News and Updates
Matthew Lincoln - Certified Financial Planner
All of us here at Lincoln Tax Professionals want to congratulate Matt for completing and receiving his Certified Financial Planner™ designation at the end of 2021. It was a long, arduous journey for him and we're very proud of him for completing it. So the next time you see his name with a CFP® at the end be sure to give him an "atta boy tiger!"
So now that he's got it, what's he going to do with it? I'm glad you asked. Later this summer, due to federal and state regulations around financial planning, we'll be introducing...
Read MoreIRS Expects Complications This Season
The IRS officially opened up the 2021 tax filing season on January 24, 2022 but has already made statements to congress, and the public, that they expect this season to be just as complicated and aggravating as the last two years. Just what we all wanted to hear, right?
The biggest source of frustrations for taxpayers is going to be, without a doubt, delays in refunds. "Normally" (do people even use that word anymore?) the IRS issues federal refunds within a 21 day window of time. However, the IRS has warned us that taxpayers should expect it to take longer due in part to the...
Read MorePower of Attorneys
Matt and Ryan made the decision last summer that we'd like to have all clients provide us with a signed Power of Attorney Form 2848. We saw the writing on the wall and knew this upcoming tax season was going to provide a whole host of challenges and to make life easier on our clients and our staff, it made sense for us to have all possible resources we need to complete your return available to us during tax time.
If you have access to your client portal, a copy of the Power of Attorney was...
Read MoreIRS to Implement New ID Account System
Starting in the summer of 2022, the IRS will require all taxpayers who use the IRS website for things like access to the Child Tax Credit Update Portal, getting their tax transcript, or viewing their payment history to create an account with the third party identity verification company ID.me.
The days of just using a simple username and password are over. Because such sensitive information can now be accessed through the IRS site, you will need to provide a government document with a photo, like your driver's license, state ID, or passport, AND take a video selfie with your...
Read MorePower of Attorney Form 2848 For All Clients
As we're sure you're aware, the past year and a half living under a global pandemic has been unbelievably challenging for everyone. It has been exceptionally difficult for us as preparers navigating complex new tax laws and provisions, incorporated in the middle of tax season no less. One of the biggest challenges we've had during this time is dealing with an already under-funded, technologically deprived, and short-staffed IRS. Issues that would, in non-pandemic years, take us a few days to resolve now take weeks or even months. Add to it the US Mail delays affecting tax documents from...
Read MoreAdvance Payment of the Child Tax Credit
As part of the American Rescue Plan Act that was signed into law in March, the IRS is required to assist taxpayers with children by making periodic, and non-taxable, advance payments from July through December of 2021. These payments will be equal to half of what the IRS estimates eligible taxpayers will receive in child tax credit when they file their 2021 return next year in 2022.
Letters were/are being sent to families, based on their 2019 or 2020 filed returns Adjusted Gross Income (or who used non-filer tools to register for economic impact payments), letting you know...
Read More2021 State Filing Deadlines Extended
As of March 22, 2021 these are the due dates for the following state returns. Should dates change we'll update this page. When in doubt, always check your state's webpage for taxation.
Alabama - May 17
Alaska - No state income tax
Arizona - May 17 pending
Arkansas - May 17
California - May 17
Colorado - May 17
Connecticut - May 17
Delaware - May 17
Florida - No state income tax
Georgia - May 17
Hawaii - No changes announced
Idaho - April 15
Illinois - May 17
Indiana - No changes announced...
Read MoreThe American Rescue Plan Act
On March 11,2021, the president signed into law the American Rescue Plan Act. This bill includes provisions that have major tax impacts for the 2020 and 2021 tax returns.
2021 recovery rebates for individuals
A 2021 advance recovery rebate or a third economic impact payment (EIP3) of $1,400 ($2,800 MFJ) will be issued to each eligible individual plus $1,400 to each dependent (including adult dependents). Children born in 2021 will receive the additional economic impact payment as a recovery rebate credit on the 2021 return as long as the taxpayers were eligible to receve...
Read MoreMaryland RELIEF Act
The RELIEF Act of 2021 is an emergency economic impact and tax relief package that will provide more than $1 billion for Maryland working families, small businesses, and those who have lost their jobs as a result of the COVID-19 pandemic.
RELIEF Act Economic Impact Payments
The RELIEF Act includes direct economic impact payments for low to moderate income Maryland taxpayers who filed for and received the Earned Income Tax Credit (EITC) on their 2019 Maryland State Tax Return. These economic impact payments will be issued by the Maryland Comptroller to...
Read MoreUpdates for Individuals
COVID-19 Relief Law Boosts Temporary Tax Deductions and Credits
Embedded in the COVID-19 relief law is $900 billion for financial assistance.
As you would expect in these unusual times, some of the relief is in the form of direct government financial assistance and some is from tax benefits that can impact both tax year 2020 and tax year 2021.
Most of the provisions create extra deductions or credits where Uncle Sam puts cash directly into your wallet.
The CARES Act made three major changes to charitable contribution deductions for tax...
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