Happy New Year to All!
The IRS will begin accepting Tax Returns on Monday January 27, 2020. For those interested in early filing my office will be open for client consultations starting the Wednesday January 22nd.
For those who may not need a consultation, you could simply mail your documents to me or drop them off in my secure mail box. In addition I will be utilizing a “Docusign” option for signing of E-file authorization forms, for your convenience.
Below is summary of the key tax law changes for tax year 2019:

• The Federal Obamacare Health Care Penalty has been eliminated for those uninsured or partially insured. However, some states have introduced their own penalty, including New Jersey.
• Key dollar limits on IRA’s and retirement plans are higher for 2019:
  •     IRA and ROTH IRA payin limit is raised to $6,000 (catch-up contribution for those 50 or     over is $1,000)
  •     Maximum 401k contribution is $19,000 for 2019 (catch-up contribution is an additional     $6,000)
  •     Threshold for deducting Medical Expenses has increased from 7.5% to 10% of AGI
• Standard deductions increase a bit: Married = $24,400; Singles = $12,200; Head of Household = $18,350; Income tax brackets are slightly wider due to inflation with no change to tax rates.

Dates to remember – Forms such as W-2’s and 1099’s are due to be sent to employees and contractors by January 31st. Brokerage 1099 Statements are due to account owners by Mid-February and K-1 Forms in Mid-March; Partnerships & S-Corp returns are due Monday 3/16/20; Individual & Corporate returns are due Wednesday April 15th.
Lastly, for your convenience I will be accepting Pay-Pal and all major credit cards for Tax Preparation fees.

Best wishes for a prosperous 2020!

The IRS has begun accepting returns for the 2018 Tax Year today Monday 1/28/19. Forms such as W-2’s and 1099’s are due to be sent to employees and contractors by January 31st. Brokerage 1099 Statements are due to account owners by Mid-February and K-1 Forms in Mid-March.

The new tax law effective in 2018 brought about sweeping changes. Some tax payers may benefit from the higher standard deduction enacted ($12k single/$18k head of household/$24k married). The Child Tax credit has been increased to $2k per child, there are no longer exemptions. The tax brackets have been expanded and rates are lower which should benefit many. For those living in the tri-state are, the biggest negative change is the $10k cap on State, Local, & Property tax deductions (the SALT deduction), this will lower Itemized Deductions for many. I will work with you all to best navigate these changes.
As in the past I will strive to process returns as quickly as possible, and generally no longer than 1 week if I have all relevant documents.
Best Regards!

To Clients and Friends of Denby Financial Services –

It’s that time of year again! The 2016 Tax Filing season officially begins on Monday January 23^rd, as the IRS begins accepting electronically filed returns.

Regarding some of your tax related documents:

• W-2’s and 1099’s are due to employees and contractors by Jan 31^st
• 1099-Div/1099-B/1099-INT – Dividends & Interest due by Feb 15th
• Form 1095 – Health Care Insurance Coverage: Due date to employees is March 2^nd…This can be impactful to those who may not have been covered for the entire year

• Note: For those who may not need a consultation… you can mail your documents directly to me or drop them off in my secure mailbox for your convenience

Note Filing due dates:

• Federal and State Income Taxes for 2016 are due Tuesday April 18, 2017 (due to the Emancipation Day holiday in Washington DC)
• ***important change for Partnership returns – Due date has been moved up to Wednesday March 15, 2017 to coincide with other Corporate returns

2016 Tax Law Updates

Here are just a few items that may impact 2016 returns:

• Standard Deductions increase to – Married $12,600; Single $6,300; Head of Household $9,300 (additional deductions available to those 65 or older)
• Personal Exemptions increase to $4,050
• Social Security wage base is $118,500
• Healthcare Insurance individual mandate – due to the Affordable Care Act (Obamacare) those who are uninsured will face a penalty of $695 per person up to a family ceiling of $2,085
• IRA and Roth IRA deductions remain unchained for those eligible at $5,500 (+$1,000 catch-up for those 50 or older)
• **note for 2017 planning purposes – 401k contribution limits remain at $18,000 (+$6,000 for those 50 or older)

New Jersey

There have been some significant changes to the tax laws in NJ, however these mostly pertain to tax year 2017:

• Estate Tax – beginning on 1/1/17 Estates subject to this tax have been increased to a value of $2 million from the previous $675k…the NJ Estate Tax is fully eliminated beginning 1/1/18
• Sales Tax – has been reduced to 6.875%
• Veterans Exemption – A $3k exemption may apply to certain qualifying veterans for tax year 2017

Investment Advisory Services

For those of you who are interested.. I’m able to provide clients with investment advice and access to products such as IRA’s, Investment accounts, certain Educational Accounts, and Rollovers.

**For those covered by a retirement plan at work you could still contribute to a deductible IRA for 2016 if your adjusted gross income is below $71,000 for singles and below $118,000 for married couples. For ROTH IRA’s you can contribute if your AGI is below $132,000 for singles and below $194,000 for couples (phase out of the allowable amounts might be dependent upon your income).

Please contact me if you would like to discuss Investment Advisory Services further.

Best Wishes for a Happy and Healthy New Year! – JD

To Clients and Friends of Denby Financial Services –

Happy New Year to you and your families and best wishes for a happy and healthy 2016!

Tax Year 2015

The IRS will officially begin accepting returns on Tuesday January 19, 2016. I already have several appointments set-up with clients this coming week, so for those of you who are ready…I’m ready for you! Most tax documents (1099’s, 1098, etc.) should be sent to you soon. Employers are required to deliver W-2’s by January 31^st and Brokerages are required to deliver by mid-February, so be sure to check your mail carefully. I encourage existing clients to contact me as soon as possible for an appointment to review your documents and begin the filing process. I will also accept your documents via mail or UPS, etc. I will be installing a secure/locked mail box for added security. Additionally, filing promptly can be a safeguard against identity theft. Unfortunately, last year across the country hackers used a tactic of filing ahead of taxpayers, using their social security numbers, to obtain fraudulent refunds. For this and various other reasons I’m not an advocate of filing extensions. Note, this years filing deadline is Monday April 18, 2016 (not April 15^th) due to the Emancipation Day holiday in Washington DC.

Lastly, this fall I passed all three parts of the IRS Special Enrollment Examination to become an Enrolled Agent (pending a background check by the IRS). The Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years. Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before (from IRS website).

2015 Tax Law Changes

Here are just a few items that may impact 2015 returns:

• Standard Deductions increase to – Married $12,600; Single $6,300; Head of Household $9,250 (additional deductions available to those 65 or older)
• Personal Exemptions increase to $4,000
• Social Security wage base increases to $118,500
• Healthcare Insurance individual mandate – due to the Affordable Care Act (Obamacare) those who are uninsured will face a penalty of $325 per person up to a ceiling of $975
• IRA and Roth IRA deductions remain unchanged for those eligible at $5,500 (+$1,000 catch-up for those 50 or older)
• **note for 2016 planning purposes – 401k contribution limits remain at $18,000 (+$6,000 for those 50 or older)

Investment Advisory Services

For those of you who are interested I’m able to provide clients with investment advice and access to products such as IRA’s, Investment accounts, certain Educational Accounts, and Rollovers.

As a brief update for existing investment advisory clients – In general the broad market indexes were essentially flat in 2015 with the S&P 500 losing about 1%. To put this in context this was the first losing year for the S&P since 2008…the first in seven years. The first week of 2016 has been extremely volatile with the S&P 500 down 6% (Currently the S&P is now 10% below its 52 week high). Although a drastic short term decline, it shouldn’t be surprising for a correction to occur given a multiyear run-up, the Fed tightening interest rates, geopolitical concerns, and falling commodity prices. It will be interesting to monitor corporate earnings performance as they are released this quarter. For long-term investors it’s important not to panic during turbulent times and stick to your investment plans. Perhaps this volatility will create opportunities in 2015, and I will be working with each of you individually towards achieving your portfolio goals.

Best Wishes,

James Denby

http://www.northjersey.com/news/irs-phone-scams-prompt-explosion-of-complaints-nationwide-1.1412332

Here is a scary example published in the Record today…always consult with your tax professional if you are contacted by a party seeking a tax related debt..-JD

To Clients and Friends of Denby Financial Services –

Happy New Year to you and your families! Although it’s been a cold start to 2015 we have not had to endure the back to back snow storms and frigid temperatures of last year…….so far 🙂

Tax Year 2014

Please note the IRS will begin accepting 2014 tax returns on Tuesday January 20, 2015. It’s time to be on the look out for W2’s from employers, 1099’s, and any other important tax related documents. I encourage existing tax clients to contact me as soon as possible to schedule an appointment to review your documents and begin the filing process. Avoid the stress of waiting to the last minute and extra time can be a benefit to resolve any unforeseen issues.

2014 Tax Law Changes

Here are just a few changes that may impact 2014 returns:

• Uninsured Health Care Penalty – unfortunately there is a basic penalty of $95 for being uninsured in 2014 ($285 maximum per family); however there are certain exemptions…I will work with any clients to review this in detail
• Premium Tax Credit – anyone who enrolled through the Health Care Marketplace and obtained a subsidy should receive Form 1095-A from the Marketplace. There is a reconciliation that will take place if an advance insurance premium credit was received, otherwise any benefit to the taxpayer will be calculated on their 2014 tax return. I know these items maybe confusing, however my latest software updates are prepared to help sort through the complexities of the health care law changes.
• Standard Deductions Increase slightly – Married $12,400; Single $6,200; Head of Household $9,100 (additional deductions are available to those age 65 or older)
• Personal exemptions – Increase to $3,950
• IRA deductions – remain at $5,500; an additional $1,000 for those 50 years or older

Additionally I would like to note that I have completed the voluntary Annual Filing Season Program for 2015, through the IRS, which requires additional continuing education for tax preparers covering 2014 tax law changes, ethics, and other tax law topics.

Lastly, as a Registered Investment Advisor I’m now able to provide clients with advice and access to investment products and facilitate the opening of IRA’s, Investments Accounts, Educational Accounts, and Rollovers. Please contact me for more information. (All Securities offered through AOS, Inc. doing business as MoneyBlock)

Best Regards – JD

I’m happy to announce that my firm has recently been approved as a Registered Investment Advisor by the State of New Jersey. As an Investment Advisor Representative I will now be able to provide clients with advice and access to investment products and facilitate the opening of Investment Accounts, IRA’s, Educational Accounts, and Rollovers. I believe the addition of this service will give my individual and small business clients an end to end solution for their specific financial needs including:

• Financial Planning
• Income Tax Preparation
• Small Business Accounting and Payroll
• Investment Advisory Services

Please contact me for more information – JD

All securities offered through AOS, Inc. doing business as MoneyBlock