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Dear Clients,
Wow, tax season has crept up on us once again! The one comforting thing however, is that I know we can team up to make it as pain-free as possible. As in years past, I have put together some resources to help you gather the needed information to prepare your tax return this year, please see the attached forms. Along with using them to provide me with the information that I need, feel free to copy and use them as you find beneficial. Also note that during this next week you will be receiving the bulk of your tax statements from employers, clients, retirement accounts, mortgage companies etc., watch for these and keep them together. I will also need to use these documents as I prepare your returns. The year 2011 saw some changes that affect many of us so I have decided to include them in the body of this email—they are the following: |
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•The 2011 standard mileage rates changed mid-year: The business mileage deduction is 51¢ per mile through 6/30, then 55.5¢ per mile through the end of the year. For Charitable miles you can deduct 14¢/mile. The medical or moving mileage deduction is 19¢ through 6/30, then 23.5¢ to 12/31. As with all mileage deductions the IRS requires what they call “reliable written records.” On your log please include the date, number of miles driven and the reason (or in the case of charitable miles, the organization you were volunteering for).
•Exemption increase: The exemption amount you can deduct for each exemption has increased from $3,650 to $3,700. •If you qualify for Earned Income Credit make sure that you sign a due diligence form as it now must be attached to your return (I will definitely remind you Ü). •Your tax return is due Tuesday, April 17, 2012 due to Emancipation Day in the District of Columbia. As always we can file a 6 month extension but that doesn’t extend the due date of taxes owing. •Making Work Pay and First-time Homebuyer credits have both expired. •Residential Energy Tax Credits have been extended into 2012, however, much of the benefit has been stripped away. The previous credit of 30% up to a $1500 credit limit has been modified to 10% of “home energy efficient improvements” with an accrued limit of $500 for tax years 2005-present. Essentially this is saying that if you have ever claimed the credit (for exterior doors, windows, insulation, heating and/or cooling systems or heat-resistant roofs) you have most likely met your limit and won’t qualify for an additional credit in 2011. But as always, we can discuss how this effects you personally and then we will take it from there. •Congress passed the two-month extension of the Social Security tax reduction (making your withholding 4.2% instead of 6.2%) and will consider a longer extension when it reconvenes early this year. |
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Again this year, please note that I have a locking drop box on the porch by my front door. I have intentionally chosen to not label it in an effort to further protect its contents. I hope that between the convenience of dropping off documents whenever you want, scanning and emailing them to me, or faxing them, I will be able to get right to work on your return. I would appreciate the chance to have your documents a few days prior to our appointment so that I can spend most of the time that we have together reviewing your return with you, and determining if there are additional deductions for which you qualify.
Please feel free to call or email me with any questions that you might have. Let’s get some appointments set and face this year’s filing with Peace of Mind. I look forward to talking with you soon, Jennifer L. Card, E.A. Card & Company Financial LLC |
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