Author Archives: Kelly

2021 Oregon Kicker

Oregon Department of Revenue has released that there will be a kicker for the 2021 year. Similar to the 2019 kicker it will be a credit on your 2021 tax returns.

Here is the release from Oregon Department of Revenue.

The Oregon Office of Economic Analysis (OEA) confirmed earlier this month a nearly $1.9 billion tax surplus, triggering a tax surplus credit, or “kicker,” for the 2021 tax year. Instead of kicker checks, the surplus will be returned to taxpayers through a credit on their 2021 state personal income tax returns filed in 2022.

To calculate the amount of your credit, multiply your 2020 tax liability before any credits—line 22 on the 2020 Form OR-40—by 17.341 percent. This percentage is determined and certified by OEA. Taxpayers who claimed a credit for tax paid to another state would need to subtract the credit amount from their liability before calculating the credit.

A What’s My Kicker? calculator is active on Revenue’s website for personal income tax filers now. You can access the calculator from Revenue Online. To calculate your kicker, you’ll enter your name, Social Security Number, and filing status for 2020 and 2021.

You’re eligible to claim the kicker if you filed a 2020 tax return and had tax due before credits. Even if you don’t have a filing obligation for 2021, you still must file a 2021 tax return to claim your credit. There will be detailed information on how to claim your credit in the 2021 Oregon personal income tax return instructions: Form OR-40 for full-year Oregon residents, Form OR-40-P for part-year residents, and Form OR-40-N for nonresidents. Composite and fiduciary-income tax return filers are also eligible.

Keep in mind that the state may use all or part of your kicker to pay any state debt you owe, such as tax due for other years, child support, court fines, or school loans.

Unenroll for the Advance Child Tax Credit

If you are wanting to unenroll for the Advance Child Tax Credit for the 2021 year. The Unenroll tool for the advanced CTC is on the IRS Website. https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

Just a few of the FAQ from the IRS website. You can read more FAQ’s HERE

Why Should I unenroll?

You may want to unenroll from receiving advance Child Tax Credit payments for several reasons, including if you expect the amount of tax you owe to be greater than your expected refund when you file your 2021 tax return. The payments you receive are an advance of the Child Tax Credit that you would normally get when you file your 2021 tax return. Because these credits are paid in advance, every dollar you receive will reduce the amount of Child Tax Credit you will claim on your 2021 tax return. This means that by accepting advance child tax credit payments, the amount of your refund may be reduced or the amount of tax you owe may increase.

You may avoid owing tax to the IRS if you unenroll and claim the entire credit when you file your 2021 tax return.

Here are a couple FAQ from the IRS website

What is the deadline to unenroll?

To stop advance payments, you must unenroll 3 days before the first Thursday of next month by 11:59 p.m. Eastern Time.

Payment Month	Unenrollment Deadline	Payment Date
July	6/28/2021	7/15/2021
August	8/2/2021	8/13/2021
September	8/30/2021	9/15/2021
October	10/4/2021	10/15/2021
November	11/1/2021	11/15/2021
December	11/29/2021	12/15/2021

*How do I know if I don’t qualify for the repayment protection for filers based on their income during 2021?

You won’t qualify for any repayment protection if your modified AGI is at or above the amounts listed below based on the filing status on your 2021 tax return.

$120,000 if you are married and filing a joint return or if filing as a qualifying widow or widower;
$100,000 if you are filing as head of household; and
$80,000 if you are a single filer or are married and filing a separate return.

For information on the definition of modified AGI, see Topic C: Calculation of the 2021 Child Tax Credit.

New scam warning from IRS!

University students and staff should be aware of IRS impersonation email scam

People should be aware of an ongoing IRS-impersonation scam that appears to target educational institutions, including students and staff who have .edu email addresses. The suspect emails display the IRS logo and use various subject lines, such as Tax Refund Payment or Recalculation of your tax refund payment. It asks people to click a link and submit a form to claim their refund.

The scam website requests taxpayers provide their:

Social Security number
First name
Last name
Date of birth
Prior year annual gross income
Driver’s license number
Current address
City
State/U.S. territory
ZIP code/postal code
Electronic filing PIN

Taxpayers who believe they have a pending refund can easily check on its status using the Where’s My Refund tool on IRS.gov.

Here are a few things people can do if they believe they are a target of the scam:

Report the scam: People who receive this scam email should not click on the link in the email and report it to the IRS. For security reasons, they should save the email using save as and then send that attachment to phishing@irs.gov or forward the email as an attachment to phishing@irs.gov.
Get an Identity Protection PIN: Taxpayers who believe they may have provided identity thieves with their personal information should consider immediately obtaining an Identity Protection PIN. This is a voluntary opt-in program. An IP PIN is a six-digit number that helps prevent identity thieves from filing fraudulent tax returns in the victim’s name.
Report identity theft: Taxpayers who attempt to e-file their tax return and find it rejected because a return with their SSN has been filed should file a Form 14039, Identity Theft Affidavit to report themselves as a possible identity theft victim. See Identity Theft Central to learn about the signs of identity theft and actions to take.

More information:
Report Phishing and Online Scams
Video: Avoid Phishing Scams

Share this tip on social media — #IRSTaxTip: University students and staff should be aware of IRS impersonation email scam. https://go.usa.gov/xH3tm

Update on the 2020 Extension of Tax Season

Good news!!

American Rescue Plan tax relief
Filing and payment due dates: Oregon joins the IRS in automatically extending the tax filing and payment due dates for individuals to May 17.
Unemployment benefits: Taxpayers who received unemployment benefits in 2020 should wait for further information from the IRS and the Oregon Department of Revenue before filing an amended tax return or filing a new return. https://www.oregon.gov/dor/Pages/index.aspx

1st Quarter Estimated payments are still due on April 15th.

More details and guidance will be coming from IRS and Oregon.

Please watch the website for more details.

IRS extends filing season by 30 days

Just Released:

The Treasury and IRS extend filing and payment deadline to May 17

WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.

IR-21-59

Additional details on the taxpayer relief announced today are available on https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline

Oregon has not announced it they will follow extend the deadline at this time.

Economic Impact Payment #2

Here is the latest from the IRS on the on Coronavirus Tax Relief

The Internal Revenue Service and the Treasury Department have started delivering a second round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to millions of Americans who received the first round of payments earlier this year.

No action is required by eligible individuals to receive this second payment. The IRS reminds taxpayers that the payments are automatic, and they should not contact their financial institutions or the IRS with payment timing questions.

As with the first round of payments, most recipients will receive these payments by direct deposit. For Social Security and other beneficiaries who received the first round of payments via Direct Express, they will receive this second payment the same way.

Economic Impact Payments

You may be eligible to get a second Economic Impact Payment. In most cases, those who are eligible will receive a payment automatically.

Check your payment status.

Starting in 2021 the IP PIN Opt-in program will be avaiable to all Taxpayers

What is the IP PIN program?
An Identity Protection PIN (IP PIN) is a six-digit number that prevents someone else from filing a tax return using your Social Security number. The IP PIN is known only to you and the IRS and helps us verify your identity when you file your electronic or paper tax return.

**If you apply for this PIN we will need a copy of the letter that you will get from the IRS. We will not be able to file your taxes until we have this code.

Are you Eligible?

If you are a confirmed victim of identity theft and we have resolved your tax account issues, we’ll mail you a CP01A Notice with your IP PIN each year.

Starting in 2021, you may voluntarily opt into the IP PIN program as a proactive way to protect yourself from tax-related identity theft.

If you want to opt in, please note:

You must pass a rigorous identity verification process.
Spouses and dependents are eligible for an IP PIN if they can pass the identity proofing process.

How do you get your IP PIN?

If you’re a confirmed identity theft victim, we will mail you an IP PIN on a CP01A Notice if your case is resolved prior to the start of the next filing season.

If you’re volunteering for the IP PIN Opt-In Program you should use the online Get an IP PIN tool. If you don’t already have an account on IRS.gov, you must register to validate your identity. Before you register, read about the secure access identity authentication process.

Note:

An IP PIN is valid for one calendar year.
You must obtain a new IP PIN each year.
The IP PIN tool is generally unavailable mid-November through mid-January each year.

(Service unavailable until January 2021)

Lost IP PINs

If you receive the annual IP PIN via mail but lose or fail to receive your CP01A Notice, you may use the Get an IP PIN tool to retrieve your number. Review Retrieve Your IP PIN for details.

**All information above can be found on the IRS website at https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin **

2020 Charitable Donations Update

Did you know that there is still time to make your 2020 donations? You have until December 31st to make any donations for the 2020 tax year.

New for the 2020 tax year (only), the CARES (the Coronavirus Aid, Relief and Economic Security Act) the IRS has made a few changes (IRS Topic No 506 ).

#1 For taxpayer who do not itemize their deductions they may take up to $300 in a charitable deduction of cash contributions made during the 2020 year to qualified charities.

From the IRS Website : For contributions of cash, check or other monetary gift (regardless of amount), you must maintain a record of the contribution:

A bank record or a written communication from the qualified organization containing the name of the organization, the amount, and the date of the contribution.
In addition to deducting your cash contributions, you generally can deduct the fair market value of any other property you donate to qualified organizations. See Publication 561, Determining the Value of Donated Property.
For any contribution of $250 or more (including contributions of cash or property), you must obtain and keep in your records a contemporaneous written acknowledgment from the qualified organization indicating the amount of the cash and a description of any property contributed. The acknowledgment must say whether the organization provided any goods or services in exchange for the gift and, if so, must provide a description and a good faith estimate of the value of those goods or services. One document from the qualified organization may satisfy both the written communication requirement for monetary gifts and the contemporaneous written acknowledgment requirement for all contributions of $250 or more.
If you are unsure if your charity qualifies please check with the Tax Exempt Organization Search tool found on IRS.gov.

#2 The CARES Act has temporarily (2020 only) suspended limits on charitable contributions and increased the limits on contributions of food inventory (again only for 2020). The new limit for charitable contribution (if you itemize) is 100% of your AGI.

To qualify, the contribution must be:

a cash contribution;
made to a qualifying organization;
made during the calendar year 2020

Contributions of non-cash property do not qualify for this relief. Taxpayers may still claim non-cash contributions as a deduction, subject to the normal limits.

If you want to read more on the changes to charitable contributions do to the CARES Act please find them on the IRS website HERE

If you have any questions please feel free to give us a call. We hope you have a wonderful Holiday season and we look forward to see you soon.

Upcoming Tax Season

It is getting close to being that time of year yet again. Tax season will be upon us before we know it. Because of Covid-19 there will be some changes in how we are going to handle appointments this year. We will do our best to accommodate everyone with the safest method possible.

We will be offering the following:

Phone conferences- These can be held before or after you drop off your documents.
Zoom meeting-These can be held before or after you drop off your documents.
Drop offs, mail in or portal delivers with no scheduled meeting. We will then email you a list of questions, concerns or missing items.
In person meeting-These will be very limited and we will be following the CDC guidelines for allowing people in the office.

We will send a letter with the organizers with more details on how we plan to proceed. If you have any concerns please call us at 541-738-4313.

Please stay up to date with the latest CDC guidelines HERE

Please stay up to date with the latest Benton County Covid-19 guidelines and restrictions HERE

Non Filers and the Economic Impact Payment

IRS released a new web portal for individuals who normally do not need to file Federal taxes.

Below is straight from the IRS website

Who is eligible for the Economic Impact Payment?

U.S. citizens or resident aliens who:

Have a valid Social Security number,
Could not be claimed as a dependent of another taxpayer, and
Had adjusted gross income under certain limits.

Who will receive the Economic Impact Payment automatically without taking additional steps?

Most eligible U.S. taxpayers will automatically receive their Economic Impact Payments including:

Individuals who filed a federal income tax for 2018 or 2019
Individuals who receive Social Security retirement, survivors, or Social Security Disability Insurance benefits
Individuals who receive Railroad Retirement benefits

Who should use Non-Filers: Enter Payment Info to provide additional information to receive the Economic Impact Payment?

Eligible U.S. citizens or permanent residents who:

Had gross income that did not exceed $12,200 ($24,400 for married couples) for 2019
Were not otherwise required to file a federal income tax return for 2019, and didn’t plan to

You can provide the necessary information to the IRS easily and quickly for no fee through Non-Filers: Enter Payment Info. We will use this information to determine your eligibility and payment amount and send you an Economic Impact Payment. After providing this information you won’t need to take any additional action.

Non-Filers: Enter Payment Info Here

Information You will Need to Provide

Full name, current mailing address and an email address
Date of birth and valid Social Security number
Bank account number, type and routing number, if you have one
Identity Protection Personal Identification Number (IP PIN) you received from the IRS earlier this year, if you have one
Driver’s license or state-issued ID, if you have one
For each qualifying child: name, Social Security number or Adoption Taxpayer Identification Number and their relationship to you or your spouse

What to Expect

Clicking “Non-Filers: Enter Payment Info Here” above will take you from the IRS site to Free File Fillable Forms, a certified IRS partner. This site is safe and secure.

Follow these steps in order to provide your information:

Create an account by providing your email address and phone number; and establishing a user ID and password.
You will be directed to a screen where you will input your filing status (Single or Married filing jointly) and personal information.
Note: Make sure you have a valid Social Security number for you (and your spouse if you were married at the end of 2019) unless you are filing “Married Filing Jointly” with a 2019 member of the military. Make sure you have a valid Social Security number or Adoption Taxpayer Identification Number for each dependent you want to claim for the Economic Impact Payment.
Check the “box” if someone can claim you as a dependent or your spouse as a dependent.
Complete your bank information (otherwise we will send you a check).
You will be directed to another screen where you will enter personal information to verify yourself. Simply follow the instructions. You will need your driver’s license (or state-issued ID) information. If you don’t have one, leave it blank.

You will receive an e-mail from Customer Service at Free File Fillable Forms that either acknowledges you have successfully submitted your information, or that tells you there is a problem and how to correct it. Free File Fillable forms will use the information to automatically complete a Form 1040 and transmit it to the IRS to compute and send you a payment.