Individuals

December 2020 tax updates for individual taxpayers from the Consolidated Appropriations Act 2021 (posted 12/30/2020)

Our 2020 EOY newsletter has details about changes for our upcoming tax season.

Previous COVID Update posted 4/6/2020

JK Associates, LLC, offers a full line-up of all services an individual taxpayer will need. This includes all the forms and schedules typically filed by most of our clients — Schedules A, B, C (sole proprietors), D (investments) and E (rentals).

We offer tax planning including helping our clients with special situations, such as

  • retirement planning
  • understanding required distributions from retirement plans and the tax implications of those distributions
  • starting a business
  • divorcing or just divorced
  • stock options and restricted stock units
  • estate and trust returns
  • inheritances
  • getting the dreaded letter from the IRS or the state taxing authority

Among our clients:

  • Retirees
  • Doctors
  • Lawyers
  • Yoga teachers
  • Artists
  • College professors
  • Engineers
  • Pastors
  • Teachers
  • Realtors® and Real Estate Agents
  • Small business owners
  • Freelance writers
  • Investors
  • Dentists
  • Carpenters
  • Small business startups

We like to get to know our clients so they consider us a trusted source of help with all of their tax concerns — and they talk with us before they make what could be a costly mistake. In our first meeting with new clients, we take the time to review previous tax returns and ask lots of questions to help us prepare an accurate, current return. We will ask clients to complete a questionnaire about income and potential deductions. We also require you to sign an Engagement Letter. This spells out our responsibilities to you as well as your responsibilities in helping us prepare an accurate return for you.

Our standard is that every tax return is treated with the same care and concern that we use in our own returns. That means that if something appears to be wrong or missing, we’ll contact you. We get to know our clients, learning about their lives to identify possible tax issues or opportunities. We stay current on the rules and will work to get you the largest honest refund possible. We won’t fill your head with a lot of confusing jargon, and we won’t put you into a position that we cannot defend. We’ll keep your data secure. And we’ll do all of this at a fair price.

Let’s get started

There’s always paperwork — from a tax organizer to engagement letters — to complete so we can start preparing your tax returns.

PLAN AHEAD: For 2021 tax returns, our deadline for receiving your documents is March 1, 2022, with the exception of brokerage statements and K-1s, of course. Documents received after this date will likely be put on extension. 

We offer two easy ways to get started. You can now sign our engagement letter and fill out our questionnaire 100% online – click below to be taken to Cognito forms. Or, you can contact us and we will send the documents to you via email or snail mail. Please try to complete as much as possible before our meeting — but we’ll help you complete it if necessary.

Individual Engagement Letter/7216/Privacy Policy

Individual Questionnaire

If you cannot access the online forms, here are PDF versions:

2020 Individual Engagement Letter/7216/Privacy policy

2020 Individual Questionnaire

Forms you may or may not need to fill out:

2020 1040 Due Diligence This form is required if you are claiming dependents or have education credits.

2020 Business Interview Use this form if you have a business, farm or rental property.

Here are a few other forms that we may ask you to complete:

2020 Foreign Interests If you were born or lived outside of the US, have family in another country, have foreign bank accounts, pensions, trusts, etc, please complete this form.

New Client Information Sheet  for new clients

Conflict of Interest Waiver If you are separating, divorced, or living apart (both spouses must sign thier own form)

Tax Year 2020 – Two special items

First – the stimulus payments. We must know how much you received for each stimulus payment in order to correctly prepare your tax return in 2020. If the wrong amount is put on your return, the IRS will delay processing of your return. Even though they know how much you got, the IRS has not provided us with a web tool to look up this information. You may have received Forms 1444 and 1444-B listing the stimulus amounts you received. You may also have direct deposit bank records (though there were offsets for back child support). Otherwise, if you need to find out the amount of stimulus that you received you will need to look at your IRS account transcript for 2020. You can request your transcript online on the IRS website.  You will need to register and verify your identity (but, we have heard that only half of taxpayers are able to complete the online verification process). An alternative is to give JK Associates permission to get your transcript by filing Form 8821. Please download the form, fill in your information in Section 1 and sign it. Return the signed form to the office (upload or drop-off, no email please!) and we will submit it to the IRS – it will take at least 4 weeks though before we are able to access your transcript, so we will have to extend your return.

Second – dependents, especially your college students. There are several reasons your dependent may want to claim themselves this year – to get the stimulus payments or avoid kiddie tax on their unemployment. However, if your child is your dependent, they cannot claim themselves on their own return even if you don’t claim them on yours. The best way to show they are not a dependent is to prove they provided over half of their own support – the IRS has a worksheet to help you calculate support.

We are open year-round and love to talk taxes. Give us a call. 410-884-0317