Tax Prep LLC

Whether during uncertain or robust economic times, CPAs remain in high demand. Your business is thriving? You need an accountant. Your business is failing? You need an accountant. According to IBISworld, the accounting services market was a $143.4 billion profession last year. Whether in taxes, auditing or consulting, CPAs play a vital role in helping companies and individuals solve compliance issues and chart their course for better business solutions—from valuation to financial planning, from attestation to IRS representation, from consulting to estate planning.

Reach out anytime by email, or mention us to a friend who you think might benefit from a free call with a Florida licensed CPA. [email protected]

Taxpayers who are owed a refund:

Taxpayers who choose not to file a return because they don't earn enough to meet the filing requirement may miss out on receiving a refund due to potential refundable tax credits. Some examples are the Earned Income Tax Credit and Child Tax Credit. Taxpayers sometimes fail to file a tax return and claim a refund for these credits and others for which they may be eligible.

There's no penalty for filing after the April 15 deadline if a refund is due. However, taxpayers due a refund should still consider filing as soon as possible.

About Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents | Internal Revenue Service Information about Schedule 8812 (Form 1040), Additional Child Tax Credit, including recent updates, related forms, and instructions on how to file. Use Schedule 8812 (Form 1040) to figure the additional child tax credit. The additional child tax credit may give you a refund even if you do not owe an...

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The Earned Income Tax Credit is the federal government’s largest refundable tax credit for low to moderate income workers. Almost a third of those who qualify for the EITC became eligible for the first time this year due to changes in their marital, parental or financial status and may not realize they’re eligible.

People who earned $63,398 or less in 2023 may be eligible for this valuable tax credit.

Other workers at risk for overlooking the EITC include those:

Living in non-traditional homes, such as a grandparent raising a grandchild.
Whose earnings declined or whose marital or parental status changed.
Without children.
With limited English skills.
Who are veterans.
Living in rural areas.
Who are Native Americans.
With earnings below the filing requirement.
Taxpayers can check their eligibility and how much they qualify for at www.IRS.gov/eitc

The EITC is a tax credit for certain people who work and have low to moderate income. A tax credit usually reduces tax owed and may also result in a refund.

For tax year 2023, the EITC is as much as:

$7,430 for a family with three or more children.
$600 for taxpayers who don’t have a qualifying child.

Earned Income Tax Credit (EITC) | Internal Revenue Service If you’re a low- to moderate-income worker, find out if you qualify for the Earned Income Tax Credit (EITC) and how much your credit is worth.

The amateur does not know what to do.
The master knows what not to do.

Consider that when choosing financial advisors.

RMD Rules. Required Minimum Distribution (RMD) rules are changing. The required age for an RMD beginning date is increasing. For individuals born from 1951 to 1959, the RMD beginning date is 73. For those born in 1960 or later, the RMD beginning date is 75. This includes participants and spousal beneficiaries of a participant who died prior to reaching the RMD beginning date.

This is important because the age at which they'll need to start taking RMDs has been part of their financial plan since its inception. With these changes, those financial plans must change. Someone born in 1951 or later no longer must take an RMD at 70½ years old. Instead, that money can stay in their retirement account and grow until they're 73 or 75, depending on their birth year. We've had to adjust affected plans to account for the increased required age for RMDs.

Effective 2023, the penalty for not taking an RMD is reduced. If you miss an RMD for any reason, the penalty drops from 50% to 25%. You can reduce that further to 10% if you correct the mistake within two years.

The rules for beneficiary IRAs are changing. Within 10 years, the IRA funds must be distributed to non-spousal, non-minor beneficiaries. Depending on the IRA owner's age at the date of death, an RMD may be required in years 1-9. The IRS website (irs.gov) has helpful tables for comparing new and old RMD rules:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds

Retirement Topics — Required Minimum Distributions (RMDs) | Internal Revenue Service Review the required minimum distribution rules for certain retirement plans, including traditional IRAs, SEP IRAs, SIMPLE IRAs and 401(k) plans.

Credits for new clean vehicles purchased in 2023 or after

You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.
The credit is available to individuals and their businesses.
To qualify, you must:
• Buy it for your own use, not for resale
• Use it primarily in the U.S.
In addition, your modified adjusted gross income (AGI) may not exceed:
• $300,000 for married couples filing jointly
• $225,000 for heads of households
• $150,000 for all other filers
You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.
The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.

Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.

Many ways to pay the IRS. My favorite and the one i recommend is the

Topic No. 202, Tax Payment Options | Internal Revenue Service If you're not able to pay the tax you owe by your original filing due date, the balance is subject to interest and a monthly late payment penalty. There's also a penalty for failure to file a tax return, so you should file timely even if you can't pay your balance in full. It's always in your best i...

Info for the hustlers: Are you making extra cash selling stuff or providing a service?

Are you making extra cash selling stuff or providing a service? If you sell items or provide a service and get paid by payment card or through a payment app, you may get a Form 1099-K reporting those transactions. Learn m...