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 (right click and select "Save As")
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.
New *2016* Tax Law Changes
- The Affordable Care Act (ACA) is the law that has made the most impact on our taxes this year. I will need to know if you have health insurance and if you purchased it through the "market place." If you did I will need an additional form from you. Also this year as an employee of a large employer (50 or more), you will receive a Form 1094-C.
- Personal Exemption phaseout has been reinstated. If you make over the threshold, the exemption will be disallowed. Joint: $311,300. Head of Household: $285,350. Single: $259,400. Married filing separately: $155,650.
- Limitation on Itemized Deductions has been reinstated also with the same above limitation.
- Medical expensives can not be deducted until they are more than 10% of income. If a taxpayer or spouse turns 65 years old before the end of the year, their threshold remains at 7.5%.
- Teacher out of pocket expenses front page deduction of $250 was made permanent.
- Election to take a sales tax deduction instead of your state income tax deduction when you itemize; this was extended and was made permanent.
- Tuition and fees front page deduction for higher education was also extended through 2016.
- Energy property credit was extended through 2016, but reverted back to the old law, with a maximum credit of $500 (for all the years since the credit existed).
- All medicines reimbursed by the HSA must has a doctor's prescription; over the counter drugs do not qualify. There is a 20% penalty.
- Tax-free IRA contributions to charities were made permanent. Taxpayers who are age 70.5 or older can make tax-free distributions to a charity from an IRA of up to $100,000 per year. These distributions will not be included in income, and will thus provide tax benefits because income is lower.
- Mortgage Insurance Premiums deduction was extended through 2016
Michigan Income Tax Changes for 2016
- State of Michigan tax rate for 2014 is 4.25%.
- Personal Exemption will be $4000.
- No personal exemption for taxpayers with household resources over $100,000 for single and $200,000 for joint filers.
- City of Detroit returns can now be e-filed.
- Earned Income Credit reduced to 6%.
- Tax due returns can now use direct debit.
- 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 $135,000 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 $50,000.
- All others are eligible for 60% of credit if household resources are under $50,000.
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
- IRA contributions (both traditional and Roth)
- Sale of real estate - only if NOT a personal residence for the last 2 years
- Sale of stock-date acquired, sold, cost and selling price
- Partnership and small business corporation income (Schedule K-1)
- State unemployment compensation (Form 1099).
- State and local refunds - last year's return (if NEW client)
- Social security benefits (subject to limitations)
- Gambling and lottery winnings (losses limited to gains)
- Jury duty fees (not commuting allowance)
- Form 1095-A Health Insurance Marketplace Statement or a 1094-C Employee Health Information
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.
- Real estate: house, cottage, vacant land
- Car license tabs: 1984 or newer cars
- Mortgage or land contract: house, cottage, land (if land contract I need name, address and social security number)
- 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)
***not reimbursed by insurance***
***must be more than 10% of income, or 7.5% if over 65 years old***
- Insurance purchased through Affordable Care Act (Form 1095-A)
- 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 (19 cents/mile)
- Occupational expenses, union dues, protective clothing
- 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)
- Safety deposit box and tax preparation fees
- Rent paid and landlord's name and address
- Casualty losses: not covered by insurance
- Adoption expenses for special-needs children or children under 18 years of age
- Any teaching expenses not reimbursed (front page deduction up to $250)
- Business Miles (54 cents/mile).
Please visit this website in
memory of my Mother, who died of ALS on October 4, 2006.
The IRS
does not endorse any particular individual tax return
preparer. For more information on tax return
preparers go to IRS.gov.