Jon's Tax Service

Returns filed with unemployment benefits prior to the $10,200 exclusion should not be amended. The IRS has indicated it will refigure taxes on these returns and adjust the taxpayer's account accordingly. The IRS will then send any refund amount directly to the taxpayer. The IRS has not yet communicated a timeline for making adjustments and sending refunds.

To follow up on Jon's post yesterday, PA has also extended their income tax filing deadline to May 17th, 2021. I have had a few ask if the extended IRS tax deadline will apply to states as well. Now the answer is OFFICIALLY YES in PA! Happy Tax Season! Renee :)

The Treasury Department and IRS has officially announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.

The IRS has informed NATP that it's reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. Additional information about a new round of economic impact payments, the expanded child tax credit, including advance payments, and other tax provisions will be made available as soon as possible. The IRS strongly urges taxpayers not to file amended returns related to the new legislative provisions or take other unnecessary steps at this time. The IRS wi...ll provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance. See more

I wanted to let everyone know we are open for business this week but, my wife is currently in the hospital so I am without any help to answer the phone at this time. If you are calling and no one answers please leave a message and I will return all calls when I have a moment. Thank you for your patience.

For those who would like to see our daughter’s funeral, here is the playback of today’s live stream. Thank you all for the outpouring of love and support for our family. We are honored to know you all and so thankful for you in what could be a very lonely time. -Renee

I wanted to thank everyone for the cards, phone calls and those that just stopped in to visit with my wife. She really appreciates that we have such supportive clients. Today’s funeral will probably not be well attended due to the weather, but it will be live streamed from Mount Calvary Church Facebook page and is open to the public. I am going to attempt to preach part of the service this morning. Thanks again for all your prayers and support.

I wanted to let everyone know our office will be closed Thursday morning February 11, for our daughters Ellowyn’s funeral. I wanted to thank many of you for the cards, packages, kind words and especially prayers. My wife has said many times we look at our clients not as customers but as our friends, and she has really felt your support in the last week. Please feel free to leave a message when you call if you can not reach us, I am working on getting additional help for answering the phones and returning calls this week.

I wanted to let everyone know that I am back in the office today. I will not be in on Monday morning as we will be making funeral arrangements but will plan on being back in the afternoon. We are attempting to call everyone that left messages and everyone that needs to be rescheduled. If you don’t hear back from us by Tuesday please reach out and we will get you back on the schedule. I wanted to thank everyone for their prayers and understanding. Please keep my daughter ...Brynlee in your prayers as she seems to be taking this extremely hard after visiting the hospital and getting to see her baby sister. If you are calling back to schedule please call 717-689-5960. My wife and mother are working the phones today, if they don’t answer it will be because they are on the other line, please leave a message and someone will get back to you. Thanks again for everyone’s support.

I wanted to let everyone know that I am still at the hospital with my wife. The doctors are expecting her to deliver sometime today but had advised me that it would be best to reschedule all appointments today. For those of you that did not know my wife was 16 weeks pregnant and had a routine ultrasound on Wednesday, in which they discovered that our baby girl had passed away in the past 24 hours. This has come as a complete shock as there was no indications of any complications. We are so grateful for the many kind words and prayers we have received in the last two days. We will be naming our daughter Ellowyn. Thanks again for everyone flexibility and understanding at this time.

Due to the unexpected loss of my daughter I will not be in the office this morning or afternoon. If you have an appointment scheduled someone should be contacting your today about rescheduling. Thank you for your understanding during this difficult time.

The 2021 tax season will start on Friday, Feb. 12, 2021, when the IRS will begin accepting and processing 2020 tax year returns. The Feb. 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the Dec. 27 tax law changes that provided a second round of Economic Impact Payments and other benefits. These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return. This does not mean that you must wait till Feb 12th to file, you can file before that but you will have to wait till the 12th for the IRS to receive your return.

If you are one of the millions who have not received your 2nd Stimulus, the IRS is going to start issuing payment on debit cards. Make sure you check your junk mail before throwing it away in the next couple of weeks.

Stuck inside with nothing to do? What a great time to get your tax papers together. I will be working in the office till 8. Due to the snow I would recommend that everyone use the Northwest Bank parking lot today. I look forward to seeing everyone this year.

Tax season is about to start and I wanted to share some pictures of our new location. Call 717-689-5960 to set up an appointment or drop your paperwork off at 115 E. Main St., Mount Joy, right beside Northwest Bank.

Wishing you a Merry Christmas from our family to yours.

The U.S. Senate and House of Representatives passed an emergency $900 billion COVID-19 relief bill which is expected to be signed into law. Additional 2020 recovery rebates for individuals. The provision provides a refundable tax credit in the amount of $600 per eligible family member. The credit is $600 per taxpayer ($1,200 for Married Filing Jointly), in addition to $600 per qualifying child. The credit phases out starting at $75,000 of modified adjusted gross income ($112,500 for Head of Household and $150,000 for Married Filing Jointly) at a rate of $5 per $100 of additional income.

Last week of Tax Season, something I never thought I would say in July! If you need to schedule or file for an extension please don't wait till the last minute. Call 717-689-5960 or email [email protected]

Great news for 2020 tax year! You can now take up to $300 in charitable contribution deductions without itemizing. Charitable deductions: The act creates an above-the-line charitable deduction for 2020 (not to exceed $300). The act also modifies the AGI limitations on charitable contributions for 2020, to 100% of AGI for individuals and 25% of taxable income for corporations. The act also increases the food contribution limits to 25%.

Here is an informational talk that I did with the chamber of commerce talking about changes in the tax law for individuals and business. https://www.youtube.com/watch?v=o76vjVFXDXM

I wanted to let everyone know that we are currently open for face to face appointments. We are following CDC guidelines by wearing masks and keeping appropriate distance when possible. Please call 717-689-5960 to set up your appointment.

For those of you who do not have direct deposit on file with the IRS or want to check the status of your stimulus, the IRS has a link for that now. https://www.irs.gov/coronavirus/get-my-payment

Recovery rebates Most individuals will receive a direct payment from the federal government. Technically a 2020 refundable income tax credit, the rebate amount will be calculated based on 2019 tax returns filed (2018 returns in cases where a 2019 return hasn't been filed) and sent automatically via check or direct deposit to qualifying individuals. To qualify for a payment, individuals generally must have a Social Security number and must not qualify as the dependent of anot...her individual. The amount of the recovery rebate is $1,200 ($2,400 if married filing a joint return) plus $500 for each qualifying child under age 17. Recovery rebates are phased out for those with adjusted gross income (AGI) exceeding $75,000 ($150,000 if married filing a joint return, $112,500 for those filing as head of household). For those with AGI exceeding the threshold amount, the allowable rebate is reduced by $5 for every $100 in income over the threshold. Rebate Amounts and Phaseout Ranges Filing Status Payment Amount Phaseout Threshold Phaseout Completed Married Filing Jointly $2,400 $150,000 $198,000 + 1 Child $2,900 $150,000 $208,000 + 2 Children $3,400 $150,000 $218,000 Head of Household $1,200 $112,500 $136,500 + 1 Child $1,700 $112,500 $146,500 + 2 Children $2,200 $112,500 $156,500 All Others $1,200 $75,000 $99,000 While details are still being worked out, the IRS will be coordinating with other federal agencies to facilitate payment determination and distribution. For example, eligible individuals collecting Social Security benefits may not need to file a tax return in order to receive a payment.

Here’s what taxpayers need to know about stimulus payment processing in order to protect themselves from scammers: 1. Be alert for phone scams. The Internal Revenue Service (IRS), Treasury Department, or any other government agency will not contact you by phone to collect information for stimulus payment processing. Period. 2. Be alert for phishing scams. Government agencies will not email or text you to collect information for stimulus payment processing. Watch for suspici...ous emails or texts with links or attachments requesting information for processing stimulus deposits or checks. If you receive one, do not click the link or open the attachment. It’s a scam. Delete it. 3. Be alert for state-related scams. State agencies will also not call, email or text you to collect information or a fee to process a stimulus payment. To date, no state has introduced their own version of a stimulus payment. See more

In case anyone is looking for the information on where to go to file for unemployment. https://www.paclaims.pa.gov/UCEN/Welcome.asp 888-313-7284... Videophone for American Sign Language: 717-704-8474

COVID-19 - Tax Return Filing & Payment Relief Does the deadline postponement apply to return filing and payments? Yes. Both the filing and payment deadlines have been automatically postponed from April 15, 2020 to July 15, 2020 for individuals, trusts, estates, corporations, or any type of unincorporated business entity. Interest and penalties will begin to accrue after July 15....Continue reading

UPDATE: https://www.wgal.com//what-does-90-day-tax-paymen/31765000 This new deadline is for federal taxes. Each state will need has their own deadline, some have not extended the deadline yet; others have. (For example, California's deadline is June 15th). If you have any questions, please check in with Jon. The government is still processing refunds as normal.

UPDATE: WE ARE NOW CONSIDERED LIFE ESSENTIAL AS OF THE GOVERNOR'S REVISED LIST PUBLISHED ON MARCH 20th. If you need your taxes prepared, please DO call us! We will resume face-to-face appointments once the mandatory physical operations of nonessential business closures are over. Until then we continue to answer phones, messages, and prepare taxes from our home. At the moment, our MODE of service has changed, but we are still able to prepare taxes for you through secure on...line submissions If you would like Jon to prepare your taxes for you this week, I would be happy to get you set up with a virtual appointment with him! SECURELY SENDING FILES: Jon has a secure portal where you can upload pictures or scans of your tax documents. Based upon the feedback I am receiving from current clients, it is very simple to use. I would be happy to email you brief instructions or talk you through it over the phone. Simply message or call us. All you need is a smartphone or computer with a scanner or camera. Later today, I will post a video tutorial to this thread to show you how it can be done. Thank you all for your continued support of our business. We definitely miss the interaction with you all and care deeply for your safety. Renee

I see many people in my office a week. Due to the safety of my elderly clients I have suspended all in office appointments at this time and will be doing drop off and virtual appointments. This is not the direction that I want to go but I am trying to do what is in the best interest of everyone. When stopping back to sign paperwork I will gladly bring the paperwork out to the car for my clients.

During these times it appears that things are changing hour by hour. At this time from all the information I received the deadline to FILE your taxes is still April 15th. The deadline to PAY is now July 15th.