November 1, 2021
For the first time in 40 years, taxes on income and wealth transfers may be headed higher, making tax planning more important than ever.
As a client of RMS Accounting, we are pleased to offer you a FREE year-end tax planning appointment. That’s right — as long as we prepared your 2020 tax return, your tax planning appointment is FREE. This year’s appointments are available in person. Our entire team is vaccinated, so it’s safe for you to visit us! You can also make a phone or Zoom appointment. No masks are required as long as you are comfortable being without a mask. We are working hard to get things back to normal and one of the things we missed most last tax season was getting to visit with old friends.
2021 has turned out to be quite a year. Between Covid-19, variants, a new president and congress, along with lots of proposed tax legislation, none of which are sure to become law. There is a lot to consider in planning for an uncertain future. As we get closer to year end, we hope to know more and have real answers to what the tax laws will look like for the coming year.
Many businesses and individuals have suffered a decline in income during 2021 and this can create unique planning opportunities. Some of you, those with qualifying children may also have been receiving advance payments of the newly increased child tax credit. What you may not know is the money received as advanced child tax credit payments will reduce your tax refund – It might even mean you owe taxes when it comes time to file your return.
One thing you can be sure of is that our tax professionals are following the latest developments in Washington and will be up to date and ready, if and when tax changes are made.
While many things have changed in the world, one thing we can assure you has not changed is our dedication to you, our valued clients.
As the end of the year approaches, it is a good time for you to start thinking about the tax planning moves you can make. What those moves are will depend a lot on how 2021 has played out for you. If you suffered a drop in income due to Covid-19, or for any other reason, it might make sense to delay deductions and accelerate income. If your income has stayed the same or increased what you do will depend on how much of what is currently proposed you believe will become law. For high income taxpayers, it sounds a lot like tax rates will be going up. Who will be considered high income and how much, if at all, taxes will increase is unknown as we write this letter. If you believe that higher tax rates are around the corner, than that needs to be factored into your plans.
Businesses that received Employee Retention Credits will find that they don’t get to deduct the payroll expenses these credits offset. This could result in increased taxable income. On the bright side PPP loans forgiven do not reduce the deductions from expenses they paid and do not create taxable income. There were many other government funded plans and each of these can affect your taxable income differently.
If we did not prepare your 2020 return, but you, or someone you refer to us, mentions this letter, we will take $150.00 off our normal fee of $300.00 and charge you and/or your friends only $150.00. You can be sure that planning will save you many times this small amount.
Remember, the time to act is now — before the clock strikes midnight on December 31. Time is limited, and our appointment calendar fills up fast, so be sure to make your appointment early. This will ensure that you will get an appointment that works with your schedule and still have plenty of time to put your tax plan into action.
Need some help getting ready for for your tax planning meeting? We have developed the 2021 YEAR END TAX PLANNING GUIDE, to help you uncover tax planning opportunities to download a copy of this important guide just click here.
We look forward to seeing you soon.
Steven J Weil, Ph.D., EA Theresa J Weil, Ph.D., EA Lisa Shmaruk, EA