This Quarter’s Topics

IMPORTANT!!!

Questionnaire

Voicemail

2019 Processing

Stimulus

Retirement $

Health Insurance

VERY IMPORTANT:

When you fill out the Tax Data Questionnaire this year you will find a new question:  “List amount received in a stimulus check”.
Both stimulus checks must be included in this line.  At the time our booklet went to print we did not know there would be a second round of stimulus checks, nor did we know that both stimulus amounts would be reconciled on the 2020 tax return.  As you fill out the questionnaire be sure to add the amounts you received from both stimulus payments.

Questionnaire

It is very important that you read the questionnaire completely and answer any questions that apply to your situation.  Most of the time and money we spend calling, making changes and re-doing returns is due to inaccurate or missing information that was addressed on the questionnaire.

Voicemail

This is a good time to check your voicemail box and make sure it is not full.  We cannot leave you a message when your voicemail is full and when we cannot leave you a message it delays the processing of your return.

2019 Processing

Many of you still have not received your refunds for 2019.  The IRS is still processing a backlog of 7 million 2019 income tax returns.  They have set February 12^th as the date for accepting 2020 tax returns.  If you still have a 2019 tax return waiting to be finalized you are not alone – it is still a waiting game.

Stimulus

If you did not receive the Economic Impact Payments (stimulus checks) OR you received an incorrect amount,  we will rectify that on your 2020 tax return.  If you received a payment that was too high you will not be required to pay back any part of the payment unless you received a portion for someone who was deceased before 2020, that portion you will be required to pay back.  If you had a child during 2020 you will receive their portions on your 2020 tax return.

Retirement $

If you have COVID related financial needs, your early distribution from an IRA or pension will not be subject to the 10% penalty.  Although any taxable portion will still be included in taxable income.

Health Insurance

Those who obtain health insurance through a government marketplace (insurance exchange, healthcare.gov, etc), and qualify for a subsidy, must send us a form 1095-A in order to have a tax return prepared correctly.  If you do not receive a 1095-A you will need to contact the marketplace and obtain one BEFORE mailing us your documents.  Those who get Medicaid through the marketplace will not get a 1095-A.  Medicaid does not impact your tax return.  If you live in California you will need two forms:  IRS Form 1095-A and California Form FTB 3895 – be sure to send us both forms.

NOTE:  We do not want or need Form 1095-B or 1095-C.

Sincerely in Christ,

James W. Rickard

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