzm5KxLUliw_u0p4FoIq-ZBx0KKW1-4ZfUihnIVbcT5-2yxRN84UpM5VefLO8kvOkA17TNrEv5FMK-SoKKcDJWYnCHu5zNFONlAqEfB0_uRMdj9EllRofyGQoYwX6E6WSgl1U_N4ApbPHxGxqmssD_asXSI1D/w273-h364/20180610_122113.jpg" width="273" /></a></div>2. Married couple filing Jointly with combined Social Security of $4500/month and pension of $2500 per month in 2021. Taxable Social Security is $17,050. 2022 taxable Social Security with just the 8.7% Social Security raise: $19,047. With an additional 5% pension raise: $20,322. Keep in mind that the pension increase also increases taxable income.<p></p><p>3. Married couple filing Jointly with combined Social Security of $6000/month and pension of $4000 per month in 2021. Taxable Social Security is $40,000. 2022 taxable Social Security with just the 8.7% Social Security raise: $42,622. With an additional 5% pension raise: $44,702. Keep in mind that the pension increase also increases taxable income.</p><p>As you can see, the Social Security increase adds quite a bit to taxable income, but other income increases have a more dramatic affect. Again, reach out for tax advice if you are receiving Social Security and have changes in income sources.</p><p>Also note that this is just a bare bones overview of Social Security taxes. It is not intended to be definitive on the subject. Be aware that most states do not tax Social Security, but some do.<br /></p><p><br /></p><p><br /></p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-29316683317632666772022-11-19T18:15:00.004-05:002023-01-18T11:55:29.600-05:002022 Military State by State Tax Guide<p>This post is just an overview. Also, many states update
their information at the last minute, so some of this information might be out
of date at the time of posting. Use this info as a starting point with hints,
and double check with your state.</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing">I will start with some general information, and then
continue with state-by-state details. I have another book that is specifically
for military called <a href="https://amzn.to/2ljM5Ge"><span style="color: black; mso-themecolor: text1;">The Short Cheap Tax Book for the Military</span></a>. It goes into a lot more detail
on how state residency works for members and their spouses, as well as how to
handle income from multiple states and other weird situations.</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing">States with changes from the last post: LA, NM, IA, WI,
NE, UT, VA, SC, NJ</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing"><b>Military Spouses
Residency Relief Act<span class="apple-converted-space"><span style="color: #222222;"> </span></span>(MSRRA)</b></p>
<p class="MsoNoSpacing">Most states have begun to treat this in a similar manner
to each other. In general, the spouse of a service member has two choices for
state of residency: the state they are stationed in, or the military member's
state of residency. In order to claim the military members state, they must
have established a domicile in that state at some time before moving to the
current state (the requirement for establishing domicile was eliminated
starting in 2018, so, going forward, the spouse can take the military member’s
state without ever having lived there at all). For those qualified to make the
election to claim the military members state, it is important to weigh the
benefits properly, for example, a spouse who works in SC married to a military
resident of MI might assume that since MI does not tax the military member that
they should choose this state. This would be wrong because MI will tax the
non-military income of the spouse. SC is far more generous to the spouse of a
service member stationed in SC. Expert assistance may be required making this
determination. It can also be difficult to get the current state to stop
withholding from the spouse’s wages. Each state Dept of Revenue has different
procedures for handling this.</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing">Again, starting in 2018, the spouse does NOT have to
maintain the same state of residency as the service member. Many states have
not incorporated this into their instructions, and it is likely that many state
employees will not be aware of this. This is Federal LAW, and states do not
have the option of ignoring it. As a spouse, be prepared to fight for your
exemption and take action to maintain residency in the state you desire. I
highly recommend registering to vote in your state of residence.</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing">Some states are very liberal about this and some are
harder, but it is hard to deny that as long as the military member and their
spouse reside in the same state, the spouse can claim residency in the military
member’s state and the income from jobs, businesses, investments etc. of the
spouse are not taxed in the state they are stationed in and is instead taxed in
the military member’s state. If you live and/or work across the border in a
state that the military member is not stationed in, the MSRRA generally would
not apply, though some states, like South Carolina, will still allow you to use
it.</p><p class="MsoNoSpacing"><b style="mso-bidi-font-weight: normal;">Residency:<o:p></o:p></b></p>
<p class="MsoNoSpacing">A military member normally retains residency in the state
they resided in when they joined the military unless action is taken to change
this. The state on the W-2 form received from DFAS can generally be relied upon
as to the state of residence of the military member (if it’s wrong get it
corrected ASAP). The states in which a service member is stationed will not tax
the member’s military income unless they are residents. They will tax any
income earned from other employment or business activities conducted in the
state by the member and their spouses (subject to the MSRRA discussed above.)</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing">The discussions below about individual states apply
specifically to the military member’s active-duty income and not income from
side jobs or their spouse’s income.</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing"><b style="mso-bidi-font-weight: normal;">Filing
Requirements:<o:p></o:p></b></p>
<p class="MsoNoSpacing">Not having to file discussed below assumes there is no
withholding from the given state. A member may file even if not required and
should do so if they have withholding from the given state so they can get the money
back. If a member would not be required to file except for the existence of
withholding, they should adjust their state withholding through MyPay so no
taxes are withheld from that state. They may also consider stopping withholding
even if they are required to file, for states that do not tax their income (MI
for example.) Many people do not file required tax returns when there is no
refund or balance due. This could result in a letter from the state requesting
a return but rarely any penalties – but there can be!</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing"><b style="mso-bidi-font-weight: normal;">Death Benefits:<o:p></o:p></b></p>
<p class="MsoNoSpacing">Many states exclude death benefits and military pay for
service members killed in a combat zone or while on active duty. The specifics
are not discussed here. Survivors of service members killed on active duty can
obtain assistance for this from CACO personnel (A CACO representative should be
assigned to you automatically if you are the survivor of a military member who
dies on active duty.)<span class="apple-converted-space"><span style="color: #222222;"> </span></span></p>
<p class="MsoNoSpacing"><b><span style="color: #222222;">Taxation of Military Pensions:</span></b></p>
<p class="MsoNoSpacing">I have tried to include information on this for each
state, but it is even more likely to be out of date or incorrect. This
information is just a starting point.</p><p class="MsoNoSpacing"><b>Military Bonuses:</b></p>
<p class="MsoNoSpacing">Six states, as far as I can tell, have various bonuses
for serving in the military or serving in a combat zone. Most of these are
separate from a tax return. I have not had a ton of experience with them, so I
have provided links where I can find them and will let you figure them out. If
I haven’t provided a link, a quick google search normally turns them up. Most
of these are one-time only bonuses, but some, like Minnesota’s, is every month
in a combat zone. The six states are: MA, MN, OH, NH, SD and WV.</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing">States with<span class="apple-converted-space"><span style="color: #222222;"> </span></span><b style="mso-bidi-font-weight: normal;"><span style="background: white; color: black; mso-color-alt: windowtext;">Bold</span></b><span class="apple-converted-space"><span style="background: white; color: blue;"> </span></span>names either require a
tax return or other document to be filed by military residents, or a tax return
should be prepared to determine if any refundable benefits are available from
that state. <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Alabama</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Alabama treats military residents the same as all other
residents.</p><p class="MsoNoSpacing">Alabama does not tax military retirement.</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">Alaska:<o:p></o:p></p>
<p class="MsoNoSpacing">Alaska does not have an income tax. <o:p></o:p></p>
<p class="MsoNoSpacing">Alaska Permanent Funds Dividends are taxable on the
Federal Return.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">Arizona:<o:p></o:p></p>
<p class="MsoNoSpacing">Arizona does not tax active-duty military pay and does
not require filing if the only AZ source income is active duty pay.<o:p></o:p></p>
<p class="MsoNoSpacing">Arizona does not tax Reserve or National Guard Pay.<o:p></o:p></p>
<p class="MsoNoSpacing">Arizona taxes military retirement but allows a
subtraction of $2,500 from it. If both spouses receive military retirement,
they each get $2,500.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Arkansas</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Beginning in 2014, Arkansas<span class="apple-converted-space"><span style="color: #222222;"> </span></span>no
longer taxes active-duty military pay. <o:p></o:p></p>
<p class="MsoNoSpacing">A tax return is<span class="apple-converted-space"><span style="color: #222222;"> </span></span>still required.<o:p></o:p></p>
<p class="MsoNoSpacing">Arkansas does not tax military pensions.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">California:<o:p></o:p></p>
<p class="MsoNoSpacing">California does not tax military pay of CA residents
stationed outside of the state of CA. <o:p></o:p></p>
<p class="MsoNoSpacing">They do tax military income of their residents when
stationed in CA. <o:p></o:p></p>
<p class="MsoNoSpacing">They also treat military spouses generously, similar to
SC. Form 540NR is used to account for this. You write “MPA” to the left of
column A for non-resident military income and enter the military income in
column B but exclude it from column E.<o:p></o:p></p>
<p class="MsoNoSpacing">California has recently sent letters to military members
stationed out of the state saying a tax return should have been filed. These
are wrong and the back side of the letter has an easy place to respond and get
them off your back.<o:p></o:p></p>
<p class="MsoNoSpacing"><o:p> </o:p></p>
<p class="MsoNoSpacing"><b>Colorado</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Beginning in 2016, CO will not tax active military income
of military members with a home of record of Colorado IF they were a Colorado
resident who subsequently changed residency to a different state AND changed
back to CO in 2016 or later. <o:p></o:p></p>
<p class="MsoNoSpacing">Otherwise, Colorado taxes military residents the same as
other residents unless the member was stationed outside the US for >305 days
in the year. <o:p></o:p></p>
<p class="MsoNoSpacing">Colorado taxes military retirement, but let’s you
subtract the first $20,000 if you are under 65, and the first $24,000 if you
are over 65.<o:p></o:p></p>
<p class="MsoNoSpacing"><o:p> </o:p></p>
<p class="MsoNoSpacing">Connecticut:<o:p></o:p></p>
<p class="MsoNoSpacing">Connecticut allows resident military personnel stationed
outside of CT to be treated as non-residents for tax purposes. <o:p></o:p></p>
<p class="MsoNoSpacing">This can be confusing, but the point is that they are
still a resident for other purposes, just not treated that way for tax
purposes. <o:p></o:p></p>
<p class="MsoNoSpacing">In order to be treated as a non-resident they must meet
all three of the following requirements: <o:p></o:p></p>
<p class="MsoNoSpacing">1) Not maintain a permanent place of abode in CT for the
entire year (a parent’s house is not a permanent place of abode.) <o:p></o:p></p>
<p class="MsoNoSpacing">2) Maintain a permanent place of abode outside of CT for
the entire year. 3) Spend no more than 30 days in CT for any reason during the
year. <o:p></o:p></p>
<p class="MsoNoSpacing">If they meet these requirements they can file as a
non-resident and exclude any military wages from gross income and need not file
unless they have other CT source income.<o:p></o:p></p>
<p class="MsoNoSpacing">CT does not tax military retirement of residents.<o:p></o:p></p>
<p class="MsoNoSpacing">If a service member dies in a combat zone, or as a result
of injuries sustained in a combat zone, all taxes are forgiven for that year.
If the date they entered that combat zone for that period extends into a prior
year, those taxes are also forgiven (essentially, if you enter a combat zone,
don’t leave, and are killed, every tax year that made up a part of that combat
zone time is tax free to CT.)<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Delaware</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">DE taxes military residents the same as all other
residents.<o:p></o:p></p>
<p class="MsoNoSpacing">DE taxes military retirement but does have a small
exclusion that increases when you reach age 60.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Washington DC:<o:p></o:p></b></p>
<p class="MsoNoSpacing">DC taxes resident military personnel the same as all
other residents.<o:p></o:p></p>
<p class="MsoNoSpacing">DC taxes military retirement pay but does have a small
exclusion.<o:p></o:p></p>
<p class="MsoNoSpacing"><o:p> </o:p></p>
<p class="MsoNoSpacing">Florida:<o:p></o:p></p>
<p class="MsoNoSpacing">Florida does not have an income tax.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Georgia</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">GA taxes military residents the same as all other
residents however Reserves or National Guard called to active duty for more
than 90 days may be able to take a credit against their individual income tax
based on their income from the National Guard or Reserves.<o:p></o:p></p>
<p class="MsoNoSpacing">GA taxes military retirement but has a generous deduction
that kicks in at age 62 or when totally and permanently disabled.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Hawaii</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Hawaii taxes military residents the same as all other
residents except that they do not tax the first $6076 of reserve pay or HI
national guard pay.<o:p></o:p></p>
<p class="MsoNoSpacing">Hawaii does not tax military retirement<o:p></o:p></p>
<p class="MsoNoSpacing">Excluding a spouse’s income from HI taxes will generally
require a paper filed return with proof attached.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Idaho</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">ID residents stationed in ID pay taxes on all military
income; however, if the member was on active duty >120 days and stationed
outside of Idaho they can exclude any military income earned while stationed
outside of ID. <o:p></o:p></p>
<p class="MsoNoSpacing">If they are stationed outside of Idaho for the entire
year they do not need to file an ID tax return, however…<o:p></o:p></p>
<p class="MsoNoSpacing">Idaho has a Grocery Credit that a military member is
eligible for that is refundable so it is possible to get a refund from Idaho
even though there was no tax withheld. <o:p></o:p></p>
<p class="MsoNoSpacing">This makes Idaho one of the States that a military member
should file even when not required to. <o:p></o:p></p>
<p class="MsoNoSpacing">ID taxes military retirement but has a small exclusion
available once you reach 65 year’s old (62 if disabled).<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Illinois</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">IL does not tax military pay; however, the member must
file a tax return if they file a Federal return. <o:p></o:p></p>
<p class="MsoNoSpacing">Military members with children who get Federal Earned
Income Credit may get up to 20% of the Federal amount even if they have no
taxes due to IL.<o:p></o:p></p>
<p class="MsoNoSpacing">It is generally best to file separately if one spouse is
a resident subject to tax and the other is not, since a joint return requires
both spouses to file as residents.<o:p></o:p></p>
<p class="MsoNoSpacing">IL does not tax military retirement.<o:p></o:p></p>
<p class="MsoNoSpacing"><b><o:p> </o:p></b></p>
<p class="MsoNoSpacing"><b>Indiana</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Indiana taxes military income but allows a deduction of
the first $5000 of military income for the taxpayer and/or the spouse ($10000
for military couple.) <o:p></o:p></p>
<p class="MsoNoSpacing">If a military member changes state of residency to
another state they must submit the DD Form 2058 with the tax return for the
year they changed state of residency.<o:p></o:p></p>
<p class="MsoNoSpacing">IN taxes military retirement but has a subtraction amount
to reduce the amount subject to tax.<o:p></o:p></p>
<p class="MsoNoSpacing">In the year of discharge, both the military pay deduction
and the retirement deduction may be used if both types of pay are received (the
deductions cannot exceed the amount of pay received for each type of income).<o:p></o:p></p>
<p class="MsoNoSpacing">IN has a local tax which applies if the service member is
in IN as of January 1<sup>st</sup> of the tax year. If the member is stationed
outside of IN, they do not pay local taxes. <o:p></o:p></p>
<p class="MsoNoSpacing">A military spouse who is exempt from taxes due to the
Military Spouses Residency Relief Act is also exempt from local taxes, even if
working in IN.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">Iowa:<o:p></o:p></p>
<p class="MsoNoSpacing">IA does not tax military income and military income is
not used in determining filing requirements (if the only significant sources of
income are military income, a tax return is not required.) <o:p></o:p></p>
<p class="MsoNoSpacing">Starting in 2014, Iowa no longer taxes military
retirement.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Kansas</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Kansas taxes military income but allows a deduction for
recruitment, sign-up and retention bonuses paid that are included in Federal
taxable income (if the bonus was tax free to federal do not deduct it from KS. Kansas
starts with Federal AGI so it is already excluded.) <o:p></o:p></p>
<p class="MsoNoSpacing">The subtraction is made on Adjustments line A21.<o:p></o:p></p>
<p class="MsoNoSpacing">KS does not tax military retirement pay.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">Kentucky:<o:p></o:p></p>
<p class="MsoNoSpacing">KY does not tax military income and does not require a
tax return if the only KY source income is military pay.<o:p></o:p></p>
<p class="MsoNoSpacing">KY taxes military retirement but has a very large
exclusion available.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Louisiana</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Louisiana requires a tax return from military personnel
the same as any other resident…however…<o:p></o:p></p>
<p class="MsoNoSpacing">LA gives an exclusion of up to $50000 of military pay if
the person has been on active duty outside of Louisiana for at least 120 days
during the tax year. You must attach orders to the return.<o:p></o:p></p>
<p class="MsoNoSpacing">The subtraction is taken as a Schedule E subtraction,
Code 10E, by entering military pay up to $50000 on the schedule.<o:p></o:p></p>
<p class="MsoNoSpacing">LA does not tax military retirement.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">Maine:<o:p></o:p></p>
<p class="MsoNoSpacing">Maine allows resident military personnel stationed
outside of ME to be treated as non-residents for tax purposes. <o:p></o:p></p>
<p class="MsoNoSpacing">This can be confusing but the point is that they are
still a resident, just not treated that way for tax purposes. <o:p></o:p></p>
<p class="MsoNoSpacing">In order to be treated as a non-resident they must meet
all three of the following requirements: <o:p></o:p></p>
<p class="MsoNoSpacing">1) Not maintain a permanent place of abode in ME for the
entire year (a parents house is not a permanent place of abode.) <o:p></o:p></p>
<p class="MsoNoSpacing">2) Maintain a permanent place of abode outside of ME for
the entire year. <o:p></o:p></p>
<p class="MsoNoSpacing">3) Spend no more than 30 days in ME for any reason during
the year. <o:p></o:p></p>
<p class="MsoNoSpacing">If the taxpayer meets these requirements they can file as
a non-resident and exclude any military wages from gross income and need not
file unless they have other ME source income. <o:p></o:p></p>
<p class="MsoNoSpacing">Maine calls this the General Safe Harbor Rule. <o:p></o:p></p>
<p class="MsoNoSpacing">ME does not tax military retirement of the service member
who earned it.<o:p></o:p></p>
<p class="MsoNoSpacing">ME does tax military retirement received by former
spouses or any other person who did not engage in the military service that
earned the retirement. This is most common in cases of divorce.<o:p></o:p></p>
<p class="MsoNoSpacing"><o:p> </o:p></p>
<p class="MsoNoSpacing"><b>Maryland</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Maryland taxes military residents just like other
residents; however, they allow a subtraction for up to $15000 of military pay
earned outside of the U.S. (Military Overseas Income.) <o:p></o:p></p>
<p class="MsoNoSpacing">The deduction phases out dollar for dollar as ALL
military income goes above $15000 and there is no exclusion if the total
military income exceeds $30000. <o:p></o:p></p>
<p class="MsoNoSpacing">The subtraction is taken on Form 502SU and the Military
Overseas Income Worksheet is used to calculate the deduction. <o:p></o:p></p>
<p class="MsoNoSpacing">Military members are also subject to local income taxes.<o:p></o:p></p>
<p class="MsoNoSpacing">MD taxes military retirement but has a small exclusion
which can be larger depending on age, disability status and spouse’s
disability.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Massachusetts</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">There are no special tax benefits for military, however…<o:p></o:p></p>
<p class="MsoNoSpacing">The Massachusetts Dept of Veterans Affairs will give a onetime
payment of $500 to any resident after they served at least 6 months active duty
in the military. They also have a $1000 benefit for personnel who serve in Iraq
or Afghanistan. Check their website for details.<o:p></o:p></p>
<p class="MsoNoSpacing">MA does not tax military retirement.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Michigan</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Michigan requires military members to file a tax return;
however, they subtract active duty pay from income (Schedule 1, Line 11). <o:p></o:p></p>
<p class="MsoNoSpacing">Military members with children who receive Earned Income
Credit on their Federal return may collect 6% of the federal amount, even if
they pay no taxes to MI. (This was 20% for 2011 and prior years.)<o:p></o:p></p>
<p class="MsoNoSpacing">MI does not tax military retirement pay.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">Minnesota:<o:p></o:p></p>
<p class="MsoNoSpacing">Minnesota subtracts Active Duty Military pay from income
of MN residents. <o:p></o:p></p>
<p class="MsoNoSpacing">If Gross Income on Federal return other than military is
less than $10000, no MN return is required.<o:p></o:p></p>
<p class="MsoNoSpacing">Minnesota pays $120 per month a military resident spends
in a combat zone. This is paid separately from the tax return and is claimed on
Minnesota form M99. Check their website for the form.<o:p></o:p></p>
<p class="MsoNoSpacing">MN does not tax military retirement pay.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Mississippi</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Mississippi taxes military residents the same as other
residents except that they do not tax National Guard and Reserve pay up to
$15000.<o:p></o:p></p>
<p class="MsoNoSpacing">MS does not tax military retirement pay.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">Missouri:<o:p></o:p></p>
<p class="MsoNoSpacing">MO allows resident military personnel stationed outside
of MO to be treated as non-residents for tax purposes. <o:p></o:p></p>
<p class="MsoNoSpacing">This can be confusing, but the point is that they are
still a resident, just not treated that way for tax purposes. <o:p></o:p></p>
<p class="MsoNoSpacing">In order to be treated as a non-resident they must meet
all three of the following requirements: <o:p></o:p></p>
<p class="MsoNoSpacing">1) Not maintain a permanent place of abode in MO for the
entire year (a parent's house is not a permanent place of abode.) <o:p></o:p></p>
<p class="MsoNoSpacing">2) Maintain a permanent place of abode outside of MO for
the entire year. <o:p></o:p></p>
<p class="MsoNoSpacing">3) Spend no more than 30 days in MO for any reason during
the year. <o:p></o:p></p>
<p class="MsoNoSpacing">If they meet these requirements they can file as a
non-resident and exclude any military wages from gross income and need not file
unless they have other MO source income. <o:p></o:p></p>
<p class="MsoNoSpacing">If your spouse works but claims MO as your state of
residency through the MSRRA their income is taxable to MO and they must file a
tax return if they earn more than $1200. <o:p></o:p></p>
<p class="MsoNoSpacing">MO has been a pain in the you know what on this exclusion
lately.<o:p></o:p></p>
<p class="MsoNoSpacing">As of 2014, Missouri exempts 75% of military retirement
income from tax and<span class="apple-converted-space"><span style="color: #222222;"> </span></span>starting
in 2016 all military retirement income will be tax exempt.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Montana</b>: <o:p></o:p></p>
<p class="MsoNoSpacing">Montana requires military residents to file a tax return
but exempts active military pay from taxation on Schedule 2, Line 8. <o:p></o:p></p>
<p class="MsoNoSpacing">Verification of active duty status must be attached to
the return.<o:p></o:p></p>
<p class="MsoNoSpacing">Montana taxes military retirement pay.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Nebraska</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Nebraska taxes military residents just like other
residents. <o:p></o:p></p>
<p class="MsoNoSpacing">Nebraska stopped taxing military retirement in 2022 <o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">Nevada:<o:p></o:p></p>
<p class="MsoNoSpacing">Nevada does not have an income tax.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">New Hampshire:<o:p></o:p></p>
<p class="MsoNoSpacing">NH does not have an income tax but they do tax interest
and dividends. Generally, these would need to exceed $2400 for an individual
and $4800 for a couple.<o:p></o:p></p>
<p class="MsoNoSpacing">NH will pay a service member $100 if they earned the
Global War on Terrorism Expeditionary Medal or Afghanistan Campaign, or Iraq
Campaign Medal; and who was honorably discharged. Some conflicting information
on expiration, but check it out here:<o:p></o:p></p>
<p class="MsoNoSpacing"><a href="https://www.nh.gov/nhveterans/benefits/bonuses.htm"><span style="color: black; mso-themecolor: text1;">https://www.nh.gov/nhveterans/benefits/bonuses.htm</span></a><span style="color: black; mso-themecolor: text1;"> <o:p></o:p></span></p>
<p class="MsoNoSpacing"><o:p> </o:p></p>
<p class="MsoNoSpacing">New Jersey:<o:p></o:p></p>
<p class="MsoNoSpacing"><b>Update</b>: In 2020, NJ provided conflicting
instructions on if military housing and housing paid for with allowances counts
as maintaining a permanent place of abode outside NJ. The website says it
counts, but the instruction book for military says it doesn’t. The law hasn’t
changed, so I continue to count it, especially since the idea that it doesn’t
count is stupid.<o:p></o:p></p><p class="MsoNoSpacing"><b>Update to the Update</b>: NJ has changed this to now state that PCS orders, while not definitive, allow BAS paid off-base housing to be considered as a permanent home, assuming other factors don't contradict it. An example would be maintaining a NJ license, or possibly even voting. NJ takes a much more aggressive stance for these cases and want proof that you are not coming back to NJ. Base housing and barracks continue to be non-starters for non-residency.</p>
<p class="MsoNoSpacing">NJ allows resident military personnel stationed outside
of NJ to be treated as non-residents for tax purposes. <o:p></o:p></p>
<p class="MsoNoSpacing"><o:p> </o:p>This can be confusing, but the point is that they are
still a resident, just not treated that way for tax purposes.</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing">In order to be treated as a non-resident they must meet
all three of the following requirements: <o:p></o:p></p>
<p class="MsoNoSpacing">1) Not maintain a permanent place of abode in NJ for the
entire year (a parent's house is not a permanent place of abode.) <o:p></o:p></p>
<p class="MsoNoSpacing">2) Maintain a permanent place of abode outside of NJ for
the entire year. <o:p></o:p></p>
<p class="MsoNoSpacing">3) Spend no more than 30 days in NJ for any reason during
the year. <o:p></o:p></p>
<p class="MsoNoSpacing">If they meet these requirements they can file as a
non-resident and exclude any military wages from gross income and need not file
unless they have other NJ source income. (NJ does not consider barracks
maintaining a permanent place of abode outside NJ – see the update above for
more details ion what they consider a permanent place of abode – it gets
confusing and NJ has epically messed this up.)<o:p></o:p></p>
<p class="MsoNoSpacing">New Jersey just passed a $3,000 exemption for honorably
discharged Veterans which applies to tax years 2016 and beyond.<o:p></o:p></p>
<p class="MsoNoSpacing">NJ does not tax military retirement pay.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>New Mexico</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">New Mexico does not tax active-duty military pay however;
NM residents are required to file a NM return if they were required to file a
Federal return. <o:p></o:p></p>
<p class="MsoNoSpacing">NM does tax military retirement pay, but, starting in
2022 you can exclude $10,000 and this number goes up to $20,000 in 2023 and
$30,000 for 2024 through at least 2026.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">New York:<o:p></o:p></p>
<p class="MsoNoSpacing">NY allows resident military personnel stationed outside
of NY to be treated as non-residents for tax purposes. <o:p></o:p></p>
<p class="MsoNoSpacing">This can be confusing, but the point is that they are
still a resident, just not treated that way for tax purposes. <o:p></o:p></p>
<p class="MsoNoSpacing">In order to be treated as a non-resident they must meet
all three of the following requirements: <o:p></o:p></p>
<p class="MsoNoSpacing">1) Not maintain a permanent place of abode in NY for the
entire year (a parent’s house is not a permanent place of abode.) <o:p></o:p></p>
<p class="MsoNoSpacing">2) Maintain a permanent place of abode outside of NY for
the entire year. <o:p></o:p></p>
<p class="MsoNoSpacing">3) Spend no more than 30 days in NY for any reason during
the year. <o:p></o:p></p>
<p class="MsoNoSpacing">If they meet these requirements they can file as a non-resident
and exclude any military wages from gross income and need not file unless they
have other NY source income. <o:p></o:p></p>
<p class="MsoNoSpacing">NY specifically excludes barracks as an abode outside of
NY for the purpose of this rule. <o:p></o:p></p>
<p class="MsoNoSpacing">Also, if a NY return is required to be filed to get back
state taxes withheld and this exemption results in zero income (as it usually
does) the return may have to be mailed in vice electronically filed.<o:p></o:p></p>
<p class="MsoNoSpacing">NY does not tax military retirement pay.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>North Carolina</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">NC taxes military residents the same as other residents.<o:p></o:p></p>
<p class="MsoNoSpacing">NC taxes military retirement pay but does offer a small
deduction from it.<o:p></o:p></p>
<p class="MsoNoSpacing">NC also had a lawsuit many years ago that caused some
military retirement to be exempt from taxation. It is increasingly unlikely
that this will apply to most people.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>North Dakota</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">ND taxes military residents the same as other residents,
however…<o:p></o:p></p>
<p class="MsoNoSpacing">National Guard and reserve members called to active duty
can exclude their active duty pay form ND income. <o:p></o:p></p>
<p class="MsoNoSpacing">ND taxes military retirement pay.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">Ohio:<o:p></o:p></p>
<p class="MsoNoSpacing">Ohio does not tax military pay of OH residents stationed
outside of the state of OH. This applies to all local and school taxes as well,
though some will fight you on it. The law is very clear on this.<o:p></o:p></p>
<p class="MsoNoSpacing">They do tax military income of their residents when
stationed in OH. <o:p></o:p></p>
<p class="MsoNoSpacing">Ohio does not tax military<span class="apple-converted-space"><span style="color: #222222;"> </span></span>retirement
pay.<o:p></o:p></p>
<p class="MsoNoSpacing">OH will give you up to $1500 for service ($500 for any
service, $1000 for certain countries and $1500 for combat zones). Details here:<o:p></o:p></p>
<p class="MsoNoSpacing"><a href="https://veteransbonus.ohio.gov/odvs_web/"><span style="color: black; mso-themecolor: text1;">https://veteransbonus.ohio.gov/odvs_web/</span></a><span style="color: black; mso-themecolor: text1;"> <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNoSpacing"><o:p> </o:p></p>
<p class="MsoNoSpacing"><b>Oklahoma</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Oklahoma allows military members to exclude active duty
pay. <o:p></o:p></p>
<p class="MsoNoSpacing">This exclusion is accomplished using Schedule 511-C. <o:p></o:p></p>
<p class="MsoNoSpacing">Military members are required to file an OK tax return if
they were required to file a federal return.<o:p></o:p></p>
<p class="MsoNoSpacing">OK stopped taxing military retirement starting in 2022.<o:p></o:p></p>
<p class="MsoNoSpacing"><o:p> </o:p></p>
<p class="MsoNoSpacing">Oregon:<o:p></o:p></p>
<p class="MsoNoSpacing">Oregon allows a subtraction of all military pay earned
while stationed outside of OR and up to $6000 earned while stationed in Oregon
(Subtraction Code 319). <o:p></o:p></p>
<p class="MsoNoSpacing">OR also allows military residents to be treated as non-residence
if they spent less than 31 days in OR, did not have an abode in OR and had a
permanent abode outside OR the entire year.<o:p></o:p></p>
<p class="MsoNoSpacing">OR has weird rules for military retirement, but many
people should not pay taxes on it.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Pennsylvania</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Pennsylvania does not tax Active Duty Military Income of
residents stationed outside of PA and does not require a tax return; however,
they do require the service member to mail or fax a copy of their orders
stationing them outside of PA and their W-2. <o:p></o:p></p>
<p class="MsoNoSpacing">If filing a tax return a copy of the orders must be
included when mailing the return or sent separately to the address below:<o:p></o:p></p>
<p class="MsoNoSpacing">PA DEPT OF REVENUE<o:p></o:p></p>
<p class="MsoNoSpacing">NO PAYMENT OR NO REFUND<o:p></o:p></p>
<p class="MsoNoSpacing">2 REVENUE PLACE<o:p></o:p></p>
<p class="MsoNoSpacing">HARRISBURG PA 17129-0002<span class="apple-converted-space"><span style="color: #222222;"> <o:p></o:p></span></span></p>
<p class="MsoNoSpacing">They may also be faxed to: (717) 772-4193<o:p></o:p></p>
<p class="MsoNoSpacing">PA does not tax military retirement pay.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Rhode Island</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Rhode Island taxes military residents the same as other
residents.<o:p></o:p></p>
<p class="MsoNoSpacing">RI stopped taxing military retirement starting in 2022.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>South Carolina</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">SC taxes military residents just like regular residents
except that it does not tax reservist drill pay. <o:p></o:p></p>
<p class="MsoNoSpacing">SC is very generous to the spouses of military (residents
of another state) in that they allow you to exclude the active-duty income of
the non-resident military member from the calculation of what percentage of
deductions to allocate to the spouse. This generally results in 100% of the family’s
deductions against only the spouses SC income. It is very difficult to get tax
software to handle this correctly. Line 1 of the SCNR should have no active-duty
military income in the Federal column. This can also apply to an active-duty
person with a side job.<o:p></o:p></p>
<p class="MsoNoSpacing">SC stopped taxing military retirement in 2022. Prior to
this there was an ever increasing deduction amount that was subject to earned
income limits and varied based on age.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">South Dakota:<o:p></o:p></p>
<p class="MsoNoSpacing">SD does not have an income tax.<o:p></o:p></p>
<p class="MsoNoSpacing">South Dakota will give a resident $500 for active service
after 9/11/2001. Details here:<o:p></o:p></p>
<p class="MsoNoSpacing"><a href="http://vetaffairs.sd.gov/benefits/State/Veterans%20Bonus.aspx"><span style="color: black; mso-themecolor: text1;">http://vetaffairs.sd.gov/benefits/State/Veterans%20Bonus.aspx</span></a><span style="color: black; mso-themecolor: text1;"> (Link #21)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><o:p> </o:p></p>
<p class="MsoNoSpacing">Tennessee:<o:p></o:p></p>
<p class="MsoNoSpacing">TN does not have an income tax but they do tax interest
and dividends. Generally, these would need to exceed $1250 for an individual
and $2500 for a couple.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">Texas:<o:p></o:p></p>
<p class="MsoNoSpacing">Texas does not have an income tax.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Utah</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Utah taxes resident service members the same as other
residents.<o:p></o:p></p>
<p class="MsoNoSpacing">UT does not tax military retirment.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">Vermont:<o:p></o:p></p>
<p class="MsoNoSpacing">Vermont does not tax military pay of VT residents
stationed outside of the state of VT. <o:p></o:p></p>
<p class="MsoNoSpacing">They do tax military income of their residents when
stationed in VT. Military pay is subtracted on line 32. <o:p></o:p></p>
<p class="MsoNoSpacing">A tax return is not required if the only income is
military pay while stationed outside VT. <o:p></o:p></p>
<p class="MsoNoSpacing">VT taxes military retirement pay, but allows a small
exclusion for lower income taxpayers.<o:p></o:p></p>
<p class="MsoNoSpacing"><o:p> </o:p></p>
<p class="MsoNoSpacing"><b>Virginia</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Virginia taxes military residents just like other
residents except that they give a subtraction of basic military pay of up to
$15000. <o:p></o:p></p>
<p class="MsoNoSpacing">The subtraction phases out dollar for dollar as income
goes from $15000 to $30000 and is completely gone at $30000 of income. (If a
military member made less than $15000, it would all be subtracted. If they made
$20000, they get to subtract $10000.) <o:p></o:p></p>
<p class="MsoNoSpacing">The subtraction code is 38.<o:p></o:p></p>
<p class="MsoNoSpacing">VA taxes military retirement pay but allows an exclusion
of $20,000 in 2022 which increases slowly to $40,000 in 2025.<o:p></o:p></p>
<p class="MsoNoSpacing">If a spouse in VA is using the MSRRA to claim a state
other than VA, and needs to get withheld taxes back, VA uses a separate form
from their regular tax forms to claim it. Last time I used it the form had to
be mailed in.<o:p></o:p></p>
<p class="MsoNoSpacing">VA has hassled nonresident military stationed in the
state in the past for not filing tax returns. They haven’t done it lately, but
don’t assume a letter from VA is correct if you are a resident of another state.<o:p></o:p></p>
<p class="MsoNoSpacing">VA has an exclusion for military retirement for taxpayers
age 55 and older. It is $10,000 in 2022 and increases by another $10,000 each
following year until the exclusion reaches $40,000.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing">Washington:<o:p></o:p></p>
<p class="MsoNoSpacing">Washington does not have an income tax.<o:p></o:p></p>
<p class="MsoNoSpacing"> <o:p></o:p></p>
<p class="MsoNoSpacing"><b>West Virginia</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">West Virginia taxes military residents unless they spent
less than 30 days in WV. <o:p></o:p></p>
<p class="MsoNoSpacing">If they spent less than 30 days in WV they file as a
non-resident and exclude all military income. <o:p></o:p></p>
<p class="MsoNoSpacing">WV does not tax military income of reserves or national
guard called to active duty by Executive Order of the President. <o:p></o:p></p>
<p class="MsoNoSpacing">Starting in 2017, WV does not tax military retirement
pay.<o:p></o:p></p>
<p class="MsoNoSpacing">West Virginia gives $600 for service in the Afghanistan
Combat Zone and $400 for service outside. Details here:<o:p></o:p></p>
<p class="MsoNoSpacing"><a href="https://veterans.wv.gov/programs/Pages/default.aspx"><span style="color: black; mso-themecolor: text1;">https://veterans.wv.gov/programs/Pages/default.aspx</span></a><span style="color: black; mso-themecolor: text1;"> (Link #22)<o:p></o:p></span></p>
<p class="MsoNoSpacing"><o:p> </o:p></p>
<p class="MsoNoSpacing"><b>Wisconsin</b>:<o:p></o:p></p>
<p class="MsoNoSpacing">Wisconsin allows a subtraction for all military active
duty pay. <o:p></o:p></p>
<p class="MsoNoSpacing">Rent paid by the military member in a state other than WI
is allowed to be used for the School Property Tax Credit (not military
housing.) <o:p></o:p></p>
<p class="MsoNoSpacing">If a military member is stationed outside the United
States, they may take a credit of up to $300 for pay received while stationed
outside the U.S. <o:p></o:p></p>
<p class="MsoNoSpacing">Wisconsin does not tax military retirement.<o:p></o:p></p>
<p class="MsoNoSpacing"><o:p> </o:p></p>
<p class="MsoNoSpacing">Wyoming:<o:p></o:p></p>
<p class="MsoNoSpacing">WY does not have an income tax.<o:p></o:p></p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-23272132885746034032022-10-22T19:53:00.002-04:002022-11-17T18:09:13.875-05:00Quick Book Update<p><b>Quick administration note - if you were wondering about the China post that is now deleted...that was supposed to be posted on one of my other blogs: <a href="http://www.yourgovernemtnhatesyou.com">www.yourgovernemtnhatesyou.com</a></b></p><p><b><br /></b></p><p><b>Of course, as soon as I publish the IRS releases new instructions for Form 1040 that change a few things:</b></p><p>The Qualifying Widower filing status is now called Qualifying Surviving Spouse</p><p>Cryptocurrency and NFT's etc are now referred to as Digital Assets</p><p>The question on the front of the 1040 about owning crypto (digital assets) has been changed such that you only need to answer yes if you had potentially reportable transactions vice simply owning some bitcoin.</p><p><b>Errors in the book:</b></p><p>Looks like I spelled COVID wrong a few times. Missed the I and wrote COVD.</p><p>The number $4400, which is used for the Gross income Test for dependency and a few other things is EVERYWHERE in the book. Seems I missed changing one or two from $4300 to $4400, but context should ensure readers catch this.</p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-14817685410740665482022-10-21T13:25:00.000-04:002022-10-21T13:25:00.924-04:00Electric Vehicle Credits after the Inflation reduction Act<div style="margin-left: 0.5in; text-align: left; text-indent: -0.25in;"> This is one of the new chapters in my latest tax book:<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12.0pt;"><br /></span></b><o:p> <br /></o:p><b>2022 Update</b>: There were
a lot of changes made to credits for Electric Vehicles with the Inflation
Reduction Act passed in 2022. The majority of these changes either went into
effect immediately or change which cars qualify and how much you can get.
Because determining what cars qualify is so complicated, it is best simply to
reference a list available on the IRS website or ask a car dealer. You can rely
on a car dealer’s written certification that a car qualifies for the credit.<br /><o:p> <br /></o:p>The credits are “non-refundable” meaning they cannot
reduce your taxes below zero, and thus, it is important to review your tax
return or discuss with your tax pro how much credit you REALLY get. The credits
do not carryover so buying multiple cars and/or installing chargers or other
credit worthy items could cause you to miss out on all or some of the credit.<br /><o:p> <br /></o:p><b>New Vehicle Credit:<br /></b><o:p> <br /></o:p><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The credit for new electric and alternate fuel vehicles
is capped at $7500 and is based on a complex calculation using the type of
energy, where it is manufactured, where the components are sourced and a few
other things. Again, the dealer can tell you exactly how much the credit is
worth for the vehicle you want (though they cannot tell you how much will
actually be available on your tax return due to the non-refundable nature of
the credit).<br /> <span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The credit is only available if your current or prior
year Adjusted Gross Income is $300,000 or less if filing jointly, $225,000 or
less filing Head of Household and $150,000 or less for all other filing
statuses. Using prior year income allows car dealers to directly reduce the
price of the vehicle by the amount of the credit (plus a bit extra) starting in
2024.<br /> <span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->You have to provide the vehicles VIN number with your
tax return.<br /><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The credit is NON-REFUNDABLE so make sure you have the
tax liability to take advantage of it.<br /><span style="mso-list: Ignore;">5.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->Starting in 2024, your car dealer can directly reduce
the price of the vehicle by the credit amount plus an additional 6.0445
percent. At this time I’m not sure how this will work and what happens if you
don’t have the tax liability for the full credit.<br /><span style="mso-list: Ignore;">6.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->This is the IRS site where you can find information on
the credit and eventually see if a car qualifies: <a href="https://www.irs.gov/credits-deductions/individuals/plug-in-electric-drive-vehicle-credit-section-30d">https://www.irs.gov/credits-deductions/individuals/plug-in-electric-drive-vehicle-credit-section-30d<br /></a><span style="mso-list: Ignore;">7.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->There was a limit where the credit was eliminated for a
particular vehicle after 200,000 were sold. That has been eliminated in favor
of a standard based on source of materials, type of power, place of
manufacturer etc.<br /><span style="mso-list: Ignore;">8.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The vehicle must be purchased, not leased.<br /><span style="mso-list: Ignore;">9.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The vehicle must be primarily used in the United
States.<br /><o:p> <br /></o:p><b>Used Vehicle Credit<br /></b><o:p> <br /></o:p><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The credit for used electric and alternate fuel
vehicles is 30% of the sales price with a maximum credit of $4000. Again, the
dealer can tell you exactly how much the credit is worth for the vehicle you
want (though they cannot tell you how much will actually be available on your
tax return due to the non-refundable nature of the credit).<br /> <span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The credit is only available if your current or prior
year Adjusted Gross Income is $150,000 or less if filing jointly, $112,500 or
less filing Head of Household and $75,000 or less for all other filing
statuses. Using prior year income allows car dealers to directly reduce the
price of the vehicle by the amount of the credit (plus a bit extra) starting in
2024.<br /> <span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->You have to provide the vehicles VIN number with your
tax return.<br /><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The credit is NON-REFUNDABLE so make sure you have the
tax liability to take advantage of it.<br /><span style="mso-list: Ignore;">5.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->Starting in 2024, your car dealer can directly reduce
the price of the vehicle by the credit amount plus an additional 6.0445
percent. At this time I’m not sure how this will work and what happens if you
don’t have the tax liability for the full credit.<br /><span style="mso-list: Ignore;">6.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->This is the IRS site where you can find information on
the credit and eventually see if a car qualifies: <a href="https://www.irs.gov/credits-deductions/individuals/plug-in-electric-drive-vehicle-credit-section-30d">https://www.irs.gov/credits-deductions/individuals/plug-in-electric-drive-vehicle-credit-section-30d<br /></a><span style="mso-list: Ignore;">7.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The car must be sold by a dealer (I am sure that some
enterprising car dealers may find a way to play intermediary on a private sale
to allow for the credit. It might be worth your time to investigate this if you
are involved in a private sale of an otherwise qualifying car. I am NOT stating
that this will be legal – I have no idea. That said, if it turns out to be a
legal loophole, taking advantage of it is a no-brainer.<br /><span style="mso-list: Ignore;">8.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->You must be the SECOND owner.<br /><span style="mso-list: Ignore;">9.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The vehicle must be 2 or more years old.<br /><span style="mso-list: Ignore;">10.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The sales price of the vehicle, before the credit, must
be less than $25,000.<br /><span style="mso-list: Ignore;">11.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The vehicle must be purchased, not leased.<br /><span style="mso-list: Ignore;">12.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The vehicle must be primarily used in the United
States.<br /><o:p> <br /></o:p><b>Car Chargers:<br /></b><o:p> <br /></o:p><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->There is a credit of up to $1000 for installing fueling
systems in your home, generally a car charger, though check with the installer.<br /><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The credit is 30% of the cost of installing.<br /><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->This credit is also non-refundable so buying an
electric vehicle and installing a charger in the same year increases the chance
that you will lose some of the credit.<br /><o:p> <br /></o:p><b>My Advice:<br /></b><o:p> <br /></o:p><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->Talk to your tax professional before you buy the
vehicle. Give them estimates for changes to your return from the prior year so
they can estimate how much of the credit you will qualify for.<br /><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->The credit is awesome but don’t let it impact your
vehicle purchase decision too much. These cars are more expensive even after
the credit so make sure you are buying this kind of car because it makes sense
in your life, and not because of the tax credit.<br /><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span><!--[endif]-->Get the proof of qualification from the dealer IN
WRITING before finalizing the sale.<br /><o:p> </o:p></div>
<p class="MsoNoSpacing"><a name="IamElectricCar"></a><o:p></o:p></p>
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Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-30461814695254549842022-10-12T10:24:00.007-04:002022-10-12T10:27:24.925-04:00Inflation Reduction Act Changes to Energy Efficiency and Production Credits for your Home<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsZ6S0xOYT42tHHrQy4tD4QvnqLS__yCjRIKGqrqysbhDvFmPGdf7n82xk1ABcUZYytJd7RRL6q1moUw9kkyYnx20XRWEOouGjHjsRvtC_fGTjmNl4ul-IG_A0KeJ_ia3-oFZyBTZPwtXsVuT6cYqeR60wEBUYjzVIAmheifM3185PpN2Kn_Wxrpru/s4288/pexels-pixabay-356036.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2820" data-original-width="4288" height="210" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsZ6S0xOYT42tHHrQy4tD4QvnqLS__yCjRIKGqrqysbhDvFmPGdf7n82xk1ABcUZYytJd7RRL6q1moUw9kkyYnx20XRWEOouGjHjsRvtC_fGTjmNl4ul-IG_A0KeJ_ia3-oFZyBTZPwtXsVuT6cYqeR60wEBUYjzVIAmheifM3185PpN2Kn_Wxrpru/s320/pexels-pixabay-356036.jpg" width="320" /></a></div><br />This post is based on early readings of the new law so might be missing a few nuances and could even be wrong in some places. It is going to have both the old and new rules. It is an almost direct copy of the new chapter on the subject in my forthcoming edition of Everyday Taxes (maybe changing the name so keep an eye out here for release date and name). Since it is so late in 2022, comparing the relative
benefits of the two years before making a decision isn’t really helpful,
though, in general, delaying to 2023 is the going to be the best idea. So I am
going to leave the 2022 information right where it was, just below this
paragraph, and then put all of 2023’s brand new information completely
separately to follow it. This way I don’t have to intermix the rules and talk
about name changes and everything else.<p></p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing"><o:p> </o:p><b>Here is the 2022 and before info:</b></p>
<p class="MsoNoSpacing"><o:p> </o:p>The two credits for energy efficient home improvements
are quite restrictive. I will cover each credit separately, but there are some
common items to consider:</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l3 level1 lfo3; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">1.<span style="font: 7pt "Times New Roman";"> </span></span>They must be for your MAIN home, the one you live at
most of the time. That home can be a house, boat, RV, fifth wheel, condo or
houseboat. <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l3 level1 lfo3; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">2.<span style="font: 7pt "Times New Roman";"> </span></span>You must own it (you can still be paying a mortgage). <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l3 level1 lfo3; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">3.<span style="font: 7pt "Times New Roman";"> </span></span>You must reduce your home's basis by the amount of the credit (this is normally the price you paid for the home plus improvements and is used to determine the gain when you sell - and a lot of other less likely things). <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l3 level1 lfo3; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">4.<span style="font: 7pt "Times New Roman";"> </span></span>Costs are considered paid when the work is complete, or
when you move back into the home if you had to leave while the work was
completed. <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l3 level1 lfo3; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">5.<span style="font: 7pt "Times New Roman";"> </span></span>Most of the time, if you are having a home constructed,
the builder will take any credits for energy efficiencies associated with the
home, especially if you are buying a tract home from one of the major builders
in a planned community. If you are having a custom house built, communicate
with your builder, and your tax professional, to ensure it is clear who is
qualified to take and who is taking any credits available.<o:p></o:p></p>
<p class="MsoNoSpacing">Here are the details on the two credits:</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing"><b>Residential Energy Efficient Property Credit:</b></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l0 level1 lfo4; text-indent: -0.25in;"><span style="mso-list: Ignore;">1.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->This is the big one, and the hard one. To get this one,
you need to have installed truly alternative energy sources as a part of your
home. Examples are solar power, wind, geothermal, fuel cell, or solar hot
water. For 2017 and beyond, only solar power projects get the credit. Work with
the installer and your tax professional to determine if you qualify and get
documentation from the installer. Taxes and government subsidies are a big part
of determining the cost effectiveness of these type of projects, so you need to
do more than just read this chapter.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l0 level1 lfo4; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">2.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->The credit was up to 30% of the qualified costs, with
each type of improvement having its own maximums. Starting in 2020 the credit
started to phase out. The percentage is 26% in 2020 through 2022, 22% in 2023,
and the credit is gone in 2024 (not really – it is now a new credit as
discussed at the beginning of the chapter). <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l0 level1 lfo4; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">3.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->This credit is available for new construction.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l0 level1 lfo4; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">4.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->If you share the house with someone other than your
spouse, you get the credit based on what you paid, and the maximum is applied
based on the percentage paid by each occupant. <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l0 level1 lfo4; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">5.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->The credit cannot reduce your taxes below zero, so it
may take many years to get full benefit from the credit. Many solar sales
companies aggressively market, or worse, make loan payments based on these
credits. Make sure you understand how, when and how much you will be getting
back on your taxes BEFORE you sign a contract or take out a loan.<o:p></o:p></p>
<p class="MsoNoSpacing"><b>Non-business Energy Property Credit:</b></p><p class="MsoNoSpacing"><b><o:p></o:p></b></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l5 level1 lfo5; text-indent: -0.25in;"><span style="mso-list: Ignore;">1.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->This is the much more common credit, so I'm going to provide
more details. <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l5 level1 lfo5; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">2.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->The Non-business Energy Property Credit is 10% of
qualifying costs, with a LIFETIME maximum credit for all costs of $500.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l5 level1 lfo5; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">3.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->The LIFETIME maximum credit for windows is $200 (this
is inclusive, not in addition to the $500 limit; if you take $200 for windows,
you only have $300 for the rest of your life for other things).<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l5 level1 lfo5; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">4.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->They are subject to AGI limitations for 2014 that were
unavailable at the time this book was being published.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l5 level1 lfo5; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">5.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->The credit is available for insulation, exterior doors,
windows, skylights and roofs that are SPECIFICALLY designed to reduce heat loss
or gain.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l5 level1 lfo5; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">6.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->It also applies to water heaters, heating systems, and
air conditioners that are near the most efficient available at the time of
installation.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l5 level1 lfo5; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">7.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->The instructions for the current year form will
identify the standards to be met, but the manufacturer or installer can also
tell you. They must provide, and you must maintain, documentation to prove that
it meets these standards. I recommend that you make the contractor or salesman
SHOW you the documentation and proof that it meets the standards. Energy Star
doesn't mean crap—these items have to be really high quality (and generally
more expensive than non-qualified items).<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l5 level1 lfo5; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">8.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->If you share the house with someone other than your
spouse, you get the credit based on what you paid, and the maximum is applied
based on the percentage paid by each occupant. <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l5 level1 lfo5; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">9.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->If you and your spouse have separate main homes, there
are extra hoops to jump through and you will need a bit of professional help to
be safe.<o:p></o:p></p>
<p class="MsoNoSpacing"><b>Here is the 2023 and later info:</b></p>
<p class="MsoNoSpacing">There are still two credits for energy efficient home
improvements, one based primarily on improving the efficiency (insulation and
more efficient systems) and the other for generating power (wind, solar,
geothermal and wood stoves). There are certain requirements you must meet to
claim either, detailed here:</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l6 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">1.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->They must be for your MAIN home, the one you live at
most of the time. <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l6 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">2.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->That home can be a house, boat, RV, fifth wheel, condo
or houseboat. <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l6 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">3.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->You must own it (you can still be paying a mortgage). <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l6 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">4.<span style="font: 7pt "Times New Roman";"> </span></span>You must reduce your home's basis by the amount of the credit (this is normally the price you paid for the home plus improvements and is used to determine the gain when you sell - and a lot of other less likely things).<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l6 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">5.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->Costs are considered paid when the work is complete, or
when you move back into the home if you had to leave while the work was
completed. <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l6 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">6.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->Most of the time, if you are having a home constructed,
the builder will take any credits for energy efficiencies associated with the
home, especially if you are buying a tract home from one of the major builders
in a planned community. If you are having a custom house built, communicate
with your builder, and your tax professional, to ensure it is clear who is
qualified to take and who is taking any credits available.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l6 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">7.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->You can generally rely on the manufacturer’s certification
that the specific energy efficient item qualifies for the credit. In later
years, there will be specific requirements and code numbers for claiming the
credit that they will provide. Their certification does NOT mean that you
qualify for the full credit based on your taxes, or that the home you installed
them in is your MAIN home as required. It just certifies that the item is
energy efficient enough or of the proper type to qualify for the credit. ALWAYS
consult a tax professional before investing large sums of money in an
improvement that you are planning to get a big credit for. Do this BEFORE
signing any contracts.<o:p></o:p></p>
<p class="MsoNoSpacing">The two credit names are pretty self-explanatory:</p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing"><b>Energy Efficient Home Improvement Credit.</b></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l2 level1 lfo2; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">1.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->Applies primarily to insulating products and energy
efficient HVAC and hot water systems.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l2 level1 lfo2; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">2.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->It is 30% of the cost of the item with some limitations
applied.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l2 level1 lfo2; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">3.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->There is a $600 per item limit and a $1200 per year total
maximum credit limit which is changed and/or modified for certain items as discussed
in further areas.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l2 level1 lfo2; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">4.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->Equipment must meet specific requirements (Energy Star
for doors, windows and insulation and specific, ever-increasing criteria for
the rest) but you can rely on the manufacturers certification that it qualifies
– SAVE THIS! In 2025 and later they must provide Qualified Product
Identification Number and you will include these with your tax return.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l2 level1 lfo2; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">5.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->An Energy Efficiency Audit has a maximum credit of
$150.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l2 level1 lfo2; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">6.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->Doors have a maximum, per door credit of $250 and a
$500 per year total limit.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l2 level1 lfo2; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">7.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->Exterior Windows and Skylights have a per year total
credit maximum of $600. <span style="mso-spacerun: yes;"> </span><o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l2 level1 lfo2; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">8.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->Heat Pump (not gas or electric) Heating, Air, and Hot
Water Systems as well as Wood or Pellet Stoves or Hot Water Heaters have a separate,
maximum credit of $2000 that does not count against the $1200 annual limit. <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Residential Clean Energy Credit:</b></p><p class="MsoNoSpacing"><o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l1 level1 lfo6; text-indent: -0.25in;"><span style="mso-list: Ignore;">1.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->This is the big one, and the hard one. To get this one,
you need to have installed truly alternative energy sources as a part of your
home. Examples are solar power, wind, geothermal, fuel cell, or solar hot
water. This also includes battery power storage technology. Work with the
installer and your tax professional to determine if you qualify and get
documentation from the installer. Taxes and government subsidies are a big part
of determining the cost effectiveness of these type of projects, so you need to
do more than just read this chapter.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l1 level1 lfo6; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">2.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->The credit is up to 30% of the qualified costs, with
each type of improvement having its own maximums. Starting in 2033 the credit
starts to phase out. The percentage is 26% in 2033 and 22% in 2034 and
theoretically expires after that. Be aware that these dates have been creeping
outward so they may be extended further into the future. Based on political
reality surrounding climate change I find it highly unlikely that an incredibly
popular credit like this, which is also an easy political point, will ever go
away.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l1 level1 lfo6; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">3.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->This credit is available for new construction.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l1 level1 lfo6; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">4.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->If you share the house with someone other than your
spouse, you get the credit based on what you paid, and the maximum is applied
based on the percentage paid by each occupant. <o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l1 level1 lfo6; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">5.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->The credit cannot reduce your taxes below zero, so it
may take many years to get full benefit from the credit. Many solar sales
companies aggressively market, or worse, make loan payments based on these
credits. Make sure you understand how, when and how much you will be getting
back on your taxes BEFORE you sign a contract or take out a loan.<o:p></o:p></p>
<p class="MsoNoSpacing"><b>My Advice:</b></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l4 level1 lfo7; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">1.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->Be aware that the Solar Credit is not refundable. This
means that it cannot reduce your taxes below zero so it may take several years
to get the full advantage of it. It is a good idea to look at your tax return
from the prior year and see what the number on Line 15 was. If everything
(except the Solar) stayed the same, this is a decent estimate for the maximum
tax benefit you would get in the first year after installing the panels, and
then you can divide your total credit by this amount to see how many years it
will take you to get the full credit.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l4 level1 lfo7; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">2.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->If you are expecting a state tax credit, make sure you
fully understand the rules. For example, South Carolina has a 25% credit, which
the sales companies LOVE because they could say you only pay 45% of the cost of
the panels. But in SC, you can only cut your taxes in half with the credit
(vice eliminating them for the Federal Credit) so it can take WAY longer to get
the full benefit. Check your state rules and make sure you FULLY understand how
you will be getting your tax credit, and how long it will take.<o:p></o:p></p>
<p class="MsoNoSpacing" style="margin-left: 0.5in; mso-list: l4 level1 lfo7; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-list: Ignore;">3.<span style="font: 7pt "Times New Roman";">
</span></span><!--[endif]-->Some states (like Massachusetts) have plans whereby you
can get paid for generating alternative energy. Generally these payments will
be taxable income but you often will not get a specific tax form from them. As
with all unusual sorts of income, contact a tax pro to be sure whether you have
to claim them.</p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-76495833748445383242022-01-24T14:34:00.003-05:002022-01-24T14:34:38.208-05:00One of the IRS' Dirty Dozen Tax Scams - Offer in Compromise Mills<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhoNVoADb9n2fYveQ7DjD88MUm_JCOghBIwcQ_Eusv8-YRX9eyhfCoDJHDk74xV0y63ZWU-a8IsFXFKPpEt_sr07EusQLwBzj-vC0Zoq5lvVUqIsWIhdmhzuM-MGJuScU7nSAgAHTJP0OTX7DXzEzolN6H_OhERtaKg50CyLiw8fT-WDJC6DinM_FcK=s299" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="168" data-original-width="299" height="168" src="https://blogger.googleusercontent.com/img/a/AVvXsEhoNVoADb9n2fYveQ7DjD88MUm_JCOghBIwcQ_Eusv8-YRX9eyhfCoDJHDk74xV0y63ZWU-a8IsFXFKPpEt_sr07EusQLwBzj-vC0Zoq5lvVUqIsWIhdmhzuM-MGJuScU7nSAgAHTJP0OTX7DXzEzolN6H_OhERtaKg50CyLiw8fT-WDJC6DinM_FcK" width="299" /></a></div>These are the guys you hear on the radio or TV advertising that they can settle your tax debts for pennies on the dollar. Many or most of these are Offer in Compromise Mills. OIC Mills overpromise and under-deliver, charging thousands of dollars to prepare an Offer in Compromise that you likely won't qualify for, or which you could do relatively easily yourself, or for much cheaper using a good local CPA or Enrolled Agent. They won't use the term "Offer in Compromise", instead they will talk about "new IRS programs" or "special programs". It's all crap.<p></p><p>An Offer in Compromise does allow you to settle your tax debts for less than you owe, and they are not that difficult to apply for. The main trick is that you have to document ALL your assets, liability and income, to prove that you are unable to pay the full amount. It is a lot of work, but not overly complicated. There are a few other ways to qualify, such as if there is doubt as to what you owe, but these are again best handled using a local CPA or Enrolled Agent (EA).</p><p>The VERY FIRST thing you should do if you have large tax debts and think an OIC is for you is to use the IRS' handy tool for seeing if you qualify - <a href="https://irs.treasury.gov/oic_pre_qualifier/">https://irs.treasury.gov/oic_pre_qualifier/</a>. Chances are, if you have a lot of equity in your home, money in the bank, or a well funded retirement account, you aren't going to qualify unless there is serious question as to whether the amount you owe is accurate, or you have some specific hardship that makes it reasonable to compromise. Talk to a local CPA or EA and explain your situation. Most will advise you for free or at a low cost as to whether you might qualify, and, if you do, help you prepare an offer for a few hundred dollars.</p><p>Check out the rest of the "Dirty Dozen" here: <a href="https://www.irs.gov/newsroom/irs-dirty-dozen-list-warns-people-to-watch-out-for-tax-related-scams-involving-fake-charities-ghost-preparers-and-other-schemes#oic-mills">https://www.irs.gov/newsroom/irs-dirty-dozen-list-warns-people-to-watch-out-for-tax-related-scams-involving-fake-charities-ghost-preparers-and-other-schemes#oic-mills<br /></a></p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-13496823319092068182021-12-29T17:42:00.002-05:002021-12-29T17:42:30.212-05:00Setup an IRS Account Today!!<p>I highly recommend that anyone who hasn't already done so to get an account setup with irs.gov. It has been invaluable for people struggling with the Advanced Child Tax Credit, and will become even more necessary as the IRS completely fails to service taxpayers over the phone or in person. Online is the future and setting up an account is usually pretty easy, but when it isn't, it can be a slog. You don't want to find out you lost the easy lottery when you really need access. I just spent 2 hours finishing my account setup due to some unforeseen issue with my drivers license picture. I had to upload documents and do a video conference with a nice gentleman to show all my proof. Here's how it went:</p><p>At 2:35, estimated wait time: 1 hour and 2 min</p><p>At 2:40, estimated wait time: 50 min</p><p>At 2:45, estimated wait time: 1 hour and 2 min - Son of a B!!!!!</p><p>At 2:50, estimated wait time: 40 min - Jackpot!!!</p><p>At 2:55, estimated wait time: 1 hour and 5 minutes</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEg6eOVeGmAKNSSHG5IFmPSkBLXuWzj0r3SpgP36xGpV1-vxU8i_Ahio3dfC6cig19sxCZ3xbwzgQvcqMR6LndgV_FU5MQwtjj6ZaczokM_H82DSW_0Ia2duabNISb0urP3820H3DylWGVPfbuU4_IFn1F3LbwKIftBVMyv_7sCjaUcckgMBynBUqCwc=s254" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="254" data-original-width="198" height="254" src="https://blogger.googleusercontent.com/img/a/AVvXsEg6eOVeGmAKNSSHG5IFmPSkBLXuWzj0r3SpgP36xGpV1-vxU8i_Ahio3dfC6cig19sxCZ3xbwzgQvcqMR6LndgV_FU5MQwtjj6ZaczokM_H82DSW_0Ia2duabNISb0urP3820H3DylWGVPfbuU4_IFn1F3LbwKIftBVMyv_7sCjaUcckgMBynBUqCwc" width="198" /></a></div>Anyway, over an hour and a half later, I spend 5 minutes video chatting with a pleasant dude in dreads...and I was done.<div><br /></div><div>So you can see why you might want to plan ahead.</div><div><br /></div><div>Once you have the account setup, you can view your return transcript, get federal data from W-2 forms and, most important, see where the money is going into and out of your IRS "account" which is critical when the spam hits the fan.</div><div><br /></div><div>Other things it helps with are making payments, setting up payment plans, viewing letters and notices, getting an identity protection PIN and eventually a whole ton more. </div><div><br /></div><div>Don't wait!!</div><div><br /></div><div>I think I might eventually advise everyone to get an IP PIN, but am still hesitant since sometimes people lose track of them and fixing this is a nightmare...though having an IRS account setup and verified probably helps with this too.</div><div><br /></div><div>Here's where to start: <a href="https://www.irs.gov/payments/your-online-account">https://www.irs.gov/payments/your-online-account</a><br /><p><br /></p></div>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-19365462080902544012021-12-28T10:24:00.004-05:002021-12-28T10:24:58.888-05:00Don't Forget to Report your Illegal Income!<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEimKXtwFjy1JwzGzzsxIYQepkDNCTO9WzGpyKuKDR-b_bVHZsvTqr8XwPrSN7-spsTRj67R5VNizFNv0gI-KdQV-no_je-QrjRISsT5WwYTvnXAI8W5EJxsUOZUruBNWxRGFeqlPpi8CXept_YDWaJT0NRvz2nBfKwKBr-ro7ukSpyZhybVzHGLTJ9Y=s1297" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1297" data-original-width="1080" height="640" src="https://blogger.googleusercontent.com/img/a/AVvXsEimKXtwFjy1JwzGzzsxIYQepkDNCTO9WzGpyKuKDR-b_bVHZsvTqr8XwPrSN7-spsTRj67R5VNizFNv0gI-KdQV-no_je-QrjRISsT5WwYTvnXAI8W5EJxsUOZUruBNWxRGFeqlPpi8CXept_YDWaJT0NRvz2nBfKwKBr-ro7ukSpyZhybVzHGLTJ9Y=w532-h640" width="532" /></a></div><br /> <p></p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-70361749266617705502021-12-21T10:13:00.003-05:002021-12-21T10:17:14.964-05:002021 Military State by State Tax Guide<p><b style="font-family: "times new roman", serif;">State Guidelines for Military (2021 values)</b></p>I have a LOT more good information for you in <a href="https://amzn.to/2IwG0Qy">The Short Cheap Tax Book for the Military</a>.<br /><br />The information here is subject to change as states update their information. I will update at least weekly until mid January, so please check back just before you file. The primary purpose of this is discussing the taxation of active duty pay, but I have mentioned retired pay for some states when I found the answer easily, but just because I don't mention pensions doesn't really tell you anything.<br /><br /><span style="font-size: small;">States with changes for 2020: AZ (retire pay), NE (retire pay), UT (retire pay), NJ (again).</span><br /><br /><b style="font-family: inherit;">Military Spouses Residency Relief Act</b><span> (MSRRA)</span><br /><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Most states have begun to treat this in a similar manner to each other. In general, the spouse of a service member has two choices for state of residency: the state they are stationed in, or the military member's state of residency. In order to claim the military members state, they must have established a domicile in that state at some time before moving to the current state. For those qualified to make the election to claim the military members state, it is important to weigh the benefits properly, for example, a spouse who works in SC married to a military resident of MI might assume that since MI does not tax the military member that they should choose this state. This would be wrong because MI will tax the non-military income of the spouse. SC is far more generous to the spouse of a service member stationed in SC. Expert assistance may be required making this determination. It can also be difficult to get the current state to stop withholding from the spouses wages. Each state Dept of Revenue has different procedures for handling this.</span><br /><span style="font-size: small;"><br /></span><span style="font-size: small;"><b>MAJOR UPDATE</b>: Starting in 2018, spouses do NOT have to establish residency in order to claim the service member's state of residency!</span><br /><span style="font-size: small;"><br /></span><span style="font-size: small;">An added twist to this is that some states, like Maine, New Jersey and New York, have a way for residents not living in the state to claim non-residency for tax purposes. Our best minds conclude that this would allow a military spouse claiming one of these states as their state of residency could claim non-resident status and not have to pay taxes to the state. This has not been fought or litigated to my knowledge, so it would be wise to be aware that some states might fight it. My advice is always to go the aggressive route, but see what the difference is going the other way, and be prepared if the state fights this later. I personally set aside the excess refund for three years, and then spend it :)</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;"><b>Residency</b></span></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">A military member normally retains residency in the state they resided in when they joined the military unless action is taken to change this. The W-2 can generally be relied upon as to the state of residence of the military member. The states in which a service member are stationed will not tax the members military income unless they are residents. They will tax any income earned from other employment or business activities conducted in the state by the member and their spouses (subject to the MSRRA discussed above.) The discussions below talk about the taxation of military income for residents of the respective state.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Filing Requirements</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Not having to file discussed below assumes there is no withholding from the given state. A member may file even if not required and should do so if they have withholding from the given state so they can get the money back. If a member would not be required to file except for the existence of withholding, they should adjust their state withholding through MyPay so no taxes are withheld from that state. They may also consider stopping withholding even if they are required to file, for states that do not tax their income (MI for example.) Many people do not file required tax returns when there is no refund or balance due. This could result in a letter from the state requesting a return but rarely any penalties – but there can be!</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Death Benefits</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Many states exclude death benefits and military pay for service members killed in a combat zone or while on active duty. The specifics are not discussed here. Survivors of service members killed on active duty can obtain assistance for this from CACO personnel.</span><br /><span style="font-size: small;"><br /></span><span style="font-size: small;">States with <span style="background-color: white; color: blue;">Blue </span>names either require a tax return or other document to be filed by military residents, or a tax return should be prepared to determine if any refundable benefits are available from that state. </span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Alabama</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Alabama treats military residents the same as all other residents. Alabama does not tax military retirement.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Alaska</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Alaska does not have an income tax. Alaska Permanent Funds Dividends are taxable on the Federal Return.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Arizona</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Arizona does not tax active duty military pay, and does not require filing if the only AZ source income is active duty pay. Arizona stopped taxing military retirement starting in 2021.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Arkansas</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;"><span style="font-family: inherit;">Beginning in 2014, Arkansas <span style="font-family: inherit;">no longer taxes active duty military pay</span></span>. A tax return is <span style="font-family: inherit;">still required<span style="font-family: inherit;">. Arkansas does not tax military retirement.</span></span></span></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>California</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">California does not tax military pay of CA residents stationed outside of the state of CA. They do tax military income of their residents when stationed in CA. They also treat military spouses generously, similar to SC. Form 540NR is used to account for this. You write “MPA” to the left of column A for non-resident military income and enter the military income in column B but exclude it from column E. California has been sending letters to military members who meet the requirements for not having to file a tax return claiming they are required to file them. These letters are wrong and easy to respond to. CA should know they are wrong but I guess they are desperate for money. Don't fall for it. There is a place for military to respond on the back of the response form. RESPOND!</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Colorado</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Beginning in 2016, CO will not tax active military income of military members with a home of record of Colorado IF AND ONLY IF, their home of record was Colorado when they joined, they changed to another state during service, and then changed back to CO. Otherwise, Colorado taxes military residents the same as other residents unless the member was stationed outside the US for >305 days in the year. Colorado taxes military retirement the same as other retirement, with a partial exemption that starts at age 55 and gets slightly bigger at age 65.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Connecticut</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Connecticut allows resident military personnel stationed outside of CT to be treated as non-residents for tax purposes. This can be confusing but the point is that they are still a resident, just not treated that way for tax purposes. In order to be treated as a non-resident they must meet all three of the following requirements: 1) Not maintain a permanent place of abode in CT for the entire year (a parents house is not a permanent place of abode.) 2) Maintain a permanent place of abode outside of CT for the entire year. 3) Spend no more than 30 days in CT for any reason during the year. If they meet these requirements they can file as a non-resident and exclude any military wages from gross income and need not file unless they have other CT source income.</span><br /><span style="font-size: small;">Starting in 2015, military pensions are not taxed by CT.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Delaware</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">DE taxes military residents the same as all other residents. Delaware has a small military retirement pay exemption that gets bigger at age 65.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Washington DC</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">DC taxes resident military personnel the same as all other residents.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Florida</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Florida does not have an income tax.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Georgia</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">GA taxes military residents the same as all other residents however Reserves or National Guard called to active duty for more than 90 days may be able to take a credit against their individual income tax based on their income from the National Guard or Reserves.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Hawaii</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Hawaii taxes military residents the same as all other residents except that they do not tax the first $6076 of reserve pay or HI national guard pay. Military retirement pay is not taxed in HI.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Idaho</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">ID residents stationed in ID pay taxes on all military income; however, if the member was on active duty >120 days and stationed outside of Idaho they can exclude any military income earned while stationed outside of ID. If they are stationed outside of Idaho the entire year they do not need to file an ID tax return, however Idaho has a Grocery Credit that a military member is eligible for that is refundable so it is possible to get a refund from Idaho even though their was no tax withheld. This makes Idaho one of the States that a military member should file even when not required to. Retirement is tax free when over 65 (and possibly younger under certain conditions).</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Illinois</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">IL does not tax military pay; however, the member must file a tax return if they file a Federal return. Military members with children who get Federal Earned Income Credit may get up to 18% of the Federal amount even if they have no taxes due to IL (this number varies year to year). Illinois does not tax military retirement.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Indiana</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Indiana taxes military income but allows a deduction of the first $5,000 of military income for the taxpayer and/or the spouse ($10,000 for military couple.) If a military member changes state of residency to another state they must submit the DD Form 2058 with the tax return for the year they changed state of residency. If you were active military and you and your spouse did not live in Indiana the entire year you do not owe county tax. Use "00" as your county. If your spouse remained in Indiana you BOTH owe county tax to the county he/she lives in. Don't try to take the real estate tax deduction on property that's not in Indiana. Indiana has a small deduction for military retirement.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Iowa</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;">IA does not tax military income and military income is not used in determining filing requirements (if the only significant sources of income are military income, a tax return is not required.) Starting in 2014<span style="font-family: inherit;">, Iowa no longer taxes military retirement.</span></span></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Kansas</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Kansas taxes military income but allows a deduction for recruitment, sign-up and retention bonuses paid that are included in Federal taxable income (if the bonus was tax free to federal do not deduct it from KS. Kansas starts with Federal AGI so it is already excluded.) The subtraction is made on Adjustments line A21. Kansas does not tax military retirement pay.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Kentucky</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">KY does not tax military income and does not require a tax return if the only KY source income is military pay. Kentucky has a large retirement exclusion that varies based on age and source.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Louisiana</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Louisiana requires a tax return from military personnel the same as any other resident; however, LA gives an exclusion of up to $30000 of military pay if the person has been on active duty outside of Louisiana for at least 120 days during the tax year. The subtraction is taken as a Schedule E subtraction, Code 10E, by entering military pay up to $30000 on the schedule. </span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Maine</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Maine allows resident military personnel stationed outside of ME to be treated as non-residents for tax purposes. This can be confusing but the point is that they are still a resident, just not treated that way for tax purposes. In order to be treated as a non-resident they must meet all three of the following requirements: 1) Not maintain a permanent place of abode in ME for the entire year (a parents house is not a permanent place of abode.) 2) Maintain a permanent place of abode outside of ME for the entire year. 3) Spend no more than 30 days in ME for any reason during the year. If they meet these requirements they can file as a non-resident and exclude any military wages from gross income and need not file unless they have other ME source income. Maine calls this the General Safe Harbor Rule. Maine no longer taxes military pensions as of 2016 but only that received by the service member. Ex-spouses receiving retirement pay based on the service member's time served must pay taxes on it.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Maryland</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Maryland taxes military residents just like other residents; however, they allow a subtraction for up to $15,000 of military pay earned outside of the U.S. (Military Overseas Income.) The deduction phases out dollar for dollar as ALL military income goes above $15,000 and there is no exclusion if the total military income exceeds $30,000. The subtraction is taken on Form 502SU and the Military Overseas Income Worksheet is used to calculate the deduction. MD has county taxes you cannot avoid. If you are stationed outside of MD and married to a non MD spouse, software makes it very difficult to allocate things properly. You can exclude the non-MD income, but also need to pro-rate the deductions based on income - good luck with this - MD will catch you if you don't do it.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Massachusetts</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;">There are no special tax benefits for military, however, the Massachusetts Dept of Veterans Affairs will give a one time payment of $500 to any resident after they served at least 6 months active duty in the military. They also have a $1000 benefit for personnel who serve in Iraq or Afghanistan.<span style="color: navy;"><span lang="zxx"><u><a href="http://www.mass.gov/veterans/benefits-and-services/bonus/bonuses-only/"></a></u></span></span></span></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;"><span style="color: navy;"><span lang="zxx"><u><a href="http://www.mass.gov/veterans/benefits-and-services/bonus/bonuses-only/">http://www.mass.gov/veterans/benefits-and-services/bonus/bonuses-only/</a></u></span></span></span></span><br /><span style="font-size: small;"><span style="font-family: inherit;"><span style="color: navy;"><span lang="zxx">Massachusetts does not tax military retirement.</span></span></span></span><br /><span style="font-size: small;"><span style="font-family: inherit;"><span style="color: navy;"><span lang="zxx"><br /></span></span></span></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Michigan</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Michigan requires military members to file a tax return; however, they subtract active duty pay from income (Schedule 1, Line 11). Military members with children who receive Earned Income Credit on their Federal return may collect 6% of the federal amount, even if they pay no taxes to MI. (This was 20% for 2011 and prior years.) Michigan does not tax military retirement.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Minnesota</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Minnesota subtracts Active Duty Military pay from income of MN residents. If Gross Income on Federal return other than military is less than $10,000, no MN return is required.</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Minnesota does not tax military retirement.</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Minnesota pays $120 per month a military resident spends in a combat zone. This is paid separately from the tax return and is claimed on Minnesota form M99</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Mississippi</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Mississippi taxes military residents the same as other residents except that they do not tax National Guard and Reserve pay up to $15000. Mississippi does not tax military retirement.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Missouri</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;">MO allows resident military personnel stationed outside of MO to be treated as non-residents for tax purposes. This can be confusing but the point is that they are still a resident, just not treated that way for tax purposes. In order to be treated as a non-resident they must meet all three of the following requirements: 1) Not maintain a permanent place of abode in MO for the entire year (a parent's house is not a permanent place of abode.) 2) Maintain a permanent place of abode outside of MO for the entire year. 3) Spend no more than 30 days in MO for any reason during the year. If they meet these requirements they can file as a non-resident and exclude any military wages from gross income and need not file unless they have other MO source income. If your spouse works but claims MO as your state of residency through the MSRRA their income is taxable to MO and must file a tax return if they earn more than $1200. As of 2014, Missouri exempts 75% of military retirement income from tax and <span style="font-family: inherit;">starting in 2016 all military retirement income will be tax exempt. Starting in 2016, MO is allowing you to subtract your military pay, so you don't have to file as a non resident.</span></span></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Montana</span></b>: </span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Montana requires military residents to file a tax return but exempts active military pay from taxation on Schedule 2, Line 8. Verification of active duty status must be attached to the return. National Guard pay is tax exempt.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Nebraska</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;">Nebraska taxes military residents just like other residents. Nebraska will stop taxing military retirement starting in 2022.</span></span><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;"><br /></span></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Nevada</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Nevada does not have an income tax.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>New Hampshire</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">NH does not have an income tax but they do tax interest and dividends. Generally, these would need to exceed $2400 for an individual and $4800 for a couple. New Hampshire has a $100 bonus for military members who get the Global War on Terrorism Medal. Not sure about expiration, but details are at: <a href="https://www.nh.gov/nhveterans/benefits/bonuses.htm">https://www.nh.gov/nhveterans/benefits/bonuses.htm</a></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>New Jersey</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">2020 UPDATE: New Jersey just published a new GIT-7, which is their guide for Military Personnel and Their Families. This latest GIT directly contradicts previous guidance that a "<b>permanent home</b>" discussed below includes a house or apartment that you rent or pay for with military allowances or through the forfeiture of housing allowance (meaning base housing) this guidance basically said a permanent home was exactly what you would think it is, and just didn't include living in the barracks or on ship. The new GIT specifically says that living off base on a housing allowance or on base means you do not have a "<b>permanent home</b>" and thus remain a resident of New Jersey. Again, this directly contradicts recently updated instructions STILL PUBLISHED on the NJ website. I intend to continue following the website guidance until it is removed or revised, since the law has not changed and no technical bulletin has been issued on the subject.</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">2021 UPDATE: Once again, NJ has changed their GIT-7 and have possibly made it even more confusing. I believe their intent is to force you to use DD Form 2058 to formally change your residence, rather than allowing the exclusion discussed below. They make it clear that you have to take firm action to establish your intent to change your state of residency, including registering card, changing driver's license and registering to vote.</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">NJ allows resident military personnel stationed outside of NJ to be treated as non-residents for tax purposes. In order to be treated as a non-resident they must meet all three of the following requirements: 1) Not maintain a permanent place of abode in NJ for the entire year (a parent's house is not a permanent place of abode.) 2) Maintain a <b>permanent home</b> outside of NJ for the entire year. 3) Spend no more than 30 days in NJ for any reason during the year. If they meet these requirements they can file as a non-resident and exclude any military wages from gross income and need not file unless they have other NJ source income.(NJ does not consider barracks or the ship to be maintaining a permanent place of abode outside NJ)</span><br /><div class="MsoNoSpacing">New Jersey just passed a $3,000 exemption for honorably discharged Veterans which applies to tax years 2016 and beyond.<o:p></o:p><br /><br /></div></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">New Mexico</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">New Mexico does not tax active duty military pay however; NM residents are required to file a NM return if they were required to file a Federal return.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>New York</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">NY allows resident military personnel stationed outside of NY to be treated as non-residents for tax purposes. This can be confusing but the point is that they are still a resident, just not treated that way for tax purposes. In order to be treated as a non-resident they must meet all three of the following requirements: 1) Not maintain a permanent place of abode in NY for the entire year (a parents house is not a permanent place of abode.) 2) Maintain a permanent place of abode outside of NY for the entire year. 3) Spend no more than 30 days in NY for any reason during the year. If they meet these requirements they can file as a non-resident and exclude any military wages from gross income and need not file unless they have other NY source income. NY specifically excludes barracks as an abode outside of NY for the purpose of this rule. Also, if a NY return is required to be filed to get back state taxes withheld and this exemption results in zero income (as it usually does) the return may have to be mailed in vice electronically filed. NY does not tax military pensions.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">North Carolina</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">NC taxes military residents the same as other residents.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">North Dakota</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">ND taxes military residents the same as other residents, however, National Guard and reserve members called to active duty can exclude their active duty pay form ND income.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Ohio</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;">Ohio does not tax military pay of OH residents stationed outside of the state of OH. They do tax military income of their residents when stationed in OH. Ohio does not tax military <span style="font-family: inherit;">retirement pay. Ohio will give up to $1500 for military service ($500 for any service, $1000 for certain countries and $1500 for combat zones). Details here: <a href="https://veteransbonus.ohio.gov/odvs_web/">https://veteransbonus.ohio.gov/odvs_web/</a></span></span></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Oklahoma</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Oklahoma allows military members to exclude active duty pay. This exclusion is accomplished using Schedule 511-C. Military members are required to file an OK tax return if they were required to file a federal return.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Oregon</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Oregon allows a subtraction of all military pay earned while stationed outside of OR and up to $6000 earned while stationed in Oregon (Subtraction Code 319). OR also allows military residents to be treated as non residence if they spent less than 31 days in OR, did not have an abode in OR and had a permanent abode outside OR the entire year.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Pennsylvania</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Pennsylvania does not tax Active Duty Military Income of residents stationed outside of PA and does not require a tax return; however, they do require the service member to mail or fax a copy of their orders stationing them outside of PA and their W-2. If filing a tax return a copy of the orders must be included when mailing the return, or sent separately to the address below.</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">PA DEPT OF REVENUE</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">NO PAYMENT OR NO REFUND</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">2 REVENUE PLACE</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">HARRISBURG PA 17129-0002</span><br />May also be faxed to: (717) 772-4193<br />Starting in 2016, PA exempts military pay from LOCAL taxes, regardless of where you are stationed.<br /><br /></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Rhode Island</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Rhode Island taxes military residents the same as other residents.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">South Carolina</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">SC taxes military residents just like regular residents except that it does not tax reservist drill pay. SC is very generous to the spouses of military (residents of another state) in that they allow you to exclude the active duty income of the non-resident military member from the calculation of what percentage of deductions to allocate to the spouse. This generally results in 100% of the deductions against only the spouses SC income. It is very difficult to get tax software to handle this correctly. Line 1 of the SCNR should have no active duty military income in the Federal column. SC is phasing in a larger deduction for military retirees.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>South Dakota</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">SD does not have an income tax. SD will pay military members $500 for service after 9/11/2001. Details here: <a href="https://vetaffairs.sd.gov/benefits/State/Veterans%20Bonus.aspx">https://vetaffairs.sd.gov/benefits/State/Veterans%20Bonus.aspx</a></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Tennessee</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">TN does not have an income tax but they do tax interest and dividends. Generally, these would need to exceed $1250 for an individual and $2500 for a couple.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Texas</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Texas does not have an income tax.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Utah</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Utah taxes resident service members the same as other residents.</span></div><div align="left" style="margin-bottom: 0in;">Utah stopped taxing military retirement starting in 2021.<br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Vermont</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Vermont does not tax military pay of VT residents stationed outside of the state of VT. They do tax military income of their residents when stationed in VT. Military pay is subtracted on line 32. A tax return is not required if the only income is military pay while stationed outside VT. </span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;"><b><span style="color: blue;"><br /></span></b></span></span><span style="font-size: small;"><b><span style="color: blue;">Virginia</span></b>:</span><br /><span style="font-family: inherit;">Virginia taxes military residents just like other residents except that they give a subtraction of basic military pay of up to $15000. The subtraction phases out dollar for dollar as income goes from $15000 to $30000 and is completely gone at $30000 of income. (If a military member made less than $15000, it would all be subtracted. If they made $20000, they get to subtract $10000.) The subtraction code is 38.</span><br /><span style="font-family: inherit;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Washington</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Washington does not have an income tax.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">West Virginia</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">West Virginia taxes military residents unless they spent less than 30 days in WV. In this case they file as a non-resident. WV does not tax military income of reserves or national guard called to active duty by Executive Order of the President. Starting in 2017, West Virginia no longer taxes Military Retirement pay. WV gives a bonus of $400 for military service ($600 for combat zones). Details here: <a href="https://veterans.wv.gov/Pages/VeteransBonus.aspx">https://veterans.wv.gov/Pages/VeteransBonus.aspx</a></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Wisconsin</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Wisconsin taxes military residents the same as other residents except that they do not tax military pay of reserves or national guard called to active duty. Rent paid by the military member in a state other than WI is allowed to be used for the School Property Tax Credit (not military housing.) If a military member is stationed outside the United States, they may take a credit of up to $300 for pay received while stationed outside the U.S. Wisconsin does not tax military retirement.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Wyoming</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">WY does not have an income tax.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Feel free to send questions to Kirk at taxadvisor@email.com</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">I am available to prepare taxes via mail, e-mail, fax and online approval. No fees are charged until the return is complete and you are 100% satisfied. If the fees are too high, refund too low, or we determine that a cheaper filing method is appropriate, I will return all materials and charge no fees.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">I will check any individual tax return from 2017, 2018, 2019 or 2020 for free. If I find an error, I will offer to fix it for a fee if desired</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">I have made every effort to ensure the above information is 100% accurate, but I am human and the various governments love to change the rules. If you think something is wrong please inform me via e-mail at taxadvisor@email.com</span></div>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-65482594079087655812021-11-29T09:13:00.003-05:002021-11-29T09:15:18.062-05:00Everyday Tax Advice - The Best Tax Book No One Is Buying!<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://m.media-amazon.com/images/I/4141HDGUM1L.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="500" data-original-width="314" height="334" src="https://m.media-amazon.com/images/I/4141HDGUM1L.jpg" width="210" /></a></div><span style="font-size: large;"><b>It's here!!!</b></span> <p></p><p><a href="https://www.amazon.com/Everyday-Tax-Advice-2021-2022-ebook/dp/B09MJPWF8K/ref=sr_1_3?keywords=everyday+tax+advice&qid=1638194862&sr=8-3">Click Here to Buy!</a></p><p>The new and improved, same great book, new title of the best tax book that nobody buys!</p><p><span style="background-color: white; color: #0f1111; font-family: times;">Wouldn't it be nice not to have to read an entire book full of complicated rules and laws when you have a tax question?</span></p><p><span style="font-family: times;"><span style="background-color: white; color: #0f1111;">Wouldn't it be nice to have simple, easy to understand, and actionable tax advice?</span></span></p><p><span style="font-family: times;"><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">Wouldn't it be nice to be able to check the tax implications of common life events such as college, home purchase or sale, having a child, marriage etc. BEFORE it is too late to change the tax effects?</span></span></p><p><span style="font-family: times;"><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">This is the book for you!</span></span></p><p><span style="font-family: times;"><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">In the first eight chapters you will find good old fashioned advice and education that is applicable to everyone.</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">In chapters 9 through 81 you will find information based on specific life or tax events.</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">Chapters 82 through 86 summarize the most recent changes for 2020, 2021, proposed changes for 2022, and the older Trump/GOP Tax Law.</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">Also includes 3 appendices with worksheets and a sample letter to the IRS.</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">Most chapters open with information applicable to the most common family and work situations and then delve into the nitty-gritty details. They then give advice considered most important by the author and close with information specific for military.</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">A selection of chapter titles from the book:</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Owe Taxes and Can't Pay</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Want to Lower my Taxes</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Can't File by April 15th</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Getting Married</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Having (or Already Have) a Child</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">My Kid's Getting a Job</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">My Child Had (or is Having) a Child</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">My Child is Getting Married</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Getting Divorced (or Already am)</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Buying (or Already Own) a Home</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Have Medical Expenses</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Have a High Deductible Health Plan and/or HSA</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Donating to Charity</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Supporting my Parents</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Supporting a Minor Who is Not My Child</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">Someone Claimed my Child!</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">My Tax Return Got Rejected by the IRS!</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I (or my Spouse or Child) am Going to College</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Work Overseas</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Lost my Job</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Had to Move</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Sold my Home</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Sold my Rental Property</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Sold a Home that Wasn't my Primary Residence</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Get Tips at Work</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Have Investments Outside of Work</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Have (or Want to Have) Tax Sheltered Investments (IRA's)</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Want to Take Money out of my IRA or 401k</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Had Debt Written Off by the Company I Owe Money To</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Lost my House (Foreclosure, Short Sale or Bankruptcy)</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Retired (or Thinking about it)</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Receiving Social Security (or Thinking about It)</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Receiving an Annuity or Pension</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Paying on Student Loans</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Changing Jobs</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Sell Amway, Mary Kay, etc.</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I’m an Independent Contractor or I Got a Form 1099-NEC</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Drive for UBER (or other cab like business)</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am (or will be) a Real Estate Agent</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I am Renting out my Former Home</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">The IRS Called and is Threatening Me!</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">I Got a Letter from the IRS</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">The 2020 Chapter: What Should I be Double Checking?</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">The 2021 Chapter: The Big Changes!</span><br style="background-color: white; box-sizing: border-box; color: #0f1111;" /><span style="background-color: white; color: #0f1111;">The 2022 Chapter: A Brief Discussion of Proposals and Rumors</span></span></p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-28131957002299704842021-11-11T15:10:00.001-05:002021-11-11T15:12:42.115-05:00The Cryptocurrency Post<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhBd5asF-BwX5tgSUODy4hjQfOCm9kYk_5Driphl3Xwvq7xZHc3HYIDiQpx4L8G63T8ydiDJS6IVSu1tnX3Bds9HZFdvbJVmBSAMpjYvm6j1caZRNE6w33eoV2MrQOqSKhoFMgpiQQeRO8/s135/135px-Bitcoin.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="134" data-original-width="135" height="134" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhBd5asF-BwX5tgSUODy4hjQfOCm9kYk_5Driphl3Xwvq7xZHc3HYIDiQpx4L8G63T8ydiDJS6IVSu1tnX3Bds9HZFdvbJVmBSAMpjYvm6j1caZRNE6w33eoV2MrQOqSKhoFMgpiQQeRO8/s0/135px-Bitcoin.png" width="135" /></a></div>I've honestly resisted writing a cryptocurrency post for a while because I just didn't think there was much to write on the tax implications. To me, they seemed pretty common sense and no different from the law as applied to other investments. I knew there were nuances, but didn't think they warranted a post.<p></p><p>I was wrong.</p><p>Crypto confuses the crap out of people, and the new reporting requirements only confused people more. So here is the long anticipated post...</p><p>I will use "Crypto" to refer to any of the various virtual currencies and use "Bitcoin" in my examples, though they apply to any virtual currency.</p><p>First thing to know, that will help explain almost every aspect of crypto is that it is considered by the IRS to be an investment, not a currency. If, when thinking about crypto, you replace, "one bitcoin" with "one share of Exxon stock", you will usually get to the right answer. Obviously the prices don't match, but the logic applies:</p><p><b>Crypto/Stock Examples:</b></p><p>Buy a Bitcoin/buy a share of Exxon: No tax implications or reporting requirements, EXCEPT, once you own any cryptocurrency, when you file your taxes, you have to answer yes to the question on the front of the Form 1040, "At any time during 2021, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?" This question exists because crypto sales aren't currently well reported to the IRS, so they added it to ramp up the chances people will report, and to prevent you from claiming ignorance when you fail to report it.</p><p>Sell a Bitcoin/sell a share of Exxon: This is a reportable and taxable event. The difference between what you paid for the coin/share and what you sold it for is taxable. Hold it a year and a day or more, and you pay a lower tax rate (sometimes even zero). Hold it a year or less, and you pay taxes at your highest rate based on your income. This means you need to know what you paid for the bitcoin. Most big exchanges are now tracking and reporting, but, if not, you need a ledger so that you know when you bought, how much you paid, and how many coins you bought. Then, when you sell a coin, you find the price of the oldest coin you still have unsold, and use that price (this is called First In/First Out and there are other ways to track, but this is the safest and most accepted). Track your sales in the same spreadsheet or table so you don't "sell" the same coin twice. If you didn't "buy" the coin, later examples will tell you what your "Basis" is. Basis is what your investment is. When you buy something, it is the price paid. Basis is what you use for price paid when you didn't buy the coin/stock and need to calculate the difference between price paid and price sold.</p><p>Exchanging crypto for different crypto or other investments is treated as you selling one and buying another. The sale is reportable and the purchase forms your Basis in the new currency - just the way stock works.</p><p>Get paid in Bitcoin/get paid in Exxon stock: In some cases, especially with stock in the company you work for, this can get complicated, but, 90% of the time, it works like this: The value of the coin/stock when you are paid it is income just the same if paid in dollars. You report it in the same place on your 1040 that you report other income (if it was wages - it goes where W-2 wages go, if it is for your business - it goes on the business Schedule C or other business return, if it is for rent - it goes on the rental Schedule E or other return). Now that you have it, it is treated when you sell it as if you had bought it for the amount it was worth when you were paid (the amount you reported and paid taxes on.) This is your "Basis".</p><p>Buy something with Bitcoin/buy something with Exxon stock: You just sold it. Whatever it was worth at the moment you bought something with it is the price you "sold" it for. See the section on sales.</p><p>Inherit Bitcoin/Inherit Exxon stock: No current tax implications (though it is included in the Estate and can have Estate tax implications if it was a multi-million dollar estate). Your "Basis" is the value of the Bitcoin on the date of death (99% of the time) and you are considered to have held it for more than a year automatically.</p><p>Give Bitcoin to charity/give Exxon stock to charity: No taxes due even if the price has gone up by millions. Get a charitable deduction based on how long you owned it. More than a year, deduct its full value. A year or less, deduct your "Basis" or its value, whichever is lower.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJKGd99FGVqdjnrmf16gIC8N5RZyOYb5nuxnz5RFH2Mg_ay3pbBnL4vNdKATLjSU-jIhxEGWQfwrMmMldTE_f30zQNHJd8Fdi2LWwVX2rUav6JXDTTOooyOeVi3RPrPwCw08C4UGXLYaI/s330/Bitcoin_price.webp.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="181" data-original-width="330" height="176" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJKGd99FGVqdjnrmf16gIC8N5RZyOYb5nuxnz5RFH2Mg_ay3pbBnL4vNdKATLjSU-jIhxEGWQfwrMmMldTE_f30zQNHJd8Fdi2LWwVX2rUav6JXDTTOooyOeVi3RPrPwCw08C4UGXLYaI/s320/Bitcoin_price.webp.png" width="320" /></a></div><b>Other notes or differences between stock and crypto: </b><p></p><p>You can't "mine" Exxon stock, but you can mine Bitcoin. If you mine a coin, you have business income equal to its value and you can deduct your expenses for mining it.<br /></p><p>It doesn't matter that your exchange doesn't report the transaction, or that the exchange is out of the country - if it would be reportable for a share of Exxon, it is reportable for crypto.</p><p>Get help before giving crypto as a gift and after receiving it as a gift before you do anything with it.</p><p>Investing Crypto in a retirement account is complicated and generally requires a self directed IRA. Get professional help.</p><p>Hard Forks that result in you receiving new crypto is treated as an exchange and is taxable. Get expert help.</p><p>Soft Forks are never taxable events.</p><p>Transferring crypto between wallets you own is not taxable as long as you remain the sole owner.</p><p>The IRS is serious about crypto and I expect them to take a hard line on non-reporters. I don't expect a lot of penalty abatement and I expect them to apply fraud penalties liberally.</p><p>This post is over-simplified and meant to apply to the majority of situations. Also, crypto law is still developing and subject to interpretation and litigation, so it might be wrong. Consult an expert before playing with crypto. See the IRS FAQ on the subject <a href="https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions">HERE</a>.</p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0Q3GG+PQ Charleston, SC, USA32.776821 -79.923052331.848601533156106 -81.0216851125 33.70504046684389 -78.8244194875tag:blogger.com,1999:blog-6747929661464411700.post-16443221009466379632021-06-30T09:50:00.009-04:002021-11-11T15:14:38.319-05:00Advanced Child Tax Credit Update Post<p>This is the post that I will use to provide details on changes to the Advanced Child Tax Credit and the IRS Update Portal (CTCUP).</p><p>The original post, with all the details of the law is <a href="https://supertaxgenius.blogspot.com/2021/06/the-2021-child-tax-credit-and-advance.html">HERE</a>.</p><p>I will update this post as necessary and will let Facebook followers of my Everyday Taxes page know when I make changes. Please follow this blog to see my other posts.</p><p>11/10/2021 Update: You can now update your direct deposit information and expected 2021 Adjusted Gross Income on the Update Portal (link at bottom of post). You can also view your payments here. </p><p>They have added a tool for determining your eligibility for the payments and a non-filer portal to receive payments. This is mainly for people with children but no income.</p><p>8/22/2021 Update: You can now update your mailing address for checks on the Update Portal (link at bottom of this post)</p><p>7/18/2021 Update: I'm adding this because it can get confusing between the expanded Child Tax Credit where you get and EXTRA $1000 or $1600 for each child depending on their age as long as you make less than the $150,000/$112,500/$72,000 MFJ/HH/Single income limits, and the NORMAL $2000 that you get based on the old rules. The total for people making below the limits is $3000 or $3600, but $2000 of that is EXACTLY the same rules as 2020. Here's the thing: Even if you don't qualify for the extra money, you still get an advance of half of the amount you qualified for based on your 2020 (or 2019) tax return. So if you got Child Tax Credit in 2020, you WILL get six advance payments in July through December. These payments will be reconciled on your 2021 tax return, so if you didn't qualify for the extra money, and everything is the same in 2021 as in 2020, your refund will be lower by HALF of the Child Tax Credit you got (or exactly the amount of your advance payments - which is easier to figure).</p><p>7/17/21 Update: First column is month, second column is the last date to unenroll for the payment date in the 3rd column.</p><table class="table complex-table table-striped table-bordered table-responsive" style="background-color: white; border-collapse: collapse; border-spacing: 0px; border: 1px solid rgb(214, 215, 217); color: #1b1b1b; font-family: "Source Sans Pro", sans-serif; font-size: 16px; line-height: 1.5; margin-bottom: 20px; max-width: 100%; min-height: 0.01%; overflow-x: auto; width: 493px;"><tbody style="border-top: 2px solid rgb(221, 221, 221); box-sizing: border-box;"><tr style="background-color: #f3f3f3; border-bottom: 1px solid rgb(214, 215, 217); box-sizing: border-box;"><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">July</td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">6/28/2021</td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">7/15/2021</td></tr><tr style="border-bottom: 1px solid rgb(214, 215, 217); box-sizing: border-box;"><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">August</td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">8/2/2021</td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">8/13/2021</td></tr><tr style="background-color: #f3f3f3; border-bottom: 1px solid rgb(214, 215, 217); box-sizing: border-box;"><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">September</td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">8/30/2021</td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">9/15/2021</td></tr><tr style="border-bottom: 1px solid rgb(214, 215, 217); box-sizing: border-box;"><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">October</td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">10/4/2021</td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">10/15/2021</td></tr><tr style="background-color: #f3f3f3; border-bottom: 1px solid rgb(214, 215, 217); box-sizing: border-box;"><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">November</td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">11/1/2021</td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">11/15/2021</td></tr><tr style="border-bottom: 1px solid rgb(214, 215, 217); box-sizing: border-box;"><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">December</td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">11/29/2021</td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 8px; vertical-align: top;">12/15/2021</td></tr></tbody></table><p>Both spouses on a joint return must unenroll or you will still get half the payment.</p><p>7/15/21 Update:</p><p>First batch of Advance payments sent to around 35 million taxpayers. 86% by direct deposit posted on 7/15. Mailed checks will be there shortly. Payments were made to those filing a 2019 or 2020 tax return, or who used the non-filer tool before 6/28. Filings after 6/28 will be reflected on the August payment. Here is the IRS news release: <a href="https://www.irs.gov/newsroom/irs-monthly-child-tax-credit-payments-begin">https://www.irs.gov/newsroom/irs-monthly-child-tax-credit-payments-begin</a></p><p>7/5/21 Update:</p><p>The IRS CTCUP will now allow you to update your bank account information if it has changed. It is too late to make changes to the July payment, but you can make changes for the August and later payments.</p><p>6/30/21 Update:</p><p>The IRS Child Tax Credit Update Portal is now live and has options to opt out of the advanced payments, and to see the status of any payments made. It will also tell you if you are eligible to receive advance payments. Since no payments have actually been sent, the payment status provides no results right now. The opt out function does work, though we won't know for sure until the first payment isn't made. It appears that you might need to opt out at least two weeks in advance of a payment to ensure it is stopped.</p><p>The option to update bank information will not be live until August and options for changing children and income will come later.</p><p>If you don't already have an IRS account, you will need to get one by verifying your identity using id.me. It gives you options if you can't use id.me, but they appear to be difficult and clunky. The id.me process is somewhat complicated, but doable. When I attempted to do it with my phone right after it became available, it wouldn't accept my ID information - though I was at a remote location with spotty connectivity. On 6/29 I walked a client through the process using a laptop and phone live and they were able to access it, though it took two tries to get it to accept the ID picture. </p><p>The easiest way to go through the id.me process is using a cell phone with access to your email and texts. We used a picture of the driver's license that was taken, cropped and saved prior to using the process, but you can do it along the way. The process involves verifying your email, clicking text links to upload photos, and using video chat to scan your actual face. You end up clicking email or text links to new windows and then going back to previous windows. Since the process can vary a bit, I'm not going to go in to the step by step, but I can say that a GOOD ID picture is critical, and I suspect changes to facial hair from the picture might be problematic.</p><p>I am going to pass on information I receive from clients based on their experiences to provide best practices.</p><p>Here is a link to the IRS entry page for the update portal: <a href="https://www.irs.gov/credits-deductions/child-tax-credit-update-portal">IRS CTCUP</a></p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-29146142903906583652021-06-19T18:23:00.000-04:002021-06-19T18:23:04.523-04:00The 2021 Child Tax Credit and Advance Child Tax Credit<p><table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsKxZA2RCSOCXlp0xCItxR6kuAEiz0ypXp5043WfWQqBIR0HUm6l3v-ILUaeNTj7VktuamPDIwdrbAcvmOgXSzWOtc2bf6cRsYFVGvGC6IUPlg3lA0VR7txUYMrFoteiJGIXtdqlpbx4w/s2048/blogging-guide-xYaMK5p3vCA-unsplash.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1365" data-original-width="2048" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsKxZA2RCSOCXlp0xCItxR6kuAEiz0ypXp5043WfWQqBIR0HUm6l3v-ILUaeNTj7VktuamPDIwdrbAcvmOgXSzWOtc2bf6cRsYFVGvGC6IUPlg3lA0VR7txUYMrFoteiJGIXtdqlpbx4w/s320/blogging-guide-xYaMK5p3vCA-unsplash.jpg" width="320" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Photo by <a href="https://unsplash.com/@bloggingguide?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText">Blogging Guide</a> on <a href="https://unsplash.com/s/photos/children-money?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText">Unsplash</a></td></tr></tbody></table>If you have children who are 17 or younger you may soon receive Letter 6417 from the IRS detailing how much they are planning to send you in Advance of your 2021 Child Tax Credit. These payments will start arriving in July, and understanding how they are determined, and how they affect your 2021 taxes is vitally important. In the best case, you get some nice payments up front, with a potentially small impact on your 2021 refund. In the worst case, your income or child situation changes to the point where they advance you a bunch of money that you have to pay back out of your refund, or even creating a balance due. This LONG post is all about avoiding that.</p><p>First, lets cover the normal Child Tax Credit, but simplified, meaning it covers normal parent child relations and family situations. Seek help if you claim unusual children, though, if they qualified in 2020, they almost certainly qualify in 2021, even if they normally would be too old. So, if you got $2000 for a child in 2020, and nothing much has changed, they likely qualify for 2021.</p><p>Anyway, for children under the age of 17 at the beginning of the tax year, who you claim as a dependent, you got $2000 in Child Tax Credit in 2020. This amount was reduced by $50 for every $1000 you made above $400,000 (technically Adjusted Gross Income - but this is basically the total taxable amounts of income from your W-2's, businesses, and investments). If you weren't filing Married Filing Jointly, the threshold was $200,000 vice $400,000. Keep in mind the TOTAL Child Tax Credit is reduced by the $50, not $50 for each child - so more kids means your numbers drop slower and at effectively higher incomes. You could get up to $1400 of this amount even if your taxes were reduced to zero - meaning the $1400 was refundable, but you had to have earned income to get it, so parents with no income got nothing, even if the kids qualified.</p><p>Major changes to this for 2021 (and 2021 ONLY - it all goes back to normal in 2022) are that they raised the age by 1 year - to anyone under age 18. This is why kids who qualified in 2020 still qualify even if they normally would "age out". They also made the entire amount "refundable" regardless of income, so you can get the full amount even if you have no income, or your taxes reach zero. These changes apply regardless of income, so you get your $2000 as long as you meet the original income limits. Advance payments discussed below are also paid regardless of the lower income limits, but I'm waiting to talk about advance payments until the end.</p><p>The one big change that everyone will love - MORE MONEY has new income limits, but, again, even if you don't meet these lower numbers, you still get the original $2000 amount, but, if you meet the lower numbers, you get more money. The income limits are $150,000 if you are Married Filing Jointly, $112,500 if you file Head of Household and $75,000 if you file Single or Married Filing Separately. If you make above these amounts, your TOTAL Child Tax Credit (not per child) is reduced by $50 for every $1000 (or portion of $1000) you make above the limit, but not below the original $2000. The new, larger Child Tax Credit is $3600 for children 5 and under and $3000 for children 6 and older.</p><p><table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDh0BndA9myuXJxEM4ZVLQBB4Po6e1ha7vwRyH_wEkF8ABiJW5XxMU6fYhR0EBoMzPk454N3GV2loNiH5-QOTRVrR3yKjSKqiC-bIimRZH-Eni5jYiRMacEysLkSouhGCFB3kukk9MISE/s2048/jp-valery-blOLCO2K4M0-unsplash.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDh0BndA9myuXJxEM4ZVLQBB4Po6e1ha7vwRyH_wEkF8ABiJW5XxMU6fYhR0EBoMzPk454N3GV2loNiH5-QOTRVrR3yKjSKqiC-bIimRZH-Eni5jYiRMacEysLkSouhGCFB3kukk9MISE/s320/jp-valery-blOLCO2K4M0-unsplash.jpg" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Photo by <a href="https://unsplash.com/@jpvalery?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText">Jp Valery</a> on <a href="https://unsplash.com/s/photos/money?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText">Unsplash</a></td></tr></tbody></table>Everything up to this point was simple, easy, and would make everyone happy when they filed their 2021 taxes and got unexpected money. So Congress had to go and mess it all up by trying to make you happier, sooner. For most people, this will be fine. You get some money up front, with a minimal impact on your 2021 refund. If the number of kids you claim is stable or increasing, and your income is steady, life should be pretty good. If you swap kids with an ex, make a lot more money in 2021, or have other weird situations, things can get dicey.</p><p>Basically, they are going to send you HALF of your expected Child Tax Credit in advance, spread over the last 6 months of 2021. They will base this on your 2020 tax return (or 2019 if 2020 not filed - updating once they process your 2020) and possibly other sources of data that aren't specified. They will send it where they sent your 2020 (or 2019) refund - so don't throw out the card you got from H&R Block or other tax company for your refund to be put on! So, if you have a kid under 6, and your income is below the above limits, they will send you $300 a month, starting on July 15 and ending on December 15th. If they are 6 or older, it will be $250. If you are above the income limits, it "should" be $166 per month - though I'm not positive on this. Those numbers are PER CHILD.</p><p>Now here is some weird math. Even if you are the perfect candidate, within the income limits and stable kid numbers, your refund is going to go down even if your 2021 return is identical to your 2020 return. Because half the new credit is more than your old credit would be. For every kid under 6, your refund (on the exact same numbers on your 2021 return as 2020 - changes will muck this up) will go down $200. For every kid 6 or over, it will go down $500. You will still have more money than 2020, you just get some in advance! Even weirder, if you only qualify for the old credit because you make too much money, your refund goes down by $1000 - because they sent you that amount in advance.</p><p>This sounds bad, but most people still win! People under the income limit get an extra $1000 or $1600 per kid. People with 16 year olds in 2020 don't lose $1500 because their kid turned 17. People who don't make a lot of money, who ordinarily only get $1400 of Child Tax Credit because they run out of taxes to offset, get the full amount. Even better, people with kids but no "earned" income, can get Child Tax Credit for the first time! If you are one of the people with kids and no earned income - you live on social security or disability for example, you might need to take action to get your credit - either file a 2020 tax return, or use the non-filer tool at irs.gov: <a href="https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool">https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool</a> </p><p>The IRS is going to send Letter 6417 to everyone eligible for an advance VERY SOON. This will detail how much they plan to send, and what you can do if things have changed.</p><p>EVERYONE UPDATE YOUR ADDRESS WITH THE IRS!!!! Use this form: <a href="https://www.irs.gov/pub/irs-pdf/f8822.pdf">https://www.irs.gov/pub/irs-pdf/f8822.pdf</a></p><p>I cannot overemphasize the importance of updating your address, even when weird crap like this isn't going on. You need to ensure the IRS can get a hold of you!</p><p>So is the payment taxable? No. Do you have to pay it back? Sort of.</p><p>If your situation changes between 2020 and 2021, such as your income goes up, your kid situation changes, or other weirdness happens, and the IRS sends you too much Child Tax Credit, it DOES come off your 2021 tax return - usually. Basically you report what they sent you in advance - keep track, or you'll have to wait for the IRS to send you Letter 6419 in January of 2022 to get the correct numbers. Then you calculate what you deserve, and you get the difference, or pay back the excess. There is a caveat based on income for people who claim fewer kids in 2021 than 2020, but it is quite complicated. You essentially get out of trouble if your income is below $60,000 filing joint, $50,000 Head of Household, and $40,000 Single or Separate. You can get some relief above those numbers, but it is very messy.</p><p>So what do you do if you expect your situation to change?</p><p>Income increasing above the thresholds: First, use traditional retirement accounts and Health Savings Account contributions to try to get below the limits. Second, use the IRS update tool (coming soon) to either opt-out of advance payments, or update your income. Even if you opt out, you will get the full amount you are entitled to on your 2021 tax return. Initially the tool will only allow you to opt out, but updating income, number of children, and marital status will come later.</p><p>Losing kids: If they die in 2021, they still count. If someone else is claiming them, use the forthcoming update tool to either opt out of advance payments, or update your children numbers.</p><p>Gaining kids or lower income: The IRS portal will allow you to update this information to increase the amount of advance payments. It's not up yet, so no link or details.</p><p>Divorced or divorcing: This is an opportunity to work with the other spouse to ensure the kids are on the return that generates the best results. Use <a href="https://www.irs.gov/forms-pubs/about-form-8332">Form 8332</a> to allow the non custodial parent to claim the child if their income qualifies them for more money - then split it! If you are actively divorcing, make sure what happens with advances is covered in your divorce decree by working with your lawyer AND tax professional. Stimulus payments were an unanticipated MESS for divorcing couples, so try to stay ahead of it for the Advance Child Tax Credit.</p><p>MORE ADVICE:</p><p>Watch out for SCAMS! If you filed a 2019 or 2020 tax return you shouldn't have to do anything to get your money and the only communication you should receive is Letter 6417 telling you what to expect and Letter 6419 telling you what you got. Chances are any emails, texts or phone calls are SCAMS!</p><p>When in doubt - opt out. If you aren't sure what your 2021 situation will end up being, use the soon to be published tool at irs.gov to opt out, and then get what you deserve when you file in 2021.</p><p>If you don't normally file a tax return, but have children under 18 living at home, seek advice on filing a 2020 tax return, or using the non-filer app.</p><p>Prepare for a lower refund, or, if you get a very small refund and have kids, you might owe. Either opt out, or save some money.</p><p>This is a GREAT year to pump up contributions to retirement accounts and Health Savings Accounts. This post is not the only thing affected by income. Daycare is a big deal in 2021 as well. Check it out <a href="https://supertaxgenius.blogspot.com/2021/04/the-2021-daycare-credit-child-and.html">HERE</a>.</p><p>Report correct numbers on your 2021 tax return. The #1 cause for refund delays in 2020 was inaccurate reporting of stimulus payments.</p><p>Check out the IRS FAQ on the subject, and keep up to date on when the update portal comes available: <a href="https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-frequently-asked-questions">https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-frequently-asked-questions</a></p><p>Most Important - Talk to your tax dude or dudette about YOUR situation, and discuss any changes, ESPECIALLY property or investment sales that might impact your income.</p><p>Buy my books! Everyday Taxes 2021/2022 will be out in July and is indispensable for every taxpayer!</p><p>This post is over-simplified, but should work for most people. I will learn more as the payments and letters go out. There are some esoteric rules that will cause a few people not to qualify, so don't assume anything until you have talked to a qualified professional. I answer questions at taxadvisor@email.com for free (I will ask for a donation of some sort but do not require it). I also prepare taxes 100% remotely via the same email address if you are interested.</p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-90159186087096113762021-04-07T13:38:00.001-04:002021-04-07T13:39:53.451-04:00The 2021 Daycare Credit (Child and Dependent Care Credit)<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtMoYSoNrIGBXx_oc8-n0EL2mb5gF5qaSoRkmRr7pHKvsm9ks3r6JVKIS2Ln-umjp5Y0eMrnV-1dOfADZpl4xKM9V8j0HmkC39zUiUuzEnUsaJkR9CSpYG5VwZl4zoTaVTwHZP_4_AZ1c/s2048/pexels-pixabay-47090.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1365" data-original-width="2048" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtMoYSoNrIGBXx_oc8-n0EL2mb5gF5qaSoRkmRr7pHKvsm9ks3r6JVKIS2Ln-umjp5Y0eMrnV-1dOfADZpl4xKM9V8j0HmkC39zUiUuzEnUsaJkR9CSpYG5VwZl4zoTaVTwHZP_4_AZ1c/s320/pexels-pixabay-47090.jpg" width="320" /></a></div><b>This change in the latest COVID stimulus bill has not gotten enough attention.</b><p></p><p>Here's a headline: A credit that was worth, at most, $1200 for most people is now worth up to <b>$8000 </b>for a heck of a lot more people.</p><p>Do I have your attention?<br /></p><p>First, a bit about how the credit works:</p><p>For most people, you put your kid(s) in daycare so you (and your spouse) can go to work. You get a statement from the daycare and you put it on your tax return. With one kid, you get a credit for up to $3000 in expenses, with two or more kids, you get a credit on up to $6000 of expenses. A little understood fact is that if you have two or more qualifying kids, you get the $6000 limit even if it is all spent on one child. Remember a credit reduces taxes dollar for dollar, while a deduction reduces income. Credits are better.</p><p>Here are the details for the non-obvious cases:</p><p>1. People for whom expenses qualify are: children under the age of 13 (expenses apply right up to the day they turn 13), your spouse if he/she is unable to care for themselves, and anyone else who lives with you for more than half the year for whom you can claim as a dependent (unless the reason you can't is income over $4300, they file a joint return, or you could be claimed as a dependent) who cannot take care of themselves. </p><p>2. Expenses have to be for you to work, look for work or go to school full-time. They have to be connected to these requirements by time (more on that later) but in reality, the main technique for determining this is to take your earned income (wages and net business income mostly), your spouses earned income, and the daycare expenses, then take the smaller of the three. In 90% of cases, this does the trick properly.</p><p>3. If you or your spouse are a full time student, for at least 5 months of the year, you can add $250 per month ($500 if you have two or more qualifying individuals) that you were a full time student, but this is where the timing thing comes in, if you have income during a month, you use the income, or the $250/$500 number, whichever is lower.</p><p>4. If you have earned income, but your spouse is disabled, you can use the $250/$500 discussed above for each month your spouse is disabled. You can't both use the disabled trick, one of you needs earned income.</p><p>5. Technically, if you and your spouse took a 3 month vacation and paid daycare so you could enjoy it, and then went back to work and had tons of earned income, only the daycare paid while you were working counts. Short, normal work breaks for vacation or illness are okay.</p><p>6. Day-camps count for the credit, but not overnight camps. Even day camps with specific activities like sports or music. School before kindergarten counts but no schooling once kindergarten starts counts, but afterschool care does. The school should separately state expenses for school/aftercare.</p><p>7. You can't get this credit if you file Married Filing Separately.</p><p>8. Only the custodial parent can get this credit. If the child doesn't live with you half the year, you get nothing.</p><p>9. There are a lot more rules about daycare centers, who you can pay, and more. Seek professional help if your situation is not obvious. This is a broad strokes overview!</p><p>Here is the 2020 calculation:</p><p>$3000 max in expenses for one child. $6000 for two children. Get a credit for 35% of expenses if income (technically AGI) is below $15,000, then it drops quickly by 1% every $2000 of income until it hits 20% of expenses, where it stays forever. You cannot use this credit once your taxes hit zero.</p><p>Here is the 2021 calculation:</p><p>$8000 in expenses for one child. $16000 for two children. Credit of 50% of expenses if income is below $125,000, then it drops to 20% as income goes up to $185,000, where it stays until income hits $400,000, where it quickly drops to zero as income gets to $440,000. Here is the <b>BIG DEAL</b>: You can get this credit even after your taxes hit zero.</p><p>Some additional thoughts:</p><p>1. A Daycare Flexible Spending Account looks like a bad deal this year, except that it reduces AGI for other calculations. In a year where keeping income below $75,000 Single, $112,500 Head of Household and $150,000 Married Joint is a big deal for children, reducing AGI might be nice.</p><p>2. If you are close to these income limits, hammer money into your 401k and HSA if possible to get below them.</p><p>3. Divorcing couples with kids in daycare need to have a frank talk about filing jointly rather than separately. Similarly, custodial and non-custodial parents should talk about maximizing this credit by controlling who pays what expenses.</p><p>4. If you are a stay at home parent thinking about going back to school, 2021 might be the year it makes sense.</p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-28160533535338386112020-12-31T17:54:00.007-05:002021-12-21T09:58:42.626-05:002020 Military State Tax Guide<p><b style="font-family: "times new roman", serif;">State Guidelines for Military (2020 values)</b></p>I have a LOT more good information for you in <a href="https://amzn.to/2IwG0Qy">The Short Cheap Tax Book for the Military</a>.<br /><br />The information here is subject to change as states update their information. I will update at least weekly until mid January, so please check back just before you file. The primary purpose of this is discussing the taxation of active duty pay, but I have mentioned retired pay for some states when I found the answer easily, but just because I don't mention pensions doesn't really tell you anything.<br /><br /><span style="font-size: small;">States with changes for 2020: NJ (sort of)</span><br /><br /><b style="font-family: inherit;">Military Spouses Residency Relief Act</b><span> (MSRRA)</span><br /><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Most states have begun to treat this in a similar manner to each other. In general, the spouse of a service member has two choices for state of residency: the state they are stationed in, or the military member's state of residency. In order to claim the military members state, they must have established a domicile in that state at some time before moving to the current state. For those qualified to make the election to claim the military members state, it is important to weigh the benefits properly, for example, a spouse who works in SC married to a military resident of MI might assume that since MI does not tax the military member that they should choose this state. This would be wrong because MI will tax the non-military income of the spouse. SC is far more generous to the spouse of a service member stationed in SC. Expert assistance may be required making this determination. It can also be difficult to get the current state to stop withholding from the spouses wages. Each state Dept of Revenue has different procedures for handling this.</span><br /><span style="font-size: small;"><br /></span><span style="font-size: small;">MAJOR UPDATE: Starting in 2018, spouses do NOT have to establish residency in order to claim the service member's state of residency!</span><br /><span style="font-size: small;"><br /></span><span style="font-size: small;">An added twist to this is that some states, like Maine, New Jersey and New York, have a way for residents not living in the state to claim non-residency for tax purposes. Our best minds conclude that this would allow a military spouse claiming one of these states as their state of residency could claim non-resident status and not have to pay taxes to the state. This has not been fought or litigated to my knowledge, so it would be wise to be aware that some states might fight it. My advice is always to go the aggressive route, but see what the difference is going the other way, and be prepared if the state fights this later. I personally set aside the excess refund for three years, and then spend it :)</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;"><b>Residency</b></span></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">A military member normally retains residency in the state they resided in when they joined the military unless action is taken to change this. The W-2 can generally be relied upon as to the state of residence of the military member. The states in which a service member are stationed will not tax the members military income unless they are residents. They will tax any income earned from other employment or business activities conducted in the state by the member and their spouses (subject to the MSRRA discussed above.) The discussions below talk about the taxation of military income for residents of the respective state.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Filing Requirements</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Not having to file discussed below assumes there is no withholding from the given state. A member may file even if not required and should do so if they have withholding from the given state so they can get the money back. If a member would not be required to file except for the existence of withholding, they should adjust their state withholding through MyPay so no taxes are withheld from that state. They may also consider stopping withholding even if they are required to file, for states that do not tax their income (MI for example.) Many people do not file required tax returns when there is no refund or balance due. This could result in a letter from the state requesting a return but rarely any penalties – but there can be!</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Death Benefits</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Many states exclude death benefits and military pay for service members killed in a combat zone or while on active duty. The specifics are not discussed here. Survivors of service members killed on active duty can obtain assistance for this from CACO personnel.</span><br /><span style="font-size: small;"><br /></span><span style="font-size: small;">States with <span style="background-color: white; color: blue;">Blue </span>names either require a tax return or other document to be filed by military residents, or a tax return should be prepared to determine if any refundable benefits are available from that state. </span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Alabama</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Alabama treats military residents the same as all other residents. Alabama does not tax military retirement.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Alaska</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Alaska does not have an income tax. Alaska Permanent Funds Dividends are taxable on the Federal Return.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Arizona</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Arizona does not tax active duty military pay, and does not require filing if the only AZ source income is active duty pay.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Arkansas</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;"><span style="font-family: inherit;">Beginning in 2014, Arkansas <span style="font-family: inherit;">no longer taxes active duty military pay</span></span>. A tax return is <span style="font-family: inherit;">still required<span style="font-family: inherit;">.</span></span></span></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>California</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">California does not tax military pay of CA residents stationed outside of the state of CA. They do tax military income of their residents when stationed in CA. They also treat military spouses generously, similar to SC. Form 540NR is used to account for this. You write “MPA” to the left of column A for non-resident military income and enter the military income in column B but exclude it from column E. California has been sending letters to military members who meet the requirements for not having to file a tax return claiming they are required to file them. These letters are wrong and easy to respond to. CA should know they are wrong but I guess they are desperate for money. Don't fall for it. There is a place for military to respond on the back of the response form. RESPOND!</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Colorado</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Beginning in 2016, CO will not tax active military income of military members with a home of record of Colorado IF AND ONLY IF, their home of record was Colorado when they joined, they changed to another state during service, and then changed back to CO. Otherwise, Colorado taxes military residents the same as other residents unless the member was stationed outside the US for >305 days in the year. Colorado taxes military retirement the same as other retirement, with a partial exemption that starts at age 55 and gets slightly bigger at age 65.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Connecticut</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Connecticut allows resident military personnel stationed outside of CT to be treated as non-residents for tax purposes. This can be confusing but the point is that they are still a resident, just not treated that way for tax purposes. In order to be treated as a non-resident they must meet all three of the following requirements: 1) Not maintain a permanent place of abode in CT for the entire year (a parents house is not a permanent place of abode.) 2) Maintain a permanent place of abode outside of CT for the entire year. 3) Spend no more than 30 days in CT for any reason during the year. If they meet these requirements they can file as a non-resident and exclude any military wages from gross income and need not file unless they have other CT source income.</span><br /><span style="font-size: small;">Starting in 2015, military pensions are not taxed by CT.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Delaware</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">DE taxes military residents the same as all other residents. Delaware has a small military retirement pay exemption that gets bigger at age 65.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Washington DC</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">DC taxes resident military personnel the same as all other residents.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Florida</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Florida does not have an income tax.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Georgia</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">GA taxes military residents the same as all other residents however Reserves or National Guard called to active duty for more than 90 days may be able to take a credit against their individual income tax based on their income from the National Guard or Reserves.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Hawaii</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Hawaii taxes military residents the same as all other residents except that they do not tax the first $6076 of reserve pay or HI national guard pay. Military retirement pay is not taxed in HI.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Idaho</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">ID residents stationed in ID pay taxes on all military income; however, if the member was on active duty >120 days and stationed outside of Idaho they can exclude any military income earned while stationed outside of ID. If they are stationed outside of Idaho the entire year they do not need to file an ID tax return, however Idaho has a Grocery Credit that a military member is eligible for that is refundable so it is possible to get a refund from Idaho even though their was no tax withheld. This makes Idaho one of the States that a military member should file even when not required to. Retirement is tax free when over 65 (and possibly younger under certain conditions).</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Illinois</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">IL does not tax military pay; however, the member must file a tax return if they file a Federal return. Military members with children who get Federal Earned Income Credit may get up to 18% of the Federal amount even if they have no taxes due to IL (this number varies year to year). Illinois does not tax military retirement.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Indiana</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Indiana taxes military income but allows a deduction of the first $5,000 of military income for the taxpayer and/or the spouse ($10,000 for military couple.) If a military member changes state of residency to another state they must submit the DD Form 2058 with the tax return for the year they changed state of residency. If you were active military and you and your spouse did not live in Indiana the entire year you do not owe county tax. Use "00" as your county. If your spouse remained in Indiana you BOTH owe county tax to the county he/she lives in. Don't try to take the real estate tax deduction on property that's not in Indiana. Indiana has a small deduction for military retirement.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Iowa</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;">IA does not tax military income and military income is not used in determining filing requirements (if the only significant sources of income are military income, a tax return is not required.) Starting in 2014<span style="font-family: inherit;">, Iowa no longer taxes military retirement.</span></span></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Kansas</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Kansas taxes military income but allows a deduction for recruitment, sign-up and retention bonuses paid that are included in Federal taxable income (if the bonus was tax free to federal do not deduct it from KS. Kansas starts with Federal AGI so it is already excluded.) The subtraction is made on Adjustments line A21. Kansas does not tax military retirement pay.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Kentucky</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">KY does not tax military income and does not require a tax return if the only KY source income is military pay.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Louisiana</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Louisiana requires a tax return from military personnel the same as any other resident; however, LA gives an exclusion of up to $30000 of military pay if the person has been on active duty outside of Louisiana for at least 120 days during the tax year. The subtraction is taken as a Schedule E subtraction, Code 10E, by entering military pay up to $30000 on the schedule. Louisiana has a small retirement pay exclusion.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Maine</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Maine allows resident military personnel stationed outside of ME to be treated as non-residents for tax purposes. This can be confusing but the point is that they are still a resident, just not treated that way for tax purposes. In order to be treated as a non-resident they must meet all three of the following requirements: 1) Not maintain a permanent place of abode in ME for the entire year (a parents house is not a permanent place of abode.) 2) Maintain a permanent place of abode outside of ME for the entire year. 3) Spend no more than 30 days in ME for any reason during the year. If they meet these requirements they can file as a non-resident and exclude any military wages from gross income and need not file unless they have other ME source income. Maine calls this the General Safe Harbor Rule. Maine no longer taxes military pensions as of 2016 but only that received by the service member. Ex-spouses receiving retirement pay based on the service member's time served must pay taxes on it.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Maryland</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Maryland taxes military residents just like other residents; however, they allow a subtraction for up to $15,000 of military pay earned outside of the U.S. (Military Overseas Income.) The deduction phases out dollar for dollar as ALL military income goes above $15,000 and there is no exclusion if the total military income exceeds $30,000. The subtraction is taken on Form 502SU and the Military Overseas Income Worksheet is used to calculate the deduction. MD has county taxes you cannot avoid. If you are stationed outside of MD and married to a non MD spouse, software makes it very difficult to allocate things properly. You can exclude the non-MD income, but also need to pro-rate the deductions based on income - good luck with this - MD will catch you if you don't do it.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Massachusetts</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;">There are no special tax benefits for military, however, the Massachusetts Dept of Veterans Affairs will give a one time payment of $500 to any resident after they served at least 6 months active duty in the military. They also have a $1000 benefit for personnel who serve in Iraq or Afghanistan.<span style="color: navy;"><span lang="zxx"><u><a href="http://www.mass.gov/veterans/benefits-and-services/bonus/bonuses-only/"></a></u></span></span></span></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;"><span style="color: navy;"><span lang="zxx"><u><a href="http://www.mass.gov/veterans/benefits-and-services/bonus/bonuses-only/">http://www.mass.gov/veterans/benefits-and-services/bonus/bonuses-only/</a></u></span></span></span></span><br /><span style="font-size: small;"><span style="font-family: inherit;"><span style="color: navy;"><span lang="zxx">Massachusetts does not tax military retirement.</span></span></span></span><br /><span style="font-size: small;"><span style="font-family: inherit;"><span style="color: navy;"><span lang="zxx"><br /></span></span></span></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Michigan</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Michigan requires military members to file a tax return; however, they subtract active duty pay from income (Schedule 1, Line 11). Military members with children who receive Earned Income Credit on their Federal return may collect 6% of the federal amount, even if they pay no taxes to MI. (This was 20% for 2011 and prior years.) Michigan does not tax military retirement.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Minnesota</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Minnesota subtracts Active Duty Military pay from income of MN residents. If Gross Income on Federal return other than military is less than $10,000, no MN return is required.</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Minnesota pays $120 per month a military resident spends in a combat zone. This is paid separately from the tax return and is claimed on Minnesota form M99</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Mississippi</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Mississippi taxes military residents the same as other residents except that they do not tax National Guard and Reserve pay up to $15000. Mississippi does not tax military retirement.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Missouri</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;">MO allows resident military personnel stationed outside of MO to be treated as non-residents for tax purposes. This can be confusing but the point is that they are still a resident, just not treated that way for tax purposes. In order to be treated as a non-resident they must meet all three of the following requirements: 1) Not maintain a permanent place of abode in MO for the entire year (a parent's house is not a permanent place of abode.) 2) Maintain a permanent place of abode outside of MO for the entire year. 3) Spend no more than 30 days in MO for any reason during the year. If they meet these requirements they can file as a non-resident and exclude any military wages from gross income and need not file unless they have other MO source income. If your spouse works but claims MO as your state of residency through the MSRRA their income is taxable to MO and must file a tax return if they earn more than $1200. As of 2014, Missouri exempts 75% of military retirement income from tax and <span style="font-family: inherit;">starting in 2016 all military retirement income will be tax exempt. Starting in 2016, MO is allowing you to subtract your military pay, so you don't have to file as a non resident.</span></span></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Montana</span></b>: </span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Montana requires military residents to file a tax return but exempts active military pay from taxation on Schedule 2, Line 8. Verification of active duty status must be attached to the return. National Guard pay is tax exempt.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Nebraska</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;">Nebraska taxes military residents just like other residents. Nebraska has implemented an incredibly compli<span style="font-family: inherit;">cated option to exclude certain amounts of military retirement income<span style="font-family: inherit;"> for some years. It's too stupid to attempt to explain, but if you are retiring or retired from the military in Nebraska you should read this immediately:</span></span></span></span><br /><span style="font-size: small;"><a href="http://www.revenue.nebraska.gov/info/military_benefits.html">http://www.revenue.nebraska.gov/info/military_benefits.html</a> </span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Nevada</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Nevada does not have an income tax.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>New Hampshire</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">NH does not have an income tax but they do tax interest and dividends. Generally, these would need to exceed $2400 for an individual and $4800 for a couple. New Hampshire has a $100 bonus for military members who get the Global War on Terrorism Medal. Not sure about expiration, but details are at: <a href="https://www.nh.gov/nhveterans/benefits/bonuses.htm">https://www.nh.gov/nhveterans/benefits/bonuses.htm</a></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>New Jersey</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">2020 UPDATE: New Jersey just published a new GIT-7, which is their guide for Military Personnel and Their Families. This latest GIT directly contradicts previous guidance that a "<b>permanent home</b>" discussed below includes a house or apartment that you rent or pay for with military allowances or through the forfeiture of housing allowance (meaning base housing) this guidance basically said a permanent home was exactly what you would think it is, and just didn't include living in the barracks or on ship. The new GIT specifically says that living off base on a housing allowance or on base means you do not have a "<b>permanent home</b>" and thus remain a resident of New Jersey. Again, this directly contradicts recently updated instructions STILL PUBLISHED on the NJ website. I intend to continue following the website guidance until it is removed or revised, since the law has not changed and no technical bulletin has been issued on the subject.</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">NJ allows resident military personnel stationed outside of NJ to be treated as non-residents for tax purposes. In order to be treated as a non-resident they must meet all three of the following requirements: 1) Not maintain a permanent place of abode in NJ for the entire year (a parent's house is not a permanent place of abode.) 2) Maintain a <b>permanent home</b> outside of NJ for the entire year. 3) Spend no more than 30 days in NJ for any reason during the year. If they meet these requirements they can file as a non-resident and exclude any military wages from gross income and need not file unless they have other NJ source income.(NJ does not consider barracks or the ship to be maintaining a permanent place of abode outside NJ)</span><br /><div class="MsoNoSpacing">New Jersey just passed a $3,000 exemption for honorably discharged Veterans which applies to tax years 2016 and beyond.<o:p></o:p><br /><br /></div></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">New Mexico</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">New Mexico does not tax active duty military pay however; NM residents are required to file a NM return if they were required to file a Federal return.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>New York</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">NY allows resident military personnel stationed outside of NY to be treated as non-residents for tax purposes. This can be confusing but the point is that they are still a resident, just not treated that way for tax purposes. In order to be treated as a non-resident they must meet all three of the following requirements: 1) Not maintain a permanent place of abode in NY for the entire year (a parents house is not a permanent place of abode.) 2) Maintain a permanent place of abode outside of NY for the entire year. 3) Spend no more than 30 days in NY for any reason during the year. If they meet these requirements they can file as a non-resident and exclude any military wages from gross income and need not file unless they have other NY source income. NY specifically excludes barracks as an abode outside of NY for the purpose of this rule. Also, if a NY return is required to be filed to get back state taxes withheld and this exemption results in zero income (as it usually does) the return may have to be mailed in vice electronically filed. NY does not tax military pensions.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">North Carolina</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">NC taxes military residents the same as other residents.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">North Dakota</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">ND taxes military residents the same as other residents, however, National Guard and reserve members called to active duty can exclude their active duty pay form ND income.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Ohio</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;">Ohio does not tax military pay of OH residents stationed outside of the state of OH. They do tax military income of their residents when stationed in OH. Ohio does not tax military <span style="font-family: inherit;">retirement pay. Ohio will give up to $1500 for military service ($500 for any service, $1000 for certain countries and $1500 for combat zones). Details here: <a href="https://veteransbonus.ohio.gov/odvs_web/">https://veteransbonus.ohio.gov/odvs_web/</a></span></span></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Oklahoma</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Oklahoma allows military members to exclude active duty pay. This exclusion is accomplished using Schedule 511-C. Military members are required to file an OK tax return if they were required to file a federal return.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Oregon</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Oregon allows a subtraction of all military pay earned while stationed outside of OR and up to $6000 earned while stationed in Oregon (Subtraction Code 319). OR also allows military residents to be treated as non residence if they spent less than 31 days in OR, did not have an abode in OR and had a permanent abode outside OR the entire year.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Pennsylvania</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Pennsylvania does not tax Active Duty Military Income of residents stationed outside of PA and does not require a tax return; however, they do require the service member to mail or fax a copy of their orders stationing them outside of PA and their W-2. If filing a tax return a copy of the orders must be included when mailing the return, or sent separately to the address below.</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">PA DEPT OF REVENUE</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">NO PAYMENT OR NO REFUND</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">2 REVENUE PLACE</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">HARRISBURG PA 17129-0002</span><br />May also be faxed to: (717) 772-4193<br />Starting in 2016, PA exempts military pay from LOCAL taxes, regardless of where you are stationed.<br /><br /></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Rhode Island</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Rhode Island taxes military residents the same as other residents.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">South Carolina</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">SC taxes military residents just like regular residents except that it does not tax reservist drill pay. SC is very generous to the spouses of military (residents of another state) in that they allow you to exclude the active duty income of the non-resident military member from the calculation of what percentage of deductions to allocate to the spouse. This generally results in 100% of the deductions against only the spouses SC income. It is very difficult to get tax software to handle this correctly. Line 1 of the SCNR should have no active duty military income in the Federal column. SC is phasing in a larger deduction for military retirees.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>South Dakota</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">SD does not have an income tax. SD will pay military members $500 for service after 9/11/2001. Details here: <a href="https://vetaffairs.sd.gov/benefits/State/Veterans%20Bonus.aspx">https://vetaffairs.sd.gov/benefits/State/Veterans%20Bonus.aspx</a></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Tennessee</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">TN does not have an income tax but they do tax interest and dividends. Generally, these would need to exceed $1250 for an individual and $2500 for a couple.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Texas</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Texas does not have an income tax.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Utah</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Utah taxes resident service members the same as other residents.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Vermont</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Vermont does not tax military pay of VT residents stationed outside of the state of VT. They do tax military income of their residents when stationed in VT. Military pay is subtracted on line 32. A tax return is not required if the only income is military pay while stationed outside VT. </span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><span style="font-family: inherit;"><b><span style="color: blue;"><br /></span></b></span></span><span style="font-size: small;"><b><span style="color: blue;">Virginia</span></b>:</span><br /><span style="font-family: inherit;">Virginia taxes military residents just like other residents except that they give a subtraction of basic military pay of up to $15000. The subtraction phases out dollar for dollar as income goes from $15000 to $30000 and is completely gone at $30000 of income. (If a military member made less than $15000, it would all be subtracted. If they made $20000, they get to subtract $10000.) The subtraction code is 38.</span><br /><span style="font-family: inherit;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Washington</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Washington does not have an income tax.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">West Virginia</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">West Virginia taxes military residents unless they spent less than 30 days in WV. In this case they file as a non-resident. WV does not tax military income of reserves or national guard called to active duty by Executive Order of the President. Starting in 2017, West Virginia no longer taxes Military Retirement pay. WV gives a bonus of $400 for military service ($600 for combat zones). Details here: <a href="https://veterans.wv.gov/Pages/VeteransBonus.aspx">https://veterans.wv.gov/Pages/VeteransBonus.aspx</a></span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b><span style="color: blue;">Wisconsin</span></b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Wisconsin taxes military residents the same as other residents except that they do not tax military pay of reserves or national guard called to active duty. Rent paid by the military member in a state other than WI is allowed to be used for the School Property Tax Credit (not military housing.) If a military member is stationed outside the United States, they may take a credit of up to $300 for pay received while stationed outside the U.S. Wisconsin does not tax military retirement.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;"><b>Wyoming</b>:</span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">WY does not have an income tax.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">Feel free to send questions to Kirk at taxadvisor@email.com</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">I am available to prepare taxes via mail, e-mail, fax and online approval. No fees are charged until the return is complete and you are 100% satisfied. If the fees are too high, refund too low, or we determine that a cheaper filing method is appropriate, I will return all materials and charge no fees.</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">I will check any individual tax return from 2017, 2018, 2019 or 2020 for free. If I find an error, I will offer to fix it for a fee if desired</span><br /><span style="font-size: small;"><br /></span></div><div align="left" style="margin-bottom: 0in;"></div><div align="left" style="margin-bottom: 0in;"><span style="font-size: small;">I have made every effort to ensure the above information is 100% accurate, but I am human and the various governments love to change the rules. If you think something is wrong please inform me via e-mail at taxadvisor@email.com</span><br /></div>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-32109949293511482412020-12-30T16:56:00.001-05:002020-12-31T17:00:00.085-05:00The $600 Stimulus Bill Tax Changes<p><b><span style="font-family: "Times New Roman",serif;">The
New Stimulus Check:</span></b></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman", serif;">The
amounts for this are $600 for each adult individual (meaning a married couple
filing jointly gets $1200) as well as dependents age 16 or under as of 2019.
The rules are almost exactly the same as the previous checks, which are covered
in great detail in older posts on the subject. Here I am going to cover things
in a lot less detail, highlighting the major differences.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">First,
if the place your first stimulus went is still active, the new stimulus should
go there, and you don’t need to take any action. If it is not still open, you
can update it at irs.gov using the big “Get My Economic Impact Payment” button.
The button doesn’t do much right now since they are still programming for the
new payment, but it should be soon.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman", serif;">Payments
are based on 2019 tax returns, social security or VA disability information for
non-filers, or information you provided for the previous $1200 payments. They
are tax free advances on your 2020 taxes and will be recalculated when you file
your 2020 tax return, and any additional money you are due will be provided
then, but no repayment is due if you would have been entitled to less.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">I
highly recommend e-filing a 2020 tax return, using direct deposit if possible,
to make sure you get everything you are entitled to, and to keep your
information with the IRS as up to date as possible. Who knows, they may want to
send more money! I think this is one of the enduring tax lessons from the
pandemic – file a tax return even when not required.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">The
income limitations for the new stimulus payments were slightly modified from
the previous ones. The phaseout starts at the same point, but the payments go
down faster as your income goes up. Phaseout starts at $75,000 for Single and
Married Filing Separate (MFS) filers, $112,500 for Head of Household (HH), and
$150,000 for Married Filing Joint and Qualified Widowers (MFJ/QW). If your
income is below those numbers, you should get a full payment. Single and MFS
filers get nothing once income hits $87,000 and MFJ/QW filers get nothing when
income hits $174,000. HH goes away at $124,000.</span></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Times New Roman",serif;">The
Rest of the Tax Changes (from the latest bill):</span></b></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">This is
a broad overview of the rule changes.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">1. <b>Charity</b>:
You can deduct up to $300 in cash contributions to charity on 2020 even if you
don’t normally itemize. Cash means cash/check/credit but not donation of things
or time. There is a penalty of 20% of taxes for cheating on this. For 2021 the
limit is $600 and the penalty 50%. You can also donate up to 100% of your
Adjusted Gross Income in cash to charities in 2020 and 2021 (old limit was 50%
and 60% depending on the year)</span><span style="font-family: "Times New Roman", serif;"> </span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">2. <b>Retirement
Plans</b>: The period for 401k and IRA exemption from the 10% penalty on
withdrawals from these plans due to COVID was extended to 60 days after
12/27/2020 (2/25/2021 if my math is correct). This applies to up to $100,000 in
withdrawals due to COVID and the rules allowing stretching taxes for three
years or repaying within 3 years apply to these withdrawals. Basically, you can
take money out, up to $100,000 due to needing it for COVID caused problems all
the way out to late February of 2021, though you can’t pull $100,000 in 2020
AND 2021. The $100,000 limit applies to ALL Coronavirus distributions.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">3.
<b>Disaster Losses</b>: The changes to deducting disaster losses above $500 due to
COVID was also extended for 60 days after December 27th, 2020. This suspended
the 10% of income rule that meant that a disaster had to be ENORMOUS before it
made a difference on your taxes.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">4.
<b>Business Meal Deduction</b>: I have heard this one called the “3 Martini Lunch
Rule”. For 2021 and 2022, the 50% limit on meal deduction for businesses was
raised to 100%. Simply put, a business owner can deduct 100% of
business-related meals including those with clients.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">5.
<b>Education Credits</b>: The Tuition and Fees Deduction will be in effect for 2020,
but not after. The Lifetime Learning Credit and American Opportunity Credit
will have their income limits matched (The LLC limit raised to equal the AOC
limit) starting in 2021.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">6. <b>Sick
and Family Leave</b>: The qualifying period for employers to claim credits for
paying employees while they are out sick or taking care of family due to COVID
was extended to 3/31/2021. This applies to self-employed taxpayers who are out
sick or shutdown and the law allows them to calculate based on 2019 or 2020
income whichever is better.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">7.
<b>Payroll Tax Holiday</b>: For those who took advantage of not having to pay Social
Security Tax in the last quarter of 2020, the payback period has been extended
for all of 2021, vice just the first few months. This means paybacks will be
smaller, but last longer. This mostly applies to military and some Federal
employees, though some civilian employers might have allowed opting in.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">8.
<b>Paycheck Protection Program</b>: More money was made available and eligible
employers can come for more money if they meet certain requirements. The law was
clarified to explicitly state that even if the loan is forgiven, expenses paid
by loan proceeds remain deductible if allowed by current tax law.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">9.
<b>Earned Income Tax Credit (and child credits)</b>: You can use 2019 income vice 2020
income if it gets better results. This applies to EITC, Child Tax Credit and
Additional Child Tax Credit. You use 2019 income for calculating all of them or
none of them. You can’t pick and choose.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">10.
<b>Educator Expense</b>: The $250 deduction for teachers paying for classroom supplies
includes costs for protective equipment and other COVID related supplies such
as masks or disinfectants.<span style="mso-tab-count: 1;"> </span></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">11.
<b>Flexible Spending Accounts</b>: Normally these accounts, which are usually used for
childcare and health care, must be used before the end of the calendar year or
the money is lost. Employers have several options for relief in this case,
including allowing rollover of money to be used in 2021. Also, money for
childcare normally has to be used only for children under the age of 13. This
age limit was raised to under 14 for 2021 only.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;"><b>Changes
to Expiring Tax Provisions</b>:</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">Mortgage
Insurance Premiums remain deductible into 2021</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">Principle
Residence Cancelled Debt Exclusion was extended through 2025, but the amount
allowed to be excluded was reduced to $750,000 ($375,000 if MFS) starting in
2022.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">The
Non-Business Energy Efficient Credit was extended to 2021.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">Exclusion
of employer paid student loans of up to $5250 per year was extended through
2025.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">The
Solar Credit phaseout was modified and slightly extended. The percentage used
for calculating the credit is 26% in 2021 and 2022, and 22% in 2023. The credit
is not currently available for 2024 and later.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Times New Roman",serif;">The
increase in the percentage above which medical expenses were deductible was
permanently changed back to 7.5%. It was supposed to go up to 10% with the
passage of the Affordable Care Act but has been pushed of repeatedly and is now
finally dead.<o:p></o:p></span></p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-91527907797134228662020-12-21T12:54:00.004-05:002020-12-21T12:54:37.962-05:00Another Round of Stimulus Checks...<p>Details are sketchy, but it looks like $600 checks per individual are coming, with $600 for dependents under 17 vice the $500 from before.</p><p>Probably will be sent out in a similar manner to the last set, and if you ultimately got the old ones, especially via direct deposit, you should be good for this set.</p><p>They should be coming very soon, as early as next week (just after Christmas).</p><p>Outstanding questions abound. For me, I am wondering if these will be an advance on 2020 taxes like the old ones, or an advance on 2021. The information is probably out there, but I'm going to give it a day or two to get settled before I really dig in to it.</p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-40298846618188788392020-12-14T12:59:00.002-05:002020-12-14T19:49:09.311-05:00If You are Self Employed and Couldn't Work due to Coronavirus<p><table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTMyTLwyk4hw4-XiZp-G-XIR9XD9OQvWyw2l951aWUsM5uieEuy_m3061rP5ilbildT4Fs7QwUeRPTt9TySJR1_58G6wmE5M0sxyStzvnCk29Tq91YlnEdjJPaAgUhJkLtRKxM_fa92s8/s2048/kelly-sikkema-SiOW0btU0zk-unsplash.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTMyTLwyk4hw4-XiZp-G-XIR9XD9OQvWyw2l951aWUsM5uieEuy_m3061rP5ilbildT4Fs7QwUeRPTt9TySJR1_58G6wmE5M0sxyStzvnCk29Tq91YlnEdjJPaAgUhJkLtRKxM_fa92s8/s320/kelly-sikkema-SiOW0btU0zk-unsplash.jpg" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Photo by <a href="https://unsplash.com/@kellysikkema?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText">Kelly Sikkema</a></td></tr></tbody></table>If you are unable to work or engage in your business as a
result of quarantines, shutdowns, getting sick, school/daycare closings or
various other reasons, you might be entitled to one or both of credits for sick
leave or family leave. These credits are for employers to recoup payments they
make to their employees who are unable to work for the above reasons. But, if
you would have been entitled to these credits as an employee doing what you do,
you qualify for them as the employer of yourself. In this case the government
pays you for being unable to work for yourself. </p>
<p class="MsoNoSpacing">Exactly how to define what makes the work you do
qualifying as an employee is a bit nebulous, but it seems like a fairly liberal
interpretation is appropriate, so I would go into conversations with you tax
guy assuming you might qualify, and have the information required for them to
calculate the credit rather than waiting to find out if you qualify. There were
ways to get this money in advance, by reducing estimated payments, but it’s
pretty much too late for that to be effective, though you can reduce your
Estimated Payment due on January 15<sup>th</sup> to account for the amount of
credit you are entitled to. Either way, you claim the credit on your 2020 tax
return and it reduces your balance due or increases your refund. </p>
<p class="MsoNoSpacing">This sucker gets complicated, so I’m going to start with
a link to the IRS FAQ on the subject: </p>
<p class="MsoNoSpacing"><a href="https://www.irs.gov/newsroom/special-issues-for-employees#specific-provisions-related-self-employed-individuals">https://www.irs.gov/newsroom/special-issues-for-employees#specific-provisions-related-self-employed-individuals</a> </p>
<p class="MsoNoSpacing">I’m going to try my best to simplify how these work, but
you absolutely need professional help to get these right. After discussing the
various credits, I’m going to list the information you want to have available
for when you file taxes. <o:p></o:p></p>
<p class="MsoNoSpacing"><b>Qualified Sick Leave Wages Credit:</b><b><o:p> </o:p></b></p>
<p class="MsoNoSpacing">1. You get up to 10 days worth of this credit.<o:p></o:p></p>
<p class="MsoNoSpacing">2. If YOU are unable to work or telework because the
government shut you down, ordered a quarantine, a doctor quarantined you due to
being exposed, you had symptoms and were waiting for a diagnosis, or you
actually had the disease you are entitled to $511 per day or 100% of your
average daily earnings, whichever is lower, for each day you could not work.<o:p></o:p></p>
<p class="MsoNoSpacing">3. If you cannot work because you are caring for SOMEONE
ELSE due to conditions similar to the above, or due to the closing of a school,
daycare or other facility, or your daycare provider is unable to work, you are
entitled to $200 per day or 67% of your average daily earnings, whichever is
lower, for each day you could not work.<o:p></o:p></p>
<p class="MsoNoSpacing">4. Average daily earnings are your net earnings from your
business divided by 260. You get this number when you prepare your taxes as the
bottom line on Schedule C.<o:p></o:p></p>
<p class="MsoNoSpacing">5. If you received sick wages as an employee with a
regular job, you have to reduce these credits by the amount of wages you were
paid while not working (no double dipping).<o:p></o:p></p>
<p class="MsoNoSpacing">6. This credit is not counted as income, even though it
technically replaces income.<o:p></o:p></p>
<p class="MsoNoSpacing"><o:p> </o:p><b>Qualified Family Leave Wages Credit:</b> </p>
<p class="MsoNoSpacing">1. This is VERY similar to the situation described in 3
above, but basically takes over where the 10 days above end.<o:p></o:p></p>
<p class="MsoNoSpacing">2. You get 50 days worth of this credit.<o:p></o:p></p>
<p class="MsoNoSpacing">3. You get this credit for any day you would have been
qualified for Family Leave wages due to COVID if you were an employee
(basically the situation described in 3 above). You are entitled to $200 per
day or 67% of your average daily earnings, whichever is lower, for each day you
could not work.<o:p></o:p></p>
<p class="MsoNoSpacing">4. Average daily earnings are your net earnings from your
business divided by 260. You get this number when you prepare your taxes as the
bottom line on Schedule C.<o:p></o:p></p>
<p class="MsoNoSpacing">5. If you received family leave wages as an employee with
a regular job, you have to reduce these credits by the amount of wages you were
paid while not working (no double dipping).<o:p></o:p></p>
<p class="MsoNoSpacing">6. This credit is not counted as income, even though it
technically replaces income. </p>
<p class="MsoNoSpacing"><b>Information you should provide to your tax dude:</b> </p>
<p class="MsoNoSpacing">1. Proof, as best you can get, of the situations
discussed above. This could be doctor’s notes, notices from schools or daycare
facilities, quarantine or shutdown notices, COVID test results, copies of
government statements regarding allowed working conditions, or even newspaper
articles reporting on work rules and quarantines.<o:p></o:p></p>
<p class="MsoNoSpacing">2. The number of days you were unable to work due to YOU
being affected by quarantines, shutdowns etc. as previously discussed.<o:p></o:p></p>
<p class="MsoNoSpacing">3. The number of days you were unable to work due to
caring for someone else as a result of quarantines, closures etc. as discussed
previously.<o:p></o:p></p>
<p class="MsoNoSpacing">4. The detailed reasons you were unable to work or make
money for the days discussed above.<o:p></o:p></p>Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0tag:blogger.com,1999:blog-6747929661464411700.post-66029127585657915612020-04-15T09:00:00.000-04:002020-05-12T13:02:30.455-04:00Getting a Stimulus Check When You Didn't Direct deposit a Refund in 2019 (or 2018)The IRS "Get Your Payment" app is live: Access by clicking <a href="https://www.irs.gov/coronavirus/economic-impact-payments">HERE</a><br />
<br />
UPDATE (5/12): The IRS says people have until noon on 5/13 to update direct deposit information. I assume this applies to people who filed a while ago and that recent filers will have more time.<br />
<br />
You use this app if you filed a 2018 or 2019 tax return, but did not have a REFUND direct deposited into your account. If you OWED...this is the app for you.<br />
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You can also use the app to get a status of your payment, even if you expect it to be deposited normally.<br />
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The non-filer app is on the same page, use that one if you didn't file a 2018 or 2019 return, and you don't get Social Security (unless you get Social Security and have dependents or a spouse who do not).<br />
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To use the app, you click on the blue "Get My Payment" button. <br />
Enter the primary taxpayer's SSN, birthday (I included the slashes and it worked) and the address from the last tax return filed. Make sure the address matches the return exactly - specifically - make sure to abbreviate or not abbreviate Rd, Street, etc as it appears on the return.<br />
This will give you the status of your payment and tell you if the IRS needs direct deposit information. It doesn't appear that you can UPDATE direct deposit information if it has changed.<br />
To provide direct deposit information, you enter the Adjusted Gross Income from your 2019 return (or 2018 if 2019 not filed), indicate if it was a refund or balance due on that return, and provide the amount of the refund or balance due. You enter your routing and account number twice, and then the IRS confirms that your deposit information has been updated.<br />
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Not sure how long it takes to get the deposit after this...Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.com0