Estimated Tax payments 2026 - 3rd and 4th Quarter

For those taxpayers who need to make quarterly tax payments each year, the 3rd and 4th quarter payment due dates will be coming up soon.  Those due dates are as follows:

• 9/15/26
• 1/15/27

The One Big Beautiful Bill, passed in 2025, has made the necessity to review the estimated tax calculations important.  With its multitude of new provisions and tax savings features, it is vital to know that the calculation for these payments is accurately determined and one is taking full advantage of the law's tax savings as it pertains to one's financial situation.  

Liberty Financial Consulting, Inc. can help you with these calculations.  Contact the office to arrange a time before the September deadline for the 3rd quarter payment.

Trump savings accounts - Recent IRS Ruling

In 2025, the Big Beautiful tax bill created a new savings accounts for kids called 'Trump accounts'.  Although these accounts were created in 2025, they were not available until 1 year after the bill was signed into law (7/4/26).  Much of the bill's highlights can be found here.

The Trump accounts are a new account to save for a child's future.  It has important features and one can access information on the accounts in the link above.  For now, we will focus on the recent IRS ruling.  The ruling brings clarity to whether contributions to these accounts are considered a 'present interest' or 'future interest' for the beneficiary.  Since the child does not obtain the funds until he or she reaches 18, this distinction is critical as it relates to gift tax returns.

A present interest is a gift that provides immediate ownership of the gift by the recipient.  This gift qualifies under the annual gift tax exclusion, which in 2026 is $19,000.  A future interest gift, or a gift for which future ownership is derived, does not.   This is important because a future interest gift, or a gift greater than the annual exclusion amount, triggers the necessity to file a gift tax return. The current  ruling by the IRS has deemed contributions to Trump accounts as present interest gifts. The clarity presented by the IRS ruling has now paved the way for these accounts to be considered a significant  vehicle for child savings without having to file another tax return.  

Keep in mind most gift tax returns do not produce a tax liability for taxpayers.  The gift tax produced on the gift tax return is off-set by the unified lifetime credit for gifts and estates.  However, it is required to be filed if one gives recipients a future interest gift or a gift greater than the current year exclusion amount. 

Big Beautiful Bill - July 2025

The Big Beautiful bill was passed and signed into on July 4, 2025.  This is a significant piece of legislation that, most importantly, made permanent the tax provisions of the 2017 Tax Cuts and Jobs Act.  The 2017 law was set to expire on 12/31/25.  Had it not been extended or made permanent, the law would revert back to pre-2017 provisions.  This would have imposed a large tax increase on taxpayers.

This brings certainty to the tax code.  Individuals and businesses can now engage in tax planning with greater confidence in the future.

Below is a summary of the bill:

Big-Beautiful-Bill-Recap-July-2025.pdf

January 2025 Newsletter

The January 2025 LFC newsletter is available.  It can be obtained here.

Additional newsletters will made available at future dates covering a wide range of topics and insight from years of experience and knowledge of the accounting and tax industries.

Other items for 2024 tax preparation

Here are other items for the 2024 tax preparation at LFC:

1.  Engagement letter - tax preparation agreement can be found here.

2.  Organizing checklist can be located here.

Use the organizing checklist to gather documents as they are obtained during the weeks ahead.  A signed letter of engagement should be provided to LFC before work is to begin on the tax return (and any payment of pre-paid fees).

Contact LFC for any questions.

accounting@lfconinc.com    

Tax preparation for 2024

LFC is beginning the process of getting ready for the 2024 tax season. LFC encourages clients to act early in gathering tax documents and scheduling meetings.  Below is a short item list as we begin preparing for the 2024 filing season:

Business Clients

• Set appointment with LFC before the end of the year to review current business status and to determine estimated business income for 2024. Discussion should also include major changes that occurred in 2024.
• LFC will work with business owners to determine 4th quarter 2024 estimated tax payment due in January 2025, if payment is necessary. Or, if scheduled payment needs to be adjusted due to changes in business conditions in 2024.
• Contact payroll processor to determine if there is any missing information on employees before W2s are produced in January. Other payroll reports due in January are 941, 940, and MN wage reports for MN Department of Revenue and MN Unemployment.
• Determine if there are vendors who have not provided W9 information.  W9s need to be received before 1099s can be completed in January. 1099 vendors include non-corporate service providers and landlords.  1099s are also due to lawyers for services provided businesses. 
• Ensure all bank reconciliations are completed before tax return is started.  This includes credit card statements.  
• Update fixed asset list to include changes in 2024 such as major purchases and disposals.
• Provide information on employee and benefit changes during 2024.
• File Beneficial Ownership Information (fincen) report for any active business by 12/31/24 if you have not done so.  For those businesses formed in 2024, check the link for due date. (click here for website).

Individual Clients

• Set appointment with LFC to discuss 2024 tax liability prior to the close of 2024 (before the end of December).
• LFC will work to determine 4th Quarter estimated tax payment, if necessary. Or, make changes to scheduled estimated tax payment due in January 2025.
• Be prepared to collect tax documents as they arrive. Checklist will be available by LFC in the near future to serve as a guide for taxpayers during the tax season.
• Once documents are received, set an appointment or ask LFC to send secure link to transfer data.

For the 2024 tax season, LFC will be working to improve efficiency in processing tax return.  By being better organized and minimizing data transfers, the tax return process will be a much better experience for the client.

Tax year 2025

 Earlier this month, the IRS has released Revenue Procedure 2024-40 to provide information on adjustments and changes for the 2025 tax year (returns filed in 2026).

Check out the link below for the details:

Revenue Procedure 2024-40

Tax policy - the importance of elections

 With the election coming up in November, it is important to understand what is at stake in regard to tax policy and its impact on the economy at large.

At the end 2025, the Tax Cuts & Jobs Act from 2017 is set expire if not renewed or extended.  This has been a significant tax law for taxpayers, particularly middle income taxpayers and small business owners.  Here are some features of the tax law that have provided significant tax savings:

1.  C corporations taxed at a flat 21%

2.  20% deduction for Sole proprietorships and pass-throughs (S Corps and LLCs)

3.  Increased standard deductions across the board (Single, MFJ, MFS, H of H)

4.  Expansion of the tax brackets (more income taxed at lower rates)

5.  Child credit of $2000 per child and $500 credit for other dependents

These are just a few of the items that will go away if the law is not extended or renewed.  When voting in the upcoming election, it is important to consider the impact of one's vote on important tax policy and which candidates are likely to continue supporting this important legislation or would support repealing it. 

After the election, taxpayers will have to be vigilant in their tax planning regardless on which candidate wins.  However, it will be much better for taxpayers if the candidates that get elected will support this legislation.  

LFC can help taxpayers with their tax planning needs.  Contact the office to set a time to discuss your individual situation:

Appointments:   Online scheduler for Liberty Financial Consulting Inc. in Roseville, MN (fullslate.com)

Email at:   info@lfconinc.com

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

Recent Executive Order Signed to extend Covid-19 Relief

 On August 6th, 2020 the president signed an executive order to extend relief as the Covid-19 crisis continues.  Provisions of the executive order include:

• Extended enhanced unemployment benefits - these benefits will be extended to the end of the year.  They have been reduced from $600 to $400 per week.  States will be responsible for 25% of the cost.
• Payroll tax holiday - starting September 1st and to the end of the year, a withholding tax holiday will be in place.  This means that the Social Security and Medicare portions of employee taxes will not be withheld.  This represents a 7.65% increase in ones pay but is limited to those employees making less than $100,000.  
• Federal Eviction Moratorium extended for those living in federally subsidized and federally backed housing.
• Student loan payment suspension extended to the end of the year and maintains the 0% interest period.  

Payroll tax holiday is only a deferral.  The deferral may become permanent and part of a broader tax cut package later.  Also, the president has left open the possibility of making the tax holiday retroactive to August 1st.

Economic Stimulus Checks

The IRS has provided a webpage to follow up on ones Economic Stimulus checks.

Liberty Financial has provided the link below:

IRS Stimulus Check

Newsletter Spring Summer 2020

The Liberty Financial Consulting newsletter for Spring/Summer 2020 has been posted on the company website.

View it at this link:  

Spring/Summer Newsletter

Data on the recently passed CARES ACT

Congress has recent acted to provide financial support for businesses and individuals impacted by the shutdown of the economy due to the Coronavirus outbreak.  Below you find the details of the CARES Act that the president signed into law.  Also provided is the IRS most recent information on the checks that will be going out as a result of this law.

https://www.congress.gov/bill/116th-congress/senate-bill/3548/text



https://www.irs.gov/coronavirus

LFC Response to MN Stay-at-home Order

Liberty Financial Consulting, Inc.                                           3/26/20


Due to the recent declaration by the MN governor, non-essential
workers will be required to stay at home (or work from home if
possible) due to the Coronavirus beginning midnight Friday (3/27/20). Employees of critical businesses have been given an exemption from this order. A list of critical businesses can be found at the link below:

https://mn.gov/deed/newscenter/covid/business-exemptions/

Since Liberty Financial Consulting, Inc. falls under the exemption for Accounting, Tax Preparation, Bookkeeping, and Payroll Services, LFC will be open and operational during this uncertain time at its Roseville office. LFC conducts its business in various ways. In-office accounting and bookkeeping services, client site visits to perform accounting tasks, as well as home office work. LFC will work from home as much as practical. Site visits to client locations may be prohibited due to the industry of the client as well as other factors. LFC plans to be working from its office when necessary.

It is the intent of LFC help minimize the impact of an extended
shutdown on its clients. Accounting services are vital to business
operations and LFC will do its best to work with clients during this time and beyond.

2019 Tax Season

With tax season upon us, here are some important dates to remember:

1.  Business taxes are due 3/17/20 for those companies that file as an LLC or corporation.

2  4/15/20 for individual returns

If you are unable to meet the filing deadline, you can file an extension for an automatic 6-month filing period extension.

As a result of the tax law changes from 2017, small businesses should determine if they qualify for the 20% deduction of net business income.  This deduction would appear on a personal tax return as this deduction is available to pass-through entities such as LLCs, sole proprietorships, partnerships, and SCorp shareholders.  This deduction is not available to C Corporation taxpayers.

If you need assistance with tax preparation for your small business, please contact LFC.

Keep in mind that LFC provides additional services for small businesses and individuals such as:

1.  Payroll services

2.  QuickBooks setup and training

3.  General bookkeeping services - weekly, monthly, quarterly, or annually

Contact number:  (651) 204-6577

Set appointment:   www.lfconinc.com

2018 Tax Filing Season in Minnesota

The state of Minnesota has clarified its filing requirements for the 2018 tax season.  There was much uncertainty as to how the MN Department of Revenue would proceed since the state legislature did not pass a bill to conform to the changes made by the Federal government in December of 2017. 

The new federal income tax changes were wide-ranging and represent the most dramatic changes to the code since perhaps 1986.  (see my early post on these changes from Dec 2017).

The MN Department of Revenue has stated they will be adopting the Federal tax code as of Dec 2016 for 2018 tax preparation.

The bottom line is that taxpayers will need to do their taxes as two separate returns. This is because the most significant changes the federal government made was the expansion of the standard deduction and the elimination or reduction of certain itemized deductions.  Therefore, if one has itemized in the past for the federal return, approach the 2018 preparation the same as you have before.  It will be common for many taxpayers to use the standard deduction for the federal return and itemize on the state of MN return.

Since most taxpayers use software to file their taxes, either through professional preparers or software purchased directly, the process will not be too cumbersome.  But one needs to be careful and added attention is to be given to the state return considering what non-conformity has done to the 2018 filing season.

LFC will be watching the 2019 legislative session on any developments toward conformity as the session moves along beginning in January. 

If you have any questions regarding the 2018 filing season, please contact the LFC office.