Individual Income Tax for Tax Year 2023

Prepare for Changes - NEW DEADLINE for FEDERAL RETURN: APRIL 15, 2024

WE CAN PREPARE YOUR TAX RETURN THROUGH ONLINE SERVICES IF YOU DESIRE. JUST E-MAIL US TAX INFO & PHOTO ID (ee@lofises.com), REVIEW, SIGN ELECTRONICALLY VIA DOCUSIGN & PAY BY PHONE (OR THOUGH TAX REFUND FOR ADDITIONAL FEE). CALL (480) 968-6878 FOR ADDITIONAL INFO OR E-MAIL US!

Standard Deduction Nearly Double

Couples: $29,200.00

Head of Household: $21,900.00

Single & Married Filing Separately: $14,600.00.

Over 65 or blind: $1,550.00 more per person ($1,950.00 if unmarried)

So taxpayers that used to itemize deductions may not have to with increased Standard Deduction.

Schedule A Deductions Affected

Although fewer taxpayers will itemize deductions, they will face changes:

* Mortgage interest deducted on up to $750,000.00 of new acquisition debt on a primary or second residence.

* Can deduct any combination of residential property tax and income or sales taxes up to $10,000.00 cap. (Property taxes remain fully deductible for taxpayers in a business or for-profit activity, so taxes paid on rental realty can be taken in full on Schedule E.

*Eliminated: No deductions for job-related moves (except military). No miscellaneous write-offs subject to the 2%-of-AGI (Average Gross Income) threshold, including employee business expenses, brokerage and IRA fees, hobby expenses and tax return preparation costs. Theft losses.

* Alimony (Spousal Maintenance) - For post-2018 divorce decrees, although it's good news to recipients, who will not be taxed on alimony they receive.

* Personal casualty losses, excluding those where President declared disaster areas.

* The medical expense deduction threshold lowered from 10% of AGI to 7.5 % on AGI for deducting 2017 through 2021 medical expenses.

Obamacar 1095-A Form required

If you received health insurance through the ACA (Obamacare) please provide Form 1095-A

Child Tax Credit

The reason you had kids! (Joke). Credit has been doubled to $3,000.00 for each dependent age 17 and under, with up to $1,700.00 refundable to lower-income taxpayers. Under 2021 Rescue Act his will be raised an additional $500.00 for children of the age six and under.

Children must have SSN to qualify for Credit. ITIN no longer qualify.

*A $500.00 credit for each dependent who is not qualifying child including, for example, an elderly parent you take care of or a disabled adult child. It's nonrefundable meaning it can be applied against taxes owed but no spill-over refunded.

Tax Preparation Fees

Individual Tax Fees

Each tax return is unique. Most tax preparation will follow prices below.

1040 or 1040-SR (For seniors)

$150.00

This is the base price without Schedules.

1040 for Dependent

$100.00

This price is for a 1040EZ belonging to a taxpayer already claimed as a dependent on someone else's return.

Renew ITIN

$35.00

Each year a group of ITIN (Individual Taxpayer Identification Number) recipients must renew their ITIN. They must bring their unexpired foreign passport with photo, or birth certificate and government-issued Photo ID.

Schedules

These are additional Schedules in 1040 requiring additional fees

Schedule A

$20.00

This is where you deduct medical expenses, home mortgage interest, real estate taxes, income tax, sales tax, property tax (auto registration tax), donations, gambling losses etc..

*Note: If you itemized last year, you may not have to itemize this year if your standard deduction is higher.

Schedule C

$50.00

This is Self-employment Revenue minus Business Expenses = Taxable Income

Schedule D

$30.00

Interest and Dividend Income (Example Stocks)

Schedule E