Tag Archives: AICPA

Federal Income Tax Filing Reminder – Tax Delay Q and A – State Income Taxes With Complications

Today was the scheduled regular Tax filing date. Thankfully the Federal Government, on March 21, 2020 announced we all have received a 90 day delay on our REGULAR Federal Income tax…

From the IRS announcement

“Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.”

If you have a refund and made less or the same in 2018 as 2019, then you can file. As a planning reminder… about 90% of the population is to receive a Recovery Rebate of $1200 + $500 per child under age 17… BUT those are phased out…

The applicable AGI phase out threshold amounts are as follows:

  • Married Joint: $150,000
  • Head of Household: $112,500
  • All Other Filers: $75,000

CARES-Act-Economic-Relief-Proposed-Taxpayers-Refundable-Tax-Credits

If you are in the phase out range and if you have not filed your 2019 return, check to see which is lower, your 2018 or 2019, and if your 2018 is lower, do not file your 2019. Conversely, if your 2019 is lower file it immediately! You likely will not have to pay until the extended deadline of July 15, 2020 (Double check with your Tax Professional!)

Back to the Regular Extension Update

This nice Q and A from Turbo Tax

  • Do I need to file an extension to file past April 15?  No, you do not need to take any action. The July 15 extension applies to all taxpayers automatically.
  • Will the extension of the tax deadline delay my tax refund? No, the IRS expects to continue to process refunds as normal but encourages all taxpayers to file now.
  • Do I have more time to contribute to my IRA? Yes, you now have until July 15, to make a 2019 contribution to your IRA.
  • Will the deadline for my state taxes also be extended? A majority of states are conforming to the new July 15 tax deadline. However, some states have different deadlines and guidance. To find out the deadline in your state, click here

States with Challenging Time Frames at this time

Most all states but the following are either non state income tax states or are following the same extension date ….(no idea why any state would not follow the rest of the country … digressing)

Hawaii July 20
Idaho June 15
Iowa July 31
Mississippi May 15
New Hampshire June 15
Virginia May 1 to file; June 1 to pay

From AICPA for more exact information.

Again … especially when dealing with the state information, this is changing quickly and may change again, so please check your respective state taxing authority.

Bottom line most have some type of relief, although the calendar complicates in certain states!

Have a Great “Updated Tax Extension Reminder” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

AICPA Waves the White Flag on Basis Reporting

Several years ago (January of 2011) we first penned an article called “Somebody is Watching You” which at the time was a humorous look at the new rules coming for basis tracking. Fast forward to today …..

AICPA Asks for Basis Transition Extension

The American Institute of CPA’s (AICPA) recently published this:Wave White Flag

“During the 2013 filing season, AICPA members and their clients experienced significant confusion trying to comply with final regulations for cost basis reporting for stocks and mutual funds …. AICPA recently asked the IRS to extend all the reporting effective dates by one year to allow reporting entities more time to prepare”

The reconciliation of vendor reported 1099’s and our internal cost basis tracking is the single most confusing issue with filing taxes for the last several years AND will be for the next several.

Just remember to use our sheet as the master for basis reporting as the 1099 reporting many times is incomplete. If you have any questions, just drop us a line. Do not feel bad, as you can tell,  everyone is having issues with this reporting!

Have a Great Day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225