Happy 2024!
I hope that your 2024 has started on a positive note. I am hearing mixed messages on how much Film/Television production has started, but at least the strikes are over! 

The Child Tax Credit remains at $2000.00 per qualifying child. Dependent care expenses are nonrefundable, but do provide a tax credit. You may claim the credit on care provided while you were working or looking for work up to $3,000 if you had one qualifying person, or $6,000 if you had two or more qualifying persons. The maximum credit is 35% of your
employment-related care expenses.

IMPORTANT: California has not adopted ANY of the Federal 2018 tax changes, so all the
deductions you have taken in the past are still deductible in California – you will want to give
me all your expenses.

Please Note:

• Identity Theft resulting in the filing of fraudulent income tax returns is a huge issue, so we are required to verify every person's identity for whom we prepare a return. I know it seems a bit silly as I have been working with some of you for a couple of decades. The First page of our Organizer requires driver's license information (or other government-issued ID). This must be completed by you. Returns cannot be filed without this information.

• The requirement to carry health insurance is in force in California, so please provide the 1095-A Forms you receive.

• There is a question about transactions in virtual currency. Please make sure you check YES or NO. I am not allowed to answer it for you. I have included areas on the first and second pages that require your initials, stating that this information was provided by you.

We will be sending a "Privacy Policy" and an "Engagement Letter" after we have received your tax information. The Privacy Policy is, as it always has been, that we do not share your information with anyone without your permission. The "Engagement Letter" permits us to prepare your returns.

We are including a special service provided through Intuit, the largest tax software service in the country, that offers assistance with notices, audits, and identity theft on all individual returns this year.

Please use our Organizer to list your expenses, as it helps speed up the process when preparing your return. We cannot begin working on your return until we have received pages 1 & 2 of the Organizer. Please DO NOT write "same as last year." I cannot estimate amounts for expenses or for miles driven on your behalf, so please include your information on the
Organizer, especially your mileage on the Auto Expense Worksheet. Of course, if you forget to give me an expense – something I know you would have like union dues or a deduction that you usually list – we will do our best to inquire. Whenever possible, I prefer that any additional information you provide be in writing. Please do not text images or documents; email will always be the best way to receive information.

I do not need to see your receipts. However, you need to keep your receipts and all other documentation for at least four years from the date of filing in the unlikely event of a tax return examination (AKA Audit).

Extensions
The 2023 tax filing date is Monday, April 15th. For those who know you will be too busy to gather your tax information before March 7th, we have an Extension Request form you can complete and email back to us. You don't need to sign the extension request, but you do need to be aware of the following:

• Be sure to let us know if you worked in multiple states, as separate extensions may also need to be filed for those states.

• This extends the filing due date of the return until October 15th, 2024. There is no additional extension beyond that due date.

• This extension Does NOT extend your time to pay. If you think you may owe taxes,
  please get in touch with us as early as possible to arrange to make a payment with your
  extension. If you owe tax and do not pay it by April 15th, 2024, you can be charged
  penalties and interest on the amount due. If IRS considers that you were under-withheld,
  you may be charged penalties and interest for underpayment of "Estimated Tax," even if
  you file and pay by April 15th, 2024. To avoid an Estimate Tax Penalty, you must either
  pay 90% of the current year's tax or 110% of the prior year's tax in equal installments
  throughout the year or by having sufficient taxes withheld from wages.

• Requesting an extension and filing your return after April 15th does not increase
  your chances of being audited. We have found that the reverse is true.

 

IMPORTANT

Internal Revenue Service, Social Security Administration, and most other government agencies NEVER contact taxpayers via email or telephone unless they have contacted you by mail first. They also do not leave threatening messages EVER. Do not return the call or click on any links. If you answer a call of this type, do not give any information. Feel free to call our
office if you receive this type of call.

I also recommend you call us when you receive anything from any tax authority. It is probably best to contact us before you try the agency. I don't charge for this type of service and can often help resolve the issue.

We are ready to set appointments and prefer to work with you by telephone, email, and Zoom. You are welcome to drop off your information at our office. You should have received your tax documentation (W-2's, 1099's, etc.) by February 28th.

I will be preparing returns in the order complete information is received by our office.

I am looking forward to speaking with you soon.

Jackie L Dagg
CTEC#A249556