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Davette Lynne Hrabak CPA

Davette Lynne Hrabak, CPA [Article #1]

Welcome to the My Price County Page for Davette Lynne Hrabak, CPA.

Website: http://www.DavetteLynneHrabak.com

Facebook: http://www.facebook.com/davettelynnehrabak

Phone: 715-339-6638

Address: 164 South Lake Avenue, Phillips, WI 54555 (Enter between the lion statues.)

Davette Lynne Hrabak, CPA, located at 164 South Lake Avenue in Phillips, specializes in tax return preparation, business start-up services, consulting, bookkeeping, payroll, and all your accounting needs.

[Edited by My Price County on Feb 09, 2021 at 03:58 AM]

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Davette Lynne Hrabak, CPA

Feb 20, 2016
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Davette Lynne Hrabak, CPA [Article #2]

In Part 2 of 2, Davette Lynne Hrabak, CPA provides helpful information regarding charitable contributions, health savings accounts, the Earned Income Credit, educational grants, and some quick tax facts. Read the final set of articles in this series.

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YOU MAY BE ABLE TO TAKE A DEDUCTION FOR CHARITABLE CONTRIBUTIONS EVEN IF YOU ARE UNABLE TO ITEMIZE

By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA

http://www.DavetteLynneHrabak.com

Most people are aware that charitable contributions are tax deductible if you are able to itemize and you meet the proper criteria for the deductions. But this year for your 2020 tax return there is a change. If you are not able to itemize, you still may be able to deduct your charitable contributions.

The above–the-line deduction is for certain cash donations that were made to public charities. Therefore, for this deduction, donations of personal property to a charitable organization would not count. The deduction is limited to $300 per taxpayer.

This deduction is only for people that do not itemize.

As with all itemizing, be sure to have and keep proper proof of your donation that you used for your deduction in your records.

Remember, if you have already filed but realize that you could have had a credit or deduction that you missed, it is not too late; you can always amend your return. If you need more information or believe you could qualify for them, I would be happy to give you a free quote on the preparation of your return.

When the right tax and financial advice is essential, talk to someone with an unmatched level of knowledge, experience and education. A CPA understands the business of taxes and finance and can provide trusted advice and services during the tax season and throughout the calendar year.

Feel free to call me at my office, (715-339-6638), located between the lion statues located at 164 South Lake Avenue, Phillips, WI 54555, for a free, no obligation quote.

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WHEN IN DOUBT, BRING IT IN AND BRING IT UP

By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA

http://www.DavetteLynneHrabak.com

There are so many credits and deductions available to taxpayers, many which individual or business taxpayers may not be aware of. Each person’s individual tax situation is unique. An individual that is lower income, or someone who has kids, a person who owns and runs a business or a rental, or someone who has a combination of factors on their returns each have unique needs and unique deductions and credits.

It is virtually impossible for an individual to know what all is deductible and what is not on their own. So when you bring your items into be prepared, do not hesitate to talk to your CPA. Mention any questions that you have, discuss what all has gone on in your year financially. Many times these conversations open a person up to finding out that they have more deductions and credits available to them than they thought. Remember, there is no such thing as a stupid question.

Sometimes these helpful conversations can even lead to planning for the future. For example, maybe you have an item that would have been deductible had you taken certain steps in documenting it. The discussion would lead to letting you know what you can do for the following year to make next year’s taxes more bearable.

If you think you have an item that could be deductible, bring it up and ask about it. The worst thing that could happen in bringing it up is that you find out it is not deductible. The best thing is that you find out it is deductible or it sparks additional questions that could lead to something else that may help you in your own individual tax situation.

Bring your prior year return in with you, that way it can be looked over. Having a thought-provoking discussion and the prior year return available can go far in making sure things have been done the way that they should have been, and, if an issue is found, the best possible course of action can be discussed.

In my practice, I have had new clients come in that did not realize the deductions and credits that they missed in prior years' returns, and many are surprised that some of them can still be claimed without amending a return (for example, a missed Homestead Credit in a prior year) or via amending a return, if needed, for some items that can only be corrected in that manner.

Feel free to call me at my office, (715-339-6638), located between the lion statues located at 164 South Lake Avenue, Phillips, WI 54555, for a free, no obligation quote.

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HSAs: HEALTH SAVINGS ACCOUNTS

By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA

http://www.DavetteLynneHrabak.com

You may have heard about Health Savings Accounts. They are a savings account that is set up and used exclusively for paying for qualified medical expenses for the account beneficiary and/or dependents and/ or spouse of the beneficiary.

They are a valuable tool to help assist in the costs of individual and family health care.

If you qualify for a Health Savings Account there are differences in limitations based on Self-only or Family coverage.

For 2020 some of the limitation cut-offs are as follows:

For Self-only Coverage:
Contribution (deduction) limit $3,550
Plan minimum deductible $1,400
Plan out-of-pocket limit $6,900

For Family Coverage:
Contribution (deduction) limit $7,100
Plan minimum deductible $2,800
Plan out-of-pocket limit $13,800

There is an annual contribution amount increase of $1,000 for anyone who is age 55 or older.

Feel free to call me at my office, (715-339-6638), located between the lion statues located at 164 South Lake Avenue, Phillips, WI 54555, for a free, no obligation quote.

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2020 QUICK TAX FACTS

By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA

http://www.DavetteLynneHrabak.com

Each year the IRS releases and revises various rates, exemptions, and limits, some of which are listed below.

Standard mileage rates are available to taxpayers in certain situations. The current rates for the filing of your 2020 income tax return are as follows:

Business Standard Mileage Rate: 57.5 cents per mile
Medical Standard Mileage Rate: 17 cents per mile
Charitable Standard Mileage Rate: 14 cents per mile
Gift Tax Annual Exclusion: $15,000

Each person’s tax situation is unique. Sometimes the only deduction available is a standard rate and other times the taxpayer has an option to choose to use standard rates or actual amounts. The circumstances of which is most appropriate to use must be looked at on a case-by-case basis for each taxpayer; rarely are any two taxpayers situations identical.

Feel free to call me at my office, (715-339-6638), located between the lion statues located at 164 South Lake Avenue, Phillips, WI 54555, for a free, no obligation quote.

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THE 2020 TAX YEAR EARNED INCOME CREDIT: IN SOME CASESE, EVEN IF THERE ARE NO QUALIFYING CHILDREN

By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA

http://www.DavetteLynneHrabak.com

The Earned Income Tax Credit is a credit that is available to many taxpayers. It is based on a person’s income and the number of qualifying children that they have. However, many people do not realize that if a taxpayer’s income level falls within certain parameters, then a person whom does not have any qualifying children can qualify for the credit if all criteria are met.

The Earned Income Tax credit is a complicated credit that has many rules and adjustments to a taxpayer’s income but it is an often used credit and provides a refund to many people, even in cases where the taxpayer has not had any federal or state withholding taken out of their pay. It is part of a group of credits which are called refundable credits, which basically means that a taxpayer can get back more than what they had withheld from their paychecks.

The maximum Earned Income Credit amounts available to taxpayers is dependent on whether or not the taxpayer has children, and, if they have children, the number of children they have.

If a taxpayer has no children the maximum credit that they could qualify for is: $538.00.
If a taxpayer has one child the maximum credit that they could qualify for is: $3,584.
If a taxpayer has two children the maximum credit that they could qualify for is $5,920.
If a taxpayer has more than two children the maximum credit that they could qualify for is $6,660.

Wisconsin has a Wisconsin Earned Income Credit which provides additional amounts based on individual taxpayer facts and circumstances.

Feel free to call me at my office, (715-339-6638), located between the lion statues located at 164 South Lake Avenue, Phillips, WI 54555, for a free, no obligation quote.

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2020 STUDENT EDUCATIONAL GRANTS CAN BE TAXABLE

By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA

http://www.DavetteLynneHrabak.com

Many taxpayers are surprised to learn that some of the money that their children receive from scholarships and grants may be taxable.

It is true that there is a Scholarship and Fellowship Exclusion; however, this is only a partial exclusion based on how the funds are used and in order to qualify for that exclusion the person must be a degree candidate. The Degree Candidate must also be a primary or secondary school student, a college undergraduate or graduate student, or a part-time or full-time student at an accredited educational institution that provides a program that is acceptable for full credit towards a Bachelor’s or higher degree. The program that the school offers must be a program of training to prepare students for gainful employment in a recognized occupation.

If the person is not a degree candidate, all amounts received are generally taxable.

If the person is a degree candidate, then only amounts used on tuition fees, books, supplies, and equipment are tax-free. Any amounts spent on room & board and travel are taxable. This, at times, causes some confusion among many taxpayers and can result in some students inadvertently doing their tax returns incorrectly.

Scholarship and fellowships include items such as Pell Grants and other Title IV Grants that are need-based education grants.

There are, however, additional exceptions to this including if the scholarship or grant was provided by a tribe subject to the Tribal General Welfare Act.

Remember, if you have already filed but realize that you could have had a credit or deduction that you missed, it is not too late; you can always amend your return.

When the right tax and financial advice is essential, talk to someone with an unmatched level of knowledge, experience and education. A CPA understands the business of taxes and finance, and can provide trusted advice and services during the tax season and throughout the calendar year.

Feel free to call me at my office, (715-339-6638), located between the lion statues located at 164 South Lake Avenue, Phillips, WI 54555, for a free, no obligation quote.

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“When it comes to taxes, save the lion’s share; enter between the lions to get this special care.”

[Edited by My Price County on Mar 01, 2021 at 05:11 PM]


Feb 09, 2021
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My Price County

Davette Lynne Hrabak, CPA [Article #3]

TAX ADVICE FROM DAVETTE LYNNE HRABAK, CPA


In Part 1 of 2, Davette Lynne Hrabak, CPA provides helpful information regarding a new Recovery Rebate Credit due to Coronavirus, other credits, and things to consider regarding retirement and your taxes. Read the first set of five articles in this series.

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NEW FOR 2020 TAX YEAR: RECOVERY REBATE CREDIT

By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA

http://www.DavetteLynneHrabak.com

As you have heard about and may have received, during 2020 and/or 2021, from the Coronavirus Aid, Relief, and Economic Security Act, there is a recovery rebate(s) for eligible individuals. You should have received Notice 1444 which shows the amount of the economic stimulus payment that you received. This new credit is a reconciliation of the economic impact payment received with the allowable recovery rebate credit, and it takes place on your 2020 return.

The credit will be reduced, but not reduced below zero, by the amount of the payment that you received.

The IRS has created this new form for your tax return to help ensure that taxpayers have gotten the proper credit. It allows a taxpayer who did not receive the proper amount to apply for it on their 2020 tax return.

Remember, if you have already filed but realize that you could have had a credit or deduction that you missed, it is not too late; you can always amend your return. If you need more information or believe you could qualify for them, I would be happy to give you a free quote on the preparation of your return.

When the right tax and financial advice is essential, talk to someone with an unmatched level of knowledge, experience and education. A CPA understands the business of taxes and finance and can provide trusted advice and services during the tax season and throughout the calendar year.

Feel free to call me at my office, (715-339-6638), located between the lion statues located at 164 South Lake Avenue, Phillips, WI 54555, for a free, no obligation quote.

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A 2020 TAX YEAR TIP: QUICK RETIREMENT TAX FACTS

By Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA

http://www.DavetteLynneHrabak.com

Each year the IRS releases and revises various limits for various retirement type accounts, some of which are listed below:

IRA Contribution Limits:
Under age 50: $6,000
Age 50 or older: $7,000

Elective Deferral Limits On:
Simple IRA Plan:
Under age 50: $13,500
Age 50 or Older: $16,500

401 (k), 403 (b), and 457 Plans:
Under age 50: $19,500
Age 50 or Older: $26,000

Profit-Sharing Plan/SEP:
Contribution Limit: $57,000
Compensation Limit: $285,000 (for computing employer contributions)

Each person’s tax situation is unique. There are a variety of plans out there, the above list is not all inclusive, but provides some information on some of the most common ones. Each person’s tax situation must be looked at on a case-by-case basis for each taxpayer; rarely are any two taxpayer’s situations identical.

Feel free to call me at my office, (715-339-6638), located between the lion statues located at 164 South Lake Avenue, Phillips, WI 54555, for a free, no obligation quote.

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2020 TAX YEAR RETIREMENT SAVER'S CREDIT

By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA

http://www.DavetteLynneHrabak.com

The Retirement Saver’s Credit is available in 2020 to various taxpayers who fit into the proper criteria and who make eligible contributions. It is a non-refundable credit which allows for a taxpayer to receive a non-refundable credit of up to $2,000 for a Married Filing Jointly tax status and up to $1,000 for a Single tax filing status.

Many taxpayers are surprised to learn that they have contributions that count for this credit.

Qualifying taxpayers must be at least 18 years old by the end of the year, not be claimed as a dependent on another taxpayer’s tax return, and cannot be a full-time student.

The Retirement Saver’s Credit is also subject to phase-outs, which vary depending on a taxpayer’s filing status and Adjusted Gross Income amounts.

There are also rules on eligible contributions and some reductions of some eligible contributions, but, overall, many taxpayers are able to use this credit.

Feel free to call me at my office, (715-339-6638), located between the lion statues located at 164 South Lake Avenue, Phillips, WI 54555, for a free, no obligation quote.

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ARE YOU GETTING ALL THE CREDITS YOU QUALIFY FOR? A SUMMARY OF TAX CREDITS FOR 2020

By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA

http://www.DavetteLynneHrabak.com

There are a variety of credits available for the 2020 tax year. Of course, each has its own criteria and limitations. However, if you qualify for any of them, it will make quite a difference on your tax return. The following is a list of a number of the credits available and a brief summary of what they encompass.

The Additional Child Tax Credit: It is for taxpayers who do not claim the full $2,000 tax credit for each child due to circumstances on their returns and who have one or more qualifying children and over $2,500 of earned income or for taxpayers that have three or more qualifying children.

Adoption Expense: This comes into play if a child is adopted legally who is under age 18, or for the adoption of a person that is incapacitated or special needs (regardless of age).

Child and Dependent Care Credit: Expenses for care of dependent(s) whom are under the age of 13 or incapacitated that will allow a taxpayer to work or to look for work.

Child: If a taxpayer has a qualifying child under the age of 17.

Earned Income: Taxpayers with or without qualifying children who meet various income and other qualifications

Education, American Opportunity: For qualified higher education expenses for up to four years of qualified higher education.

Education, Lifetime Learning: Postsecondary education and other courses that are to acquire or improve job skills

Elderly or Disabled: Low-income taxpayers age 65 or older or permanently and totally disabled

Federal Tax Paid on Fuels: Fuels which are used on a farm for farming purposes or fuels for off-highway business use and other qualified uses

Foreign Tax: Income taxes that are paid to a foreign country or a U.S. possession on income that is subject to U.S. federal income tax.

Minimum Tax: If you are subject to Alternative Minimum Tax (AMT), this is a credit allowed against regular tax for part of the AMT paid and it is attributable to deferral items.

Mortgage Interest: A portion of interest expense paid by homebuyers whom have been issued a government mortgage credit certificate

Other dependents: A credit allowed for qualifying dependents that are not qualifying children.

Personal (Non-business) Energy Property: Homeowners who install certain energy saving improvements, such as insulation, doors, windows, heat pumps, etc.

Premium Assistance: This is for certain taxpayers who enroll or whose family member enrolls in a qualified health plan, which needs to be one that is offered in the Marketplace, meaning the health insurance exchange.

Recovery Rebate: A reconciliation of a taxpayer's economic impact payment that was received due to the COVID-19 pandemic with the taxpayer's allowable Recovery Rebate Credit on their 2020 return.

Residential Energy Efficient Property: This credit is for property that is installed on a taxpayer’s residence for items such as qualified solar electric, qualified solar water heating property, qualified fuel cells (for principal residence only), qualified small wind energy, or a qualified geothermal heat pump.

Retirement Saver’s: This is for people who make retirement plan contributions based on income level.

Small Employer Health Insurance Premiums: This is for certain small employers who pay health insurance premiums for their employees.

Feel free to call me at my office, (715-339-6638), located between the lion statues located at 164 South Lake Avenue, Phillips, WI 54555, for a free, no obligation quote.

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COULD YOU BE OVERLOOKING THE HOMESTEAD CREDIT?

By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA

http://www.DavetteLynneHrabak.com

Wisconsin has a credit that is known as the Homestead Credit. If you own a home or rent, you may be eligible to obtain a refund even if you are not otherwise required to file a tax return.

Below is a basic summary of the qualifications for a taxpayer to be eligible for the Wisconsin Homestead Credit. If you fall into the basic summary then it would be in your best interest to look further into the credit to ensure you qualify for it, as if you do, it is a very rewarding credit.

The Wisconsin Homestead Credit basic qualifications are as follows:

The property that you occupied and owned or rented, meaning your home, apartment, or other dwelling, must be subject to Wisconsin property taxes in 2020.

You must be a legal resident of Wisconsin for the entire 2020 year.

By December 31, 2020, you must have been 18 years of age or older.

Your household income, based on a formula used for the credit, must be less than $24,680 for 2020.

You must meet ONE of the following conditions:
A. During 2020 you or your spouse, if you were married, must have earned income during the year.
B. You or your spouse, if you are married, are disabled.
C. You or your spouse, if married, are at least 62 years of age or older by the end of 2019.

If you are under 62, you cannot be claimed as a dependent for the year on someone else’s federal tax return.

You and your spouse, if married, will not claim the Farmland Preservation Credit for 2020 or the Veterans and Surviving Spouses Property Tax Credit based on your 2020 property taxes.

You also cannot claim the credit if you lived for the entire year in housing that is exempt from property taxes.

At the time of filing, you cannot live in a nursing home or receive Title XIX medical assistance.

You cannot file a claim on behalf of a person after his or her death.

Also, you cannot have received Wisconsin Works (W2) payments of any amount or county relief payments of $400 or more for all 12 months of 2020.

The Homestead Credit is a very complicated credit which has a lot of modifications to the taxpayer’s income; however, it is also a credit that is very helpful to Wisconsin residents and one that is overlooked by many taxpayers who mistakenly think that just because they are not required to file a return that they then should not file one.

Remember, if you have already filed but realize that you could have had a credit or deduction that you missed, it is not too late; you can always amend your return. If you need more information or believe you could qualify for them, I would be happy to give you a free quote on the preparation of your return.

When the right tax and financial advice is essential, talk to someone with an unmatched level of knowledge, experience and education. A CPA understands the business of taxes and finance and can provide trusted advice and services during the tax season and throughout the calendar year.

Feel free to call me at my office, (715-339-6638), located between the lion statues located at 164 South Lake Avenue, Phillips, WI 54555, for a free, no obligation quote.

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“When it comes to taxes, save the lion’s share; enter between the lions to get this special care.”

Mar 01, 2021
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