We know this has been a difficult year for everyone. We have all experienced difficulties due to the pandemic and business closures. We are here to help make your taxes go as smoothly as possible. We have educated ourselves on the new tax laws, especially those relating to Covid-19.

As part of the new era we seem to be living in, our office has transitioned to a fully digital office. We have limited in person availability. In person meetings will be for new clients to set up services and for current clients to drop off or pick up documents. All other appointments can be done via zoom, email or telephone conference. Our hope is that will be easier for everyone and help keep things moving smoothly.

We hope that on some level this year has been joy-filled for you and your family.  We pray that everyone is healthy and happy.

It’s almost time again to pull out those receipts to have your taxes prepared.  There have been many new tax changes over the last couple of years, so it is more important than ever to have your taxes professionally prepared.

Last year we implemented a new portal system.  If you do not have access, please let us know so we can send out access emails.  This will enable you to securely upload and download documents.  Tax appointments are not necessary. Taxes will be completed in the order they are received. If you upload your tax documents to the portal, your returns will be sent back to you via the portal within 10 business days.  They can be e-filed once signatures have been received and the IRS opens the filing season. We anticipate that this will be around January 25th.

We have your tax organizer to help you gather all of the necessary documents.  Your organizers will be uploaded to the portal for you to download and fill out.  Please upload your organizer, signed engagement letter and all necessary documentation to your portal or bring them into the office.  Please call the office to schedule a time to drop off your documents. We are available to answer any of your questions.  Don’t hesitate to contact us.  Thank you!

Things to Remember:

Partnership Returns and Corporate Returns are due March 15th (NOT April 15th)

Standard deductions for all nearly double under the new rules.  Individuals see standard deductions rise to $12,400; for heads of household, it rises to $18,650; and for married couples filing jointly the standard deduction increases to $24,800.

2020 Tax Brackets for Single/Married Filing Jointly/Head of Household

Tax Rate		Taxable Income (Single)	Taxable Income (Married Filing Jointly)	Taxable Income (Head of Household)
10%		Up to $9,875	Up to $19,750	Up to $14,100
12%		$9,876 to $40,125	$19,751 to $80,250	$14,101 to $53,700
22%		$40,126 to $85,525	$80,251 to $171,050	$53,701 to $85,500
Tax Rate	Taxable Income (Single)		Taxable Income (Married Filing Jointly)	Taxable Income (Head of Household)
24%	$85,526 to $163,300		$171,051 to $326,600	$85,501 to $163,300
32%	$163,301 to $207,350		$326,601 to $414,700	$163,301 to $207,350
35%	$207,351 to $518,400		$414,701 to $622,050	$207,351 to $518,400
37%	Over $518,400		Over $622,050	Over $518,400

Alimony – Starting January 1, 2019, for any alimony ordered after this date, it will no longer be deductible for the payer or taxable to the recipient.

ACA Mandate – Starting January 1, 2019, you will no longer face penalties for not having health insurance.

Medical Expenses – You are able to deduct any expenses that exceed 7.5% of your AGI.

Charitable Donations – More donations to charity can be deducted for 2020 under the CARES Act. The 60%-of AGI limit on deductions for cash donations by people who itemize is suspended (gifts to donor-advised funds and private non-operating foundations are excluded). Non-Itemizers can also write off up to $300 of charitable cash contributions.This is a new “above-the-line” deduction for people who don’t file Schedule A.

1099’s Prepared For You

If you need 1099’s prepared and have not made arrangements with us already, please remember that they are due January 31.  If you are required to file 1099’s and do not file them, the penalty is severe.  We can prepare and file them for you. We will email you copies for you to mail to your contractors. All we need from you are W-9’s for each contractor, your company name and tax identification number, and the amount you have paid each contractor.  If you plan to write off contract labor, then you are required to file 1099’s.

Appointments

Appointments are required for dropping off or picking up documents.  We have converted to a fully digital office to make it easier for you to gain access to your documents when you need them.  This will also help those that have difficulty coming into the office. If you plan to come into the office, we will scan your documents for you and return the originals to you.  There will no longer be appointments for tax preparation.  If you would like to meet with Tierney prior to or after the preparation of your tax return, please schedule an appointment. This appointment will be a Zoom meeting, not in person.

Tax season opens near the end of January.  We can begin preparing your return as soon as you

have all of your documentation together.  We will be unable to file the return until the IRS officially opens the season and begins to accept returns.  Our FaceBook page will be updated with the season-opening date as soon as the IRS releases it.  There are still planned delays for those that receive the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC).  Refunds will not be released to your bank accounts prior to February 15th.

Please provide the following to your if it applies to you:

Personal Information

• Your social security number or tax ID number, date of birth
• Your spouse’s full name and social security number or tax ID number, date of birth · Your Driver’s License and your Spouse’s Driver’s License

Dependent(S) Information

• Dates of birth and social security numbers or tax ID numbers
• Childcare records (including the provider’s tax ID number) if applicable
• Form 8332 showing that the child’s custodial parent is releasing their right to claim a child to you, the noncustodial parent (if applicable) or a copy of the Parenting Plan from your Divorce showing your legal right to claim the child.

Sources Of Income ·

• Forms W-2
• Unemployment, state tax refund (1099-G)
• Self-Employed
• Forms 1099-MISC, Schedules K-1, income records to verify amounts not reported on 1099s
• Records of all expenses — check registers or credit card statements, and receipts. Year-end loan statements. (A List of Standard Business Deductions is available upon request.)
• Business-use asset information (cost, date placed in service, description, etc.) for depreciation
• Office in home information, if applicable (total amount of expenses and square footage of office and home)
• Record of estimated tax payments made (Form 1040ES)
• Complete QuickBooks Backup (if applicable)
• If you did your own payroll, we will need all 4 quarters and year-end payroll reports
• Rental Income
• Records of income and expenses
• Rental asset information (cost, date placed in service, etc.) for depreciation
• Record of estimated tax payments made (Form 1040ES)
• Retirement Income
• Pension/IRA/annuity income (1099-R)
• Traditional IRA basis (i.e. amounts you contributed to the IRA that were already taxed)
• Social security/RRB income (1099-SSA, RRB-1099)
• Savings & Investments or Dividends
• Interest, dividend income (1099-INT, 1099-OID, 1099-DIV)
• Income from sales of stock or other property (1099-B, 1099-S)
• Dates of acquisition and records of your cost basis in property you sold (if the basis is not reported on 1099-B)
• Health Savings Account and long-term care reimbursements (1099-SA or 1099-LTC)
• Expenses related to your investments
• Record of estimated tax payments made (Form 1040ES)
• Other Income & Losses
• Gambling income (W-2G or records showing income, as well as expense records)
• Jury duty records
• Hobby income and expenses
• Prizes and awards
• Trusts
• Royalty Income 1099 Misc.
• Any other 1099s received
• Record of alimony paid/received with Ex-spouse’s name and SSN
• Court Order showing Alimony Payments Required by law

Types Of Deductions

• Home Ownership
  • Forms 1098 or other mortgage interest statements
  • Real estate and personal property tax records
  • Receipts for energy-saving home improvements
  • All other 1098 series forms
  • Closing Statement from Refinance or Home Purchase
• Charitable Donations
  • Dollar amounts donated to houses of worship, schools, other charitable organizations – Receipts required  Records of non-cash charitable donations
  • Amounts of miles driven for charitable or medical purposes
• Medical Expenses
  • Amounts paid for healthcare insurance and to doctors, dentists, hospitals
  • Mileage to and from Doctors, hospitals, prescription pick-ups
• Health Insurance
  • Form 1095-A if you enrolled in an insurance plan through the Marketplace (Exchange)
  • Form 1095-B and/or 1095-C if you had insurance coverage through any other source (i.e. an employer, insurance company, government health plan such as Medicare, Medicaid, CHIP, TRICARE, VA, etc.)
  • Marketplace exemption certificate (ECN) if you applied for and received an exemption from the Marketplace (Exchange) · Childcare Expenses
• Fees paid to a licensed daycare center or family daycare for care of an infant or preschooler. Childcare provider’s legal name, address and tax ID.
• Wages paid to a baby-sitter.
• Educational Expenses
  • Forms 1098-T from educational institutions
  • Receipts that itemize qualified educational expenses (Room and Board is not a qualified expense for deduction purposes)
  • Records of any scholarships or fellowships you received
  • Form 1098-E if you paid student loan interest

• Job Expenses for Teachers
  • Receipts for classroom expenses (for educators in grades K-12) – Deduction is up to $250
• State & Local Taxes or Sales Tax
  • Amount of state/local income tax paid (other than wage withholding), or amount of state and local sales tax paid
  • An invoice showing the amount of vehicle sales tax paid
  • Vehicle Registration showing Ownership Tax Amount
• Retirement & Other Savings
  • Form 5498-SA showing HSA contributions
  • Form 5498 showing IRA contributions
  • All other 5498 series forms (5498-QA, 5498-ESA)
• Federally Declared Disaster
  • City/county you lived/worked/had a property in
  • Records to support property losses (appraisal, clean up costs, etc.)
  • Records of rebuilding/repair costs
  • Insurance reimbursements/claims to be paid
  • FEMA assistance information
  • Check FEMA site to see if my county has been declared a federal disaster area
• OTHER
  • Last Year’s Tax Return (If we did not prepare them)
  • Colorado Medicaid Waiver Program Acceptance and a statement from the doctor showing disability and residency of your disabled dependent that you care for.
  • If you adopted a child in 2020, please provide your documentation for your adoption.

We want to thank all of our loyal customers for sticking with us for the past many years.  You are the reason we continue to thrive as a business in an economy that is on a roller coaster ride.  You are more than a client to us, we consider each and every one of you a friend.

Thank you for continuing to choose DB Accounting & Tax Services, Inc.  We look forward to hearing from you.  Your business is greatly appreciated!