April 15 is the tax deadline, and it will not be extended. Our Tax Department recommends that clients don’t delay based on rumors or predictions of another extended filing deadline as it was in 2020. The decision by the IRS to postpone acceptance of tax returns until February 12 will have no affect on the final filing deadlines. Read more from a recent MSN Money article – IRS Delays Opening of Tax Season, but What About the April 15 Deadline? (msn.com)

For instructions, access to online forms and answers about how to securely deliver your tax documents to us, please visit our website at valleynationalgroup.com/tax or send inquiries to tax@valleynationalgroup.com

Our website has updated articles related to tax planning and tax return filing. https://valleynationalgroup.com/news-and-insights/articles/ Filter by Tax Planning or visit valleynationalgroup.com/tax and scroll down for a list of the most recent posts.

1099 Tax Reminders
Once again, it is the time of year to think about your filing requirements as a small business owner, self-employed individual, or owner of rental property. If you operate for gain or profit, the IRS considers you to be engaged in a trade or business and therefore required to file certain information returns. Information related specifically to the Form 1099-MISC, Miscellaneous Income, and the newly re-introduced Form 1099-NEC, Nonemployee Compensation, can be found at irs.gov/instructions/i1099msc.   

Form 1099-NEC is due on or before February 1, 2021, using either paper or electronic filing procedures.

File Form 1099-MISC by March 1, 2021, if you file on paper, or March 31, 2021, if you file electronically.

The IRS operates a centralized call site to answer questions about reporting on Form 1099 and other information returns. If you have questions related to reporting on information returns, the IRS centralized call site can be reached at 866-455-7438. In addition, please feel free to contact our VNFA Tax Department at tax@valleynationalgroup.com or 610-868-9000.

Q4 estimated tax payment reminder
Fourth quarter estimated tax payments are due January 15, 2021. These estimates may include federal, state and/or local vouchers depending on your situation. Please direct specific questions to your Financial Advisor. For general inquiries related to tax preparation and planning, please contact our VNFA Tax Department at tax@valleynationalgroup.com. We will be reaching out soon with forms and directions for 2020 Tax Filing.

Have you heard of IRMAA – the income related monthly adjustment amount for Medicare premiums if your income is over certain thresholds on prior year tax returns?

You can apply to Social Security to reduce the premium adjustment if you have had an intervening change in your financial circumstances by filing SSA-44. If you are a high-income (individuals who earn more than $87,000 single or $174,000 joint, including tax-exempt income) Medicare beneficiary who is paying a surcharge on your premiums and your income has changed due to a “life-changing event,” you can request a reduction with The Social Security Administration. Life-changing events include:

• A marriage, a divorce or the death of a spouse.
• Stopping or reducing work.
• Loss of an income-producing property for reasons beyond your control.
• A major change in or termination of your employer’s pension plan.
• A financial settlement with an employer (due to a company reorganization or bankruptcy, for example) that inflated your income one year but does not reflect your current financial situation.

Important notes:
– You will be required to provide evidence of the life-changing event in your application, as well as a copy of your most recent income tax return.

-The Social Security Administration uses income reported two years ago to determine beneficiary premiums. So, the income reported on your 2018 tax return is what you will be comparing to show a significant change. READ MORE AT AARP.COM

October is Financial Planning Month, which serves as a useful, annual checkpoint to make sure you are on track to meet your long-term financial goals. You can use this time to learn about all of your options and prioritize your goals going into the New Year. Learn more about Financial Planning at plannersearch.org/ .

Team VNFA can help! Explore the Financial Planning section of our website: valleynationalgroup.com/financial-planning/

October 15, 2020 is the filing deadline for 2019 federal tax returns on extension. Even though the initial tax filing deadline was pushed back this year from April 15 to July 15, the standard six-month window for filing extended returns has shrunk to three months from July to October, and October 15 remains the final due date for filing 2019 federal returns in 2020.Read more about extension reminders at Forbes.com.

A Transfer on Death Plan or other beneficiary document supersedes your will and turns what might have been probate assets into non-probate assets. You can add this designation to investment accounts and even bank accounts.  It is the designation, not the Will, that controls the transfer. You can name beneficiaries on retirement accounts as well which also keeps the assets out of your probate estate. You will want to coordinate this with your overall estate planning to make sure you understand how the assets will pass and to whom – consult with an attorney.  Read more about Planning for Transition at finra.org.

Our team strives to customize each client’s experience, including preferred methods of contact and delivery. Even while we are working remotely, we offer a variety of options for clients to securely exchange important documents. Our primary focus is clients first, and we will continue to enhance our processes with your best interests in mind.

1. Mail – paper – mailed back and forth via USPS or Federal Express.
2. Fax 610-868-9900 – print and fax back
3. eVault Client Portal – print, execute and upload scanned completed documents back to portal.
4. VNFA DocuSign* – electronically complete forms and sign, using e-mail notifications.
   *including Charles Schwab documents available through DocuSign – process managed by VNFA.
5. Office – pickup or dropoff, by appointment only.

Q3 Estimated Tax Payment Reminder
Third quarter estimated tax payments are due September 15, 2020.  These estimates may include federal, state and/or local vouchers depending on your situation.

If quarterly estimates were recommended when we prepared your 2019 return, they would be included with your tax return.  If you requested a paper client copy of your return, the instructions, vouchers and envelopes were included with your tax folder. If you requested an electronic client copy, the instructions and vouchers were included in both the client copy and action needed copy posted to your client portal. 

Please follow the applicable instructions previously provided to mail your payment and voucher by September 15, 2020.

There may be situations where the estimates were generated, but an overpayment was applied in full or in part. If your income or withholdings have significantly changed since last year, please contact your tax preparer to review. If you change or do not make the estimates, please let your tax preparer know at tax filing time.