Welcome to the homepage of Rochester Tax Service, where we are as professional as we are personable! This website exists to provide potential clients with information concerning our services and our unique, low-pressure approach to personal and professional accounting. We have an excellent client-retention rate, and we are extremely proud of the high-quality services that we provide. Please, feel free to contact us when you are ready to learn more about what we can do for you!
CHANGES IN YOUR TAXES
Congress made many changes to the income tax laws in 2020 which changed the forms. One of these changes includes the reporting of your non-taxable Recovery Rebate Credit, YES we need to know the amount.
- IRS opens to receive tax returns, January 21th(?), we can prepare them for you before then and transmit on the 21th. Not sure about refund dates.
- Estimates: fourth quarter federal and state estimates are due 01/15/2021. If you are not sure what to pay or need an estimate form, please contact us.
- Charitable Contributions: An automatic $300 adjustment to income per tax return if you do not itemize.
- Investment Income: check with your financial advisor what dividends and capital gains that will be taxed on your 1040, you might want to make an estimate.
- Marketplace Health Insurance: If you purchased your health insurance in the marketplace we will need the 1095A from the health insurance company to report on your 1040.
- Unemployment Insurance: your will need to log into your IDES account and print the 2020 1099G form to be reported on your tax return.
- Standard Deduction Increases: $200-$400 depending on filing status.
- Residential energy credits: are available 2020. Additional information will be needed from you to see if you qualify.
- Real Estate tax: Did you turn 65 in 2020? You are eligible for a $5,000 reduction in your assessed valuation, and if you income is less than $65,000 you can freeze your real estate taxes. In 2020 this freeze was automatic if you had it the year before, but it will need to be done by 07/01/2021 to renew.
- License Plate Discount: over 65 and low taxable income can qualify you for two years of reduced fee.
- Dependent tax returns: did your 16 year old (or older) get that first job and wants to file their tax return make sure they do not claim themselves.
- Required Minimum Distributions: RMD age is going up to 72.
- Over 70 ½, and still working: You can now contribute to an IRA in 2020
- Tax Returns we will NOT prepare: due to complexity/legality.
- Buying/Trading in Cryptocurrency, i.e. Bitcoin
- Growing/selling Marijuana
- Investments in Qualified Opportunity Zone Funds.
Rochester Tax Service
130 South John Ste. A
P O Box 583
Rochester, IL 62563-0583
- Do not bring us your prior year return, unless you are new.
- Social Security raise for 2021 of 1.3% . If you are drawing early, the earning limitations have also increased.
- If you bring your tax information in big envelope, please write on it with a pencil, not pen, we can reuse it. Thanks….
- We can help prepare 1099-NEC for subcontractors and other 1099-Misc forms.
- 2020 Mileage rates: .575 cents for business; .17 cents medical and .14 cents for charity.
- 2021 Mileage rates: .56 cents for business; .16 cents medical and .14 cents for charity.