Dec 14, 2021
Dear Friends and Clients:
This year was again a challenging one for many of us. I personally know that many of you who are reading this have had very difficult, even tragic, years. You have my deepest sympathies, and condolences when unfortunately appropriate.
As we come to the end of 2021, here are some year-end tax items to keep in mind.
1) RMD’s - For those of you who take RMD’s (required minimum distributions) from IRA’s and 401k’s, you ARE REQUIREDto take them for 2021 (they were not required in 2020). RMD’s are required for those age 72 (or 70 ½ if you reached that age before 1/1/20). Take by Dec 31.
2) FINAL ESTIMATED PAYMENT is due Jan 17, 2021 (for those of you mailing them in). If you happened to miss a prior one, add it to this one. And in case we do not have your 2021 return finalized by April 15, make the first one for 2022 in the same amounts you were doing for 2021.
3) CHILD TAX CREDIT – The IRS began paying a portion of the credit in advance this year. If you received any, they will send a form “Letter 6419” with the amounts. Make sure you give this to me with your tax forms.
4) UNEMPLOYMENT COMPENSATION was fully taxable in 2021 (as opposed to the $10,200 exemption in 2020). If you received any, please bring in the state form 1099-G.
5) STIMULUS PAYMENTS – If you received the third stimulus payment in 2021 (generally $1400), you should have received an IRS Letter 1444 already, and you’ll receive an IRS Letter 6475 early next year. Again, please bring or upload all documents.
6) GIFT TAX – If you’re planning on giving any gifts, each person is allowed to give $15k a year with no reporting requirement. At year end, someone can give $15k in December and another $15k in January as a way of giving more with no reporting requirement. This is for gifts to other people, not charity.
7) CAPITAL GAINS/LOSSES – For those of you fortunate enough to have capital gains, consider using capital losses you may have to offset them. Please keep in mind the wash-sale rules, which means you can’t take the loss if you buy back the stock within 30 days.
8) BUSINESS OWNERS - For those of you with businesses that we do a yearly payroll for, we need to discuss what you want to do this year. Let’s make sure to touch base soon to discuss amounts if you’re not already doing your own payroll or using a service. Please get your business books and records to me ASAP if I’m not the one doing them.
CLIENT PORTAL is up and running. You can also upload your documents as an easier way of sending them to me. I want to discourage emails, as I can sometimes miss them, particularly as things get busy here. I will put all finished returns there for you to access at any time. 2019 and 2020 will be there by year end if not already.
If I receive all your documents by March 30, your return will be filed by April 15. Anything atter may go on extension (as I do for myself for the last 30 years). Please remember that extensions take care of filing requirements, not payments, so if you think you owe, we should make a payment at that time. Still, it is better to file a “zero” extension then none at all, as that mitigates late-filing penalties. If you want me to file an extension for you, make sure you get in touch with me. If you send an e-mail, make sure I respond, as I can miss e-mails, particularly during tax season.
For those who would like to have sit down appointments while I do your returns, I will likely require masks. While cases are low, my office is not very large and I just want to get through this season without having to take sick time off.
I have a new staff assistant, Jennifer. Her E-mail is FRONTDESK@Pinchevskycpa.com. It is often best to send cc her on any e-mails to us both in case I miss any.
I wish all of you a Happy Channukah, Merry Christmas, Happy Festivus, and a very Happy New Year!
Todd Pinchevsky, CPA
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