BOI filing requirements

TEMPORARY HALT ON CTA AND BOI FILINGS!

The district court’s injunction against the CTA represents a significant legal development with broad implications for businesses nationwide. While the ruling temporarily halts compliance obligations, the final outcome of this case remains uncertain. Businesses should stay informed and proactive as the legal battle over the CTA unfolds. Given that (i) the CTA and its Reporting Rule have received a great deal of interest from the business community and judiciary, (ii) a new Congress and administration will take office in the coming year, and (iii) the civil and criminal penalties for noncompliance can be severe, reporting companies and their beneficial owners should, at a moment’s notice, still be prepared to comply with the Reporting Rule — before the January 1, 2025 deadline — in case further judicial or legislative developments revive the requirement to comply. Furthermore, in case the injunction runs past January 1, 2025, reporting companies should be prepared to comply at a moment’s notice in case the injunction is overturned thereafter.

NEW Renter's Credit Coming for 2024 Returns!

Starting with 2024 tax filings, the Minnesota Department of Revenue is now including the Renter’s Rebate to be included in the MN M1 Income Tax return and is no longer a separate return.

Starting this upcoming tax filing season, renters eligible for a property tax refund will now claim the new Renter’s Credit on their Minnesota Individual Income Tax return. To claim the Renter’s Credit, renters must file a state income tax return (Form M1). The Renter’s Credit will be part of their income tax refund amount, be applied to the amount owed on their income tax return, or be applied to other debts referred to the Minnesota Department of Revenue.

Rent Rebate's: For those who file a Rent Rebate, you NOW must file a Federal and MN income tax return to cliam your Renter’s Rebate. This means you will no longer have to wait until March 15th to file for your rebate and your refunds will be processed was soon as the return is filed, which means you will receive your refund within weeks instead of having to wait until July or August for your refund. Also, you will have an extra year to file for these rebates.

Homeowner's Rebates: For those who filed their property tax refund by June 15th, expect to see your refund direct deposited around September 15th or a check mailed within two weeks from then. If your return was filed after June 15th, your refund may be delayed for 30 days or more. Property owner’s still have only 18 months to file for a property tax rebate, otherwise you will lose it.

You can check the status of your refund by visiting the Where's my Refund? tool on the MN Department of Revenue's website.

If your refund was delayed due to filing after June 15th, expect your refund between September 15th and November 15th

COVID-19 Economic Impact Payments Update

Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.

The IRS does not have my direct deposit information. What can I do?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

PLEASE BE AWARE OF SCAMS- THE IRS WILL NOT EMAIL, TEXT OR CALL YOU FOR ANY REASON!

Property tax and renter's rebates are being processed!

The Minnesota Department of Revenue is currently accepting and processing returns for renters and property tax refunds for home owners. Refunds will start being deposited for each of the following as notated below:

Rent Rebate's: For those who file returns before June 15th, renters can expect their refunds to be direct deposited starting July 15th and checks to be mailed within two weeks from then. If your return was filed after June 15th, your refund may be delayed for 30 days or more.

Homeowner's Rebates: For those who filed their property tax refund by June 15th, expect to see your refund direct deposited around September 15th or a check mailed within two weeks from then. If your return was filed after June 15th, your refund may be delayed for 30 days or more.

You can check the status of your refund by visiting the Where's my Refund? tool on the MN Department of Revenue's website.

If your refund was delayed due to filing after June 15th, expect your refund between September 15th and November 15th

Refunds and the Government Shutdown

To many taxpayers’ dismay, early in January it was reported that the IRS would only accept payments for taxes owed and would not issue refunds. Thankfully, the IRS has revised its stance and will issue refunds after all. With the IRS not operating at full capacity, we do expect the process to take a bit longer. E-filing for businesses has started, but individuals will have to wait until January 28th. Minnesota has yet to vote on whether to adopt the new federal guidelines for state tax returns. We hope to have more information in the coming days.

Trump Tax Plan: Tax Cuts and Jobs Act - 6 things to expect starting in 2018

With the tax laws changing somewhat drastically this year, you may be wondering how it will affect you. Because your tax return involves so many moving parts, take this as general guidance. For specific questions and planning, contact us directly.

  • Loss of Exemptions

    One of the biggest differences for 2018 will be the increase of the standard deductions and loss of exemptions for personal and dependents you “claimed” in prior years. Starting in 2018, in exchange of exemptions, you will see your standard deduction almost double.

    • Single Individual will change from $10,400 to $12,000

    • HOH with 1 child will change from $17,450 to $18,000

    • Married Filing Joint with 2 children from $28,900 to $24,000

  • more Credits

    The next biggest change will come from doubling the child tax credit from $1,000 to $2,000. This will help families with children under 17. They have also added a non-child dependent tax credit of $500, non-refundable. If your child is off to college this year, make sure that you get their 1098-T form, account activity statement and any receipts for school supplies bought out of pocket. Take a look at our tax organizers for a complete list of what you will need.

  • Less Itemization

    As described earlier, the standard deduction is going up and as a result, many taxpayers will not be able to itemize compared to previous years. In 2017, 25%-30% of households itemized. For 2018, that number is expected to drop to 10% (Source: Forbes.) On average, this won’t affect most taxpayers when taken holistically.

    As for other deductions, state and local tax deductions are limited-this will affect high earners in high tax states such as Minnesota where state tax is deductible. The threshold to deduct medical expenses has been decreased, back to 7.5% of adjusted gross income. However, certain other deductions were removed altogether including the ability to deduct union dues.

  • Qualified Business Income (QBI) Deduction

    One of the most exciting changes (if you find tax law exciting) has been the introduction of the Qualified Business Income deduction. While some of the details for this are still being fleshed out, this new deduction will incentivize small businesses that are performing well to hire more employees or pay existing employees more. On the flip side, businesses with a lower net income and those who own rental property will still be be able to shield some of their income from being taxed.

  • Minnesota - More of the Same

    Minnesota has a reputation for being a “high tax” state. While this may be true, it offers several credits to residents whom may be in tough spots financially. We’ve had the Working Family Credit for a number of years, but MN now offers a credit for licensed teachers completing a master’s degree. A special credit is available for taxpayers repaying student loans (both interest and principle!), Veterans may be eligible for a tax benefit (look to our taxpayer resources page for links to credits that you may qualify for) and lastly there’s a new tax benefit for Social Security income.

  • Post Card size, same Forms

    Speaker of the House, Paul Ryan had suggested “doing your taxes on a postcard” as a benefit of the new tax system. While the size of the form 1040 is indeed being shrunk to the size of a postcard, the general consensus of the tax community is that this will simply outsource work to other forms. If all you had was the form 1040 before, the form is smaller now. If you are self-employed, the same forms still apply, this goes for interest from a bank account, sale of stock and rental income, you will still need all the supporting forms filled out. You will also need to have healthcare coverage to avoid a penalty through the end of 2018.

Property tax and renter's rebates are being processed!

The Minnesota Department of Revenue is currently processing and distributing refunds for renters and will soon be sending out property tax refunds for home owners.

Rent Rebate's:  For those who file returns before June 15th, renters can expect their refunds to be direct deposited starting July 15th and checks to be mailed within two weeks from then. If your return was filed after June 15th, your refund may be delayed for 30 days or more.

Homeowner's Rebates: For those who filed their property tax refund by June 15th, expect to see your refund direct deposited around September 15th or a check mailed within two weeks from then. If your return was filed after June 15th, your refund may be delayed for 30 days or more.

You can check the status of your refund by visiting the Where's my Refund? tool on the MN Department of Revenue's website.

If your refund was delayed due to filing after June 15th, expect your refund between September 15th and November 15th

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