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 |  Bizink  |  covid-19,  IRS form 6419: Advance Child Tax Credit,  Tax Estimates,  Tax Season 2022,  Weekly Take-Away

Weekly Update – April 28th 2022

Although tax season 2022 seemed to just be an extension of tax season 2020 and 2021 I am so grateful to have confirmed that many of our processes worked well with our “mostly remote” staff and clients.  One of our favorite office sayings is  “it’s not a problem, it’s an opportunity”; this tax season we learned and confirmed yet again the importance of good clear communication, proactive actions and understanding as I believe they are the key ingredients to a good continuous relationship.

I am always happy to share my beach photo’s but an injury (that I ignored for too long) has been limiting my workouts and trips to the beach.  I am happy to share that a good friend recommended a wonderful orthopedist who listened to me instead of just reacting to a prior X-ray and gave me a thorough exam, new strength work and the ability to walk at my normal fast pace with no pain .

It’s 32 degrees yet again, so I bundled up and once again was able to head down the block…

20220428 070904
Cold and Beautiful!

Weekly Take-Away

For this week’s take-away I ask that before you react to someone’s statement, text, email, or action, you consider that something may be going on in that person’s life causing that “out of character” behavior or comment.

TAX ISSUES

2022 Estimated Tax Payments

While many of you are still reeling from large or unexpected balance due payments submitted with your tax return and/or extension it is important to remember that your 2022 estimated tax payments are still due on:

  • April 18th
  • June 15th
  •  September 15th
  • January 15th 2023

We are hearing and seeing that the mutual fund payouts and capital gains from investments many have vanished during the last few weeks, and expectations from other income sources may be lower than 2021 amounts.  This gives us the opportunity to tweak your quarterly estimates and work through some other planning opportunities.  Remember these are estimates and are required, but the amounts are not set in stone.

Check Refund Status

The deadline to file and pay federal income taxes has passed for most people. Many are still wondering Where’s My Refund?     You can track the status of your IRS and/or state refund via the links our website page.  To access this information you will need your Social Security number or ITIN, tax filing status, and the exact amount of the refund claimed on your tax return(s).  Good luck!

May 16 is Filing Deadline for Many Tax-Exempt Organizations

Many tax-exempt organizations have a filing deadline of May 16, 2022. Those that operate on a calendar-year basis have certain annual information and tax returns they file with the IRS. These returns are:

  • Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF)
  • Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ
  • Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts)
  • Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code

2021 Monthly Child Tax Credit Payments

The IRS has just updated it’s Frequently Asked Questions via fact sheet # 2022-28 highlighting the most common questions regarding the advance Child Tax Credit for 2021.  You can also check information in the Schedule 8812 instructions, this schedule is used to calculate and report the credit on your 2021 tax return, and the IRS FAQs. Before filing your tax return, you can check your IRS Online Account and compare that to the deposits on your bank account.  Reporting the correct amount of any advance Child Tax Credit payments received during 2021 will help ensure that refunds are paid promptly within 21 days. As a reminder, couples who filed Married Filing Joint will each receive a letter reporting half of the payments received. When filing 2021 tax returns, married couples will need to combine both amounts when they file their joint return.

ECONOMY

Government Sees Strong GDP Growth in 2022

While the government sees more risks to the economy in the months ahead due to rising prices and Russia’s invasion of Ukraine, it still expects healthy GDP growth in 2022. This comes after the International Monetary Fund estimated that the US will see its GDP grow 3.7% this year.

Durable Goods Orders Increased

Orders at factories for long-lasting goods rebounded in March after the first decline in a year, while bookings for all durable goods increased by 0.8% last month. These figures suggest that business investment is strong and that factories are producing large amounts of goods, even as they confront snarled supply chains, a labor shortage, and the highest inflation in decades.

Consumer Confidence Eases in April

Consumer confidence eased in April as views on current conditions worsened slightly, offsetting more optimistic future expectations. The Conference Board’s index decreased to 107.3 from an upwardly revised 107.6 reading in March, while the median forecast in a Bloomberg survey of economists called for a reading of 108.2. The this is caused by inflation which is running at the fastest pace since 1981.

GENERAL RESOURCES

We sincerely hope that you and your family are well and remain well. If you have any questions or concerns, don’t hesitate to reach out to us. We are all in this together!

If you need help with your accounting, want to create a tax minimization plan, want to discuss your business growth plan or your finances, are concerned about retirement goals or need to be held accountable for your 90 day action plan, contact us for a complimentary discovery session or an appointment to just get started.

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