SOS ACCOUNTING & INSURANCE SERVICES

Must try Christmas treat! I make cranberry orange cupcakes.

Viewpoint: California Needs Regulatory Reform and Quick Rate Review to Halt Personal Lines Meltdown The regulation of property/casualty insurance in California has been an epic failure—look no further than the state of the market for personal automobile

Today the American Agents Alliance sent California Insurance Commissioner Ricardo Lara a letter recommending the establishment of an expedited and fast-track rate approval process for personal lines insurers.

Read it here: https://agentsalliance.com/press-release-expedited-fast-track-rate-filing-review-necessary-for-personal-lines-insurance/

Merry Christmas to all and to all a good night!!🎄2022

3 Changes For The 2022 Tax Season

There were several tax law changes in 2021 which will affect most Americans this coming tax season. The expanded child tax credit payments could impact many families’ tax refunds, and for the nearly 90% of Americans who claim the standard deduction, they will see a small but positive change.

The IRS has yet to announce an official start date to the 2022 tax season, but it typically begins accepting tax returns by the end of January.

Here’s what you need to know and how you can prepare for the changes.

1. Your Monthly Child Tax Credit Payments May Increase or
Decrease Your Refund

For the first time in history, the IRS sent the child tax credit as monthly payments to qualifying families. Depending on the amount of your monthly child tax credit payments received in 2021, you may receive a bigger tax refund, get a smaller refund than expected—or even owe additional taxes. If you received monthly child tax credit payments, you must report the amount on your 2021 tax return. You should receive Letter 6419, which will state the total amount of child tax credit payments you received.

The IRS recommends that you compare this amount with the total child tax credit you’re entitled.

If the total child tax credit you qualify for exceeds how much you already received through your advance child tax credit payments, you can claim the remaining amount on your 2021 tax return. If you received more than you qualify for, you will need to repay some or all of the excess payments back to the IRS when filing their taxes.

Here are some reasons where you may receive more than what you may qualify for in 2021:

*Your qualifying child now lives with another parent
*Your income or filing status changed
*You no longer reside in the United States for more than half of
2021

SOS Accounting & Insurance Services, your tax professional can use Letter 6419 and other letters to claim any remaining amount of the child tax credit if you qualify for it.

The child tax credit for 2021 is up to $3,600 for children under the age of 6 (up to $3,000 for children ages 6-17). From July to December, qualified families received up to 50% of their child tax credit as monthly payments. Some families can claim the remaining amount on their 2021 tax returns. However, not all families received the payments, some chose to opt-out.
You could claim the full lump sum on your 2021 tax return if you opted out of receiving monthly payments in 2021.

2. 2021 Recovery Rebate Tax Credit for Third Stimulus Payments

For 2021, you may qualify for the Recovery Rebate Tax Credit. This is the case if you haven’t received the third economic impact payment (also known as a stimulus payment) or received only a partial payment (less than the full stimulus payment amount of $1,400),

Read more: Claim your missing third stimulus payment on your tax return

You must file a 2021 tax return, even if you’re not typically required to do so. In general, if you earn over the following income amounts and aren’t claimed as a dependent, you should file a Form 1040 for the 2021 tax year (filed in 2022).

Single and married filing separately $12,550
Married filing jointly $25,100
Head of household $18,800

You need to know the amount of your third stimulus payment you received in 2021 for yourself, spouse, or dependents to claim your Recovery Rebate Credit. You’ll receive Letter 6475 from the IRS in early 2022, showing the amount of your third stimulus payment. You can also view your stimulus payment amount by logging into your IRS.gov online account.

You should keep these letters with your tax records, and you will need the information to claim the credit on your 2021 tax return.

You’ll need to complete the Recovery Rebate Tax Credit worksheet to request any additional payments you may be due for your 2021 tax return. If you’re using tax software, it will walk you through the process to determine your correct payment.

3. You Don’t Have to Itemize to Claim Charitable Donations

Normally, you must itemize to deduct charitable contributions. But for 2021, you can deduct up to $300 for cash donations to qualifying charities (up to $600 combined for married filers) whether you itemize or take the standard deduction for 2021.

“The increased charitable donation deduction for both individuals who itemized and for those who do not itemize (for) 2021 is a momentous year to support your favorite charity,” Bell said.

And there’s a bonus for generous charitable givers who itemize. Those who claim charitable contributions as itemized deductions can claim cash contributions made to qualifying organizations up to 100% of their adjusted gross income (AGI) for the 2021 tax year only, Bell said. Generally, the deduction is limited to 60% of the taxpayer’s AGI.

It is important to remember that the temporary increase of the 100% limit isn’t automatic. Taxpayers must opt for increased limitations by making the election on their federal tax return for 2021. Otherwise, the usual limitation of up to 60% applies.

When to Expect Your 2022 IRS Income Tax Refund!!!

The below chart shows an estimated timeline for when a taxpayer is likely to receive their refund, based on the information we have now, and using projections based on previous years- and depending on when a person files their return. (Scroll to the bottom)

Will the 2022 tax filing season be normal? According to tax attorney Ken Berry, it's not likely that when Spring 2022 comes around that everything will be like it was in 2019 or before. Covid-19 will still be a concern, several stimulus tax laws will still be challenging for some filers, and new tax laws may very well be created between now and then that add more complexity.

But the income tax filing process will likely be closer to normal than either 2020 or 2021 were, which both had extended filing deadlines due to closures of IRS offices, the tax courts, and IRS and tax firm staff being new to remote working.

In other words... be ready to have your taxes filed (or an automatic extension filed) by Monday, April 18, 2022. (Why not April 15? Emancipation Day.) The good news is that the federal and state income tax returns filing process should be closer to normal, as well. Depending on when a taxpayer files, they can often receive their tax refund payments (check or direct deposit) within only 2-3 weeks.

Traditionally (meaning pre-Covid), the IRS starts accepting tax returns during the last week of January. If major new tax legislation is passed at the end of the year, however, this could push the start of tax season back by a week or two. So, early tax filers who are a due a refund can often see them as early as mid or late February. However, taxpayers with the Earned Income Tax Credit or Child Tax Credit generally have their refunds delayed by about one month while the IRS confirms eligibility for these credits.

Although the last two tax filing seasons were significantly impacted by the Covid-19 pandemic, and the IRS extended both deadlines, the IRS is not expected to extend the tax filing deadline for 2022.

The below chart shows an estimated timeline for when a taxpayer is likely to receive their refund, based on the information we have now, and using projections based on previous years- and depending on when a person files their return. If your IRS income tax refund is delayed after you've filed, ask your tax professional, or simply use the "Where's My Refund?" tool on the IRS website. Or download the IRS2Go app to check your refund status.

Most Americans who are expecting an income tax refund receive it by direct deposit in as little as 2 weeks, although it can take longer during the peak of the filing season, which starts in late March. So it's a good idea to e-file your tax return as soon as you have all of your tax documents (like your W2, 1099s, mortgage and student loan interest, and other items).

Several factors can determine when a taxpayer may receive their tax return, including:

1. How early they file
2. If the taxpayer is claiming certain credits (especially EITC and
CTC)
3. Whether the return is e-filed or sent by mail
4. Whether the taxpayer has existing debts to the federal
government
5. The Covid stimulus payments sent out earlier in the year will not
affect your income tax refund. (However, some taxpayers who
did not receive one, may be determined to have been owed one,
in which case they may be able to have it added to their 2022
refund as a credit. Ask your tax professional.)

Note: The IRS will delay processing by 2-3 weeks if an income tax return has the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC), since these credits are often misused. The additional time allows the IRS to verify that taxpayers qualify for the credits.

So, here's the chart you were looking for. If the IRS changes tax season this year, we will update this chart. And remember: This is an estimate of when to expect your refund. It is not exact, as all taxpayers have different returns and situations.

IRS Accepts E-Filed Return By: Direct Deposit Sent (Or Paper Check Mailed 1 week later):
IRS will start accepting income tax returns on between Jan. 24-Jan. 31, 2022.

Jan. 24, 2022* Jan. 31 (Feb. 11)**
Jan. 31, 2022* Feb. 11 (Feb. 18)**
Feb. 7 Feb. 18 (Feb. 25)**
Feb. 14 Feb. 25 (Mar. 4)**
Feb. 21 Mar. 4 (Mar. 11)**
Feb. 28 Mar. 11 (Mar 18)
Mar. 7 Mar. 18 (Mar. 25)
Mar. 14 Mar. 25 (Apr. 2)
Mar. 21 Apr. 1 (Apr. 9)
Mar. 28 Apr. 8 (Apr. 15)***
* = IRS may delay start of tax season by a week or so.

** = Returns with EITC or CTC may have refunds delayed until March to verify credits.

*** = Filing during peak season can result in slightly longer waits.

IRS Accepts Return By: Direct Deposit Sent (Or Paper Check Mailed one week later)
Apr. 4, 2022 Apr. 15 (Apr. 22)***
Apr. 11 Apr. 22 (Apr. 29)***
Apr. 18 Apr. 29 (May 6)
Apr. 25 May 6 (May 13)
May 2 May 13 (May 20)
May 9 May 20 (May 27)
May 16 May 27 (June 4)
May 23 June 4 (June 11)

IMPORTANT: If you file electronically (using an online tax program or preparer), the IRS will notify you of the actual date they "accepted" your return. This is often 1-3 days from the time you actually hit the "file" or "submit" button, and it is this date that you need to use for the above chart.

Taxpayers who mail a paper version of their income tax return can expect at least a 3-4 week delay at the front-end of the process, as the return has to be manually entered into the IRS system before it can be processed.

Be Safe - Hire a Professional
Taxpayers who use a professional, such SOS Accounting & Insurance Services, can ask that professional for the estimated date of their tax refund, and they can be more confident that their taxes have been properly (and legally) filed.

Other Notes:
In general, the IRS says that returns with refunds are processed and payments issued within 21 days. For paper filers, this can take much longer, however. The IRS and tax professionals strongly encourage electronic filing.

However, if a person will owe taxes, it is still their obligation to pay those taxes by April 15, even if they have requested an extension to file. A professional can assist with this. Those who are due a refund generally only need to file the extension request by April 15.

(CPA Practice Advisor)

2019 Income Tax Brackets

Here’s a look at what the 2019 income tax brackets will look like:

2019 Income Tax Brackets

2019 Income Tax Rate

Single Married Filing Jointly Married Filing Separately
10% $0 to $9,700 $0 to $19,400 $0 to $13,850

12% $9,701 to $39,475 $19,401 to $78,950 $13,851 to $52,850

22% $39,476 to $84,200 $78,951 to $168,400 $52,851 to $84,200

24% $84,201 to $160,725 $168,401 to $321,450 $84,201 to $160,700

32% $160,726 to $204,100 $321,451 to $408,200 $160,701 to $204,100

35% $204,101 to $510,300 $408,201 to $612,350 $204,101 to $510,300

37% $510,301 and up $612,351 and up $510,301 and up

Happy Earned Income Tax Credit Awareness Day! Are You Eligible?

Today is National Earned Income Tax Credit Awareness Day! The Earned Income Tax Credit (EITC) is a huge benefit to taxpayers with low to moderate income and has helped lift millions of people out of poverty. To determine if you qualify, make sure that you file your federal taxes this year.

According to the IRS, more than 25 million eligible filers received the EITC last year, and the average EITC was approximately $2,488. However, millions of taxpayers are still missing out on this valuable tax credit; the IRS reports that one out of five qualifying filers fails to claim the tax credit.

You may wonder why someone would miss a tax credit worth up to $6,431 for a family with three or more children? Well, many people who qualify for the credit miss out on it because they are newly qualified or choose, perhaps mistakenly, to not file a tax return because their income falls below the IRS income filing limit ($12,000 single, $24,000 married filing jointly).

When you file your taxes, don’t worry about figuring EITC out on your own. SOS Accounting & Insurance Services will ask you simple questions about you and will calculate the credit if you are eligible based on your answers.

Want to know more about the EITC? Here are answers to important questions about the tax credit, and information on how you can qualify.

What exactly is the Earned Income Tax Credit?

The EITC is a refundable tax credit given to taxpayers that earn low to moderate income from a job or being self-employed. While it may eliminate your income tax liability, you may also receive a tax refund for the amount of your credit if the credit is more than the amount of taxes you owe.

Who is eligible to claim the Earned Income Tax Credit?

Generally speaking, you are eligible for the EITC if you meet the income limits included below (all of the following apply):
•You are a U.S. citizen
•You are over the age of 25 or have qualifying children
•You do not file “married filing separately”
•You have earned income from employment. Unemployment income doesn’t count.
•You can qualify if you have income from a home business or provide services

While you can have interest, dividends and other investment earnings, you cannot have more than $3,500 in 2018. But most importantly, you have to file your federal taxes in order to claim this valuable credit.

What are the income limits?

The limits are adjusted each year, and for tax year 2018, your earned income and adjusted gross income must be less than:
•$49,194 ($54,884 married filing jointly) with three or more qualifying children
•$45,802 ($51,492 married filing jointly) with two qualifying children
•$40,320 ($46,010 married filing jointly) with one qualifying child
•$15,270 ($20,950 married filing jointly) with no qualifying children

What is the amount of credit?

Your income and number of qualifying children will determine the actual amount of your credit. For tax year 2018 the maximum credits are as follows:
•$6,431 with three or more qualifying children
•$5,716 with two qualifying children
•$3,461 with one qualifying child
•$519 with no qualifying children

What is a qualifying child?

A child qualifies if he/she meets four tests for age, relationship, residency, and joint return as follows:
1.Age: Generally, your child must be under 19, under 24 if they are a student, or any age if permanently and totally disabled.
2.Relationship: Your child must be either your son, daughter, foster child, or stepchild (including all of their respective children). Your “qualifying child” can also be your brother, sister, half brother or sister, or stepsister or brother (including all of their respective children).
3.Residency: Your child must have lived with you in the U.S. for more than half the year.
4.Joint Return: Your child must not have filed a joint return. If they did file a joint return, it should have been because they were filing for a tax refund, not because they were actually required to file.

What if I haven’t filed my taxes for a couple of years and may be eligible for EITC for prior years?

If you haven’t filed your taxes for a few years, this is a good time to file your prior tax returns since you may be eligible for EITC in those prior years. You can file returns for up to three years prior to the current year, so you can still file for tax year 2015 by April 15, 2019, and receive the EITC credit if you are eligible. The IRS reports close to one billion dollars in unclaimed refunds every year, and many taxpayers are surprised to find that some of this money belongs to them in the form of Earned Income Tax Credit when they file previous years returns. Prior-year returns have to be mailed in, but TurboTax has previous years tax products so you can file previous years taxes.

The Protecting Americans from Tax Hikes (PATH) Act, signed into law in Dec. 2015, requires the IRS to hold tax refunds that include the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until Feb. 15, 2019, no matter what tax preparation method you use. The IRS expects the earliest EITC related refunds to be in taxpayer bank accounts or debit cards starting Feb. 27, 2019, if they chose e-file with direct deposit and there are no issues with the tax return. The IRS will begin accepting and processing tax returns when they open for the season on Jan. 28, 2019 and encourages you to file as soon as possible so you can get closer to your tax refund!

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With all the work on the freways....something you should consider!!!

Potholes - The Car Killer | The Foremost Blog Accidents happen, and when they do, you need to be prepared. Don't ride naked -- get motorcycle insurance!

Why wait so long in those lines to get Renewal stickers or Transfer of Title or even New Plates for your car.....Let SOS help! We can have you in and out with everything you need in hand within minutes not hours. Come see us!

Estás listo ?? Esa es la pregunta ... tenemos todo lo que necesita manuales del DMV para que pueda estar listo para tomar el examen de licencia de conducir !! Venga a nuestra oficina y le daremos el folleto y le ayudamos a llenar sus formularios y incluso le hacemos la cita con la fecha de prueba !!! ¿Qué estás esperando ?? Venir a vernos!!