News & Updates
Tax Season 2022
January 21, 2022
The IRS begins will begin accepting and processing 2021 tax year returns on January 24th for the 2022 Tax season and the deadline to file returns is April 18th, 2022.
File electronically, file early and make sure the information on your return is accurate is highly recommended inorder to avoid delays if you are expecting a refund.
Tax Season is HERE!
What documents do I need to be prepared for filing?
Your social security number or tax ID number
Your spouse’s full name, social security number or tax ID number, and date of birth
Information about your stimulus payment — also known as an economic impact payment (EIP) — if applicable — you may have IRS Notice 1444 or other records showing your EIP amount
Personal information of all dependents
Childcare records (including the provider's tax ID number) if applicable
Income documents-W2, 1099, 1099G, 1099R, Social Security Income, Rental Income
Interest, dividend income (1099-INT, 1099-OID, 1099-DIV)
Records of all expenses — check registers or credit card statements, and receipts
Long term capital gains (from the sale of investments held more than one year) are taxed at a maximum of 20%
Short term capital gains (from the sale of investments held for one year or less) are taxed at the same rate as ordinary income.
Qualified dividends are subject to either 0%, 15% or 20% maximum tax rates. Dependent on filing status and taxable income.
If capital loss is more than capital gains, a taxpayer can claim a capital loss deduction upto $3000.00 in the current tax year and carryover any remaining losses to future years.
Passive activity capital gains and losses occur when there is no material participation in the business activity. Passive activity loss is no deductible on an individual income tax however, the loss can offset passive activity gains.
Cryptocurrency and Taxes
What is the tax rate on cryptocurrency?
Similar to stocks, Cryptocurrencies are taxed at either short term or long-term capital gains rate or at the ordinary income tax rates.
Are Cryptocurrencies subject to taxes when a purchase is made?
Taxes are only applied when there is a sale of transactions not at the time of purchase.
Expect to receive a 1099B from your exchange when a sale of Cryptocurrency is conducted.