The Big White Envelope​

2025 UPDATE


What’s new for 2024 tax returns?​
​

  • IRS to begin accepting and processing 2024 tax returns on Jan. 27.
  • ​Annual inflation adjustment.  Income bracket, standard deduction, and retirement contributions were adjusted to reflect inflation for 2024 tax returns.  Here is the link for more information: https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024
    • Another age increase for mandatory RMDs (Required Minimum Distributions) from age 72 to age
      73. If you reached age 73 in 2024, you must take your first RMD (for 2024) by April 1, 2025 . AND,
      you have to take your RMD for 2025 by Dec 31, 2025. Yep, some of you may have to take two RMD’s
      in 2025
  • Qualified unreimbursed medical care expenses that exceed 7.5% of AGI are deductible, but when calculated along with your mortgage interest, real estate taxes, etc. you still have to exceed the standard deduction to make that worthwhile. We can give you a target number for how much you need overall before you spend hours looking up your medical co-pays.
  • Child tax credit up to $2,000 per child under 17 (income limits apply). $1,700 of the credit is potentially refundable in 2024 and 2025.
  • JANUARY 31, 2024 DEADLINE for submitting 1099-NECs and W-2s to the IRS, SSA and to recipients.  We can prepare these for you, get in touch ASAP!  
  • You may get Form 1099-K for third-party payments (e.g., Venmo, Zelle, or Paypal). If you use those platforms and didn’t receive a paper form, please double check your online accounts.
  • Remember, filing an extension only gives you extra time to file, BUT NOT TO PAY. If you owe money, you need to pay before April 15 th . Underpayment penalties apply after April 15 th even if you requested a filing extension.


Ready, Set, Go!


As usual, we need all that mail that says Important Tax Document Enclosed.  You can create a Word document and add a list of new babies, SSNs, charitable donations, (we’ll see if we can claim those), change of address, new homes, new bank account information, other pertinent tidbits, and return it to me. You can send me scans of your W2s, 1099s, pdfs, and other information by secure email. Then, go to www.letlarrydoit.com, click “Secure File Exchange”  on the upper right hand part of the home page, and follow the prompts to upload your stuff securely.  Include a list of your charitable donations, medical expenses (if significant, since the threshold is 7.5% of your income).

DO NOT SEND SENSITIVE INFORMATION OR FORMS THAT SHOW YOUR SSN THROUGH REGULAR E-MAIL


AND NOW. . . Here are the Virtual Big White Envelope easy operating instructions:

Plan A: Get your documents from sources online (employer’s payroll site, mortgage bank’s site, etc.), then transmit them securely through the website (see above). Good-quality pictures are welcome. Make sure that all the information is visible and readable.    ​           

Plan B:  Fax to 202 517 9163.  You can fax documents as they arrive; there’s no need to wait until you have ‘everything’, giving us a chance to get started (and finished) earlier.


Plan C:  For the Digitally Challenged, call Larry for an appointment to bring your docs in person.  

Here are some sample fees:

Normal 1040, Schedules A, B (Itemized Deductions, Interest, and Dividends, Form 6251 (Alternative Minimum Tax) and One State return  $650                

Capital Gains (Schedule D) $35 and up                                

Dependent-care schedule $55                     

Small Business (Schedule C) $95 and up                                

Foreign Earned Income Exclusion $145                        

Real Estate Rental Properties (Sch E and Depreciation) $165/unit
Additional  (part-year) state return $45-75               

eFile FREE                

Other schedules, weird things, or disproportionate time spent  $150/hr.

 
Back By Unpopular Demand:   SURGE PRICING!  There are only 31 working days from Mar 15th to April 15th.  Sending Docs after March 15 can add additional charges to your return. The earlier you get stuff to us, the better off all of us will be.  Your refund will come faster, too.  So what's keeping you from sending your docs early enough to avoid the surcharge?

We appreciate your trust you have placed in us, and look forward to working with you again..

Talk to you soon.


Many Thanks,

Larry and Marcio

                       


Thinking of going solar? Click HERE