MY TAX LADY

01/23/2025

The IRS will start accepting 2024 tax returns on Jan. 27th, 2025. To avoid delays drop off your paperwork as soon as possible! We can't wait to serve you this season!

01/21/2024

IRS opening day is Monday, January 29th!

As soon as you get your tax documents together drop-off at your convenience. After drop-off we will set up an appointment to review and sign your tax return. We look forward to helping you with all your tax needs this year!

FYI: Corporate returns are due March 15th, 2024
Personal returns are due April 15th, 2024

My Tax Lady LLC 410-871-4617

01/13/2023

ITS THAT TIME AGAIN.. TAX TIME 2022
Doors open 1/23/2023 to start efiling tax returns
I am still taking referrals from clients so please share my name ..
Please call MY TAX LADY LLC - and get on the books.. if I’m booked please tell the receptionist to have me call
You I will fjnd a time convenient for you and get you on the schedule!! I appreciate your business and the best compliment is sharing my name❣️

**Here are six of the most important changes to be aware of before you file your 2022 return.
Standard deductions are larger. ...
Income tax brackets shift. ...
2022 federal income tax brackets. ...
The child tax credit is smaller. ...
Income thresholds drop for the child and dependent care credit

03/19/2022

FEDERAL TAX RETURN Tax Year 2021:
There is exactly 1 month left of taxes.. for my clients who have not brought their tax papers in yet.. please drop off soon.. we are extremely busy and as of April 1st I cant promise to have returns completed by FEDERAL DEADLINE 4/18/22- you May need to get an extension.. no appointment needed to drop
Off we also have a mail slot for after hours and then you will get an appointment within 2-3 weeks from when you dropped off..

*****ESTIMATED TAXES

Estimated Tax Payments

Paying estimated income tax payments can help avoid a large bill at tax time. The IRS requires self-employed people to pay estimated tax payments if they expect to owe taxes of at least $1,000 for the year.

To calculate and pay your estimated taxes, you’ll need to divide the tax year into four quarters and make a payment based on your income earned for each tax period. Here’s when your quarterly payments are due in 2022:

Tax Period
2022 Estimated Tax Due Date
1st Quarter - Jan. 1 – Mar 31 due April 18, 2022
2nd Quarter- April. 1 – May. 31 due June 15, 2022
3Rd Quarter-June. 1 – Aug. 31 due Sept. 15, 2022
4th Quarter -Sept. 1 – Dec. 31 due Jan. 17, 2023
The IRS may charge a tax penalty if you don’t pay enough or fail to pay on time. If you fail to pay your taxes by the due date, the IRS will charge you a .05% penalty. Also, if you neglect to file your taxes timely, the IRS will charge you a 5% of unpaid taxes. Both penalties are charged each month (or part of the month). Your taxes remain unpaid but won’t exceed 25% of your total amount due.

01/27/2022

I am having alot of questions on the advanced child credit and 3rd stimulus payment
so let's address them …
EIP3 and ACTC - if the other parent got it, no matter what they did with it and it is your client's year to claim the child -YOUR CLIENT gets both the EIP3 and ACTC. The other parent may or may not have to repay it depending on income. If you are NOT claiming the child you had on 2020 taxes but received either you may have to pay it back… you will receive a letter of how much you received.. you MUST put that on tax return..

Understanding Your Letter 6419

More In Help
What this letter is about
Letter 6419 includes:

Total amount of 2021 advance Child Tax Credit (CTC) payments
Number of qualifying children used to calculate advance payments, and repayment protection when filing your 2021 federal tax return
See Topic H in the FAQs for advance Child Tax Credit Payments information
To help taxpayers reconcile and receive 2021 CTC, the IRS is sending Letter 6419, Advance Child Tax Credit Reconciliation from late December 2021 through January 2022. Taxpayers should keep this, and any other IRS letters about advance CTC payments, with their tax records.

Families who received advance payments must:

File a 2021 tax return
Compare the advance payments received in 2021 with the CTC amount they can claim for 2021
This letter contains helpful information for preparing tax returns. Taxpayers who received advance payments can also check amounts using the CTC Update Portal and Online Account on IRS.gov.

Eligible families who didn't receive advance child tax credit payments can claim the full amount of the child tax credit on their 2021 federal tax return. This includes families who don't normally need to file a tax return.

2021 tax information
The IRS is streamlining where we store information you need to file your 2021 tax return.

We're including an Online Account payment summary for the:

Third Economic Impact payment
Advance Child Tax Credit summary payment
IRS is adding a direct link in the Online Account for customers who use the Child Tax Credit Update portal to review payment information. This allows you to access your information in Online Account without entering your username and password again. We'll update Online Account with the third Economic Impact Payment and 2021 Advance Child Tax Credit by the end of January – in time for the 2021 tax return filing season.

Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

01/09/2022

Here is more on the new $600 Tax Law …
**********
If you use Zelle, CashApp, Venmo, or another peer-to-peer cash transferring platform, KEEP READING:

The Biden Administration passed a new tax rule in the American Rescue Plan Act and it is being dubbed "The $600 Tax Rule."

Starting January 1, 2022 if you receive $600 or more in a year on a peer-to-peer cash transfer platform you will receive a 1099-K form (for income reporting purposes). You are federally required to report that money as taxable income.

So if you SELL items online and use these cash transferring platforms, you must provide the IRS with receipts that prove you paid more than what you sold them for so the money you collect is not considered taxable income.

The purpose of this is to "close the tax gap." My friends, please keep track of your big ticket purchase receipts in case you ever decide to sell, and ask to be paid in CASH if it is not for business purposes.
**********

Why is this good???
So the government can crack down on people not claiming taxable income on goods or services sold via peer-to-peer cash transfer platforms.

Why is this bad???
Because if you sell your old couch or loan money to a friend who pays you back via Zelle, Venmo, etc. you will have to pay taxes on the sale of your couch if you cannot provide a receipt, and you have to explain to the IRS why you gifted your bestie money and then you might have to pay taxes on the money you loaned them when they pay you back. The list goes on...

The form below- -
This is the form you you will receive when you sell
Over $600.00’per App..

https://www.congress.gov/bill/117th-congress/house-bill/1319

01/02/2022

2021 TAX FILING SEASON BEGINS…
JANUARY 24th to open the doors
FEBRUARY 12, 2022 should be in full swing

WASHINGTON — The Internal Revenue Service today encouraged taxpayers to take important actions this month to help them file their federal tax returns in 2022, including special steps related to Economic Impact Payments and advance Child Tax Credit payments.

This is the second in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A special page, updated and available on IRS.gov, outlines steps taxpayers can take now to make tax filing easier in 2022.

Here are some key items for taxpayers to consider before they file next year.

Check on advance Child Tax Credit payments
Families who received advance payments will need to compare the advance Child Tax Credit payments that they received in 2021 with the amount of the Child Tax Credit that they can properly claim on their 2021 tax return.

Taxpayers who received less than the amount for which they're eligible will claim a credit for the remaining amount of Child Tax Credit on their 2021 tax return. Taxpayers who received more than the amount for which they're eligible may need to repay some or all of the excess payment when they file.

In January 2022, the IRS will send Letter 6419 with the total amount of advance Child Tax Credit payments taxpayers received in 2021. People should keep this and any other IRS letters about advance Child Tax Credit payments with their tax records.

See Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return for more information.

Eligible families who did not get monthly advance payments in 2021 can still get a lump-sum payment by claiming the Child Tax Credit when they file a 2021 federal income tax return next year. This includes families who don't normally need to file a return.

Economic Impact Payments and claiming the Recovery Rebate Credit
Individuals who didn't qualify for the third Economic Impact Payment or did not receive the full amount may be eligible for the Recovery Rebate Credit based on their 2021 tax information. They'll need to file a 2021 tax return, even if they don't usually file, to claim the credit.

Individuals will also need the amount of their third Economic Impact Payment and any Plus-Up Payments received to calculate their correct 2021 Recovery Rebate Credit amount when they file their tax return. Ensuring they use the correct payment amounts will help them avoid a processing delay that may slow their refund.

In early 2022, the IRS will send Letter 6475 that contains the total amount of the third Economic Impact Payment and any Plus-Up Payments received. People should keep this and any other IRS letters about their stimulus payments with other tax records. Individuals can also log in to their IRS.gov Online Account to securely access their Economic Impact Payment amounts.

See IRS.gov/rrc for more information.

Charitable deduction changes
Taxpayers who don't itemize deductions may qualify to take a charitable deduction of up to $600 for married taxpayers filing joint returns and up to $300 for all other filers for cash contributions made in 2021 to qualifying organizations. For more information, read Publication 526, Charitable Contributions.

Get banked to get ready to direct deposit
Direct deposit gives taxpayers access to their refund faster than a paper check. Those without a bank account can learn how to open an account at an FDIC-insured bank or through the National Credit Union Locator Tool. Veterans should see the Veterans Benefits Banking Program for access to financial services at participating banks.

RS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience

**IMPORTANT FOR THOSE WHO RECEIVED THE ADVANCE CHILD TAX CREDIT—
The Internal Revenue Service announced today that it will issue information letters to Advance Child Tax Credit recipients starting in December and to recipients of the third round of the Economic Impact Payments at the end of January. Using this information when preparing a tax return can reduce errors and delays in processing.

Eligible individuals can claim the Recovery Rebate Credit on their Form 1040 or 1040-SR. These forms can also be used by people who are not normally required to file tax returns but are eligible for the credit.

06/23/2021

For those asking about the child tax credit.. the portal has opened up.. this is something the taxpayer has to do.. set up an account to receive the credit or you can opt out (ends 6/28 to opt out )
This is not gonna be easy.. so be prepared to spend some time getting it set up..
There is more info on the comment section...

https://www.irs.gov/credits-deductions/child-tax-credit-update-portal?fbclid=IwAR3umCgtxFL3uB9rML0rSQH4kuTwYUOZRaGlbuxrE449bCljFL3LZeGrAv0

View your eligibility and unenroll from advance payments of the Child Tax Credit.

06/10/2021

For those asking - where’s my refund.. the IRS - is still processing.. but they are behind ...

As of May 29th, IRS Covid backlog data:

The IRS is opening mail within normal timeframes.

19,000 individual tax returns received prior to 2021 in the processing pipeline.

Including current year returns, as of May 28, 2021, we had 18.1 million unprocessed individual returns in the pipeline.

Unprocessed returns include those requiring correction to the Recovery Rebate Credit amount or validation of 2019 income used to figure the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC).

04/24/2021

UPDATE:
STATE HAS NOW RELEASED THE
FORM 502LU FOR UNEMPLOYMENT 👏🏻
Anyone who has over $10,200 can now file taxes!
The office will be calling on Monday to get the returns sitting here on books to get efiled!! Or
You can call in yourself - Will me faster we have over 80 returns here sitting! 😳

03/26/2021

IRS EXCLUSION HAS BEEN UPDATED ON OUR TAX SOFTWARE..
Maryland has NOT updated yet tho.. so if you made over $10,200. In unemployment your return isn’t ready to be efiled yet.. under 10,200$ we can efile
Please call into office. You just need to sign.. so no need to met with me.. but I need you to call so I can make sure someone is available to show you where to sign.. thank you all for being so patient.. hoping this is the last year of craziness!!

03/19/2021

UPDATE
Here is the latest in the UNEMPLOYMENT EXCLUSION... we are still waiting for them to update so we can get returns off hold and efile..

But there's still one big question surrounding this new tax exemption: How do you claim it? The IRS doesn't have an answer for everyone yet – but it's working on it. How to handle the new tax break will also depend on whether or not you already filed your 2020 tax return. If you haven't filed yet, the IRS has updated the Schedule 1 (Form 1040) instructions and provided an Unemployment Compensation Exclusion Worksheet for paper filers. It's also working with tax software companies to update their products so that users will be able to claim the exemption on their 2020 tax returns. So, if you received unemployment compensation last year, you might want to wait a little bit longer before using one of these software products to complete your 2020 return. That will give the software provider time to make the necessary adjustments.

If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don't have to pay tax on unemployment compensation of up to $10,200

If you filed your taxes already and have unemployment the IRS is stating NOT to file an amendment yet.. they are not ready for any amendments at this time. ( again this is why I had you all wait .. )