Tax News 2023

We are proudly Celebrating our 40th Anniversary!

We wish to thank our wonderful clients/friends who have made our success possible! We plan to continue to be of service to you for many more years!

In addition, we want to express our gratitude to those who voted TRW’s as the

#1 Best Accountant and #1 Best Tax Preparer,

in the Quad Community Press Reader’s Choice Awards!

We truly appreciate you and every vote. THANK YOU!

IT'S TAX TIME AGAIN AND WE ARE HERE TO HELP!

We are ready, willing and able to save you money; and as always, when we prepare your return, you will receive complete, comprehensive, and confidential personalized service at affordable rates.

We are still working to provide a safe environment for you and your family as well as our staff. We kindly ask that you PLEASE do not come in if you are feeling ill nor bring anyone who is feeling ill and be aware that we NO LONGER HAVE PUBLIC RESTROOMS. We trust that we have your understanding and cooperation. We believe our history proves to you our commitment to ensuring the most tax savings possible and safety for all as well.

We request you complete the enclosed CLIENT CHECKLIST sheet, along with your gray folder and enclose all year-end tax documents you receive (opened and removed from envelopes). We have the following options:

Drop-off your complete information anytime we are open “OR” put them in the internal secure locked drop box to the left of our front door.

Send your information through our SECURE Client Portal: Link available on our website.
In Person Appointments can be scheduled this year, however they are very limited. If you have not had any changes remember we are familiar with your return, you can trust us, hence our long term client relationship. We will take care of you and your taxes, consider a drop off unless an appointment is absolutely necessary.
Mail/ship your complete information anytime 24/7.

Please check our website for important announcements and information and any office changes during the tax season. Also, watch for updates on our Facebook page year round.

When we work on your taxes, we will do a comparison with prior years returns (as always) and call with any questions or issues. TRW's is your complete one stop shop! We offer accounting, bookkeeping, payroll services and Small Business Consultations. We prepare all types of income taxes; individual, corporate, and partnership, estate, trust and non-profit. As always, we have attended comprehensive IRS/State of Minnesota approved tax updates. We offer computer generated tax returns, complete hard copies of tax returns, various tax topic brochures, free Electronic Filing, Direct Deposit, and much more!

INDIVIDUAL HIGHLIGHTS FOR 2023:

⦁ Standard Deductions have increased, meaning many Taxpayers will NOT benefit by itemizing. MN did not adopt the Federal amounts, they are slightly lower. However if you are unsure, please include the information and we will compare which is best for you.

⦁ If you had MNSure (marketplace Health Ins.) Form 1095A is required; you’ll receive this in January.

⦁ Crypto-currency transactions (digital wallets) may be taxable income. Virtual Currency/Foreign Accounts/NFTs must be reported on your return. The IRS is targeting these transactions.

⦁ The Child Tax Credit (CTC) is $2000 per child with some limits for income and refundable amounts.

⦁ Child care (daycare) expenses are limited to $3,000 per child up to two children for a max of $6,000.

⦁ Many of you are aware of the 1099K (income from Venmo/PayPal/etc.) $600 rule is not in effect for 2023. It has been set to begin in 2024 at $5,000 or more. Please remember any income or profits from sales must be reported on your tax return no matter the dollar amount.

⦁ It was just announced; the IRS is going to tax the Minnesota Direct Income Tax Rebates (Stimulus) that many taxpayers received. It will not be taxable to MN. Taxpayers who received this payment will receive a letter from MN with the amount received. Please be sure to include this information.

⦁ BEST NEWS FOR LAST… Social Security Income may be non-taxable on Minnesota, based on income limits.

BUSINESS HIGHLIGHTS FOR 2023:

⦁ Qualified Business Income Deduction (QBI or Section 199A): Taxpayers (other than C Corps) can deduct up to 20% of QBI. For the most part - we see this as a great tax savings!

⦁ Business Meals is back to being 50% deductible for 2023. Entertainment is not deductible.

⦁ Business mileage rate 65.5 cents for 2023. (Remember logs are required).

Other Notables:

⦁ PLEASE NOTE OUR NEW EMAIL ADDRESSES below our signatures.

⦁ Beginning January 1, 2024; social security (FICA) wage limit increases to $168,600.00.

⦁ Remember, Partnership tax returns and “S” Corporations are DUE MARCH 15th.

⦁ All Corporations need Board Minutes, Meetings & Loan Documents up to date.

⦁ IRS notices have changed & have stricter response dates - we need to review these timely.

⦁ NEW as of 1/1/24: Any business formed under the Secretary of State is required to file a

BOI (Business Ownership Information) with FinCEN by 12/31. Large penalties apply for noncompliance. We will have more details on this required filing with your 2023 return.

THINKING OF STARTING A BUSINESS? SEE US FIRST! We specialize in Small Business Consultations.

(“Mom Pop” to Multimillion dollar businesses use our system.) It covers but not limited to:

⦁ Types of Entities, Sole, Partnership, Corp, LLC… what’s best for you and the differences.

⦁ What is income and expenses along with the ease of keeping track of such? Keep It Super Simple!

⦁ Payroll vs. Contract labor; the why’s, along with the records needed for each.

⦁ Most important… a system designed to keep track of EVERYTHING by simply writing a check.

At TRW’s, we are Enrolled Agents (EA). Enrolled Agents are professional tax practitioners who have technical expertise in the field of taxation and are licensed to represent taxpayers before the Internal Revenue Service at all administrative levels. When you need up-to-date tax assistance; you can feel confident when you have TRW’s prepare your return that you’re dealing with professionals who will diligently work for YOU!

Sincerely,

Teresa R. Weinkauf, EA; President Cassi R. Gordon-Weinkauf, EA; CEO

teresa@trwstax.com cassi@trwstax.com

As with past years, at the time of preparing our letter, the Government could still be working on tax changes. Please understand that while we try to offer you the most current information; unfortunately Congress isn’t always as timely.

*BEWARE OF TAX SCAMS-this is increasing and now include TEXTING SCAMS*

The IRS warns taxpayers to be on the lookout for an array of evolving tax scams related to identity theft and refund fraud. The first point of contact by the IRS is typically via U.S. Mail, NOT a PHONE CALL! Although it has been reported that fake notices are now being used and sent in the mail as well. It is ALWAYS a good idea to consult us if you receive a notice. We are here to help you. In addition, the IRS does not use email, text messaging or any social media to discuss your tax issues.