January 1, 2022
Please download any and all helpful worksheets from the links on our home page.
2021 has been a year of uncertainty
To date, there are ongoing Congressional discussions which may affect 2021 tax returns. We are closely following this.
This year the standard deduction for single taxpayers and married taxpayers filing separately is $12,550. For married taxpayers filing jointly, the standard deduction is $25,100.
Business food and drink purchased from a restaurant will be 100% deductible in 2021 and 2022. This is to help restaurants hit hard by COVID.
Charitable donations up to $600 are deductible for married filing jointly but not itemizing. $300 is the maximum for individuals not itemizing.
All donations and volunteer expenses - as well as medical expenses, real estate taxes on your home, personal property/excise taxes, mortgage interest paid - are deductible if you are itemizing your deductions.
Virtual currency is taxable
Keep accurate records on virtual currency transactions. The IRS is stressing that these are taxable and must be reported. Failure to report gains is subject to penalties and interest. A maximum of $3,000 in losses may be deducted.
The contribution limits for employee's retirement plans has been increased
from $19,500 to $20,500 for 2021 taxes. This includes 401(k)s, 403(b)s, most 457 plans, and the federal government's Thrift Savings Plan (TSP).
Boosting pretax contributions to your workplace retirement plan or health savings account will reduce 2021 taxes and build savings for your future.
Because of COVID...
We have been remotely communicating with our clients through email, fax, mail, DropBox.com, SendInc.com and the lock box at our front door. For safety, we will be continuing this indefinitely. If a meeting is necessary, there will be a $75 fee for a 30 minute in person appointment.
We must have all your tax information by
March 20th, in order to guarantee an
April 15th filing.
The IRS encourages:
Electronic filing of tax returns, direct deposit of refunds, and direct withdrawals of amounts owed. This eliminates lost returns, reduces errors, and speeds up refunds. To have your return E-filed and your refunds direct deposited
into your bank account we'll need the following information:
- (1) name of bank
- (2) routing number
- (3) your account
STAY SAFE AND HAVE A BEAUTIFUL 2022!