Lemmon Notary & Tax Services

Due to the inclement weather, our Office is closed today Tuesday, January 18, 2022.

Treasury Issues Warning Going into Tax Season Treasury Department officials took the preemptive step on Monday of warning taxpayers that the upcoming tax season, which begins on January 24 and will run through April 18, will be messy and could see delays. Pointing to staffing shortages and paperwork backlogs, officials said taxpayers will likely face frustrations similar to those of last year’s tax season. Potential problem areas include delays in the processing of refunds an...d returns as well as difficulty in reaching IRS. As of mid-November 2021, the IRS had a backlog of roughly 8.6 million returns left to process. In a separate statement, IRS Commissioner Charles Rettig said IRS is not able to provide the level of service taxpayers deserve and said that more resources for the agency are essential.

Letters the IRS is sending to all recipients of Advance CTC and the third Economic Impact Payments (stimulus). They will be needed to process your tax return. So watch out for them in the mail. You can also create an account on the IRS website and you can print them.

Those of you have Student Loans that were deferred you will find some important information here.

Tax filing step 1: Gather all year-end income documents As taxpayers are getting ready to file their taxes, the first thing they should do is gather their records. To avoid processing delays that may slow their refund, taxpayers should gather all year-end income documents before filing a 2021 tax return. It's important for people to have all the necessary documents before starting to prepare their return. This helps them file a complete and accurate tax return. Here are some ...things taxpayers need to have before they begin doing their taxes. Social Security numbers of everyone listed on the tax return. Many taxpayers have these numbers memorized. Still, it's a good idea to have them on hand to double check that the numbers on the tax return are correct. An SSN with one number wrong or two numbers switched will cause processing delays. Bank account and routing numbers. People will need these for direct deposit refunds. Direct deposit is the fastest way for taxpayers to get their money and avoids a check getting lost, stolen or returned to IRS as undeliverable. Don't have a bank account? Learn how to open an account at an FDIC-Insured bank or through the National Credit Union Locator Tool. Veterans can access the Veterans Benefits Banking Program. Forms W-2 from employer(s). Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan. Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy. Form 1099-INT for interest received. Other income documents and records of virtual currency transactions. Forms 1095-A, Health Insurance Marketplace Statement. Taxpayers will need this form to reconcile advance payments or claim the premium tax credit. Letter 6419, 2021 Total Advance Child Tax Credit Payments, to reconcile advance child tax credit payments. Letter 6475, Your 2021 Economic Impact Payment, to determine eligibility to claim the recovery rebate credit. Forms usually start arriving by mail or are available online from employers and financial institutions in January. Taxpayers should review them carefully. If any information shown on the forms is inaccurate, the taxpayer should contact the payer ASAP for a correction. See more

There are two ways you can take deductions on your federal income tax return: you can itemize deductions or use the standard deduction. Deductions reduce the amount of your taxable income. The standard deduction amount varies depending on your income, age, whether or not you are blind, and filing status and changes each year; see How Much Is My Standard Deduction? and Topic No. 551 for more information. Certain taxpayers can't use the standard deduction:... A married individual filing as married filing separately whose spouse itemizes deductions. An individual who files a tax return for a period of less than 12 months because of a change in his or her annual accounting period. An individual who was a nonresident alien or a dual-status alien during the year. However, nonresident aliens who are married to a U.S. citizen or resident alien at the end of the year and who choose to be treated as U.S. residents for tax purposes can take the standard deduction. For additional information, refer to Publication 519, U.S. Tax Guide for Aliens. An estate or trust, common trust fund, or partnership; see Code Section 63(c)(6)(D). You should itemize deductions if your allowable itemized deductions are greater than your standard deduction or if you must itemize deductions because you can't use the standard deduction. You may be able to reduce your tax by itemizing deductions on Schedule A (Form 1040), Itemized Deductions. Itemized deductions include amounts you paid for state and local income or sales taxes, real estate taxes, personal property taxes, mortgage interest, and disaster losses. You may also include gifts to charity and part of the amount you paid for medical and dental expenses. You may benefit by itemizing on Schedule A (Form 1040) PDF, if you: Can't use the standard deduction or the amount you can claim is limited Had large uninsured medical and dental expenses Paid mortgage interest or real property taxes on your home Had large "Other Itemized Deductions" (line 16 on Schedule A (Form 1040)) Had large uninsured casualty or theft losses from a Federally declared disaster, or Made large contributions to qualified charities Individual itemized deductions may be limited. See the Instructions for Schedule A (Form 1040) to determine what limitations may apply. For more information on the difference between itemized deductions and the standard deduction, refer to Publication 17, Your Federal Income Tax for Individuals or the Instructions for Form 1040 (and Form 1040-SR). You may also refer to Topic No. 551 and Publication 501, Dependents, Standard Deduction, and Filing Information.

Taxpayers have two options when completing a tax return, take the standard deduction or itemize their deductions. Most taxpayers use the option that gives them the lowest overall tax. Due to all the tax law changes in the recent years, including increases to the standard deduction, people who itemized in the past might want to switch to the standard deduction. Here are some details about the two options. Standard deduction The standard deduction amount increases slightly ev...ery year and varies by filing status. The standard deduction amount depends on the taxpayer's filing status, whether they are 65 or older or blind, and whether another taxpayer can claim them as a dependent. Taxpayers who are age 65 or older on the last day of the year and don't itemize deductions are entitled to a higher standard deduction. Most filers who use Form 1040 can find their standard deduction on the first page of the form. The standard deduction for most filers of Form 1040-SR, U.S. Tax Return for Seniors, is on page 4 of that form. Not all taxpayers can take a standard deduction, which is discussed in the Instructions for Forms 1040 and 1040-SR. Those taxpayers include: A married individual filing as married filing separately whose spouse itemizes deductionsif one spouse itemizes on a separate return, both must itemize. An individual who files a tax return for a period of less than 12 months. This is uncommon and could be due to a change in their annual accounting period. An individual who was a nonresident alien or a dual-status alien during the year. However, nonresident aliens who are married to a U.S. citizen or resident alien can take the standard deduction in certain situations. Itemized deductions Taxpayers choose to itemize deductions by filing Schedule A, Form 1040, Itemized Deductions. Itemized deductions that taxpayers may claim include: State and local income or sales taxes Real estate and personal property taxes Home mortgage interest Mortgage insurance premiums on a home mortgage Personal casualty and theft losses from a federally declared disaster Gifts to a qualified charity Unreimbursed medical and dental expenses that exceed 7.5% of adjusted gross income Some itemized deductions, such as the deduction for taxes, may be limited. Taxpayers should review the instructions for Schedule A Form 1040 for more information on limitations. See more

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Make sure you include the correct amount or your tax return will be held up.