Dear Friends, February 5, 2024
Wishes for a Blessed, Healthy and Happy New Year. Color for 2023 – PINK –Symbolizing Happiness & Success..
SIGN, SIGN, SIGN all documents where required, and ANSWER ALL questions. Your Tax Return preparation and filing may be delayed and you may incur additional fees for additional preparation time.
- Please see attachments for:
- Engagement Letters – including new letter for Foreign Income & Asset matters
- Questionnaires – Lengthy but necessary for the taxpayer’s benefit for filing the best possible return. The Questions MUST be answered and you MUST Sign the page.
- SYSTEMIZERS
- PAGEes 1, 3, 4 (OR 1 and 2 of Packet L) etc. if applicable – READ BEFORE YOU SIGN, Print your Name. If the banking info is the same as it was in 2022, write “SAME”, plus last four #’s of the account. Otherwise, complete that section with the new information.
- OTHER PAGES – Only if needed. OR you can use your own worksheets
- Additional News and information about matters of tax importance..
- DIGITAL ASSETS/VIRTUAL CURRENCY – New Question for 2023 – SERIOUS CONSEQUENCES FOR IMPROPER REPORTING. Read Carefully before answering.
- Suggested tracking method, if applicable, is the use of a Blockchain Explorer which can be used to estimate Virtual Currency Basis for IRS purposes. If there is no proof of basis, then the IRS requires the taxpayer to use ZERO (this ZERO basis rule applies to all reporting where basis is used to offset taxable income)
- FORM 1099-K – Regardless of whether or not you receive a Form 1099k, Taxpayers must still report ALL income, including amounts exceeding $10, (again, regardless of the receipt of a Tax Document or not). This has been the rule forever. Please note that you may still receive a Form 1099-K, even if this does not represent Income to you. You must provide this document to me so that I can reconcile it on your return, making any offsetting entries for the Non-Income Amount. This should prevent you from receiving a notice from the IRS that you did not report all items on your tax return.
- CHILD TAX CREDIT – Subject to Income phaseouts -Children under age 17 may qualify, but Maximum amount is once again $2,000 per qualifying individual. Other Dependent Credit is $500.
- PLEASE DO NOT send me your prescription receipts. A total is all I require; Your Pharmacy may give you a yearly printout of your out-of-pocket Medication Expenses for the year. You can also give me a total for your Doctors out-of-pocket by CATEGORY. Long Term Care Insurance must be segregated due to limitations. Do NOT send me all of your BACKUP paperwork for other expenses either, but you MUST RETAIN that backup paperwork with your copies of the returns, in case they are required in an audit.
- MORTGAGE INTEREST EXPENSE TRACING – Home Mortgage Interest is subject to a number of limits. See Page B11.
- IRA CONTRIBUTIONS
- There is no longer an age threshold for making Contributions to your Individual Retirement Accounts (IRA). You will still have to have Earned Income in order to make the contribution.
- RMD – Changes to RMD requirements – Posted on the Website
- Increase in RMD Age. Beginning Dates Changes
- New Distribution rules for Inherited IRA’s and Retirement Plans
- Residential Energy Credits – New Provisions for EEHI– Lifetime Limit of $500 no longer applies. As of Jan 1, 2023, this Credit has two (2) components: 1. Annual Limit of $1,200 (subject to income and vehicle limitations); 2 – Annual Limit of $2,000. All are subject to requirements, qualifications, etc.
RCEPC – 30% for tax years 2022 through 2032. Subject to requirements, qualifications, etc.
- CLEAN VEHICLE CREDITS (Must have the Report from the Dealer or there can be no Credit). Take care at the Dealership.
- New Vehicles – Maximum Credit of $7,500 subject to limitations and requirements for qualifying vehicles, and subject to Income and other limitations for the individual.
- Previously Owned Clean Vehicles – Maximum Credit of $4,000. MUST be purchased from a “dealer” and subject to qualifications, limitations, etc.
- STATE NEWS:
- Those who do not Itemize Deductions (NON-ITEMIZERS) on their Federal return may still be able to use Miscellaneous Expenses, Taxes, and/or Medical Expenses on certain State’s returns. Certain States, e.g., New York, still allow taxpayers to Itemize their Miscellaneous Deductions, even though the Federal Return no longer allows this. Therefore, if your State has an option to Itemize Deductions, rather than using a Standard Deduction, or an Adjusted Itemized Deduction amount, consider completing the Long-Form Systemizer Packet B or providing the related information in whatever form you are comfortable with.
- Many States offer tax benefits for EDUCATION – Certain Sec 529 plans, Student Loan Interest, Certain Tuition Expenses. Complete the Systemizer Page for this information.
- DEADLINES:
- Systemizer & Info – ASAP, after you have all of your tax documents and information. Please do not submit piecemeal unless it is time for extension calculations. It is not time effective if I continually go in and out of a return. Each return is treated carefully and professionally and as if it were the only return I prepare. In most cases, I prepare the returns on a first come/first served basis.
- TAX RETURN, and EXTENSION DEADLINES – Monday, APRIL 15, 2024.
- IRA CONTRIBUTION DEADLINE IS APRIL 15, 2024.
The above is a brief synopsis. Important and Additional info may be found in the 2023 Packet A
Amy and I appreciate our long-standing relationship with you, and we sincerely value your trust and friendship. We look forward to hearing from you soon.
2023 Systemizer
ByFeltz