A TRULY PRACTICAL CHRISTMAS GIFT – MY 2021 TAX RETURN ORGANIZER

 

It is time to begin Christmas shopping.  Here is a truly practical gift suggestion – for family and friends, or for yourself.

Taxpayers are required to keep good, contemporaneous records of all items of income and deduction in the manner prescribed by the IRS and the Tax Code.  For many years now I have been wanting to create a comprehensive Tax Return Organizer for my clients, readers and the general public.  Being stuck at home I have finally done it!

My 2021 INCOME TAX ORGANIZER, created for the federal income tax return (Form 1040 or Form 1040-SR), will help you keep track of all your income and deductions, and gather and organize the information you will need to provide to your professional tax preparer in 2022. 

The Organizer, which comes in an expandable binder, contains -

* detailed text covering what is taxable and deductible and what information and documentation you will need to properly prepared your 2021 tax return,

* forms, schedules and worksheets for compiling and identifying the needed information, and

* pockets for you to keep statements, bills, receipts, and other documentation during the year by category.   

The text (current as of November 2020) covers –

• MY BEST TAX ADVICE·       
  
• WHAT TO GIVE YOUR PREPARER
• WHO MUST FILE A 2021 TAX RETURN
• FILING STATUS
• DEPENDENTS AND EXEMPTIONS
• INFORMATION RETURNS
• INVESTMENT SALES
• 2021 CONTRIBUTION LIMITS FOR TAX-DEFERRED RETIREMENT PLANS
• REPORTING GAMBLING INCOME
•  ADJUSTMENTS TO INCOME
• ITEMIZED DEDUCTIONS (with specific details for each category)
•   DEDUCTIBLE RENTAL EXPENSES
•  CHILD CARE EXPENSES
•  ESTIMATED TAXES
• HOW LONG MUST I KEEP MY TAX RECORDS
• YEAR-END TAX PLANNING

The cost of the Organizer material is only $44.95 (includes shipping via Priority Mail).

Send your check or money order for $44.95, payable to Taxes and Accounting, Inc, and your postal mailing address to -

TAXES AND ACCOUNTING, INC

2021 TAX RETURN ORGANIZER

POST OFFICE BOX A

HAWLEY PA 18428 

TTFN

HAPPY THANKSGIVING!

 

IN THESE DIFFICULT TIMES LET US REMEMBER 

WHAT WE HAVE TO BE THANKFUL FOR.

HIGH ON THE LIST IS, OF COURSE, THE CRUSHING DEFEAT OF DELUSIONAL, DEPLORABLE, DESPICABLE, AND DANGEROUS DONALD TRUMP IN THE PRESIDENTIAL ELECTION.

NO LONGER GRAND

 

It is impossible for any intelligent and patriotic American with a conscience to support the current Republican Party.

The once “Grand Old Party” no longer exists.  Today’s Republican Party is certainly not the Party of Lincoln any more, and not the Party of Eisenhower, Reagan, Dole, the Bushes, or John McCain.  It has truly become the Party of Trump.

The GOP is now truly the HOP – the Hypocritical Old Party.  Or the DOP – the Despicable Old Party. 

By continuing to embrace, support, defend, and enable Trump the Republican Party has totally abandoned all integrity, credibility and honor and totally abandoned traditional Republican and true conservative policies and philosophy.  

Traditional Republicans need to either actively work to remove the current Party leadership, including the current leadership in Congress, and, going forward, aggressively support only candidates who vocally disavow and denounce Trump and everything he is and he stands for – 

OR -

Form a new Party that actually promotes traditional Republican and true conservative values like fiscal responsibility, protection and maximization of individual rights, honest and limited government, and support and defense of the Rule of Law and the Constitutional separation of powers.  The “Lincoln Project” must become the Lincoln Party.   

TTFN

LAST CHANGE FOR A RESIDENTIAL ENERGY CREDIT

 

One of the famous, or perhaps infamous, tax "exenders" that will expire on December 31, 2020 is the $500 lifetime credit for energy-efficient purchases for your primary home.

If you purchased any of the following items in 2020 for your primary personal residence, you may be able to claim the energy credit –

* Air Source Heat Pump

* Central Air Conditioning

* Gas, Propane, or Oil Hot Water Boiler

* Gas, Propane or Oil Furnaces and Fans

* Water Heaters (non-solar)

* Advanced Main Air Circulating Fan

* Biomass Stoves

* Insulation

* Roofs (Metal & Asphalt)

* Windows, Doors & Skylights

Be sure to save and give to your tax pro a copy of the invoice, any energy efficiency statements, and any Manufacturer’s Certification statement or other documentation that the purchase qualifies for the credit.  It is your responsibility to determine if the purchase qualifies – and NOT your tax preparer’s – and your responsibility to maintain proof in case the credit is questioned by the IRS.

Remember the lifetime $500 maximum.  If you claimed an energy credit for any of the above purchases in 2006, 2007, or 2009 through 2019 your 2020 credit will be reduced or eliminated.

You can find information on exactly what purchases will qualify for the credit here.

TTFN

 

 

 

NEVER IN OUR HISTORY

In the history of the United States –

There has never been a more ignorant President than Trump – incapable of intelligent thought.

There has never been a more incompetent President than Trump – unwilling to learn anything about anything. 

There has never been a more self-absorbed President than Trump – the ultimate textbook malignant narcissist. 

There has never been a more corrupt President than Trump – every move guided solely by personal self-interest.

There has never been a more mentally unstable President than Trump – delusional and unable to deal with reality.

There has never been a worse human being as President than Trump – totally devoid of humanity.

Let us pray that someone like Trump is never again put in the White House.

TTFN

MY 1040 CLIENT HANDBOOK – REPRINT RIGHTS

This post is for my fellow tax pros. 

Over a dozen years ago I sat down and compiled a “handbook” or “manual” for my 1040 clients.  It provided details on the polices and practices of my firm, identified my responsibilities and the responsibilities of the client, listed what I would need each year to properly prepare the client’s tax returns, and explained how long the client should save the return and supporting records.  I sent a copy to all my existing clients at the time and gave it to each new client going forward at the beginning of the “engagement”. 

I recently revised and updated this handbook and offer “reprint rights” of it to you, my fellow tax professionals, for use in your practice. 

You can use the 28 pages of text as intended – a free client handbook for current and new clients – or you can use various components of the text separately in free client newsletters or as free client handouts.   None of the contents and components of the handbook may be used in any product or publication for sale to clients or the public for a fee without written permission from me.

The handbook includes -

·         ABOUT ME

·         MY SERVICES AND RESPONSIBILITIES

·         MY FEES

·         YOUR RESPONSIBILITIES

·         WHAT I DO NOT DO

·         TAX RETURN COPIES

·         WHEN TO CONTACT ME

·         MY PRIVACY POLICY

·         WHAT I NEED TO PREPARE YOUR TAX RETURNS

·         RECORDKEEPING

·         DEDUCTIONS

·         HOW LONG SHOULD I KEEP COPIES OF MY TAX RETURNS

·         APPENDIX A – KEEPING TRACK OF INVESTMENT COST BASIS

·         APPENDIX B – KEEPING TRACK OF GAMBLING ACTIVITY

·         APPENDIX C – THE NEW MORTGAGE INTEREST DEDUCTION

The DEDUCTION section contains charts of Adjustments to Income, Itemized Deductions, Rental Expenses, Business Expenses.  And THE NEW MORTGAGE INTEREST DEDUCTION appendix includes worksheets for keeping separate track of acquisition debt and home equity debt with a detailed example.

The text is sent as a word doc email attachment so you can customize part – such as composing the section that identifies you, your firm and any other preparers in the firm and customizing the explanation of services, practices and policies to your individual tax practice.  It is written as a one-person practice, so the “I” and “me” can be changed to “we” and “us” as applicable.  And it is written as a NJ tax preparer, so you can add your applicable state tax requirements under WHAT I NEED TO PREPARE YOUR TAX RETURNS. 

A signed reprint rights license agreement will be sent via postal mail.

BTW – a thank you to Marc Standig EA, my former editor at “NJ Taxing Times” and long-time Board member and volunteer with the NJ chapter of NATP for his help in reviewing and “proofing” this handbook. 

The cost of the reprint rights license for this handbook is only $49.95.  Members of the National Association of Tax Professionals receive a 20% - or $10.00 – discount.  Please provide your membership number when ordering. 

Send your check or money order for $49.95 or $39.95, payable to “Taxes and Accounting, Inc”, and your email address and postal address to –

TAXES AND ACCOUNTING, INC

1040 CLIENT HANDBOOK

POST OFFICE BOX A

HAWLEY PA 18428

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* I missed this when it first appeared.  S. Joseph DiSalvo and Marie L. Madarasz explain "Inheriting an IRS as a Non-Spouse Benefitiary is Now More Complicated" at THE STREET.

* Kay Bell provides help for “Getting the tax info needed to complete FAFSA” at DON’T MESS WITH TAXES.

 

For some reason clients seem to think if a person is experienced in preparing one government form – i.e. the 1040 – he/she must know how to prepare all government forms.  Do not expect your tax pro to prepare the FAFSA for you (if you do expect to pay him or her).  You can, however, ask him or her to provide you with specific tax return numbers.

 

* Check out last Friday's post at FRIENDS OF THEATRE AND ART.    

 

* Some good news for military personnel living in NJ (click here) –

 

“For Tax Year 2021 and forward, combat pay is not taxable in New Jersey.”

 

* The INVESTED WALLET gives us a primer on “The Types of Retirement Accounts [Which Is Best For You?].

 

*  Have you ordered your copy of “What’s New for 2021” yet?  Why not?

  

THE LAST WORD

 

Absolutely nothing Trump has even done or said in his entire adult life would cause any intelligent person to respect or admire him.

 

Trump has proven himself to be completely devoid of humanity, integrity and credibility and incapable of intelligent thought.

 

Trump does not possess a single redeeming positive human quality.  He has never performed a single totally unselfish positive act in his adult life.

 

The fact that this delusional, mentally unstable and totally self-absorbed moron got 71 Million votes is a sad commentary on the intelligence, integrity and character of too many Americans.

 

TTFN