2023 Tax Season

 The 2023 tax filing season is rapidly approaching and LFC is working to ensure the  process for its clients will be handled as effectively and professionally as possible.

If you are a current client of LFC or would like to become one, check our website for checklists and other documents to get started after all documents are received during January 2024.

If you would like to set an appointment before the end of 2023 to discuss year-end tax savings strategies, visit our website or click on the 'Schedule Appointment' button.

Website:     www.lfconinc.com

We look forward to the up-coming tax season!

2022 Tax season

 The 2022 tax season will be soon be upon us.  In order to help make the 2022 filing season operate smoothing for individuals and business owners, here are some things to consider:

Businesses

1.  Evaluate vendor profiles to ensure Tax ID numbers are obtained for those vendors who will need to receive a 1099.  These are vendors who perform services and are paid more than $600 for the year.  If Tax IDs are needed, send a W9 form to the vendor for them to fill out and return. W9 should be received back from vendors no later than 12/31/22.  1099s are not exclusive to vendors who provide contracted services.  Also include 1099s for amounts paid to legal services, rents, barter exchanges, and interest and dividends paid to shareholders.  This is not an exhaustive list of 1099 recipients.  Review the IRS website for more information on 1099 processing.

2.  Review with LFC projected net income for the year to determine business taxable income.  Determine if estimated payments made during the year are sufficient to pay tax due in 2022.  Make revision to 4th quarter tax payment if necessary.

Important dates to remember 

1/31     1099s and W2s to recipients

            940 & 941 Payroll Quarterly reports due

            MN wage reports (Income Tax & MN UI) due

3/15     Partnership and Corporate returns due 

            Filing an extension for partnership and corporate returns

4/17   Schedule C business tax returns due 

9/15   Extension deadline for partnership and corporate tax returns due

Individuals

1.  Review with LFC most recent paystub to determine if withholding taxes are sufficient to pay tax liability for 2022.

2.  Calculate estimated tax payment for January 2023 if determined withholding for 2022 is inadequate to pay total tax for 2022.

4.  Complete new W4 and implement in January 2023 to ensure tax is accurate for 2023.

Important dates to remember

1/17      Due date for 4th quarter estimated tax payment for 2022 

4/17      Due date of individual tax return

              Final date to make prior year contribution to IRAs

              Filing an extension for individual returns due

10/16     Filing deadline for extended individual returns due

2020 Tax Season approaching

Soon the 2020 tax season will be upon us. The 4th quarter of the year is a good time to evaluate your current year taxes and determine if there are adjustments to be made.  LFC can evaluate your situation and determine if you need to make changes on withholding taxes or estimated tax payments for 2020 before the the year closes.

The 2020 tax season is shaping up to be much different for taxpayers than prior years.  Covid lockdown, unemployment or furlough, or unexpected IRA distributions are some of the issues facing taxpayers in 2020.  The CARES Act has imposed major changes on taxpayers.  LFC is available to address the CARES ACT and its impact on taxpayer.

Schedule appointments by visiting the website:  wwww.lfconinc.com  

Fall Winter Newsletter 2020

 The LFC Newsletter is now available.  Access the newsletter below:

Newsletter Fall Winter 2020

Understanding your taxes for the 2020 filing season

 Much has changed for the 2020 filing due to the Covid-19 relief aid passed by Congress earlier this year.  Here are some things to note for individuals as we move toward the end of the year and tax season is upon us once again.

• $1200 payments received by taxpayers as economic stimulus are not taxable income.  They are considered refundable tax credits.
• If one received enhanced payments from the federal government due to unemployment (additional $600), this will be considered taxable income.  This, along with state unemployment benefits received, will be considered total unemployment taxable income for the year.  If one did not have withholding taxes on the enhanced benefit, or the state benefits, estimated tax payments should be made.  The next due dates for estimated tax payments are 9/15/20 and 1/15/21.
• Retirement  plan distributions for those under 59 1/2 will have the 10% penalty waived for Coronavirus-related distributions.
• Eligible individuals who took distributions from their retirement plans can include them in gross income over a 3-year period.  This givers recipients of distributions 3 years to pay the tax.
• Loans from qualified retirement plans are distributions if more than  $100,00 or 50% of the present value, and thus are taxable income.  This has been raised from $50.000 (or 50% of present value).
• Minimum Required Distributions (RMD) for IRAs and other plans has been suspended for 2020.
• Charitable contributions can be deducted up to $300 for those individuals who do not itemize their deductions.  
• The requirement that individuals obtain a prescription in order to be reimbursed for over-the-counter medicines and drugs has been eliminated for HSAs.

Individual taxpayers should contact LFC to assess their tax situation early this year to ensure the 2020 tax filing goes smoothly and estimated tax payments are accurate due to the recent tax changes.

Business owners should contact LFC to assess their tax situation for 2020 as well.

Set appointments by visiting the LFC website:   www.lfconinc.com