Dear Client:

Happy New Year!

We are hoping that you have experienced a good year. This newsletter provides information that will help you to be prepared for us to file an accurate tax return for you, ensuring that we do not miss any eligible tax credits. Know that you are appreciated and we value your business.

Tax Law landscape

The year 2024 was a quiet one for tax law changes. However, 2025 will be huge year for tax changes as the Tax Cut and Jobs Act (TCJA) enacted in 2017 expires. So the next Congress will have to address tax law in some way. Its biggest challenge will be negotiating the expected tax cuts ($4 Trillion impact over next 10 years) with the ever- increasing debt ($36 Trillion).

Social Security payments now exceed Social Security receipts. Sometime soon, the Social Security Trust Fund will have to be addressed. Interest on the debt exceeded defense spending for the first time in 2024.

My hope is that they fully extend the TJCA without the campaign trail promises (no tax on tips, no tax on Social Security, etc.) as they would be very hard to administer. There is talk about addressing the SALT limitation where itemized deductions are limited to $10,000 for state and local taxes, which would be good for Pennsylvanians as we face higher property taxes than others.

Deadlines

The tax filing deadline for personal returns (form 1040), without extension, is April 15, 2025. We recommend that you compile your information and submit it to us as soon as possible.  We process returns on a first-come, first-served basis.  If you would like your return completed by the tax filing deadline, we must have your information no later than Monday, April 7th.  If your information is received after April 7th, your return may be extended.

Appointments. You do not need to schedule an appointment with us for the purpose of dropping off your documents, unless you have a new or complicated matter that you would like to discuss. Scheduling an appointment is very simple. Call us at 717-346-0050 or visit our website at www.millstaxcpa.com/services. Tap services then schedule.

Drop Off Procedures – 

Drop off during office hours – We are in the office, 16 W Main St Shiremanstown,  Monday through Thursday from 7:30 am until 6:00 pm., Fridays until 4 pm  and by appointment only on weekends.

Secure drop boxes – A drop box is located on the right side (from the front) of our Shiremanstown office, located at 16 West Main St., or at Dave’s house at 2197 Canterbury Drive, Mechanicsburg. Both will be checked multiple times daily. Place all your documents within a large envelope when using a drop box. On the outer envelope, include name, telephone number and email address.

Online Portal is where you can safely and securely upload your tax documents. Use of the portal is 100% optional.  We do not require use of the Portal and do not suggest it for those of you who do not use a computer regularly. Please notify us when your upload is complete.  We encourage your review of helpful hints posted on the website regarding portal utilization. The link to the portal is at our website –https://www.millstaxcpa.com/portal/.

Tax Organizer

Our Tax Organizer helps you know what documents we need and gives you a list of questions which could trigger an important change in your tax circumstance.  For those of you not using the portal, contact the office (717-346-0050 or Dave@millstaxcpa.com) in January if you want an organizer mailed to you.

If you are on the portal, we will be loading your tax organizer in mid-January. You will receive an email notifying you its available. The organizer helps you prepare for the tax filing season.

Pick up procedures

The office will contact you when your return is completed.

If you are using the Secure Portal, you can safely download your tax documents to your PC. We will obtain signatures remotely. You do have option to come into the office to review the results of your return.

If not using portal, we will notify you when your return is complete, via a call or email. Call to make an appointment to pick up or use our online Appointment Setter to schedule an appointment for pick up. Although we prefer a check for payment, we do accept debit/credit for a small additional fee.

Questionnaire

When providing your documents, please complete the questionnaire below. You can do so easily by visiting our website to complete the form provided https://www.millstaxcpa.com/questionnaire/.  Alternatively, you can print the questionnaire below and write in your responses.

Helpful Hints

1.  Summaries vs. Receipts. Provide summaries of your business expenses or your charitable deductions. Receipts are unnecessary, except for the following:

a.    If you are claiming a charitable donation that exceeds $250 (cash or tangible items), you must have a notice from the organization acknowledging receipt.

b.  If you are claiming an energy credit associated with home improvement or Electric Vehicle (EV), all the documentation associated with that transaction is needed. If you purchased an EV, we will need to carefully review all requirements for that credit.

2.  If you have a Health Savings Account (HSA), we need  Form 1099-SA from your HSA provider. Although not always mailed, be sure to place the form on your HSA Portal.

3.  Review the Tax Organizer on the portal. It will help you remember all the documents you have provided in the past. Call the office (717-346-0050) or drop us a note if you would like your Organizer mailed to you.

4.  For child care expenses, we will need the annual receipt provided by the daycare provider.

5.  Watch your mail in January if you receive an IP Pin from IRS. Keep the letter with your new 2025 PIN in a special place where you can retrieve it.

6.  Consider setting up an IRS Online Account. The IRS continues to improve the information available online.

7.  If you sold or received Crytpo, you need to calculate your net gain or loss on that transaction. Check with the brokerage for year-end reporting on your Crypto transactions.

When providing your documents, please include answers to our standard questions:

1.      At any time during 2024, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?  If so, we will need Summary of Capital Gains/Losses for the transactions.

2.      Have or will you be contributing to an IRA for 2024?  If so, what type (Traditional or Roth) and by what amount? Did you withdrawal from a IRA or retirement plan in 2024?

3.      Any charity, by way of cash or check?

4.      Any noncash contributions (Salvation Army / Goodwill, etc.)?

5.      Any unreimbursed business expenses, including anything you paid out of pocket relating to your job( union dues, trade tools, uniforms, etc)?

6.      Any residential energy improvements made to your primary home during the tax year (insulation, doors, windows, HVAC, geothermal, solar, etc.)? If so, please provide a description of the improvement made and amount.

7.      Did you purchase health insurance through the marketplace?  If so, please be sure to include Form 1095A in your tax documents.

8.      Any TAP 529 college savings plan contributions in 2024?  If so, please provide the amount contributed by individual.

9.      Was there any change to your account for direct deposit purposes?  If so, please provide us with a cancelled check.

10.   Did you move? It is important that you provide the dates you moved and dates of your employment if you changed jobs in 2024.

11.   Do you and/or your spouse have a Health Savings Account (HSA)? If so, please provide Form 1099-SA for each account.

12.   Did you purchase an Electric Vehicle (EV)? If so, we will review all the details to determine  eligibility for the EV credit.

13.   Did you make any Estimated Tax payments during 2024 to IRS, PA or Local PA Tax?

14.   Did you engage in any sort of gambling, including sports gambling. The IRS requires you to report winnings. You can deduct losses as itemized deduction. Check your gambling app for any tax documents associated with 2024.