Welcome
Your tax return will be prepared professionally, securely, accurately and safely. Handy Taxes is conveniently located off I-75 in Erlanger, Kentucky. I am an IRS registered tax return preparer. With 19 years of tax preparation experience, my mission is to help you get the largest legal refund possible. Welcome to Handy Taxes.
How do you want your tax return completed:
In person
Drop-off your information and pick up your completed returns.
Upload your information to an encrypted online portal.
*Note: Drop-off and uploaded returns are completed in order as I receive them.
Please include the following information:
For new clients:
2022 Return
Clear picture of the driver's licenses - Taxpayer and Spouse
Bank name, routing number and acct number for direct deposit.
Contact information (email addresses, phone numbers, physical address)
Occupations
Birth dates and Social security cards for all people on the return
Any foreign financial account?
Any transactions with cryptocurrency (ex. bit coin)?
Sell or trade marijuana?
2023 tax information
Prior Clients:
Clear picture of your new driver's license obtained in 2023
New contact information (email, phone numbers, physical address and occupations)
Any other information that has changed
Any foreign financial account?
Any transactions with cryptocurrency (ex. bit coin)?
Sell or trade marijuana?
2023 tax information
Your return is protected!
Every return includes:
$2500 tax preparation guarantee
Audit Assistance (up to $1,000,000 legal fees)
Identity Theft Restoration protection
Every return includes:
$2500 tax preparation guarantee
Audit Assistance (up to $1,000,000 legal fees)
Identity Theft Restoration protection
Hours of operation
Monday through Friday 9:00am - 8:00pm ET
Saturday 9:00am - 5:00pm ET
Tax preparation is a personalized service. Please call for an appointment.
Contact information
UPDATES
Installing solar panels or making other home improvements may qualify taxpayers for home energy credits
Homeowners who make improvements like replacing old doors and windows, installing solar panels or upgrading a hot water heater may qualify for home energy tax credits. They should know what these credits can do for them – and be careful of exaggerated claims companies trying to get their business may make.
There are two tax credits to help defray costs for homeowners making energy efficient improvements to their primary or secondary residence. In some cases, renters may also be able to claim specific costs. Landlords can’t use these credits for improvements made to any homes they rent out.
Energy Efficient Home Improvement Credit
Taxpayers can claim the Energy Efficient Home Improvement Credit only for improvements, additions or renovations to an existing home. It doesn’t apply to newly constructed homes. Qualifying costs may include:
Taxpayers can also claim the Residential Clean Energy Credit for qualifying costs for either an existing home or a newly constructed home. Qualifying costs may include:
Business Owners
This is for all businesses current and future who have registered with the state secretary of state. This means all LLCs, partnerships, and corporations.
The Corporate Transparency Act (CTA) was passed by Congress in January of 2021, which requires businesses to register their beneficial ownership information beginning January 1, 2024. A beneficial owner is either a person who exercises substantial control over the company or owns or controls at least 25% of the ownership interests of the company. For those who had someone else file their company with the secretary of state, like an attorney, that person is considered a “company applicant” and must also report their information.
The penalties are very high for not reporting complete information or updating information as it changes. The civil penalties are $500 per day a violation continues or has not been fixed. The criminal penalties can result in a fine up to $10,000 or imprisonment up to two years, or both.
The government agency that is handling the registration is called the Financial Crimes Enforcement Network (FinCEN). More information can be found at https://www.fincen.gov/boi
The primary reasons for this reporting were to:
Form 1099-K
Form 1099-K has been delayed for another year and will begin a transition for 2024. For 2023, a taxpayer will receive a Form 1099-K if the taxpayer receives over $20,000 and has more than 200 transactions in 2023 through a third-party platform, like credit card companies, Venmo, PayPal, etc. The IRS is planning for a threshold of $5,000 for tax year 2024 for Form 1099-K to be issued. This is part of a phase-in to implement the $600 reporting threshold enacted under the American Rescue Plan (ARP) for 2025. For more detail you can go to https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-platform-payments-in-2023-plans-for-a-threshold-of-5000-for-2024-to-phase-in-implementation
To start becoming prepared for this, sort and document the income you receive from third party platforms for business and personal reasons.
Americans who earned $59,187 or less last year take advantage of the Earned Income Tax Credit (EITC).
“This is an extremely important tax credit that helps millions of hard-working people every year,” said IRS Acting Commissioner Doug O’Donnell. “But each year, many people miss out on the credit because they don’t know about it or don’t realize they’re eligible. In particular, people who have experienced a major life change in the past year – in their job, marital status, a new child or other factors – may qualify for the first time. The IRS urges people to carefully to review this important credit; we don’t want people to miss out.”
Even though millions of people get the EITC, the IRS estimates that about 20% of EITC eligible taxpayers do not claim it.
Workers at risk for overlooking the EITC include those:
*Living in non-traditional homes, such as a grandparent raising a grandchild
*Whose earnings declined or whose marital or parental status changed
*Without children
*With limited English skills
*Who are veterans
*Living in rural areas
*Who are Native Americans
*With earnings below the filing requirement
The quickest way to get a tax refund is by filing an accurate tax return electronically and choosing direct deposit for their refund.
EITC is for workers whose income does not exceed the following limits in 2022:
$53,057 ($59,187 married filing jointly) with three or more qualifying children who have valid Social Security numbers (SSNs).
$49,399 ($55,529 married filing jointly) with two qualifying children who have valid SSNs.
$43,492 ($49,622 married filing jointly) with one qualifying child who have valid SSNs.
$16,480 ($22,610 married filing jointly) with no qualifying children who have valid SSNs.
**Investment income must be $10,300 or less.
What business owners need to do when closing their doors for good
There are a few things business owners need to do before they close their business. Of course, they need to fulfill their federal tax responsibilities. It’s also important to notify the IRS of their plans.
Business owners must take these steps when closing a business:
Texts from the “IRS” are a Scam
The IRS reminds all taxpayers that thieves use email, telephone and social media for various online scams. Thieves also send fake text messages, referred to as “smishing.” Like phishing scams through email, smishing scams will appear to be from trusted companies, government agencies or charities. Cyber criminals pose as the IRS and Treasury Department in smishing scams to collect personal and financial information from taxpayers. These text messages will often use fake URLs and fake website names.
Taxpayers need to remember that the IRS will not contact them by text message or social media and ask for personal or financial information. The IRS will also not initiate contact by phone or email. If the IRS needs to contact a taxpayer, it will usually first send a letter through the mail.
The IRS advises taxpayers to not open supposed IRS text messages since they could lead the reader to a website that can be used to steal personal information or could load malware onto personal devices.
If the text message contains a telephone number to call back, the IRS also advises not to call that number since it's likely a scam.
Educator's Expense Deduction
Teachers go above and beyond for their students, often buying classroom supplies needed to make learning successful. The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies and training from their taxes. They can only claim this deduction for expenses that weren’t reimbursed by their employer, a grant or other source.
Who is an eligible educator:
The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide. They must also work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law.
Things to know about this deduction:
Starting on tax returns for 2022, educators can deduct up to $300 of trade or business expenses that weren’t reimbursed. If two married educators are filing a joint return, the limit rises to $600. These taxpayers cannot deduct more than $300 each.
For 2021 returns, the limit is $250, or $500 for married educators filing jointly. As teachers prepare for the school year, they should remember to keep receipts after making any purchase to support claiming this deduction.
Qualified expenses are amounts the taxpayer paid themselves during the tax year.
Here are some of the expenses an educator can deduct:
Required Minimum Distributions (RMDs)
Individuals who reached 70 ½ in 2019, (70th birthday was June 30, 2019 or earlier) did not have an RMD due for 2020, but will have to take one by Dec. 31, 2021.
Individuals who reach 72 in 2021 (and their 70th birthday was July 1, 2019 or later) have their first RMD due by April 1, 2022.
Installing solar panels or making other home improvements may qualify taxpayers for home energy credits
Homeowners who make improvements like replacing old doors and windows, installing solar panels or upgrading a hot water heater may qualify for home energy tax credits. They should know what these credits can do for them – and be careful of exaggerated claims companies trying to get their business may make.
There are two tax credits to help defray costs for homeowners making energy efficient improvements to their primary or secondary residence. In some cases, renters may also be able to claim specific costs. Landlords can’t use these credits for improvements made to any homes they rent out.
Energy Efficient Home Improvement Credit
Taxpayers can claim the Energy Efficient Home Improvement Credit only for improvements, additions or renovations to an existing home. It doesn’t apply to newly constructed homes. Qualifying costs may include:
- Exterior doors, windows, skylights and insulation materials.
- Central air conditioners, water heaters, furnaces, boilers and heat pumps.
- Biomass stoves and boilers.
- Home energy audits.
- 2022: 30%, up to a lifetime maximum of $500.
- 2023 through 2032: 30%, up to a maximum of $1,200 annually. Biomass stoves and boilers have a separate annual credit limit of $2,000 annually with no lifetime limit.
Taxpayers can also claim the Residential Clean Energy Credit for qualifying costs for either an existing home or a newly constructed home. Qualifying costs may include:
- Solar, wind and geothermal power generation equipment.
- Solar water heaters.
- Fuel cells.
- Battery storage.
- 2022 to 2032: 30%, no annual maximum or lifetime limit.
- 2033: 26%, no annual maximum or lifetime limit.
- 2034: 22%, no annual maximum or lifetime limit.
Business Owners
This is for all businesses current and future who have registered with the state secretary of state. This means all LLCs, partnerships, and corporations.
The Corporate Transparency Act (CTA) was passed by Congress in January of 2021, which requires businesses to register their beneficial ownership information beginning January 1, 2024. A beneficial owner is either a person who exercises substantial control over the company or owns or controls at least 25% of the ownership interests of the company. For those who had someone else file their company with the secretary of state, like an attorney, that person is considered a “company applicant” and must also report their information.
- Existing entities as of 1/1/24 will have until 1/1/25 to register.
- Newly registered entities after 12/31/23 and before 1/1/25 will have to register within 90 days.
- Newly registered entities after 1//1/25 will have to register within 30 days.
- Updates to previously reported information or correcting inaccuracies will have to make corrections within 30 days.
The penalties are very high for not reporting complete information or updating information as it changes. The civil penalties are $500 per day a violation continues or has not been fixed. The criminal penalties can result in a fine up to $10,000 or imprisonment up to two years, or both.
The government agency that is handling the registration is called the Financial Crimes Enforcement Network (FinCEN). More information can be found at https://www.fincen.gov/boi
The primary reasons for this reporting were to:
- Protect interstate and international commerce from criminals misusing U.S. corporations and LLCs
- Strengthen law enforcement investigations of suspect corporations and LLCs
- Set a clear, universal standard for state incorporation practices
- Bring the U.S. into compliance with international anti-money laundering standards
Form 1099-K
Form 1099-K has been delayed for another year and will begin a transition for 2024. For 2023, a taxpayer will receive a Form 1099-K if the taxpayer receives over $20,000 and has more than 200 transactions in 2023 through a third-party platform, like credit card companies, Venmo, PayPal, etc. The IRS is planning for a threshold of $5,000 for tax year 2024 for Form 1099-K to be issued. This is part of a phase-in to implement the $600 reporting threshold enacted under the American Rescue Plan (ARP) for 2025. For more detail you can go to https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-platform-payments-in-2023-plans-for-a-threshold-of-5000-for-2024-to-phase-in-implementation
To start becoming prepared for this, sort and document the income you receive from third party platforms for business and personal reasons.
Americans who earned $59,187 or less last year take advantage of the Earned Income Tax Credit (EITC).
“This is an extremely important tax credit that helps millions of hard-working people every year,” said IRS Acting Commissioner Doug O’Donnell. “But each year, many people miss out on the credit because they don’t know about it or don’t realize they’re eligible. In particular, people who have experienced a major life change in the past year – in their job, marital status, a new child or other factors – may qualify for the first time. The IRS urges people to carefully to review this important credit; we don’t want people to miss out.”
Even though millions of people get the EITC, the IRS estimates that about 20% of EITC eligible taxpayers do not claim it.
Workers at risk for overlooking the EITC include those:
*Living in non-traditional homes, such as a grandparent raising a grandchild
*Whose earnings declined or whose marital or parental status changed
*Without children
*With limited English skills
*Who are veterans
*Living in rural areas
*Who are Native Americans
*With earnings below the filing requirement
The quickest way to get a tax refund is by filing an accurate tax return electronically and choosing direct deposit for their refund.
EITC is for workers whose income does not exceed the following limits in 2022:
$53,057 ($59,187 married filing jointly) with three or more qualifying children who have valid Social Security numbers (SSNs).
$49,399 ($55,529 married filing jointly) with two qualifying children who have valid SSNs.
$43,492 ($49,622 married filing jointly) with one qualifying child who have valid SSNs.
$16,480 ($22,610 married filing jointly) with no qualifying children who have valid SSNs.
**Investment income must be $10,300 or less.
What business owners need to do when closing their doors for good
There are a few things business owners need to do before they close their business. Of course, they need to fulfill their federal tax responsibilities. It’s also important to notify the IRS of their plans.
Business owners must take these steps when closing a business:
- File a final tax return and related forms. The type of return to file and related forms depends on the type of business.
- Take care of employees. Business owners with one or more employees must pay any final wages or compensation, make final federal tax deposits and report employment taxes.
- Pay taxes owed. Even if the business closes now, tax payments may be due next filing season.
- Report payments to contract workers. Businesses that pay contractors at least $600 for services including parts and materials during the calendar year in which they go out of business, must report those payments.
- Cancel EIN and close IRS business account. Business owners should notify the IRS so they can close the IRS business account.
- Close State business accounts. Contact the state secretary of state.
- Keep business records. How long a business needs to keep records depends on what's recorded in each document.
- What forms to file
- How to report revenue received in the final year of business
- How to report expenses incurred before closure
Texts from the “IRS” are a Scam
The IRS reminds all taxpayers that thieves use email, telephone and social media for various online scams. Thieves also send fake text messages, referred to as “smishing.” Like phishing scams through email, smishing scams will appear to be from trusted companies, government agencies or charities. Cyber criminals pose as the IRS and Treasury Department in smishing scams to collect personal and financial information from taxpayers. These text messages will often use fake URLs and fake website names.
Taxpayers need to remember that the IRS will not contact them by text message or social media and ask for personal or financial information. The IRS will also not initiate contact by phone or email. If the IRS needs to contact a taxpayer, it will usually first send a letter through the mail.
The IRS advises taxpayers to not open supposed IRS text messages since they could lead the reader to a website that can be used to steal personal information or could load malware onto personal devices.
If the text message contains a telephone number to call back, the IRS also advises not to call that number since it's likely a scam.
- Always be wary of any unsolicited text messages you receive, whether it says it's from the IRS or an organization offering governmental aid.
- Always verify that contact, content and context with the actual government agency using its official website.
- Taxpayers should report fake IRS, Treasury and tax-related text messages to phishing@irs.gov.
- For more information on how to identify the scams and protect yourself, visit IRS.gov/phishing.
Educator's Expense Deduction
Teachers go above and beyond for their students, often buying classroom supplies needed to make learning successful. The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies and training from their taxes. They can only claim this deduction for expenses that weren’t reimbursed by their employer, a grant or other source.
Who is an eligible educator:
The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide. They must also work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law.
Things to know about this deduction:
Starting on tax returns for 2022, educators can deduct up to $300 of trade or business expenses that weren’t reimbursed. If two married educators are filing a joint return, the limit rises to $600. These taxpayers cannot deduct more than $300 each.
For 2021 returns, the limit is $250, or $500 for married educators filing jointly. As teachers prepare for the school year, they should remember to keep receipts after making any purchase to support claiming this deduction.
Qualified expenses are amounts the taxpayer paid themselves during the tax year.
Here are some of the expenses an educator can deduct:
- Professional development course fees
- Books and supplies
- COVID-19 protective items to stop the spread of the disease in the classroom
- Computer equipment, including related software and services
- Other equipment and materials used in the classroom
Required Minimum Distributions (RMDs)
Individuals who reached 70 ½ in 2019, (70th birthday was June 30, 2019 or earlier) did not have an RMD due for 2020, but will have to take one by Dec. 31, 2021.
Individuals who reach 72 in 2021 (and their 70th birthday was July 1, 2019 or later) have their first RMD due by April 1, 2022.
Current Tax Law
If you are a taxpayer that gets Form K-1, make sure that your preparer gives you a basis statement for your basis in the Partnership, Estate, Corporation. You will need that when you file your individual return.
Form 1040 SR - For Seniors (age 65 and older). The IRS eliminated the 1040EZ and the 1040A.
Minimum Healthcare Insurance Requirement
Beginning with 2019, minimum healthcare insurance is still required, but the penalty has been eliminated. If you received a healthcare subsidy from the Marketplace or government, you will receive a Form 1095-A. This form must be used to complete your return.
Itemized Deductions
Due to the increased Federal Standard Deduction, (Single and Married filing Separate $12,400; Married filing Joint and Qualifying Widow $24,800; Head of Household $18,650), many will not benefit from itemizing on their federal tax return, but may still be able to itemize on their state tax return.
So bring your out-of-pocket medical expenses (If it is above 7.5% AGI)
Taxes paid (personal property tax paid, real estate tax paid, etc.) this section is limited to a total of $10,000 on the federal return,
Mortgage/Equity Interest on money borrowed for the property that was used to buy, build or significantly improve that property. Total amount borrowed for deductible interest is $750,000,
Contributions to charitable organizations of money or non-cash items (documentation required for certain donations)
Employee business expenses (Form 2106) have been eliminated. That section on the Schedule A is gone.
Gambling losses (bring your gambling Win/Loss statement)
Work-Related Impairment Expenses
Casualty losses and Disaster Relief are only deductible for those living in Presidentially Declared Disaster Areas like the hurricane and wildfire areas.
Credits
If you are claiming the Earned Income Credit, American Opportunity Credit, Child Tax Credit or the Head of Household filing status, you will need documentation to support these tax benefits.
Example documentation -
EIC and CTC - child must have a SSN and live with the person claiming the credit for more than 6 months. Must provide proof of child's residency (Medical or School records, etc)
AOTC - Form 1098T, school account summaries, and receipts for purchased supplies not included on account summary.
HOH - must show that person claiming this filing status has paid for more than half the costs of the household and have a qualifying child or relative.
Other Dependent Credit
If you have a dependent that is age 17 or older or does not qualify as a qualifying child, there is a new credit of $500. This will help with the loss of the exemption amount.
Moving expenses are now only deductible for active duty military members.
If you are getting or giving ALIMONY under a divorce or separation agreement on or before 12/31/18, you will be able to continue to deduct/include it on your future returns. Any new OR REVISED divorce or separation agreement after 12/31/18 that have alimony will NOT be able to deduct/include it on future returns.
Child Returns
A child is required to file a return if:
- unearned income (investment income, taxable part of scholarship) is over $1,250**
- earned income is over $13,850
- gross income (earned and unearned income total) or the earned income plus $400 is over $1,250**
**Children subject to the “Kiddie Tax” are taxed at their parent’s rate.
- unearned income is over $2,200
- self-employment income of at least $400
This page does not include all of the tax changes. Feel free to check my Facebook page to get additional tax law changes as the season progresses.