Did you know?
Since 2004, every April 15th Sandi Baxter Pierson offers a coupon to any client that sends her a referral. (*This is a $100.00 dollar value)!
This is just for referring someone to Baxter Tax Consulting (friends, family, neighbors, co-workers, etc.). It’s never to late to refer someone you know! I am happy to be of service to them.
Estimated Tax Payment Deadlines:
- April 15
- June 15
- September 15
- January 15 of the following year
When Using Payment Vouchers:
- Each estimated tax payment should be paid by check or money order AND be accompanied by Form 1040-ES payment voucher.
- If you made an estimated tax payment last year you should receive a copy of the Form 1040-ES payment vouchers preprinted with your name, address, and social security number on it by mail from the Internal Revenue Service.
- Using the preprinted vouchers will speed up processing and reduce the chance of error.
- If you did not pay estimated taxes last year, but plan to do so this year, you will need to obtain a tax Form 1040-ES payment voucher from an accountant or via the Internet.
- After you make your first estimated tax payment, a Form 1040-ES package with pre-printed vouchers will be mailed to you.
For California Residents Only:
Please mail your estimated tax payments to:
Internal Revenue Service
P.O. Box 802502
Cincinnati, Ohio 45280-2502
NOTE: If you reside in another state or country, call Sandi at (626) 599-8999 for the correct address to which you’ll mail your payment.
Make checks payable to: “United States Treasury”
Regarding Forms W-2 & 1099:
- Employers on or before January 31 of each year MUST mail these out.
- You will receive a separate W-2 Form from each employer for whom you have worked.
- If you have not received your W-2 Forms by February 15th, contact your employer or the Internal Revenue Service.
Regarding Form 1099:
You should receive your 1099 form(s) by February 1st of each year.
Underpayment Penalty – If you did not pay enough tax either through withholding or by making estimated tax payments, you will have an underpayment of estimated tax due AND you may have to pay a penalty fee.
Mandatory for this year – Coming in to have your taxes done? Due to new IRS and State regulations, the following information is needed for the completion of your tax return and for every person being claimed on your return.
Every person claimed on your return must provide copies of at least two of the following items:
- Driver’s License
- Social Security Card
- Birth Certificate
- Earned Income Tax Credit (EITC) – If you are claiming the EITC credit from any of the categories below, you must provide two different documents for each qualifying individual:
- School records or statement
- Landlord or property management statement
- Healthcare provider statement
- Medical records
- Childcare provider
- Social service records or statements
- Employer statement
- Place of worship statement
- Indian tribal official statement
- Disability of qualifying child
- Doctor Statement
- Other healthcare provider
- Social services agency statement
- Documents or other information
- Business license
- 1099 forms
- Bank statements
- Taxpayer summary of expenses
- Schedule C – If you are filling a schedule C you must bring the following:
- All bank statements
- 1099 K
- Proof of all deductions
- Mileage logbook
- Phone/Cell bills
- All receipts for meals and entertainment
- Proof of all schedule C deductions
What is New For Tax Season 2020?
- Economic Impact Payment: If you did not receive this payment it will be a refundable tax credit on your 2020 tax return.
- 1040 NR: the (non-resident) have been revised beginning in 2020.
- Charitable contributions: if you did not itemize your deductions on Schedule A (Form 1040), you may qualify to take a charitable contribution of up to $300.00.
- Standard Deduction Amount Increased for 2020: single or married filing separately is $12,400.00. Married filing jointly or widow/widower is $24,800.00. Head of Household is $18,650.00.
- Virtual Currency: if, in 2020, you engaged in transactions involving virtual currency, you will need to answer the questions listed on page 1 of Form 1040.
- Deductible IRA contributions: You no longer need to be younger than 70- ½ to take a deduction for your contributions to an IRA.
- Corona Tax Relief for Certain Individuals: the Coronavirus Aid Relief and Economic Security (CARES) Act permits certain individuals who file Schedule SE or Schedule H to defer the payment of 50% of social security tax imposed for the period beginning March 27, 2020 and ending December 31, 2020.
- Qualifying Birth or Adoption Distribution: Beginning in January 2020, you can take a distribution from your IRA without being subjected to a 10% tax for early distribution.
- Standard Mileage Rates: Beginning in January 2020, business miles that you incur will be calculated at 57.5 cents per mile.
- Medical Mileage Rates: Beginning in January 2020, travel to doctors / labs will be 17 cents per mile.
- Charitable Mileage Rates: Beginning in January 2020, travel to charities or donation organizations will be 14 cents per mile.
Alternative Minimum Tax Exemption Amount Increase
- The AMT exemption amount is increased to $72,900.00.
- If married and filing jointly or qualifying as a widow/widower the amount is increased to $113,400.00.
- If married and filing separately, the amount is increased to $56,700.00.
Tuition and Fees
The tuition and fee deduction is extended for qualifying tuition and fees paid in calendar year 2020.
Your Social Security Account:
Social security beneficiaries can now get a variety of information from the SSA (or Social Security Administration) website with a Social Security account.
Current Deductions Allowed:
- Deduction for educator expenses in adjusted gross income
- Deduction for state and local general states taxes
- Deduction for mortgage insurance premiums
Refunds For Returns That Were Filed LATE:
If you were due a refund but neglected to file a return, you must file a return within 3 years from the date the return was due (including extensions) to obtain a refund.
Frivolous Tax Returns:
- The IRS has published a list of positions that are identified as frivolous
- The penalty for filing a frivolous tax return is $5,000.00
- Remember to bring, fax, or scan via e-mail your relevant documents
Office Phone: 626.599.8999