Important Tax Updates You Should Know for This Year!

1. If you’ve been affected by a disaster (wildfire, hurricane, etc.), various tax relief programs are being offered from IRS and state governments. Here’s a page on IRS website where you can check your area: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations
2. The new 1099-K rules will result in more people receiving 1099’s related to the sale of personal items (selling your old baseball cards on eBay, selling clothing on Poshmark.com, etc.) If you receive a 1099-K, please make a note of the items you sold, and how much you originally paid for each item that was sold. It is VERY possible that these sales will be NON-TAXABLE.
3. If you are under age 60 and took money out of a retirement plan last year (IRA, 401K, etc.), there are some new exceptions to avoid early withdrawal penalties, please make a note of how the withdrawn funds were used, so that we can try to avoid penalties.
4. If you had any student loan debt canceled last year, the good news is that you won’t have to pay tax on the canceled debt (the “normal” rule requiring payment of income tax on canceled debt has been eliminated until 2026 — for student loans only.
5. If you purchased an electric vehicle last year, the dealership may have “transferred” a tax credit to you at the time of purchase. The dealership should give you IRS Form 15400, showing any credit received. Please make sure we get a copy of that form during this year’s tax preparation

If you want to discuss any of these items, please call me on my direct line at 512-396-7260