Blue Water Tax Services

04/09/2022

CRYPTO-STAKING TAXATION UPDATE
We've been hearing a lot of questions about the status of staking taxation in response to some “clickbait” articles going viral in the crypto community. We decided to check in with crypto-tax expert, Matt Metras, to get his take. Here’s what Matt had to say:

“In 2019, a couple named Josh and Jessica Jarrett reported income from staking Tezos on their tax return. They later decided to file a claim for refund of that tax alleging that staking is not subject to income tax. The IRS denied that claim for refund.

The Jarretts sued the IRS in district court. This matter has not gone to court. The IRS proposed a settlement with the Jarretts to refund the tax to avoid litigation. This is standard procedure as it will cost the IRS much more to fight in court than the amount of tax at issue (around $3500). This does not mean the IRS agrees with the Jarrett's position or that they felt like they would lose in court.

There are several articles out there stating the IRS has stated staking is not taxable. This is not accurate.

The IRS has made no statements of any kind on staking. This means the landscape on whether or not staking is taxable is the same as it has been.

The Jarretts have declined the proposed settlement and plan to continue litigation. The hearing is scheduled for March 2023, so we won't have a definitive answer on staking any time soon.

In summary: There has been no new IRS guidance, and this is not precedent.

https://thinkoutsidethetaxbox.com/author/matt-metras/

01/23/2022

The first day to e-file is tomorrow, January 24. A few things to know:
The irs is sending letters (6419) to all of those who received the advanced child tax credit. Joint filers will both receive one. We MUST have that letter or copies of bank statements showing each deposit. You can also follow this link to set up your online account and access your info that way. Again, we have to see documentation to verify deposit or check amounts to prepare your return. If the information is incorrect and does not match IRS info, your refunds could be held at minimum 6mos-1 year in processing.

https://www.irs.gov/credits-deductions/child-tax-credit-update-portal?fbclid=IwAR04D3vgWGUuSh_bQNnoAVmJbzQTqqQbu8UASLEKVvqUqcKeebFva-hows4

Check if you're enrolled, manage your payment information and unenroll from advance payments of the 2021 Child Tax Credit.

01/05/2022

Take a pic of your odometer today if you haven’t done so already.

IRS issued standard mileage rates for 2022→58.5 cents per mile driven for business use. The optional standard mileage rates are used to calculate the deductible costs of operating a car for business, charitable, medical or moving purposes.

To learn more, click here: https://go.usa.gov/xetnV

01/05/2022

If you claim any mileage on t your tax return , today is a good day to take a picture of your odometer if you haven’t done so already.

01/05/2022

https://www.irs.gov/newsroom/irs-sending-information-letters-to-recipients-of-advance-child-tax-credit-payments-and-third-economic-impact-payments?fbclid=IwAR1VoTsgFISesGmnUHSgMD5vq3LUSov8YvglVULxXAHpygSRnXc7mipMbIo

COVID Tax Tip 2022-03, January 5, 2022 — The IRS started issuing information letters to advance child tax credit recipients in December. Recipients of the third round of the Economic Impact Payments will begin receiving information letters at the end of January.

11/19/2021

Find out if you need to fill out a new Form W-4 to make sure you’re having enough federal tax withheld from your paycheck. For more information, go to https...

07/02/2021

06/22/2021

Use this non-filer sign up portal if you are not normally required to file a tax return but have qualifying children

If you are aren’t required to file a tax return, give us some basic information for the advance Child Tax Credit.

06/02/2021

Don’t be alarmed if you receive a surprise deposit or check in the mail in the coming weeks. Some returns were filed prior to the ARPA bill that changed the taxable amount of unemployment. The IRS is making the change on their end and refunding the difference and no action on your end is necessary for that.

The MI Dept of Treasury is not making the change internally so that return will need to be amended. We are processing those returns and will be in contact with those that are effected by this soon to let you know how to proceed.

Please contact the office if you have any questions prior.

04/20/2021

Americans experiencing homelessness have free options to claim the 3rd Economic Impact Payments and the Recovery Rebate Credit, if they don’t normally file taxes with IRS and haven’t received any payments yet: http://go.usa.gov/xsm7B

01/06/2021

https://www.irs.gov/newsroom/irs-statement-about-economic-impact-payments

January 5, 20201 - IRS Statement about Second Economic Impact Payments and Get My Payment

01/04/2021

The 2021 standard business mileage rate is 56 cents per mile.

Today is a good day to jot down your odometer reading so you’ll have total miles for the year!

An app like MileIQ is a good helper if you’re not so good at tracking.