Updated January 11, 2022
- KMG Tax Questionnaire – We are introducing a questionnaire to be filled out by all clients to help facilitate completion of your tax return and to help plan future changes. This will be available on our website or by email request. Please complete and include with your tax information.
- Letter 6419 will be arriving for those who have received the Child Tax Credit during 2021. Please include this letter with your tax papers. If you do not receive the letter and have received payments, you can log onto/create an account at IRS.gov online account or at ID.me IRS to retrieve the amount of your Child Tax Credit payments.
- Third stimulus – please include the amount of your 3rd stimulus payment (Recovery Rebate) received with your tax information. If you do not have the amount, please go to IRS.gov online account or ID.me IRS to create an account/retrieve your payment amount.
- Charitable donations without itemization – up to $300 ($600 if filing Married joint) in charitable donations may be deducted off your taxable income. The donations must be monetary to a legitimate charity – political donations do not count.
- Charitable donations with itemization –for 2021 returns only, up to 100% of your Adjusted Gross Income in donations may be deducted. These donations include both monetary and tangible donations (such as clothing and cars).
- All Crypto Currency trading is required to be reported. Failure to do so will result in fines imposed by the IRS.
- The IRS will begin accepting returns after January 24th. Please remember refunds on returns containing Earned Income Credit will be delayed until mid-March as each return must be validated as a fraud prevention.
- The deduction for childcare expenses has increased
- Pension exclusion – For New Jersey, the pension exclusion amount for those 62 and older is now applicable for incomes up to $150,000 with phase out of this exclusion beginning at $100,000.