Broker Check

Tax Year 2023

Another year is in the books!

Another year is in the books!

Isn't it amazing how fast time flies?  In the span of one year, in my personal life; I added one grand-child to the family from my first-born daughter, my son graduated college in May and secured a job in August as a Police Officer, and proposed to his girlfriend in January, 2024 (she said Yes!), my younger daughter accepted a proposal of marriage from her long time boyfriend on my wife's 50th birthday (a birthday my wife will never forget), and my youngest son continues to work and attend college trying to figure out what path in life will work for him.  Time just seems to keep speeding up as I get older and the life events keep getting bigger with two weddings in the near future.  I certainly hope and pray that the year 2023 was positive and meaningful in some way for you.

Best Regards,

Jason R. Rose

With the turn of the new year, it is time to look forward to the annual filing of the tax returns.  Acc-U-Rite Tax is once again ready to assist you in the preparation of your 2023 Income Tax Return.  Specific preparers are available upon request, but please call ahead of time to ensure that they will be in the office when you arrive. 

We continue to offer three option for tax preparation.  We offer 'live' in-person tax preparation as it has been done in our office since inception back in 1958.  We also offer 'Drop Off' tax preparation where you can drop off your packet of paperwork and we will prepare it as time is available between the live clients.  This usually takes a few days or a week or two depending on when during the tax season you are dropping off the paperwork.  The third option is to use our secure portal to upload and download your tax documents.  This third option has been available for only a couple of years now, but it is a growing option.  We only create portal access for existing clients and only open access to those clients that specifically contact our office to request this option.  For those of you who have utilized the portal in the last couple of years, your portal login username and password are the same as last year.  Please be aware that the portal does have a new look due to recent upgrades and improvements.

The physical postcard is printed and will be mailed out around the third week of January, but everything on this page is essentially what is on the postcard, but in an expanded format and some additional details as there are no space limitations here.  

There have been several tax law changes that impact the 2023 tax returns.  As always, please bring in your normal tax documents and any new items that may apply for this year.

RESIDENTIAL ENERGY EFFICIENCY TAX CREDITS:  The Inflation Reduction Act of 2022 updated and substantially increased tax credits for improvements to your principal residence only.  The energy efficiency credits can only be used with existing homes that are your personal residence.  New Construction and second homes do NOT qualify for the Residential Energy Efficiency Tax Credit.  If you purchased any Energy Efficient products in 2023 such as doors, windows, insulation, furnace, central air, hot water heaters, or had a Home Energy Audit done for your personal residence; then please bring in the Energy Efficiency Rating, the Billing and Payment information, and the Installation Date.  This is now an ANNUAL tax credit that runs for ten years.  Tax year 2023 is the first year of this new expanded tax credit and it runs through 2032, so talk with your preparer about how to maximize this tax credit over the next decade.  This is a non-refundable tax credit, which means you must have some tax that you owe in order for the tax credit to benefit you on your tax return.  

RESIDENTIAL CLEAN ENERGY TAX CREDITS:  The Inflation Reduction Act of 2022 also reset the percentage for Clean Energy installation for your personal residence.  The Inflation Reduction Act of 2022 also expanded your ability to claim the credit by including new construction along with second homes.  If you installed:

  1. Solar Panels (Photovoltaic Systems) to convert light into electricity,
  2. Solar Water Heater that uses the sun's thermal energy to heat water,
  3. Wind turbine to generate electricity,
  4. Geothermal Heat Pump to use the ground or ground water as a thermal energy source (to heat), or as a thermal energy sink (to cool) a house, 
  5. Battery Storage Technology

Fuel Cells also qualify for the Residential Clean Energy Tax Credit, but only can be installed in your Personal Residence to qualify.  

You may also check out more details regarding both the Residential Energy Efficiency Tax Credits and the Residential Clean Energy Tax Credits on the energy star website: 

DEPENDENTSPlease remember to bring in documentation that shows your name, address, and your child's name that can be kept with your tax records.  The IRS requires that Acc-U-Rite maintain documentation to show that the child you are claiming on your tax return actually lives with you.  This is a requirement for all tax preparation firms by the IRS as part of our Due Diligence requirements as tax professionals.  Please refer to the Qualifying Child Worksheet for some helpful information.

MARKETPLACE HEALTHCARE:  If you had health insurance through the Federal Government Marketplace (sometimes referred to as 'Obamacare') for any part of the year, you will receive Form 1095-A.  If you do not provide this form when the tax return is prepared, then the IRS will reject the tax return.  

Nationwide Electronic Filing Start Date:  The IRS will open up E-Filing on January 29th, 2024.  We can prepare the tax return prior to this date provided you have all of your tax forms.  Once your return is complete we will simply E-File the return and the IRS will accept it once E-Filing opens up. As a reminder, Per Federal Law, any tax return containing either the Earned Income Credit or the Additional Child Tax Credits has to wait until February 15th for the refund to be issued by the IRS.  

1099-K FORMS:  If you utilize Paypal, Venmo, CashApp, or other payment services to transfer money to other people, it is possible that you may receive a 1099-K for 2023.  The American Rescue Plan of 2021 changed the reporting threshold for these organizations.  The new threshold requires reporting of transactions in excess of $600 per year.  Throughout 2023 we were informing clients that this lower limit was in effect for 2023.  Once again, in November, 2023, the IRS delayed the implementation of this law and raised the limit.  For 2023 a 1099-K should only be issued where gross payments exceed $20,000 and there are more than 200 transactions.  At the same time, the IRS announced that a transitional dollar limit of $5,000 will be in force for 2024.   

The law is not intended to track personal transactions such as sharing the cost of a car ride or meal, birthday or holiday gifts, or paying a family member for a household bill.  However, it is possible that you may have a 1099-K issued for these transactions anyway.  Please log in to any third party settlement organizations (payment apps, paypal, etc) that you may use and look under tax forms for a 1099-K.  Please bring this with you when you come to have your tax return prepared so we can properly address this on your tax return.  

PRICING:  We know that there was a sizeable increase in our base fee last year due to the purchasing of a new server and computers for the office.  While we are still paying for this new technology to ensure your data is secure, we are not increasing our base fee for 2024.  There have been a few price increases on supporting forms that may or may not impact your tax return, but the base fee remains the same.

SNOW:  We have a lot more snow than usual for this tax season.  Hopefully we will have a few warm days to start melting some of this off soon.  In the meantime, we continue to plow and salt to make the driveway and parking lot as clean as possible for your safety.  Please be careful parking on the street on Forest Home Ave with the snow drifts as high as they are you may have to walk to the driveway to get around the snow drifts.  There is plenty of parking in the parking lot behind the building and we encourage you to utilize this space.  As always, Please do NOT park in the driveway!  This is an active driveway with people pulling into and out of Forest Home Ave all day long.  Having a car sitting in the driveway can create an accident from anyone trying to get into the parking lot or blocking someone trying to get out of the parking lot.  

NEW TAX LAW CHANGES:  Guess What!  Congress is at it again!  There have been rumblings over the last few weeks here in January, 2024 that Congress may pass some tax laws that would be retroactive to include 2023.  Rest assured that we are keeping an eye on things and if Congress does make some retroactive law changes we will let you know.  They are looking at some business tax laws and the Child Tax Credit as possible items to change.  

Thank you for trusting Acc-U-Rite Tax & Financial Services for your tax preparation.  We look forward to seeing you!