Phone: 651-298-1188
Fax: 651-228-1952

624 Grand Avenue
Saint Paul, MN 55105

JANUARY 2020

2019 ended with more tax legislation being signed by President Trump. Some of the changes were retroactive and some will deal with the future.. 

Minnesota passed legislation in May that was a vote to conform to some of the Federal changes that were passed back in December of 2017!

Once again - job security for the tax preparers and confusion for taxpayers.

Here are just a few of the tax changes 

  • The standard deduction is now the same for both Federal and Minnesota. (a change for the 2019 returns)
  • Minnesota will still allow an additional deduction for donations to churches and charities if they exceed $500 even if you take the standard deduction for everything else.
  • Minnesota also still allows deductions for work expenses paid by employees.
  • The Federal has no limit on total itemized deductions while Minnesota limits deductions when income exceeds $195,650 ($97325 if M/F/S)
  • The Federal does not allow a deduction for exemptions while Minnesota allows exemptions for children and other dependents
  • The Federal is bring back some energy credits that were expired at the end of 2017. If you bought doors, windows, furnace, air conditioners,water heaters for your personal residence in 2018 or 2019 you may be entitled to an energy credit. 

A big change for anyone turning 70 in 2020 - you will not be required to take minimum distributions from your retirement accounts until age 72.

Minnesota made a mistake in their 2018 instructions for the homeowners Homestead Credit Refund and Renter's Property Tax Refund. The State sent out thousands of letters warning taxpayers that they might be entitled to more of a refund. Thankfully none of our clients were affected because we didn't use the mistaken instruction in our calculations.

Bottom line - our organizer pages ask for lots of information. Please bring what is asked for and we will determine the best way to use it.

Schedule your tax appointment as soon as you can. Schedules are filling up fast.

To keep information as secure as possible we do not allow use of our wifi or computers to anyone other than our staff. So, bring your information to your appointment in printed form.


For now, we will concentrate on the 2019 tax year and do our best to help provide you with an accurate assessment of your tax liability and some resources for financial decisions. 

Whenever possible we'll try to give you information about how the tax changes will affect you in the future.

One of the challenges we face when there is new tax legislation is a way to pass the information we have on to our 3500+ clients. We are here year round so you are always welcome to give us a call. We will also post news on our Facebook page or here on our website.

We always do our best to help you save on taxes. The best way for you to help us do our job is to provide the information we need by using the "Tax Organizers" we send to you. Please use them.


Minnesota Property Tax Refunds

We've had a lot of calls in the past few months about Property Tax Refunds. The State has changed their processing times and  refunds have been delayed - sometimes into December or later. We expect that to be the case in the future too. The state is spending the extra time verifying that the information on the returns is accurate. Refer to our organizer page about Minnesota Property Tax Refunds to make sure you are providing all the information we need to prepare the return.

The "Scammers" are still trying to get your information.

If you receive a call from someone saying they are from the IRS - asking you for any personal information about your social security number or credit card information - hang up. Do not give them any information. The IRS does not contact taxpayers that way. You would always get a letter first and a chance to respond.

Remember - Skally's Tax Service is on Facebook! Try facebook.com/skallystaxservice to connect. 


The government requires us to file all tax returns electronically. In order to do that we need payment for our service and a signed Form 8879 from our client. Please remember to look over the completed return we provide to you, sign that form and return it to us as soon as you can.

 




 

 

 

Phone: 651-298-1188 | Fax: 651-228-1952 | 624 Grand Avenue Saint Paul, MN 55105
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