If you want me to email you a personal PDF organizer to help you gather your information for this year, email me and I will email you a password protected "fillable" PDF organizer for you to fill out and return to me.

The state is delaying refunds on returns that do not include driver's license numbers and dates. Please bring this information with you when you drop off your information.

IRS Letter of Consent
The IRS requires accountants to have a signed engagement letter from clients before they can start working on your tax returns. Please print off and sign the following letter and enclose it with your information when you are dropping it off:

Engagement Letter

New Tax Legislation for 2022 Taxes

  • Child care credit has been reverted back to $3000 for one and $6000 for two or more children. 
  • Teacher educational deduction can include PPE purchased for COVID19.
  • You can use your HSA for nonprescription medical products.
  • Business miles are 58.5 cents for January to June 30 and 62.5 cents for July to December.
  • Medical miles are 18 cents for January to June 30 and 22 cents for July to December.
  • IRA contributions are $6000 or $7000 for over 50 years old
  • 401K limits are $20,500 or $27000 over 50 years old
  • Required minimum distributions on individuals not yet 70.5 years old is now not required until age 72.
  • Long-time part-time workers can now participate in a 401(k) at work.
  • You can now take an early distribution from an IRA for a birth or adoption of a child without the 10% penalty.
  • There is no maximum age to contribute to an IRA as long as you have earned wages and not covered by an employer plan.
  • Tax brackets remain at 10%, 12%, 22%, 24%, 32%, 35%, and 37%
  • Standard deduction was increased to $25,900 for married, $19,400 for head of household, $12,950 for all other taxpayers.  Those over 65 years old get an additional $1400 if married and $1750 if single.
  • The personal exemption is zero.
  • Casualty & Theft Losses are not deductible unless it is a Federally-declared disaster.
  • Child tax credit is $2000 for children under 17 years old. The phase out levels are also increased to $400,000 for married and $200,000 for all others. The refundable and nonrefundable were also increased.
  • State, local and foreign property taxes, and state and local sales taxes are only deductible fully when paid on a trade or business. A taxpayer may claim an itemized deduction of up to $10,000 for the aggregate of State and local property taxes and State and local income taxes. Foreign property taxes are not deductible.
  • Interest on a home equity loan is no longer deductible
  • Alimony is no longer taxable or deductible for any divorce agreement executed after Dec 31, 2018
  • Miscellaneous Itemized Deductions are no longer deductible.
  • There is no longer an income limitation for Itemized deductions
  • You can no longer deduct moving expenses
  • Medical expense income limitation is 7.5%
  • Under the Obamacare Individual mandate, the penalty for not carrying medical coverage is zero.
  • The Alternative minimum tax exemption amounts were increased.
  • Everyone you can now apply for an IP PIN online at www.irs.gov. but beware if you do you will always have to have on from now on.
  • Credits for electric vehicles are also available.
  • There is an energy credit that will be changing for the 2023 taxes.
    • The credit is increased to 30% and a maximum of $1200 for the year.
    • $600 for windows, $500 for one exterior door, home energy audits $150, central air conditioning, water heaters, furnaces $600.  There are requirements for all of the above and I will need the manufacturers and model numbers.

Information on increase of IRS audits

Over a half of the total Inflation Reduction Act’s IRS appropriation is dedicated towards compliance enforcement, prompting some of the Biden administration’s political opponents to raise concerns that this will lead to more audit scrutiny against working- and middle-class families. Yellen repeated Democrats’ messaging that audit rates will not go beyond “historical levels” for households making under $400,000 in annual income.

“In fact, we expect audit rates for honest taxpayers to decline, once the IRS has the right technological infrastructure in place,” Yellen said before her closing remarks. “This means a simpler tax filing season for taxpayers who are doing everything right.”

Rather, she insisted the enforcement funds will be directed towards wealthy individuals and large corporations. According to Yellen, the so-called tax gap will balloon to $7 trillion over the next 10 years, and top earners are “responsible for a disproportionate share of unpaid taxes.” Citing a May 2021 Treasury report, she said the top 1% accounted for over a fifth of unpaid taxes in 2019.

“This inequity is unacceptable. As leaders and employees at the IRS have warned for years now, enforcement of the law is not only a means to raise revenue,” said Yellen. “It is also a matter of fundamental fairness. It is important for honest taxpayers to know that, when they file their taxes accurately with the IRS, other people are doing the same.”

News: Largest ever U.S. tax-fraud phone scam targets thousands
(Patrick Temple-West)
I have personally received at least five phone calls and my husband even received an email from these scammers. If someone contacts you, do not give them any personal information and contact me immediately.
WASHINGTON (Reuters) - Thousands of Americans nationwide have been targeted since August by a phone scam in which fraudsters claim to be from the U.S. Internal Revenue Service and demand money for unpaid taxes, said the IRS' watchdog on Thursday.

The Treasury Inspector General for Tax Administration (TIGTA) said it has received more than 20,000 complaints from people, including recent immigrants, about the scam. Thousands of victims have collectively paid more than $1 million to the scammers, TIGTA said. "This is the largest scam of its kind that we have ever seen," said J. Russell George, the head of TIGTA in a statement.

The fraudsters can manipulate victim's phone caller ID so it displays the numer of a local IRS office, TIGTA said. In some cases, the fraudsters have also told victims parts of their Social Security numbers. In cases where victims hung up, fraudsters have called back displaying a local police phone number on caller ID, TIGTA said. Potential victims worried about their immigration status have been threatened with deportation, TIGTA said. The scam has occured in almost every state and the fraudsters have followed a uniform script, a senior TIGTA official said on a conference call with reporters.


Michigan Income Tax Changes for 2022
  • State of Michigan tax rate for 2019 is 4.25%.
  • Personal Exemption will be $5000.
  • City of Detroit returns can now be e-filed and are now due April 15.
  • Earned Income Credit reduced to 6%.
  • Tax due returns can now use direct debit.
There have been some changes to the Homestead Property Credit:
  • Household resources can not include business, rental and royalty losses unless there is a gain of the same type to net it against.
  • Available only if home has a taxable value of $143,000 or less.
  • For seniors, the credit is reduced to 60% of credit if the household resources is over $30,000. Seniors are not eligible if income is over $63,000.
  • All others are eligible for 60% of credit if household resources are under $63,000.

Taxpayer's Checklist *Updated* (download)
Income
  • Employee Earning Statement (Form W-2, all copies)
  • Interest and Dividends (Form 1099)
  • Commissions, tips and bonuses
  • Rental income and related expenses
  • Pensions, annuities, lump sum distributions, profit sharing plans (Form 1099R)
  • IRA distributions (both traditional and Roth) (Form 1099R)
  • Sale of real estate - only if NOT a personal residence for the last 2 years (Form 1099S)
  • Sale of stock-date acquired, sold, cost and selling price (Form 1099B)
  • Partnership and small business corporation income (Schedule K-1)
  • State unemployment compensation (Form 1099G).
  • State and local refunds - last year's return (if NEW client)
  • Social security benefits (subject to limitations) (Form 1099SA)
  • Gambling and lottery winnings (losses limited to gains) (Form 1099G)
  • Jury duty fees (not commuting allowance)
  • Form 1095-A Health Insurance Marketplace Statement or a 1094-C Employee Health Information
  • Nonemployee Compensation (Form 1099 NEC)
Deductions
Contributions
  • Charity letter, statement or cancelled check, churches, United Fund, school, hospital, library, museum, PBS, etc. (No cash donations allowed.)
  • Use of automobile for charitable work - number of miles driven (14 cents/mile)
  • Non-cash items: Goodwill, Salvation Army, Purple Heart, church; a list of each item and estimated resale value is required if the total donation for the year is over $500.00. I need a separate total for each donation date.
Taxes (limited to $10,000 total)
  • Real estate: house, cottage, vacant land
  • Car license tabs: 1984 or newer cars
  • Sales tax on car if not using state withholding.
Interest
  • Mortgage or land contract: house, cottage, land (if land contract I need name, address and social security number) (limited)
  • Bank Loans: home improvement, home equity, RV and boat loans (limited)
  • "Points" paid as additional interest on a home mortgage or equity loan (closing statement needed)
Medical

***Only expenses not reimbursed by insurance***
***It must be more than 7.5% of income***
  • Hospitalization premium, including Medicare premiums
  • Prescriptions, doctors, dentists, specialists, hospitals, clinics
  • Medical aids: crutches, wheelchairs, special shoes, eyeglasses, etc.
  • Use of auto: miles driven for treatments and office calls (18 cents/mile and 22 cents/mile)
Other
  • Tuition, books, supplies and equipment paid to and for any university or college for you and your dependents
  • Child care expenses (name, address and social security number required of caretaker)
  • Alimony paid or received (Ex-Spouse Social Security Number needed), only on divorces before 12/31/2018.
  • Rent paid and landlord's name and address
  • Casualty losses: not covered by insurance and only in a federally declared disaster area.
  • Adoption expenses for special-needs children or children under 18 years of age
Driver's licenses, Birthdates and Social Security Numbers required for all NEW clients


 

DSCN3199


Please visit this website in memory of my Mother, who died of ALS on October 4, 2006.

DSCN3199


The IRS does not endorse any particular individual tax return preparer.  For more information on tax return preparers go to www.irs.gov.