Michael J. Gollob, CPA

Author: Michael Gollob

  • How to File an Extension for Your Tax Return

    How to File an Extension for Your Tax Return

    Are you ready for Tax Day? Need more time to prepare your federal tax return? Please be aware that an extension of time to file your return does not grant you any extension of time to pay your taxes. You should estimate and pay any owed taxes by your regular deadline to help avoid possible penalties. You must file your extension request no later than the regular due date of your return. Taxpayers in certain disaster areas do not need to submit an extension electronically or on paper.

    Check to see if you qualify and the due date of your return at irs.gov. 

    Filing an extension gives you until October 15 to file a return. You can also get an extension by electronically paying all or part of your estimated income tax due and indicating the payment is for an extension. To get the extension, you must estimate your tax liability on this form and should also pay any amount due. You can make a same day payment or schedule a payment by accessing your IRS Individual Online Account, using Direct Pay, using the Electronic Federal Tax Payment System (EFTPS) or with a credit or debit card. If an extension is selected when making your payment, you won’t have to file a separate extension form and you’ll receive a confirmation number for your records.

  • Beware of Scams This Tax Season

    Beware of Scams This Tax Season

    The IRS warns taxpayers to be wary of scam mailing that claims they are owed an “unclaimed refund”. These scams then request sensitive information from taxpayers including but not limited to detailed pictures of drivers’ licenses to commit identity theft and fraud. These scams can be recognized by awkward wording, requests for bank routing information, social security numbers, or other unsolicited requests for sensitive information by email, phone, or text. The IRS will never initiate contact with taxpayers via email, text or social media regarding a bill or tax refund. Never click on any unsolicited communication claiming to be the IRS as it may surreptitiously load malware. It may also be a way for malicious hackers to load ransomware that keeps the legitimate user from accessing their system and files.

    For more information, visit irs.gov:

    https://www.irs.gov/newsroom/irs-security-summit-partners-warn-taxpayers-of-new-scam-unusual-delivery-service-mailing-tries-to-trick-people-into-sending-photos-bank-account-information

  • IRS Improvements to Assist Taxpayers

    IRS Improvements to Assist Taxpayers

    The IRS has released some new improvements to assist taxpayers this filing season. This includes expanding in person services and a reduction in wait times on the IRS toll-free call line with a new customer callback feature. There have also been improvements to online resources such as the “Where’s My Refund?” tool and the paperless processing returns. These improvements allow the software to be accessed on mobile devices with clear and detailed updates on their returns. As the tax season begins on January 29th, 2024 be aware of the helpful new improvements IRS has prepared and how they can effectively answer any questions you may have as well as effectively streamline your return!

    Visit irs.gov for more information:

    https://www.irs.gov/newsroom/2024-tax-filing-season-set-for-january-29-irs-continues-to-make-improvements-to-help-taxpayers

  • Tax Treatment of Interest on Student Loans

    Tax Treatment of Interest on Student Loans

    Student loans are a burden on many Americans, but thankfully there is a way to retrieve a portion of the money spent on the interest payments. For the interest on qualified education loans, the maximum deduction allowed for the taxable year is $2,500. 

    Single Filers

    Full Deduction < $70,000

    No Deduction > $85,000

    Joint Filers

    Full Deduction < $145,000

    No Deduction > $175,000

    Source: Fidelity.com

  • Changes to 2023 Tax Deductions

    Changes to 2023 Tax Deductions

    The following annual adjustments are applicable to the 2023 tax year.

    • Standard Deduction for married couples filing jointly: $27,700 (Up $1,800 from the 2022 tax season.)
    • Standard Deduction for single taxpayers & married taxpayers filing separately: $13,850 (Up $900 from the 2022 tax season)
    • Standard Deduction for head of households: $20,800 (Up $1,400 from the 2022 tax season.)
    • Maximum Earned Income Tax Credit: $7,430 (Up $495 from the 2022 tax season.)
    • Foreign Earned Income Exclusion for 2023: $120,000 (Up $8,000 from the 2022 tax season)

    You can read more on irs.gov.
    https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023

  • 2026 Proposed Senior Property Tax Changes

    2026 Proposed Senior Property Tax Changes

    StayNJ is a recently finalized program aimed at assisting homeowners and renters 65 years of age and older in New Jersey. The fine details on filings & procedures are currently being ironed out.

    • The program outlines a 50% property tax cut for seniors making $500,000 or less, with a maximum tax cut of $6,500 and a $700 rebate to senior renters.
    • The program will not take effect until the beginning of 2026 and will replace the anchor program as well as the property tax relief program.

    Click the link below for more details.
    https://www.nytimes.com/2023/06/21/nyregion/property-tax-cut-new-jersey.html

  • Taxpayers now have the option to submit documents electronically when requested by the IRS

    Taxpayers now have the option to submit documents electronically when requested by the IRS

    The IRS announced that taxpayers will now be able to submit documents online when receiving notices by the IRS. Taxpayers can securely upload documents rather than sending them by mail, reducing overall time and tax efficiency. For more information on how the document upload tool works, click here: full article.

  • New Income Tax Brackets for 2023

    New Income Tax Brackets for 2023

    The IRS has adjusted tax brackets, the standard deduction, and more for 2023 to adjust for inflation. See how you could be affected in the following article from CNBC:

    IRS: Here are the new income tax brackets for 2023

  • Social Security Rate Increase

    Social Security Rate Increase

    Later this year Social Security benefit recipients will begin to see an 8.7% increase in their monthly payments. While some beneficiaries will notice an increase in December of this year, most will begin receiving the increase in January of 2023. Throughout the last few decades, the social security benefit rate has only increased about 1.5 – 5%. The 2023 increase will be the 4th largest increase since 1975. Find more information at SSA.gov.

    Photo by Sven Mieke on Unsplash

  • Student Loan Forgiveness

    Student Loan Forgiveness

    You could be eligible for student loan debt relief. If you received the Federal Pell Grant, you are eligible for up to $20,000 in relief and $10,000 for non-Pell Grant recipients. According to Federal Student Aid, if you’re an individual that made less than $125,000 in 2020 & 2021 or families that made less than $250,000 in 2020 & 2021, you are eligible for loan forgiveness. The application takes less than 5 minutes to complete and does not require submitting any documentation. For more information on student loan forgiveness, click here: https://studentaid.gov/manage-loans/forgiveness-cancellation

    As of 10/21/2022 student loan forgiveness has been halted but is expected to resume in the upcoming weeks.

    Photo by javier trueba on Unsplash