Tax Letter and Tax Times Alert 2025 (Tax Year 2024)

Dear Clients,

Our wishes to all of you for a Happy, Healthy, and Prosperous New Year.

Tax filing will begin January 27th! Tax returns can be prepared before January 27th if all
documents have been received. We will hold the return and process on the 27th. We encourage
early appointments and early drop off of documents. We simply cannot process timely if everyone
waits until the last minute.

As I am sure you have heard or experienced, the IRS has had trouble keeping up and though we
have not always charged for compliance work in the past, the amount of time it takes us to deal
with the IRS has necessitated a change in that policy. We will inform you in advance of the charges.

Our Tax Times Alert gives reminders and updates about taxes. There are not a lot of tax changes
for 2024 but we expect big changes for 2025.

If you will be claiming a child as a dependent on your tax return in 2025, be sure they wait until
you have filed your tax return to file theirs! To claim a child, they must be under the age of 19
as December 31, 2024 or under the age of 24 and a full-time student for at least 5 months of the
year. To claim someone else as a dependent, their taxable income cannot be over $5,050 for the
year. There are other tests that must be met as well such as relationship, member of the household
and support to determine dependency.

All clients must fill out the Engagement Letter and client update forms each year. Mailing
addresses change, home phones are disconnected and cell phone numbers and email addresses
change. We need current information to accurately finalize and file your tax return. Bank
information for direct deposits or direct debits must also be updated. We will no longer accept
SAME” for bank information.

Obtaining updated and bank information after your drop off or appointment takes considerable
time that can be avoided if all information is correct and updated at the beginning of the preparation
process. For NYS, we will also need a copy of your current driver’s license. All this will enable
us to be sure that the processing of your tax return is as accurate and efficient as possible.

Our secure portal, Canopy, is up and running. If you have already used the portal, you may
log in again but will need to verify identity. When logging in, you will receive an email or text
with a code to verify your identity before proceeding with the canopy uploads. If you would like
to use Canopy, but have not been invited in a previous year, please let us know and we will send
an invitation for you to set up your account. You will then be able to upload and receive
documents from us in real time. We will be notified when you have uploaded a document. It will
be most helpful if you indicate when all your documents have been uploaded. If you have any
questions about Canopy, please give us a call and ask to speak with Heather or Raelynn.

Most documents should be mailed by January 31st and brokerage statements by Feb 15th, but
please beware that K-1’s are notoriously late.
IRS Income Requirements for Filing a Federal Tax Return:
                                                  Under 65              65 or older
Single                                          $14,600                  +$1,950
MFJ                                             $29,200                 +$1,550 per individual over 65
MFS                                             $ 5.00                     any age
Head of Household                   $21,900                +$1,950
Qualifying Surviving Spouse   $29,200               +$1,950

If you must file a Federal tax return, you must file a NYS return.

NYS income requiring the filing of a tax return:
Income of $4,000 – you must file a return
Dependent $3,100 – you must file a return

If you receive any mail from the IRS or the NYS tax department, forward it to us, drop it
off or include it with your tax documents and please advise us or let your tax preparer
know. There could be deadlines and we will need to see all pages front and back.

If you need to revisit withholding, please bring your most recent payroll stub showing the
current withholding and let us know so that we can allow enough time for the appointment.

To speed up tax return processing and refund delivery, keep in mind the following:

1. Dependents and dependent students should not file before parents. Any unearned
income over $2,600 is taxed at the parent’s rate and requires special forms.
2. Collect all documents before dropping off or coming to your appointment – especially
1099 G for unemployment (probably require download from your account)
1098 T for tuition payments for a dependent student -need to be downloaded by the student
3. Be sure to fill out the Engagement Letter and update forms.
4. E-File and use direct deposit for refunds or direct withdrawal for a balance due to
avoid delays.
5. If the IRS sends you an IP pin, due to fraud, identity theft or by request, our tax
preparers need it and it must be used to E-File.

Please make your appointment or come in as early as possible, as we want to
avoid putting clients on extension. We are offering in person appointments,
drop off, pick up, and online appointments; whatever works best for you.

We are looking forward to seeing and working with you soon.

Suzanne, JD, Nancy, Alvaro, Raelynn
and All the Ferrigno Tax & Accounting Staff

The Tax Times Alert

January, 2025

Internal Revenue Service

Dependents: If your dependent will be filing a tax return, have them wait until you have
filed. Otherwise, if they answer the dependency question incorrectly, your tax return will be
rejected and have to go by paper and a refund will be delayed.

Foreign Accounts and Digital Assets must be reported on the tax return. If a foreign account is
over $10,000 on any day in the year, Form 114 (FBAR) must be filed with your tax return.

Required Minimum Distributions (RMD) must be taken by April 1 of the calendar year
following the year in which the individual reaches age 73. If you turned 73 in 2024 but did
not take the RMD, take it before April 1, 2025 and then take another before December 31, 2025.
The RMD must be taken every year from then on.

Credits: If you are not required to file a tax return based on income or other
requirements, you should file if eligible for credits such as EIC, Additional child tax credit,
American Opportunity Tax Credit, and Premium tax credit (health insurance).

Due Dates of Returns:

March 17: Forms 1065 (Partnerships), 1120 S (S Corporation)
April 15: Forms 1040, 1041, 1120 (C Corporation), FinCen114,
Form 709 Gift Tax Returns
May 15:  Forms 990, 990 EZ
June 16: Last day for US residents living abroad

Extensions deadlines for filing the following returns are as follows:

September 15th Form 1041
September 15th Forms 1065 and 1120 S
October 15th Forms 1040 and 1120
**Extensions are not automatic and must be requested**
An extension to file is not an extension to pay. Penalties and interest will continue.
If you know you will owe, try to send as much as you can.

Estimated Tax Payments for individual returns are due:

April 15th 2025, June 16th 2025, September 15th 2025, January 15th 2026

Health Insurance:
If health insurance is through the Marketplace and you receive Form 1095-A, bring it with
your tax documents. If you received advanced payments of the Premium Tax Credit, bring all
forms you receive. If you are self-employed and pay for health insurance, please bring records
of the expense even if through the Marketplace.

Public Safety Officers:

Health insurance payments up to $3,000 deducted from their retirement benefit are excludable
from gross taxable income each year.

529 Plan Rollovers to Roth Accounts: Accounts that have been maintained for at
least 15 years are eligible to do a direct trustee-to-trustee rollover to the beneficiary’s Roth IRA
(applies to contributions and earnings before the five year period ending on the date of
distribution).

                                                              New York State
Itemizing on NYS is available to many taxpayers who cannot itemize for the federal. Bring
your tax bills, mortgage interest, charitable receipts, job related expenses (especially union
dues), medical expenses if over 7.5% of your income, income taxes or sales tax on vehicles.

Reminder of NYS Credits:
Solar Credits and Geothermal Energy System Credit
 Long Term Care Insurance Credit
 Claim for Nursing Home Assessment Credit
 College Tuition expenses for full time NYS residents
 NYS resident credit for income taxes paid to another state
 NYS volunteer firefighter or ambulance worker for the entire year
 Foreign real estate taxes are deductible on the NYS return (not on the Federal)
 Noncustodial parent earned income credit
 NY 529 college savings program deduction
 Pension deduction for inherited IRA or pension of deceased who would be
over 59 ½ (adjusted by number of beneficiaries)

Change for 2024:
The NYS Real Property Tax Credit that was available in 2023, and some of
you were lucky enough to get a credit for $250 – $350, is no longer available. However, as
noted above, you may be able to benefit from the real estate taxes if you are eligible to itemize
on the NYS tax return.