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The Internal Revenue Service announced that the nation's tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns. The February 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits. This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return. To speed refunds during the pandemic, the IRS urges taxpayers to file electronically with direct deposit as soon as they have the information they need. People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners. These groups are starting to accept tax returns now, and the returns will be transmitted to the IRS starting February 12. "Planning for the nation's filing season process is a massive undertaking, and IRS teams have been working non-stop to prepare for this as well as delivering Economic Impact Payments in record time," said IRS Commissioner Chuck Rettig. "Given the pandemic, this is one of the nation's most important filing seasons ever. This start date will ensure that people get their needed tax refunds quickly while also making sure they receive any remaining stimulus payments they are eligible for as quickly as possible." Last year's average tax refund was more than $2,500. More than 150 million tax returns are expected to be filed this year, with the vast majority before the Thursday, April 15 deadline. Under the PATH Act, the IRS cannot issue a refund involving the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) before mid-February. The law provides this additional time to help the IRS stop fraudulent refunds and claims from being issued, including to identity thieves. The IRS anticipates a first week of March refund for many EITC and ACTC taxpayers if they file electronically with direct deposit and there are no issues with their tax returns. This would be the same experience for taxpayers if the filing season opened in late January. Taxpayers will need to check Where's My Refund for their personalized refund date. Overall, the IRS anticipates nine out of 10 taxpayers will receive their refund within 21 days of when they file electronically with direct deposit if there are no issues with their tax return. The IRS urges taxpayers and tax professionals to file electronically. To avoid delays in processing, people should avoid filing paper returns wherever possible. Tips for taxpayers to make filing easier To speed refunds and help with their tax filing, the IRS urges people to follow these simple steps: File electronically and use direct deposit for the quickest refunds.   Check IRS.gov for the latest tax information, including the latest on Economic Impact Payments. There is no need to call.   For those who may be eligible for stimulus payments, they should carefully review the guidelines for the Recovery Rebate Credit. Most people received Economic Impact Payments automatically, and anyone who received the maximum amount does not need to include any information about their payments when they file. However, those who didn't receive a payment or only received a partial payment may be eligible to claim the Recovery Rebate Credit when they file their 2020 tax return. Tax preparation software, including IRS Free File, will help taxpayers figure the amount.   Remember, advance stimulus payments received separately are not taxable, and they do not reduce the taxpayer's refund when they file in 2021. Key filing season dates There are several important dates taxpayers should keep in mind for this year's filing season: January 15. IRS Free File opens. Taxpayers can begin filing returns through Free File partners; tax returns will be transmitted to the IRS starting Feb. 12. Tax software companies also are accepting tax filings in advance.   January 29. Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify.   February 12. IRS begins 2021 tax season. Individual tax returns begin being accepted and processing begins.   February 22. Projected date for the IRS.gov Where's My Refund tool being updated for those claiming EITC and ACTC, also referred to as PATH Act returns.   First week of March. Tax refunds begin reaching those claiming EITC and ACTC (PATH Act returns) for those who file electronically with direct deposit and there are no issues with their tax returns.   April 15. Deadline for filing 2020 tax returns.   October 15. Deadline to file for those requesting an extension on their 2020 tax returns Filing season opening The filing season open follows IRS work to update its programming and test its systems to factor in the second Economic Impact Payments and other tax law changes. These changes are complex and take time to help ensure proper processing of tax returns and refunds as well as coordination with tax software industry, resulting in the February 12 start date. The IRS must ensure systems are prepared to properly process and check tax returns to verify the proper amount of EIP's are credited on taxpayer accounts – and provide remaining funds to eligible taxpayers. Although tax seasons frequently begin in late January, there have been five instances since 2007 when filing seasons did not start for some taxpayers until February due to tax law changes made just before the start of tax time. Source: IRS   

  The American Rescue Plan Act (ARPA) of 2021 expands the Child Tax Credit (CTC) for 2021, but only for 2021. The IRS website tells us a few things regarding this credit; firstly, it will increase the credit amount for many taxpayers. Secondly, the credit is fully refundable and includes children who turn seventeen in 2021, not just those under seventeen. Finally, taxpayers can receive part of their credit in 2021, before filing their 2021 income tax return. The increased credit will be $3,000 per qualifying child between the ages of six and seventeen, and $3,600 per qualifying child under age six.  Prior to the ARPA, the credit was $2,000 per qualifying child under the age of seventeen, at the end of the year. Advance payments of this credit will be made to taxpayers starting in July 2021 and will likely be direct deposited into bank accounts on the 15th of the month, from July through December.  Families without bank accounts on file with IRS could receive paper checks or debit cards in the mail.   The total of these payments will be 50% of the eligible Child Tax Credit(s).  Advance payments will be calculated based on information on taxpayers 2020 returns (or 2019, if their 2020 return has not yet been processed). If you decide you do not want to receive the advance payment of this credit, then you need to indicate this using the IRS portal. The IRS portal is expected to launch on July 1, 2021. To opt out of the advance payments, you must login into the portal and manually select the opt out option. These additional credit amounts, $1,000 or $1,600 per child, will be phased out for incomes over $75,000 ($150,000 MFJ and $112,500 HOH).  Once the additional credit amount is phased out, the credit remains at $2,000 per qualifying child until that income phaseout begins at $200,000 ($400,000 MFJ). If you are not sure if you are eligible for the expanded credit, be sure to consult with your tax preparer or other financial advisor. Melanie Chapel, EA Senior Accountant, Tax Preparer Melanie has been part of the Advisors Management Group team since 2008. and has over 23 years of tax and accounting experience.

Overspending during the holidays can cost you more than you realize. It can be tempting to go crazy the first Christmas after you get your first real job. You are making a real salary, and you feel that you want to say thanks to those who have helped you while you struggled through college and internships. But that doesn't mean you should blow your budget in the process.  That's why it's important to have a Christmas survival guide to help you avoid common shopping mistakes and to prevent yourself from overspending.   1. Don't Bust Your Budget Before you buy a single Christmas present you should determine your spending budget this holiday season. It goes beyond gifts. Many people forget to add in Christmas cards, office parties, white elephant gifts, and travel expenses. If you are planning a party you should add this into your list as well. Then make a list of which you want to buy for and the amount you can afford to spend on the gifts. Once you add up all your projected costs, plus the estimated cost for gifts, then you'll have your holiday spending budget.  It's important to stick to your holiday budget. When you have used up all of your holiday money, it's time to stop spending.    2. Don't Use Credit One common holiday shopping mistake is to put everything on the credit card. You can end up paying for your Christmas gifts for several months—or even years—if you make this mistake.  Keep in mind that people tend to overspend when they use credit cards compared to cash. Use your debit card or cash to purchase your Christmas gifts. If you plan carefully you do not need to use credit to buy anything associated with the holidays. This is one gift you should give yourself.   3. Don't Buy to Impress It is tempting when you finally have some money to go out and buy extravagant gifts for everyone on your list. You may want to buy an extra nice gift for your parents or a close friend, but try not to go overboard on gifts. Plus, most people would prefer a thoughtful gift rather than one that's simply expensive.    4. Don't Forget Anyone One common holiday shopping mistake is to forget someone on your list. Shopping with a list is essential. For one, you do not want to forget anyone’s gift. Additionally, as you make out your list you can write down gift ideas for each person. Take your list with you and consult it as you shop. Cross off each person as you find the perfect gift, so you don't overbuy for one person and forget another.    5. Don't Forget to Shop Around You may hate shopping, or hate running from store to store trying to find the perfect gift. But another common shopping mistake is to forgo comparison shopping.  Comparing prices can save you big in the long run. At the very least look online at two or three stores, before you go shopping. This will give you an idea of how much an item should cost you. You may also consider buying your gifts online, or taking advantage of Black Friday sales to save money, but only if you go in with a game plan and stick to your shopping list.   6. Don't Wait Until the Last Minute The worst gifts and worst prices are a result of waiting until the last minute to do your shopping. There is nothing worse than the feeling of dread as you try to find a decent present for your family and friends in nearly empty aisles of a store, then spending way too much on an item because you have no other options. Avoid this holiday shopping mistake by shopping ahead. Bonus if you can get your shopping done before the holiday season begins.    7. Don't Forget to Include Christmas in Your Budget Many people’s biggest holiday financial mistake is to forget to spread the cost of Christmas over the entire year. You should set aside money each month to cover the cost of next Christmas. Put the money into a Christmas savings account or simply earmark the money in your normal savings account. This allows you to purchase your Christmas gifts without overspending or worrying about how much you have to spend on gifts.  Source: The Balance

Suze Orman says most Americans have the "wrong, wrong, wrong" idea when they choose a financial adviser. In a blog post, the personal finance guru cites a 2017 survey that found 53% of Americans believe financial advisers are required by law to put their clients' best interests ahead of everything else when they give retirement advice. But that’s not the case. "Only advisers who operate as fiduciaries are promising to always put the client’s interest first," Orman explains. Retirement planning is complicated, and seeking help is a smart move. But you want help you can trust. So when you pick a financial adviser, you’d better find a fiduciary, she says, meaning an adviser who's looking out for you. Why finding a fiduciary is key A rule proposed in Washington a few years ago would have required all advisers to meet the fiduciary standard and avoid conflicts of interest, like pushing high-risk investments that might earn them commissions. But the proposal eventually died. And now, many advisers don’t act as fiduciaries, though Americans typically take them at their word that they always put their clients first. Orman saw firsthand how it often doesn’t happen. Before she was offering financial tips to millions of Americans on TV and through books, Suze Orman was a financial adviser herself for 17 years. The firm where she worked often promoted certain stocks. “The advice your sales manager gave you to sell (a product) to clients was many times not in the best interest of the client — it was in the best interest of the firm," Orman said, in a 2019 Q&A with ThinkAdvisor. Today, her advice for consumers is to ask advisers "if they are a fiduciary and if they will put that in writing if you work with them," she says in the blog. A handshake and a promise simply isn’t enough. Ask the right follow-up questions When shopping around and vetting advisers who can help you build a solid retirement plan, you’ll want to be clear about how they do business. "Get confirmation that they are a fiduciary or move on to interviewing someone else," Orman says. Ask questions like these to make sure you’re dealing with a fiduciary: Will you receive commission in addition to what I pay you? When advisers let you know that they don't receive commission for steering clients toward certain products, you can feel confident they'll provide unbiased advice and not simply peddle options that will earn them more money. Are you registered as both an adviser and as a broker? Some certified advisers may also be acting as brokers, meaning they’re working as salespeople while managing your money. Have you ever been disciplined by a professional or regulatory body? If an adviser's services have drawn complaints, it’s best to steer clear. Get the right adviser in your corner At the end of the day, the best person who can manage your finances is you. “How your money is invested, spent and saved impacts you more than anyone else,” Orman says. “With so much on the line, it makes no sense to not be engaged and on top of your finances.” But that doesn’t mean handling your retirement completely on your own. Financial planning services are more convenient than ever, available online and by phone. Choose an adviser carefully, and always choose a fiduciary. “If there’s something you don’t understand, an adviser is the perfect person to explain or teach," says Orman. "That knowledge is what will give you the confidence that you are making the right decisions for your future." Source: Yahoo Finance Learn More The Fiduciary Experience At Advisors Management Group.  To get started on your financial journey, download AMG's signed Fiduciary questionnaire!

As a home seller, your goal is to sell your property quickly for the most money possible. However, in the wake of COVID-19, you'll need to take some extra steps to adapt your selling strategy to the current market -- such as incorporating social distancing procedures with in-person home tours. Here, we've outlined several steps would-be sellers should take to seal the deal (safely!) and get top dollar for their home.   Clean and Declutter If you're thinking about putting your home on the market, give it a deep clean in preparation for potential buyers who may visit for an in-person tour. You should also declutter the entire space. That's because you want potential buyers to envision themselves -- and not your junk -- in the home. Decluttering reveals a room's dimensions, architectural details and natural light, according to REALTOR® Magazine. Of all the updates you can make in preparation for a resale, simply cleaning your home is among the least expensive, and it has a big impact. If you do it yourself, you'll only need to foot the bill for cleaning supplies. If you decide to have your home professionally cleaned, you can expect prices to range from $100 to $180 per hour for a cleaning service, according to HomeAdvisor.com. The fee will vary based on the size, location and condition of your home. Once the cleaning is done, it may be worth the investment to hire a professional home stager. This person will reconfigure your space using furniture, art and home decor items to make it more attractive to potential buyers.   Choose the Right Agent for You ust as you would with any contractor, it's smart to interview at least three agents who do a lot of business in your neighborhood or your condo building. Ask friends and neighbors for references. Or you can search for one on Realtor.com by clicking on the Find Realtors® tab. When interviewing potential agents, beware of the one who suggests listing your home for the highest possible price. Chances are, he or she is just trying to snag the listing; reality is, it won't likely sell for that much. This is a tactic that could deter buyers and delay the sale Once you've found an agent you'd like to work with, it's a good idea to commit to the shortest possible listing period -- say, three months -- and renew it if you'd like. But that doesn't mean you're stuck with an agent who turns out to be a nightmare. Before signing a listing agreement, make sure it outlines the agent's duties and includes clauses that allow you to terminate or opt out of the contractual relationship if certain circumstances change (say, a job opportunity fell through or your spouse died) or because you believe the agent has failed to perform.   Determine How Much You'll Have to Pay Your Agent Traditionally, the seller pays a commission ranging from 5% to 6% of the home's sale price. That amount is divided equally between the selling agent and the buyer's agent. For a lower-cost alternative, consider using an agent who works for Redfin, a real estate brokerage active in more than 90 U.S. markets. Sellers who list with a Redfin agent pay 1.5% of their home's sale price in commission -- or 1% if they also buy their next home from a Redfin agent within one year (the 1% rate isn't available in all cities). You still pay a 2.5% or 3% commission to the buyer's agent. So, the total commission ranges from 3.5% to 4.5%. If you have a nice home and are willing to pay more to sell quickly, consider an iBuyer (“i" is for instant), such as Opendoor, Offerpad, Redfin Now or Zillow Offers. If your home meets their criteria, they'll make you a free, no-obligation purchase offer. If you accept the offer, you can close for cash in as little as a week. You'll pay from 6% to 14% of the home's sale price, but you won't pay fix-up or carrying costs while you're trying to sell. If your home is older and in poor condition, you could list it with an agent to sell “as is" to fixer-uppers, flippers or landlords. You'll pay the usual agent's commission, but no fix-up expenses. If you want the quickest possible sale with the least hassle and expense, you could sell directly to a real-estate investor. To find one, ask for a referral from a local real estate agent, search by location at HomeVestors.com or WeBuyHouses.com, or respond to one of the "we want to buy your house" or “sell your house fast" solicitations you've probably received in the mail. (For more information, see Retirees, Sell Your Home Without a Hassle.)   Set the Right Price Your agent should provide you with a comparative market analysis, which examines the selling prices of homes similar to yours in size, amenities and location. You'll want to use it as a guide to help set your asking price. If it's a seller's market (meaning the demand is strong, but the supply is insufficient) and home prices continue to rise, you may get multiple bids that drive up your original list price. If buyers have the advantage and home prices are flattening or declining, you may have to negotiate a lower sale price or offer to pay some of the buyer's closing expenses. Remember, whatever purchase price you agree upon, it still must pass muster with an appraisal of the home's current market value, which protects the buyer and the mortgage lender.   Be Prepared to Disclose Your Home's Defects It's the law in most places to disclose knowledge of any material defects. You may be required to reveal known problems of your home's roof, walls, foundation, basement, plumbing, heating and electrical systems, as well as past pest problems and the presence of hazardous materials such as radon, lead paint and asbestos. Your state may even require you to fill out a standard disclosure form. Honesty is always the best policy. Even if you don't disclose problems, the buyer's home inspector is likely to discover them and your lack of transparency could cause the buyer to walk away. And, if he or she discovers the problem after the sale closes, you could be sued for misrepresentation or omission in your disclosure. You could proactively hire a home inspector to identify small and big problems that you can have fixed before listing your property. The cost of a home inspection will run you about $300 to $400, according to HomeAdvisor.com. The fee may vary by region and sometimes on the age, size and construction of the house.   Protect Yourself and Your Home in the COVID-19 Era As a seller, you have control over how your property is shown. This past spring, as the coronavirus outbreak emerged, many home sellers delayed listing their homes for sale or temporarily took them off the market. Meanwhile, the National Association of Realtors® (NAR) strongly urged members to conduct virtual showings and to limit in-person activity as much as possible. Many of the organization's other recommendations will persist as states and localities reopen for business. Your agent should discuss them with you. They include:   When Buyers Show Up, Leave! So you've done your best to prepare your home for sale: You've cleaned, decluttered, repaired and staged. Now, when it's being shown, leave the premises. You want the buyers to feel comfortable looking around your house, not wondering where they'll encounter you lurking next. If they have any questions, their agent will call yours. Besides, when you meet with buyers face-to-face, you might inadvertently reveal how motivated you are to sell and other clues that erode your negotiating power. With social distancing, it's probably safer not to be there, too.   Bridge the Gap Between Homes You may face the dilemma of wanting to buy your next home before having sold your previous one. Where will you get the money to make a down payment and close on the new home? You have a couple of options: You can make your purchase offer contingent on the sale of your current home. Sellers are most likely to accept the contingency if the local market is hot and your previous home is likely to sell quickly. (However, if they have received multiple offers, they may not accept an offer with any contingencies.) Or, you can borrow the money to cover a down payment and closing costs on your new home until your old one sells. Bridge loans, a type of home-equity loan formerly used for this purpose, have all but disappeared. But you can borrow the money you need from a home-equity line of credit secured by your current home, from an IRA or a 401(k), or from your investment portfolio. Ultimately, you'll want to weigh the risk that you could end up owning and paying mortgages on two homes for some time. The safest strategy is to sell first, then buy. For more about borrowing from your retirement accounts to buy a home, see How Home Buyers Can Tap an IRA Penalty-Free and Should You Borrow From Your 401(k)?   So You Sold at a Loss . . . Don't expect Uncle Sam to lend a helping hand if you lose money on the sale of your personal residence. Plenty of homeowners experienced losses if they had to sell in the aftermath of the housing crisis beginning in mid 2006. But, even in a healthy market where home prices are rising, you could lose money if you sell before you've increased your home equity enough (through home-price appreciation and paying down your mortgage balance) to offset your cost to sell.   Next Steps If You Profit From a Home Sale If you own and live in a home for a total of 24 months within the five years prior to the date of sale, you won't owe taxes on up to $250,000 in home-sale profits if single, or $500,000 in profits if married filing jointly. The home must be your main home (for criteria, see IRS Publication 23, Selling Your Home). That means most homeowners won't pay a dime to Uncle Sam on their home-sale profits. If you're married and filing jointly, only one spouse must meet the ownership test (one of you owned the home for a total of 24 months within the five years prior to the date of sale), but both of you must meet the residence test (you both lived in the home for at least 24 months). If you inherit a home, you'll only owe taxes on the stepped-up basis of the home. For exceptions to this rule (notably for divorced spouses, widows or widowers and members of the uniformed services, foreign service, intelligence agencies or Peace Corps on qualified, extended duty), the IRS Publication 523 provides guidance: You may qualify for a partial exclusion of any gain if the main reason for your home sale was a change in workplace location, a health issue, or an unforeseeable event.   The Tax Impact of Selling a Deceased Parent's Home Say your father bought his home in 1950 for $15,000. When he died, he left you the house, which is now worth $315,000. Do you have to pay taxes on the $300,000 gain? Probably not. When you sell the house, your gain or loss will be measured from the fair market value of the home on the date your mother or father died (the tax basis) of $315,000. If you sell for more, the difference will be taxed as a long-term gain. Be sure to keep track of selling costs including the real estate agent's commission, any closing costs you pay and the cost of repairs that you agree to pay after the buyer's home inspection. You can subtract these costs from the sale price of the home to reduce taxable profit. If you sell for less and your capital losses are more than your capital gains, you can deduct the difference as a loss on your tax return. You can claim up to $3,000 of the loss annually (or $1,500 if married and filing separately), and you can carry over the balance of the loss to next year's tax return.   Source: Kiplinger

Our routines have been turned upside down by the coronavirus pandemic. That includes the regular process of making estimated tax payments for people who are self-employed or don't have taxes withheld from other sources of taxable income (such as interest, dividends or capital gains). In a normal year, the first estimated tax payment for 2020 would have been due April 15, and the second payment for the year would be due June 15, 2020. But, of course, nothing is normal right now. Estimated taxes are typically paid in four equal installments—one installment for each quarter of the year. For the 2020 tax year, estimated tax payments for the first and second quarter aren't due until July 15, 2020. As a result, the 2020 estimated tax payment schedule is adjusted as shown in the table below.   Due Dates for 2020 Estimated Tax Payments Payment When Income Earned in 2020 Due Date 1st Payment January 1 to March 31 July 15, 2020 2nd Payment April 1 to May 31 July 15, 2020 3rd Payment June 1 to August 31 September 15, 2020 4th Payment September 1 to December 31 January 15, 2021 You don't have to make the payment due January 15, 2021, if you file your 2020 tax return by February 1, 2021, and pay the entire balance due with your return.   No Income Until Later in the Year? You don't have to make estimated tax payments until you have income on which you will owe tax. So, for example, if you don't have any taxable income until July 2020, you won't have to make an estimated tax payment until September 15, 2020. At that point, you can either pay your entire estimated tax by September 15, or you can pay it in two installments by September 15 and February 1.   Farmers and Fishermen If at least two-thirds of your gross income is from farming or fishing, you can make just one estimated tax payment for the 2020 tax year by January 15, 2021. If you file your 2020 tax return by March 1, 2021, and pay all the tax you owe at that time, you don't need to make any estimated tax payments.   How to Pay Use Form 1040-ES to calculate and pay your estimated taxes. There are a number of ways to pay estimated taxes, including by check, cash, money order, credit card and debit card. There are many online payment options, too, such as the Electronic Federal Tax Payment System (EFTPS). The various payment methods are described in the instructions for Form 1040-ES.   Penalties Whether you make estimated tax payments or rely on withholding, you could be hit with a penalty if you don't pay enough tax throughout the year. The penalty doesn't apply if you owe less than $1,000 in tax. You can also avoid the penalty if your 2020 withholding or estimated tax payments equal at least 90% of your 2020 tax liability, or 100% of the tax shown on your 2019 return (110% if your 2019 adjusted gross income was more than $150,000).   Don't Forget About Your State Finally, unless you live in a state with no income tax, you probably owe estimated tax payments to your state, too. Due dates for state payments may or may not coincide with the federal dates, so be sure to check with the appropriate tax agency in your state.   Source: Kiplinger

This has been a very different couple of months with many changes in everyone’s world.  Although we haven’t been able to meet in person, AMG has continued to work for you while social distancing and following recommended guidelines.  Fortunately, our offices were already set up to accommodate that, for which we feel very blessed.  We are so fortunate to have the technology to continue working and communicating with you, we have enjoyed talking with many of you via telephone or web-conference!    We wanted to reach out to you to give you a status update and let you know our plans moving forward in response to COVID-19 and all of the changes that have come with it.  Our plan is to open our lobbies on June 1st.  This will allow us to be here for you to drop things off and for you to briefly pick things up when needed.  We have had great success with telephone and web meetings, and we will continue to offer that indefinitely from here on out for those who prefer one of those methods.  In addition, beginning June 1st, we will also be offering in-person meetings again for those who choose.  Our only preference is that you have the options you are most comfortable with to do business with us. We are taking the continued health and safety of you and our team very seriously.  We have been disinfecting regularly and maintaining social distance.  We have been keeping up on CDC and Wisconsin DHS guidance and have used this to put together our own specific COVID-19 Response Plan.  This plan is meant to continue making everyone’s health & safety a priority while getting back to delivering things and meeting in person when you desire.  You can find a detailed copy of our detailed COVID-19 Response Plan Here:  COVID-19 Response Plan  A few highlights from our COVID-19 Response Plan that are specific to our offices: Surfaces and supplies are disinfected regularly. Hand sanitizer will be available to you in our office. Phone or Web meetings will be offered to you indefinitely.  For in-person meetings, you will be shown to a private conference room to wait for your meeting or for any discussion/questions rather than wait/discuss in the lobby. Following your current in-person appointment, we will call or email you to schedule future appointments to limit those in the lobby. In the case there is a line to the front desk within the lobby, a 6-foot distance will be maintained between those in line. Internal entry doors will be propped open during business hours in an effort to reduce surfaces being touched by multiple people. For income tax return and document pick up, we will be notifying you of a timeline to stop in and pick things up.  This is in an effort to spread out the traffic stopping in upon opening.  We have hundreds of people who may stop in, so we are doing this to be proactive.  If you are unable to stop in during the timeline given or wish to wait until closer to the filing deadline, please wait a couple of weeks past your assigned timeline to stop in or schedule an appointment.  Lobby interaction will be limited to: Brief drop off/pick up of documents Payment of services We know and appreciate that there are many opinions, comfort levels, and views on how doing business should and will look like moving forward.  We want to make everyone feel comfortable while giving you options, and we plan to do so responsibly at all times.  Thank you all for your patience.  If you have any questions about our COVID-19 Response Plan, please feel free to reach out to Jenna Deets at 608-782-0200 or jennad@amgteam.com.   Sincerely, Your AMG Team    CLICK HERE for a copy of our COVID-19 Response Plan

ou may be wondering about your odds of an IRS audit. Most people can breathe easy. The vast majority of individual returns escape the IRS audit machine. In 2018, the Internal Revenue Service audited only 0.59% of all individual tax returns, and 81% of these exams were conducted by mail, meaning most taxpayers never met with an IRS agent in person. So the odds are generally pretty low that your return will be picked for review. That said, your chances of being audited or otherwise hearing from the IRS escalate depending on various factors. Math errors may draw IRS inquiry, but they'll rarely lead to a full-blown exam. Check out these 10 red flags that could increase the chances that the IRS will give the return of a retired taxpayer special, and probably unwelcome, attention.   Making a Lot of Money Although the overall individual audit rate is only about one in 170 returns, the odds increase as your income goes up, as it might if you sell a valuable piece of property or get a big payout from a retirement plan. IRS statistics for 2018 show that people with incomes between $200,000 and $1 million who do not file a Schedule C had an audit rate of 0.6%. The rate is 1.4% for Schedule C filers. Report $1 million or more of income? There's a one-in-31 chance your return will be audited. We're not saying you should try to make less money — everyone wants to be a millionaire. Just understand that the more income shown on your return, the more likely it is that you'll be hearing from the IRS.   Failing to Report All Taxable Income Failing to report taxable income from wages, dividends, pensions, IRA distributions, Social Security benefits and other sources will almost certainly draw unwanted attention from the IRS. The IRS gets copies of all the 1099s and W-2s you receive. This includes the 1099-R (reporting payouts from retirement plans, such as pensions, 401(k)s and IRAs) and 1099-SSA (reporting Social Security benefits). The IRS's computers are pretty good at matching the numbers on the forms with the income shown on your return. A mismatch sends up a red flag and causes the IRS computers to spit out a bill. So, be sure to report all income, whether or not your receive a form such as a 1099. For example, if you got paid for tutoring, giving piano lessons, driving for Uber or Lyft, dog walking or selling crafts through Etsy, the money you receive is taxable.   Taking Higher-Than-Average Deductions If deductions on your return are disproportionately large compared with your income, the IRS may pull your return for review. A large medical expense could send up a red flag, for example. But if you have the proper documentation for your deduction, don't be afraid to claim it. There's no reason to ever pay the IRS more tax than you actually owe.   Claiming Large Charitable Deductions We all know that charitable contributions are a great write-off and help you feel all warm and fuzzy inside. However, if your charitable deductions are disproportionately large compared with your income, it raises a red flag. That's because the IRS knows what the average charitable donation is for folks at your income level. Also, if you don't get an appraisal for donations of valuable property, or if you fail to file Form 8283 for noncash donations over $500, you become an even bigger audit target. And if you've donated a conservation or façade easement to a charity, chances are good that you'll hear from the IRS. Be sure to keep all your supporting documents, including receipts for cash and property contributions made during the year.   Not Taking Required Minimum Distributions The IRS wants to be sure that owners of IRAs and participants in 401(k)s and other workplace retirement plans are properly taking and reporting required minimum distributions. The agency knows that some folks age 70½ and older aren't taking their annual RMDs, and it's looking at this closely. Those who fail to take the proper amount can be hit with a penalty equal to 50% of the shortfall. Also on the IRS's radar are early retirees and others who take payouts before reaching age 59½ and who don't qualify for an exception to the 10% penalty on these early distributions. Individuals age 70½ and older must take RMDs from their retirement accounts by the end of each year. However, there's a grace period for the year in which you turn 70½: You can delay the payout until April 1 of the following year. A special rule applies to those still employed at age 70½ or older: You can delay taking RMDs from your current employer's 401(k) until after you retire (this rule doesn't apply to IRAs). The amount you have to take each year is based on the balance in each of your accounts as of December 31 of a prior year and the life-expectancy factor found in IRS Publication 590-B.   Claiming Rental Losses Claiming a large rental loss can command the IRS's attention. Normally, the passive loss rules prevent the deduction of rental real estate losses. But there are two important exceptions. If you actively participate in the renting of your property, you can deduct up to $25,000 of loss against your other income. This $25,000 allowance phases out at higher income levels. A second exception applies to real estate professionals who spend more than 50% of their working hours and more than 750 hours each year materially participating in real estate as developers, brokers, landlords or the like. They can write off rental losses. The IRS actively scrutinizes large rental real estate losses. If you're managing properties in your retirement, you may qualify under the second exception. Or, if you sell a rental property that produced suspended passive losses, the sale opens the door for you to deduct the losses. Just be ready to explain things if a big rental loss prompts questions from the IRS.   Running a Business Schedule C is a treasure trove of tax deductions for self-employed people. But it's also a gold mine for IRS agents, who know from experience that self-employed people sometimes claim excessive deductions and don't report all their income. The IRS looks at both higher-grossing sole proprietorships and smaller ones. Sole proprietors reporting at least $100,000 of gross receipts on Schedule C, cash-intensive businesses (hair salons, restaurants and the like), and business owners who report a substantial loss have a higher audit risk.   Writing Off a Loss for a Hobby Your chances of "winning" the audit lottery increase if you file a Schedule C with large losses from an activity that might be a hobby, such as dog breeding, jewelry making, or coin and stamp collecting. Your audit risk grows if you have multiple years of hobby losses and you have lots of income from other sources. IRS agents are specially trained to sniff out those who improperly deduct hobby losses. So be careful if your retirement pursuits include trying to convert a hobby into a moneymaking venture. To be eligible to deduct a loss, you must be running the activity in a business-like manner and have a reasonable expectation of making a profit. If your activity generates profit three out of every five years (or two out of seven years for horse breeding), the law presumes that you're in business to make a profit, unless the IRS establishes otherwise. If you're audited, the IRS is going to make you prove you have a legitimate business and not a hobby. Be sure to keep supporting documents for all expenses. Failing to Report Gambling Winnings or Claiming Big Losses Whether you're playing the slots or betting on the horses, one sure thing you can count on is that Uncle Sam wants his cut. Recreational gamblers must report winnings as other income on the 1040 form. Professional gamblers show their winnings on Schedule C. Failure to report gambling winnings can draw IRS attention, especially because the casino or other venue likely reported the amounts on Form W-2G. Claiming large gambling losses can also be risky. You can deduct these only to the extent that you report gambling winnings. Writing off gambling losses but not reporting gambling income is sure to invite scrutiny. Also, taxpayers who report large losses from their gambling-related activity on Schedule C get an extra look from IRS examiners, who want to make sure that these folks really are gaming for a living.   Neglecting to Report a Foreign Bank Account You may be traveling more in retirement, but be careful about sending your money abroad. The IRS is intensely interested in people with money stashed outside the U.S., and U.S. authorities have had lots of success getting foreign banks to disclose account information. Failure to report a foreign bank account can lead to severe penalties. Make sure that if you have any such accounts, you properly report them. This means electronically filing FinCEN Form 114 (FBAR) by April 15 to report foreign accounts that total more than $10,000 at any time during the previous year. And those with a lot more financial assets abroad may also have to attach IRS Form 8938 to their timely filed income tax returns.   Source: Kiplinger

With a fair amount of fanfare, the IRS recently released its "Get My Payment" tool. This online app—located on the IRS website at irs.gov/coronavirus/get-my-payment—is supposed to let you: Check the status of your stimulus payment; Confirm your payment type (paper check or direct deposit); Get a projected direct deposit or paper check delivery date (or find out if a payment hasn't been scheduled); and Enter your bank account information for direct deposit if the IRS doesn't have your direct deposit information and they haven't sent your payment yet. Unfortunately, however, many people (millions?) can't get any information out of this tool. They keep getting a message saying: "Payment Status Not Available. According to information that we have on file, we cannot determine your eligibility for a payment at this time." It can be very frustrating if you're one of the people getting this message every day—believe me, I know, because I'm one of them. According to the IRS, there are several reasons why the "Get My Payment" tool will give you the "Payment Status Not Available" messages, including: The IRS hasn't finished processing your 2019 return; The tool doesn't have your data yet; You used the "Non-Filers: Enter Payment Info Here" tool, but the IRS hasn’t processed your entry yet; You receive Social Security benefits, Supplemental Security Income (SSI), Railroad Retirement Board benefits, or Veterans Administration benefits, and the necessary information from the agency that administers those benefit programs hasn't been loaded onto the IRS system yet (for people who don't normally file a tax return; or You're not eligible for a payment. For many of us, it looks like we'll just need to wait a little longer. The IRS updates the tool once per day (overnight), and they're working on adding more data to allow more people to use the tool. So, I guess working a little harder on being patient will do me some good. source: Kiplinger

GOING STIR CRAZY YET? In these self-quarantining times, we're all looking for something fun to do in our free time. Some of us, like kids who are going to virtual school and no longer have after-school activities, may have a lot more free time than they know what to do with. You can clean out your garage or organize the pantry some other day. For now, let's think of ways to entertain ourselves. Here are 10 ideas:   Work on Your Family Tree Clémence Scouten owns AtticsAnonymous.com. She helps people publish books about their family history. Even if you don't go as far as writing a memoir, Scouten says that there are a lot of fun things you can do alone or with your kids. "Work on a family tree together," Scouten suggests. "Draw it. Do it in PowerPoint. Include photos of people. Draw countries of origin." She says you could have a storytelling hour where you tell family stories. You could interview the grandparents on the phone. "Record them if you can," Scouten says. "There are free genealogy websites. A big one is familysearch.org." If you don't have kids or they're out of the house, Souten says this would be a good time to organize your boxes of family papers and photos and old documents. "You could create an e-collection to share with the whole family," she says.   Pull Out the Board Games This is one of those obvious ideas, but have you done it lately? Surely you have a Monopoly board somewhere. Chess? Risk? It only sounds cheesy until you start doing it and then remember why board games became so popular in the first place.   Work a Jigsaw Puzzle You might have to buy one, but find a challenging one, which could lead to hours of fun. Get some puzzle glue and a cheap frame after you're finished, and you have art to hang in your home.   Set Up a Craft Corner That's an idea from Amy Maliga, a financial educator with Phoenix-based Take Charge America, a nonprofit financial counseling agency. She is envisioning it for families with young children, though arguably a crafty adult might enjoy this, too. Maliga suggests: "Set up a small table in the corner of the family room – or, if weather allows, on the patio – with paper, glue, stickers, paints, crayons, glitter (if you dare!) and other craft supplies." She suggests keeping the table stocked at all times, so it's ready to go whenever anybody's creative juices are flowing, and to cover the table with a sheet or tablecloth when it's not being used to minimize visual clutter.   Look Through Your Old Yearbooks "Even though you're probably connected with some of those folks on social media, there's nothing like paging through yearbooks and reading the messages to make those memories come flooding back," Maliga says. She adds: "If you have kids, they'll get a big kick out of seeing the big '80s hair or crazy '90s fashions and hearing some of your best stories." Of course, some parents might think that's a little overly optimistic.   Start a Blog "Now is a great time to set an online project such as a blog, a podcast or a YouTube channel. There's even the potential for these things to gain some momentum and make some money over the medium to long term," says Ben Taylor, founder of the HomeWorkingClub.com, an online website for freelancers and home workers. "The great thing about these projects, beyond being highly diverting, is that they involve learning new skills and building something tangible," Taylor says. "Individuals can work alone, and parents can involve children. Younger ones love to be videoed or 'interviewed,' and the older ones will enjoy things like sound and video editing." He adds: "Yes, there are some small potential costs for those who want to take things to the next level, but there are free or cheap options for everything."   Go On a Nature Hike It'll get you out of your home and into the great outdoors. Depending where you go – some nature parks have admission fees – it's often free. AllTrails.com is a good website to check out to find trails near you. And if you're a camper, this may be an excellent time to find somewhere remote and pitch a tent.   Read a Book Yes, you could order a new book, but if we're talking free and cheap, surely you have some favorite titles lying around the house that you would like to revisit – or ones you purchased that you haven't gotten around to yet. And if you're seeking a new book, try your library. You can go there without going there. Maliga suggests getting the Libby app. "It's a free app that connects you to your local library and allows you to check out e-books and audiobooks. You'll need a current library card to get started," she says.   Bake a Cake Or cookies. If you have some eggs, flour, sugar and other staples, you might even want to try to create something out of scratch. Or try out a new recipe and cook something special for dinner.   Write a Letter to a Family Member We're not talking about sending an email but writing an old-fashioned letter. Even better, send that letter to a relative at a nursing home or take a cue from Jennifer Buchholz, mother of three and director of marketing for The English Contractor & Remodeling Services in Cincinnati. You could even send a letter to someone else's relative. She says that her son's high school soccer coach started thinking about his wife's 98-year-old grandfather in a nursing home who is unable to have visitors. "So he challenged the team to write notes to residents at area nursing homes and hospitals as part of their homework today," Buchholz says. "In my house, we're getting the entire family involved, sending notes, pictures and poems. Not only do we hope to send a bit of cheer to someone who might need it, but we're having fun as a family in planning out our letters." source: U.S News