Virtual Ventures LLC

Many a times seniors receiving RMDs (Required minimum distributions) and social security benefits do not realize that some or part of their social security benefits may become taxable at either 50% or at 85%. Taxation is dependent on combined income which consists of earned income (for example, wages earned plus interest earned plus dividends plus half of social security benefits earned divided by total gross income. If the result is greater than $25000 but less than $32000, you social security will be taxed at 50%. If the amount is greater than $32000 then your social security income will be taxed at 85%.
Next, please ensure that the 1099-R that you have received is coded appropriately. If it is coded 1, then that means that the distribution is a premature distribution that means that the distribution is early distribution with no known exception. This is critical if you are above 59 1/2 years of age in the year you took that distribution because you will be assessed 10% penalty or additions to tax in addition to being taxed at the normal rate.
Please consult with your financial advisor to see if you can roll your RMDs to other pension plan as the age threshold for the contribution is 72 years.
For more information, please contact us!

Child Tax Credit Update Portal | Internal Revenue Service

As you know that the Congress directed the IRS to use 2019 or 2020 tax return information to deliver monthly payments of the child tax credit as outlined in the American Rescue Plan that was enacted in March 2021 to help families that are struggling to make ends meet. Important factors to remember is:
1) The enhanced credit (for the entire year) is $3,000 per child for children between the ages of 6 - 17 years and $3,600 per child for children between the ages of 1 - 5 years.
2) Income thresholds are $75,000 for single filers and capped at $150,000 with a phaseout for incomes above the thresholds.
3) IRS will use the older income information to deliver the monthly payments (based on 2019 or 2020 tax return).
4) If your income has changed for 2021 (increase), the credit will be calculated based on 2021 income and you might have to pay back the portion of the received credit to the IRS.
5) If your child turned 18 last year, you may have to remit the credit received to the IRS.
Please use the link below to see if you are eligible, view your advance payments or to opt out of receiving advance payments.

https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

Thank you!

Child Tax Credit Update Portal | Internal Revenue Service View your eligibility and unenroll from advance payments of the Child Tax Credit.

About Form 1099-NEC, Nonemployee Compensation | Internal Revenue Service

For FY 2020 and going forward if you have a contractor and you need to issue a non employee compensation (payments upwards of $600.00), please use 1099-NEC. If you have paid royalties, healthcare and rent payments please use Form 1099–Misc!

https://www.irs.gov/forms-pubs/about-form-1099-nec

About Form 1099-NEC, Nonemployee Compensation | Internal Revenue Service Information about Form 1099-NEC, Nonemployee Compensation, including recent updates, related forms, and instructions on how to file.

Employers Can Let Workers Change Health Plans Without Waiting

https://www-nytimes-com.cdn.ampproject.org/c/s/www.nytimes.com/2020/05/12/business/employer-health-plans-coronavirus.amp.html

Employers Can Let Workers Change Health Plans Without Waiting The I.R.S. is giving companies flexibility to allow those decisions, and on pretax accounts for medical expenses and child care, outside an enrollment period.

Applying for disaster loan aid?
Know the rules:
1) schedule of liability
2) financials
3) certifying your statements are correct and true
Call us now to help you process your loan applications!

Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020 gives all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members, enabling employers to keep their workers on their payrolls.

For employers with less than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened.

‘Tis the season.. here is a tip:
If you have not received your W-2 or 1099- Misc by the end of February, filing 4852 instead of 1040 would ensure you are not paying a late filing penalty and making your estimated tax payments throughout the year would ensure you not being assessed with failure to pay penalty. If you receive your W-2 after you filed firm 4852, and if there is a discrepancy in your return, make sure to amend your return.

Often Taxpayers view their State & Local Tax refund as the overpayment of their State Taxes and do not include that on their current year filing. One major decision factor that should be noted is that if the Taxpayer itemized their deductions they must include the prior year State tax refund in their current year filing (in another words it becomes taxable income).. Read on...

State income tax refunds can sometimes be taxable income, according to the IRS—"sometimes" being the operative word. You must report them on line 10 of Schedule 1 of the new 2018 Form 1040, but only if you claimed a deduction for state and local taxes the year before.

IRS plans visits to high-income taxpayers who didn’t file returns

This is a misconception that Taxpayers assume that if they don’t file their tax returns, IRS cannot pursue them. Read on..

IRS plans visits to high-income taxpayers who didn’t file returns Internal Revenue Service officials said Wednesday they will be visiting approximately 800 taxpayers who earn over $100,000 a year and haven’t filed one or more tax returns in prior years.

‪IRS’ focus on foreign tax compliance increases. Tax reporting of Int’l accounts & activities can be frustrating, and failure to file foreign tax informational forms typically trigger more severe penalties than failure to file most required domestic tax forms.‬ Don’t be at risk at due to missing or incorrect foreign information filings. Contact us at [email protected] for more information!

Personal income tax up-to-date information for 2018 (Articles 22 and 30)

Be in the know:
https://www.tax.ny.gov/forms/income_up_to_date_info.htm -203-I

Personal income tax up-to-date information for 2018 (Articles 22 and 30) Form IT-203-I, page 28, line 33 instructions should read as follows: 2. Use Form IT-196, New York Resident, Nonresident, and Part-Year Resident Itemized Deductions, and its instructions to compute your New York itemized deduction. Compare the Form IT-196, line 49 amount to your New York standard ded...

U.S. Tax-Dodging Crackdown Overseas Brings Foreign-Adviser Surge

If you are a US citizen living abroad, filing your US Tax return is more beneficial than being penalized by the IRS. Read on..
https://news.bloombergtax.com/daily-tax-report/u-s-tax-dodging-crackdown-overseas-brings-foreign-adviser-surge

U.S. Tax-Dodging Crackdown Overseas Brings Foreign-Adviser Surge The number of Treasury-licensed tax advisers with foreign addresses has increased almost 50% since 2016, IRS data shows, reflecting the agency’s growing efforts to crack down on tax avoidance overseas.

Have you engaged in cryptocurrency transactions? The IRS is sending out letters 6173, 6174, and 6174a to advise taxpayers of their tax obligations with respect to transactions involving virtual currency, which includes crypto-currency and non-crypto virtual currencies. Contact us!

Tax Fraud Alert:

It’s all about educating the taxpayers. It was an honor to meet Commissioner Rettig.

Justice Department Warns Taxpayers to Avoid Unscrupulous Tax Return Preparers

Selecting your tax return preparer is key.. avoid tax return preparers who promise you to get a bigger refund or who charges you a percentage of your refund. Read on..

https://www.justice.gov/opa/pr/justice-department-warns-taxpayers-avoid-unscrupulous-tax-return-preparers

Justice Department Warns Taxpayers to Avoid Unscrupulous Tax Return Preparers As tax filing season begins, the Department of Justice warns taxpayers to beware of unscrupulous tax return preparers. The Department of Justice applies both civil and criminal tools at its disposal to shut down illegal tax return preparation activity. Taxpayers should always remain wary of tax retu...

What to do when you get audited by the IRS

What to do when you get audited by the IRS
https://www.thisisinsider.com/what-to-do-if-you-get-audited-2018-11

What to do when you get audited by the IRS From organizing files to examining the letter from the IRS, here's what not to do and what to do if you get audited by the IRS.

IRS reminds those with disabilities of new ABLE account benefits | Internal Revenue Service

Are you disabled?

Do you want to to
Stash more money into your ABLE account? Contributions may not be deductible but distributions for the disability related expenses are..
Here are the guidelines...
https://www.irs.gov/newsroom/irs-reminds-those-with-disabilities-of-new-able-account-benefits

IRS reminds those with disabilities of new ABLE account benefits | Internal Revenue Service IR-2018-239, December 4, 2018 — The Internal Revenue Service wants to remind those with disabilities that the Tax Cuts and Jobs Act (2017) made major changes to Achieving a Better Life Experience (ABLE) accounts.

3 Tax Mistakes You're Probably Making Today -- The Motley Fool

Tips:
1) adjust your withholding
2) maximize your savings thru IRA or 401(k)
3) pay your estimated tax payments

https://www.google.com/amp/s/www.fool.com/amp/retirement/2018/12/06/3-tax-mistakes-youre-probably-making-today.aspx

3 Tax Mistakes You're Probably Making Today -- The Motley Fool Consider this your much-needed wake-up call.

IRS Announces Higher 2019 Retirement Plan Contribution Limits For 401(k)s And More

IRS Announces Higher 2019 Retirement Plan Contribution Limits For 401(k)s And More Stash up to $6,000 in your IRA and $19,000 in your 401(k) in 2019—and $7,000 more if you’re 50-plus.

NJ Tax Amnesty

If you owe any NJ State Taxes, take advantage of tax amnesty.. read on!

https://www.taxamnesty.nj.gov/

NJ Tax Amnesty NJ Tax Amnesty for 2018

2018 Withholding Calculator

With the new tax reform changes, it is advisable to perform a quick paycheck checkup.. “If you are an employee, the Withholding Calculator helps you determine whether you need to give your employer a new Form W-4, Employee's Withholding Allowance Certificate. You can use your results from the Calculator to help fill out the form and adjust your income tax withholding. If you receive pension income, you can use the results from the calculator to complete a Form W-4P and give it to your payer.”
https://apps.irs.gov/app/withholdingcalculator/

2018 Withholding Calculator

What Kids And Their Parents Should Know About Summer Jobs And Taxes

From finding a right withholding to reporting cash wages paid under the table.. find a right Tax professional who can guide you to be in compliance with the Tax agencies within your state! - personal advice.. never underreport your income...
https://www.forbes.com/sites/kellyphillipserb/2018/07/05/what-kids-and-their-parents-should-know-about-summer-jobs-and-taxes/

What Kids And Their Parents Should Know About Summer Jobs And Taxes Whether you're considering serving up slices, mowing lawns or ringing up groceries, here's what kids - and their parents - should know about summer jobs and taxes.

What Taxpayers Should Know About the New Form 1040

The new IRS Tax Form 1040 is shorter, but it’s not simpler...
https://money.usnews.com/money/blogs/my-money/articles/2018-07-05/what-taxpayers-should-know-about-the-new-form-1040

What Taxpayers Should Know About the New Form 1040 Changes resulting from the postcard-size tax-filing form will be effective in the 2019 filing season.

Tax reform brings challenges and opportunities for digital nomads

https://www.accountingtoday.com/opinion/tax-reform-brings-challenges-and-opportunities-for-digital-nomads

Tax reform brings challenges and opportunities for digital nomads This emerging taxpayer community will need special guidance on the new rules.

Tax reform allows people with disabilities to put more money into ABLE accounts, expands eligibility for Saver’s Credit | Internal Revenue Service

Are you disabled? Have you thought about an ABLE Account,? Read on...

https://www.irs.gov/newsroom/tax-reform-allows-people-with-disabilities-to-put-more-money-into-able-accounts-expands-eligibility-for-savers-credit

Tax reform allows people with disabilities to put more money into ABLE accounts, expands eligibility for Saver’s Credit | Internal Revenue Service IR-2018-139, June 15, 2018 – People with disabilities can now put more money into their tax-favored Achieving a Better Life Experience (ABLE) accounts and may, for the first time, qualify for the Saver’s Credit for low- and moderate-income workers, according to the Internal Revenue Service.

A3380

For my clients in New Jersey, please read the attached article on health insurance coverage implementation:

http://www.njleg.state.nj.us/2018/Bills/A3500/3380_I1.HTM

A3380 "Affiliated company" means a company in the same corporate system as a parent, an industrial insured or a member organization by virtue of common ownership, control, operation or management.

Virtual Ventures LLC updated their address.

Virtual Ventures LLC updated their address.

Virtual Ventures LLC updated their phone number.

Virtual Ventures LLC updated their phone number.

IRS, Security Summit Partners warn of new twist on phone scam; crooks direct taxpayers to IRS.gov to “verify” calls | Internal Revenue Service

https://www.irs.gov/newsroom/irs-security-summit-partners-warn-of-new-twist-on-phone-scam-crooks-direct-taxpayers-to-irsgov-to-verify-calls

IRS, Security Summit Partners warn of new twist on phone scam; crooks direct taxpayers to IRS.gov to “verify” calls | Internal Revenue Service IR-2018-103, April 24, 2018 — The IRS today warned of a new twist on an old phone scam as criminals use telephone numbers that mimic IRS Taxpayer Assistance Centers to trick taxpayers into paying non-existent tax bills.

Understanding Your 5071C Letter | Internal Revenue Service

‪So you filed your tax return, but you get an IRS letter wanting to confirm your tax return filing.. what do you do? Read on....

Understanding Your 5071C Letter https://www.irs.gov/individuals/understanding-your-5071c-letter‬

Understanding Your 5071C Letter | Internal Revenue Service Understanding Your 5071C Letter for individuals

The Big Mistake You're Making With Your HSA

With cost of healthcare on the rise, think about opening a Health Savings Account. It not only affords one to save up (tax free contributions) on their healthcare costs, but growth is tax free and and the distributions from it for qualified healthcare spending is also tax free. Read on..

https://money.usnews.com/investing/buy-and-hold-strategy/articles/2018-03-09/the-big-mistake-youre-making-with-your-hsa

The Big Mistake You're Making With Your HSA Keeping HSA funds in cash forfeits one of the best features: tax-free growth for retirement.

IRS warns of new scam involving erroneous tax refunds

Stay informed: new scam targets tax professionals pays well as the taxpayers.
https://www.accountingtoday.com/news/irs-warns-of-new-scam-involving-erroneous-tax-refunds

IRS warns of new scam involving erroneous tax refunds The Internal Revenue Service warned taxpayers Tuesday to beware of a quickly proliferating scam involving erroneous tax refunds being deposited in their bank accounts, after a data breach on their tax preparers' computers gives them access to sensitive client information.

Prepaying Your Property Tax? I.R.S. Cautions It Might Not Pay Off

https://www.facebook.com/Vanna.vigoureux/posts/778971852311817

Prepaying Your Property Tax? I.R.S. Cautions It Might Not Pay Off Homeowners have raced to prepay property taxes before the new tax law takes effect. But in new guidance, the I.R.S. said the strategy wouldn’t work in many cases.

IRS warns of new tax email scam hitting Hotmail users

Scam alert for hotmail account holders: Do not give out your personal / financial information online! Report phishing emails to TIGTA.

https://www.accountingtoday.com/news/irs-warns-of-new-tax-email-scam-hitting-hotmail-users

IRS warns of new tax email scam hitting Hotmail users The Internal Revenue Service issued a warning Wednesday to taxpayers and tax professionals about a new email scam targeting Hotmail users in which the thieves try to steal personal and financial information.