STANSBURY-POPLAR SERVICES

We offer the following options for filing your taxes:

• In person appointment at our local office

• Document Drop off service at our local office

• Document Upload 

 

Unsure if changes in tax regulations will impact your filing experience this tax year? Feel free to consult our newsletter below which captures changes announced by the IRS.

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Tax Year 2023 Annual Stansbury-Poplar Services Newsletter 

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Greetings from Stansbury Poplar Tax and Accounting Services! We are open for appointments and drop-offs on Tuesday, January 23, 2024. We will be able to accept your documents through drop-off, mail, fax, or email using our website – www.Stansburytax.com

Here are some of the changes in place for filing tax year 2023:

• Energy Efficient Home Improvement Credit- Maximum credit is $1200 for energy property costs and efficient home improvements with limits on doors ($250. per door and $500. total), windows ($600.) and home energy audits ($150.) In addition, you can claim a credit of $2000. a year for qualified heat pumps, biomass stoves or biomass boilers. The credit has no lifetime dollar limit and the maximum credit can be claimed every year that you make eligible improvements until 2033. The credit is nonrefundable, so you can’t get back more on the credit than you owe in taxes, and you cannot apply excess credit to future years. 

• Federal Solar Tax Credit - Solar energy credit of 30% for panels, installation, equipment and sales tax. You must own and not lease the solar photovoltaic (PV) system, it must have a capacity rating of at least 3 kilowatt-hours and it must be located at your primary or secondary US residence. Credit phases out 2033.

• Electric Car (Clean Vehicle Credit)- In order to claim the credit, the vehicle must meet the “assembled in the US” rule, the electric motor rule and US component rule. We need a copy of the invoice and VIN number to determine eligibility. The credit amount is either $0, $3750 or $7500 if placed in service in 2023.

• Tax brackets- Remain the same -12% for incomes over $11,000 ($22,000 married filing joint), 22% for incomes over $44,725 ($89,452 married filing joint), 24% for incomes over $95,375 ($190,750 married filing joint), 32% for incomes over $182,100 ($364,200 for married filing joint), 35% for incomes over $231,250 ($462,500 for married filing joint),37% for incomes over $578,125 ($693,750 for married filing joint) 

• Gift exclusion -  You may gift someone up to $17,000 without reporting to the IRS

• Mileage Rates Change for 2022: Mileage Deductions- Business (LLC, S Corp, Corp, Private Entrepreneur) rate: 65.5 cents per mile; Charity: 14 cents a mile; Medical:  22 cents per mile

• Standard Deduction Increased:  Single and Married filing separately $13,850, Head of Household $20,800,Married filing jointly and surviving spouse $27,700, An additional $1850 is added if single, older than 65 or blind. An additional $1500 for each person if married filing joint, blind, or over 65

• Education Credits and Tuition - The American Opportunity Education Credit ($2500 credit for the first four years of postsecondary education) and Lifetime Learning Credit ($2000. of postsecondary education courses to improve job skills) are available in 2022. 

• Premium Tax Credit and Health Insurance:

If you purchased insurance through the marketplace known as Health Insurance Marketplace via HealthCare.gov, then you will receive form 1095 A indicating the amount of the Premium Tax Credit. For 2023 tax year, you must bring the form 1095A in order to file.

• Tax on Child’s investment – The maximum amount of unearned, investment income such as dividends, capital gains and interest that a child can have without it being subject to tax is $2500. 

• Increased Due Diligence Requirements for Tax Practitioners - In order to claim a Head of Household status, Child Tax Credit, Earned Income Credit, and/or American Opportunity Credit, taxpayers must have physical documentation of the child’s Taxpayer Identification Number (TIN) and address. Also, In compliance with Circular 230, your 2023 taxes will include an engagement letter detailing the tax preparation service. 

• Maryland Retirement Tax Reduction Act of 2020 - $1750. Tax credit for over 65 Married filing Joint filers with income less than $150,000. and $1000. Tax credit for Single over 65 with income less than $100,000. A $100,000. tax credit for taxpayers of age 100 or more. 

 

As of this date, the IRS will begin accepting returns on January 29, 2024; however, those filing taxes with an Earned Income Credit, and Child Tax Credits, may be delayed until late February, 2024. Cathy, Barbara, Cindy and Anne will be preparing taxes starting January 26, 2024. Please call 410-284-1301 for an appointment. The tax deadline is April 15, 2024. For your convenience, we will have a drop off form, checklist and engagement letter on our website at www.Stansburytax.com.  We look forward to hearing from you!

Tax Checklist

 

 

 

General Information:

_____Social Security numbers for all persons on the tax return

_____Birthdates and addresses of children and dependent adults

_____Estimated payments made to IRS and State of Maryland

 

Income:

_____W 2s, 1099 Misc., 1099 NEC

_____Interest - Banks, Checking and Savings Acts, CD’s Treasury Bills

_____Dividends - Mutual Funds, Stocks

_____State Refund from last year if you filed 1040 with itemized deductions

_____Alimony received from divorce decrees made pre-2018

_____Unemployment Compensation

_____Traditional IRA, Pension, Annuity, Retirement withdrawals

_____IRA Rollovers; Roth Conversion

_____Pension Income - 1099 R

_____Social Security Statements

_____Stock Disposals/Sales - 1099 B (Need original purchase date, original cost, sell date)

_____Rental Income and expenses

_____Business income and Expenses

_____Other Income: Lottery Winnings, Miscellaneous Income, 1099 C (Cancellation of Debt), 1099 K (Internet

           Sales)

_____Sale of house: Settlement papers when bought and sold

 

Adjustments and or Tax Credit Information

_____IRA Contributions – Traditional or Roth

_____Penalty on early withdrawal of savings

_____Child Care Credit: Need social security or EIN number of child care provider, address, and amount paid

_____Educational expenses relating to post-secondary education – 1098 T

_____Student Loan Interest

_____Self -employed medical insurance

_____Educator expenses

_____Elective deferrals to a 401(k) or other qualified employer plan, voluntary employee contributions and      

          501 c (18) plan

_____Residential energy efficiency improvements – solar cells, energy saving roof*, windows*, doors* (lifetime cap $500.)

_____ 1095 A, 1095 B, 1095 C – Cost and information about Health insurance premiums

_____ Health Savings Account participants– forms 5498-SA; 1099 SA

_____529 College plans for Maryland deduction

 

Itemized Deductions Still deductible:

____Medical and dental costs which include:

Doctor and dentist fees, braces, prescription medicines, insulin, acupuncture, air conditioner necessary for allergies, nursing fees, hospital fees, contacts and supplies, chiropractic services, medical, dental and long-term care insurance, hearing aids, dentures, guide dog for physically disabled, birth control prescribed by a doctor, special equipment installed in a home to provide a medical benefit, surgery to improve vision, long term care premiums, Covid PPE and at home tests

_____State income taxes paid in 2022

_____Real Estate taxes - Personal Property Taxes - Ground Rent

_____Sales tax on motor vehicles, motor home  

_____Home mortgage Interest                                                         

_____Points paid on a refinance and purchase of residence           

_____Investment interest                                                                

_____Charitable contribution                                                          

_____Casualty and theft losses                                                       

_____Gambling losses to the extent of Gambling Winnings