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

Once again – I did not want to end the week without some BUZZ.

* The word from the NJ Division of Taxation (via Twitter) –

 

“We have begun mailing 2021 Senior Freeze (Property Tax Reimbursement) checks to applicants who filed before May 1, 2022. The deadline for 2021 applications is October 31, 2022. To check the status of your application, visit {here}.”

 

* Kay Bell, the yellow rose of taxes, reports “Tax-exempt bond spear phishing effort is latest tax pro security threat” at DON’T MESS WITH TAXES.

 

* For those interested I outline in detail my political beliefs and philosophy in WHAT I BELIEVE – ROBERT D FLACH.  Your thoughts and comments are welcomed and solicited.
 
* Michael Cohn tells us “IRS sent incorrect balance due notices to couples” at ACCOUNTING TODAY -
 
“The Internal Revenue Service admitted that some married couples received erroneous balance due notices for their 2021 tax returns.
 
The IRS added that no immediate response to the notice or phone call were necessary right now and it’s working on fixing the problem”
 
An important reminder that you should NEVER automatically pay a balance due notice from the IRS or a state agency.  In my experience over 50 years more than half of such notices are incorrect.  As soon as you receive any correspondence from a tax agency IMMEDIATELY give/send it to your tax preparer.

 

THE LAST WORD

 

We need a new conservative-based political party that totally denounces Trump, his lies and the Evangelicals of the Religious Right - NOT as a third Party but to REPLACE the Republican Party, so that today’s Republican Party becomes the fringe minority third Party.

 

TTFN

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

 

FYI – it appears the IRS has begun to issue refunds for 2021 returns.  One person, who mailed his 2021 paper federal return to the IRS on February 15^th, told me one day last week the “Where’s My Refund” tool told him “you may have entered wrong info” and the next day it indicated his 2021 refund was approved.

 

* Michael Cohn reports on a bill in Congress that I would support at ACCOUNTING TODAY – “Democrats introduce bill to provide freetax filing through IRS” -

 

“The Tax Filing Simplification Act would direct the IRS to develop a free, online tax preparation and filing service that would allow all taxpayers to prepare and file their taxes directly with the federal government instead of being forced to share private information with third parties. It would actually prohibit the IRS from entering into agreements that restrict its ability to provide free online tax preparation or filing services.”

 

Before I retired from preparing 1040s, I refused to use flawed and expensive tax preparation software to submit my clients’ federal income tax returns, and I refused to use the IRS Free File program because it required taxpayers to use commercial vendors like Henry and Richard, so I could not electronically file federal returns.  I was able to electronically submit client NJ-1040 returns because the NJ Division of Taxation provided free electronic filing directly to the NJDOT on its website.

 

* According to the NJ Division of Taxation NJ has a “Sales Tax Holiday for Certain Retail Sales” -  

 

“The Sales Tax Holiday takes place between August 27 through September 5 of 2022. Sellers should not charge Sales Tax on eligible items when purchased during the Sales Tax Holiday.”

 

The “holiday” applies to “retail sales of computers, school supplies, and sport or recreational equipment when sold to an individual purchaser for non-business use.”

 

* More news for NJ residents, from a recent email notice I received from the NJ Division of Taxation.
 
“A new Property Tax Relief Program is replacing the previous Homestead Benefit program. The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program will benefit a large number of homeowners and includes tenants.
 
Homeowner benefit amounts will be $1,500 for taxpayers with 2019 gross incomes up to $150,000 or $1,000 for those with 2019 gross income above $150,000 but no higher than $250,000.
 
Tenants with 2019 gross income up to $150,000 will qualify for a $450 benefit. Applications will be available this fall, and the deadline for submission is December 30, 2022. The benefit will be paid no later than May 2023.”

THE LAST WORD

There has NEVER been ANY time from 2015 through 2020 when Donald Trump was EVER an intelligent, rational or acceptable choice for any political office – least of all President.

There has NEVER been an intelligent, rational or acceptable reason for ANYONE to ever listen to, believe, defend, and support Trump.

While I certainly appreciate and am thankful that, as we have learned in the January 6th hearings, there were lines that some people were unwilling to cross, I denounce the fact that these people ever supported and enabled Trump in the first place..

TTFN

ATTENTION “TRADITIONAL” REPUBLICANS

 

A recently issued petition (click here) provided a well written explanation why true “traditional” Republicans are refusing to support and vote for Trump and his Republican supporters in Congress (highlights are mine) -

“ . . . the Big Lie about the election, and the behavior of Donald Trump and his enablers after the election and on January 6, disqualify Donald Trump and his enablers from holding office. They lack the civic virtue to hold office.”

“What Donald Trump did was un-American. His behavior violates the fundamentals of Americanism. They also are inconsistent with the basic tenets of Republicanism. We believe in the sunny optimism of Ronald Reagan, not the un-American behavior of Donald Trump.”

And -

“We do not support the policies of the Democratic Party. However, the short-term risk of those policies, which can be changed by a responsible Republican Party, are less dangerous than are Donald Trump and his enablers.”

I was, and am, not a member of either the Republican Party nor the Democratic Party.  I support some traditional Republican policies and some Democratic policies.  While I cannot sign the petition (not being a Republican) I can certainly support and promote the above sentiments.

TTFN

THE 2022 CHILD TAX CREDIT AND CHILD CARE CREDIT

 

An FYI

The temporary COVID-related expansion of the Child Tax Credit and the Child and Dependent Care Credit expired on December 31, 2021.  For tax year 2022 these credits return to the rules that existed before the expansion.

The Child Tax Credit for 2022 is $2,000 per qualifying child under age 17.  The credit phases out beginning at Modified Adjusted Gross Income (MAGI) of $200,000, or $400,000 on a joint return.  It may be partially refundable up to a maximum of $1,500 (adjusted for inflation).

The Child and Dependent Care Credit for 2022 is 20% - 35% of qualifying expenses up to $3,000 for one child and $6,000 for more than one child.  This credit is non-refundable.

While the Democrats have been attempting to extend the expanded credits for calendar year 2022, as of this writing they have not been successful in passing legislation to do so. 

Stay “tuned” to THE WANDERING TAX PRO for any changes to these credits or any other tax changes for 2022.

TTFN

SUMMER DAY CAMP AND THE CHILD CARE TAX CREDIT

 

If you and your spouse both work or if you are a working single parent the cost of sending your dependent child (under age 13) to a summer day camp is eligible for the Credit for Child and Dependent Care Expenses. Day camp expenses qualify even if even if the camp specializes in a particular activity, such as computers or soccer.

Only day camp expenses qualify for the credit – the cost of an overnight camp does not qualify.

If one spouse works and the other is disabled or a full-time student the non-working spouse is “deemed” to earn $250 per month is there is one child or $500 per month is there is more than one. This applies to only one spouse per month. If both spouses are full-time students during the same month, only one is “deemed” to earn the $250 or $500.

In most cases if you are married you must file a joint return to claim the credit.

The credit is allowed for a dependent child who is under age 13. You can claim the credit on expenses incurred up to the child’s 13th birthday. If your son turns 13 in November you can still claim the credit on day camp expenses incurred during the summer.

Be sure to get the federal Employer Identification Number of the Day Camp if it is a “for-profit” business. You must report this number on the Form 2441 - the IRS will disallow the credit if you do not include an ID number. However, again according to Pub 503, “You do not have to show the taxpayer identification number if the care provider is one of certain tax-exempt organizations (such as a church or school). In this case, enter ‘Tax-Exempt’ in the space where the tax form calls for the number.”

Day camp expenses also qualify for reimbursement under an employer-sponsored “pre-tax” Dependent Care Benefit “flexible spending account” (FSA).  

TTFN

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

 

* TaxGirl Kelly Phillips Erb deals with “Figuring Your Tax Deduction After the IRS Boosts Mileage Rates” at her BLOOMBERG.COM blog.

 

A reminder from KPE –

 

“Beginning July 1, 2022, the standard mileage rate for business travel will be 62.5 cents per mile. The new rate for deductible medical expenses or moving expenses for active-duty members of the military will be 22 cents. The 14 cents per mile rate for charitable organizations did not change—it remains the same as it has since 1998, since it’s set by statute and not subject to periodic review.”

 

* Also from KPE at BLOOMBERG – “Here’s How to Handle Some Common Payroll and Tax Mistakes”.

 

The bottom line -

 

“Taxpayers also should regularly check their paychecks and withholding—and work with a tax professional—to avoid surprises at tax time.”

 

I have occasionally found employer errors with state income tax and other employee contribution withholding, especially if the employer is based in a different state from the employee.  It is a good idea to carefully check the withholdings on your paystub at least quarterly.

* Hey, have you checked out the latest "issue" of BOBSERVATIONS yet?  Why not?

* FYI, Kay Bell tells us “OK & MT severe weather victims get IRS tax relief, new filing deadlines” at DON’T MESS WITH TAXES.

 

* And Kay also reports “Tax committee chair seeks investigation into IRS leaders' knowledge of Comey, McCabe audits”.

Trump never appoints anyone without requiring complete loyalty and expecting an implied or specific “quid pro quo”.  I was skeptical of Trump’s appointment of the current IRS Commissioner – but when I heard him speak at the NATP Conference in Washington after he was appointed, I was relatively impressed and decided to give him the benefit of the doubt.

However, considering how FU-ed the IRS currently is, I am beginning to wonder if Rettig, like DeJoy at the Post Office, was tasked with attempting to destroy, or at least substantially damage, the IRS for Trump’s personal reasons.  And the recently revealed politically-motivated audits of Trump "enemies" Andrew McCabe and James Comey seem to add credence to the belief that Trump's IRS Commissioner had an agenda other than the proper administration of tax law.

 

THE LAST WORD

 

Attention conservatives and “traditional” Republicans.  There is absolutely no greater threat to America and American democracy – not even a possible “liberal” agenda – than Trump and today’s Trump-embracing and Religious Right controlled Republican Party.

 

It is truly vital for our future that every intelligent and patriotic American vote against every Republican candidate in every election at every level who does not vocally and aggressively oppose, denounce and disavow Trump, his lies and the current leadership of the Republican Party.

 

If you vote Republican in 2022 you are neither intelligent nor patriotic.

 

TTFN

THE FUTURE OF AMERICA AND DEMOCRACY

How difficult is it to understand this?
 
As history will acknowledge and report, no one single individual has ever done more damage to America, the American people, American freedom and democracy, and true American values than Donald Trump.
 
The future safety and security of America and of democracy requires that Trump never again be allowed to hold any position of power at any level.
 
The future safety and security of America and of democracy requires that Trump be investigated, indicted, prosecuted, convicted, and incarcerated for his multitude of federal, state and local crimes.

 

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

 
I didn’t want to end the week without some BUZZ.
 
* From the office of Governor Murphy of NJ – “Governor Murphy, Senate President Scutari, Assembly Speaker Coughlin Announce Back-to-School Sales Tax Holiday”.
 
“The sales tax holiday will take place from August 27 to September 5. Under the sales tax holiday, tax exempt supplies and equipment include: (1) school supplies, such as pens and pencils, notebooks, and binders; (2) school art supplies, such as paints and paintbrushes, clay, and glazes; (3) school instructional materials, such as reference books, reference maps, globes, textbooks, and workbooks; (4) computers; and (5) school computer supplies, such as computer storage equipment, printers, and personal digital assistants.”
 
* Good news from the NATIONAL TAXPAYER ADVOCATE BLOG – “Beginning Today, Some of Our Nation’s Most Vulnerable Taxpayers Will Automatically Have Their Accounts Excluded from Assignment to Private Collection Agencies” -  
 
“Starting today, June 24, the IRS will systemically exclude from assignment to PCAs the accounts of taxpayers who are identified as currently receiving SSI. On Monday, June 27, the IRS will recall the accounts of any taxpayers currently receiving SSI that are now assigned to a PCA, and affected taxpayers will soon receive a letter informing them of this recall.”
 
I have always opposed the use of outside collection agencies by the IRS.  See my 2015 post “NO! NO! A MILLION TIMES NO!”
 
* Be sure to check out the latest “issue” of BOBSERVATIONS.  And let me know what your thoughts and comments.
 
* Kay Bell tells us “State sales tax holidays are on their way this summer of 2022 and beyond” and provides a detailed chart at DON’T MESS WITH TAXES.
 
* TaxGirl Kelly Phillips Erb helps with “Understanding Some Common Letters and Notices From the IRS” at her BLOOMBERG.COM blog.

Never ignore a notice from the IRS.  As soon as you receive one give it to your tax preparer immediately.
 
THE LAST WORD
 
America is NOT a Christian country!
 
Separation of Church & State means the specific beliefs of one individual sect or religion must NEVER be legislated. 
 
Abortion, sexual preference, contraception are NOT conservative issues- and legislated restrictions are contrary to true conservative politics and policy.
 
If your religious beliefs oppose abortion, homosexuality and contraceptives you have every right to NOT have an abortion, NOT engage in homosexual activity or NOT use contraceptives - but you have absolutely NO right to force your beliefs on another person.
 
TTFN