Passed my examinations!

As you know, I have to re-test every year for California Tax Preparer licensing and I will post the certificates later, but here are the results:


2019 Federal 90%
2019 California 84%
2019 Federal Updates 87%
2019 Ethics 90%


Ready for January 1, 2020, for the 2019 Tax Season!

Retirees: Worried about the IRS auditing you?

Worried about the IRS auditing you? It’s rare, but it does happen.

Of the tax returns filed in calendar year 2016 — and examined in fiscal year 2017 — the IRS audited nearly 1.1 million, or 0.5 percent of the total.

That low percentage might have you feeling relatively confident about the odds that Uncle Sam will come calling.

Retirees beware of these audit flags . . .

IRS TAX TIP 2019-15

Here’s how tax reform affects taxpayers who claim the child tax credit

Many people claim the child tax credit to help offset the cost of raising children. Tax reform legislation made changes to that credit for 2018 and later. Here are some important things for taxpayers to know.

Credit amount. The new law increases the child tax credit from $1,000 to $2,000. Eligibility factors for the credit have not changed. As in past years, a taxpayer can claim the credit if all of these apply:

• the child was younger than 17 at the end of the tax year
• the taxpayer claims the child as a dependent
• the child lives with the taxpayer for at least six months of the year

Credit refunds. The credit is refundable, now up to $1,400. If a taxpayer doesn’t owe any tax before claiming the credit, they will receive up to $1,400 as part of their tax refund.

Earned income threshold. The income threshold to claim the credit has been lowered to $2,500 per family. This means a family must earn a minimum of $2,500 to claim the credit.

Phaseout. The income threshold at which the child tax credit begins to phase out is increased to $200,000, or $400,000 if married filing jointly. This means that more families with children younger than 17 qualify for the larger credit.

New credit for other dependents. Dependents who can’t be claimed for the child tax credit may still qualify for the new credit for other dependents.  This is a non-refundable credit of up to $500 per qualifying person. These dependents may also be dependent children who are age 17 or older at the end of the tax year. It also includes parents or other qualifying relatives supported by the taxpayer.


More information:
Tax Reform Basics for Individuals and Families Tax Reform Small Business Initiative

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FACETIME/DUO Appointments!

Forgetting the security issue right now, which is targeted to the Facetime group calling, we are now in our third year of offering tax appointments via Facetime or Duo. When you schedule your appointment, choose Facetime/Duo appointment and instructions will be sent to you via the confirmation email.

www.jedi.tax

Tax Season is here!

Officially, the IRS and FTB will begin accepting tax returns on January 28, 2019, but you can still file early and many are! As of this evening, I have already filed eight returns. For me, January is the month the just is a taste of what is to come and if I follow these indicators, I am expecting a big season!

www.jedi.tax