Author: staff

The Department of Labor (DOL) has a new overtime pay rule that went into effect on July 1, 2024. It raised the minimum salary for many workers up to $43,888 in order for them to not be paid overtime wages for any hours worked over 40 each week. Starting January 1, 2025, that minimum salary increases to $58,656. The Department of Labor’s news release has some more information on the ruling.

There are exceptions to the overtime pay rule for employees considered executive, administrative, or professional. The title of the employee does not determine if they qualify for the exemption; the specific work they perform is what would qualify them for the exemption. Although the dollar amounts have not been updated for the new rule, the Wage and Hour Division’s Fact Sheet #17B: Exemption for Executive Employees Under the Fair Labor Standards Act (FLSA) has more details on the different exemptions.

This is general information on this new ruling and is not legal advice. We want you to be aware of these changes. If you have any questions, please reach out and we will help if we can or direct you to someone that would be able to help.

As April 15^th approaches, we want to ensure a smooth and efficient filing process for you. To facilitate this, kindly inform us of any changes in your personal information, such as:

• Change of address
• Welcoming a new addition to the family
• Updates to your email address or phone number
• Marital status changes (marriage or divorce)
• Real estate transactions (buying or selling a house)

Our tax return services are tailored to meet your convenience through two methods: in-house appointments or drop-off/pickup. If you would like your return to be expedited, we suggest that you come in for an in-house appointment.

In-House Appointments

In-person appointments typically take about one hour, depending on the complexity of your tax forms. To schedule an appointment, please reach out via email or phone. During the appointment, you and the preparer will review and input the necessary tax information. The return will undergo a thorough review, and you can conveniently sign and make the payment in one session.

Drop-off/Pickup

For a hassle-free option, gather all your tax documents and deliver them to us through in-person drop-off, mail, or secure email via our website portal (https://www.brunettellc.com/send-documents-securely/). Our tax preparer will commence work on your return, and any follow-up questions will be addressed through a phone call. You will be informed of your refund or amount due and given the choice to sign your tax return in person or electronically. After the initial contact, your tax return will be reviewed and assembled. When the return is ready to be signed and filed, you will receive another call from our office.

Signing Options

• If you choose to sign electronically, you and your spouse will receive an email containing the digital tax return and invoice details.
• If you prefer in-person signing, visit our office, sign the return, and settle the invoice. Our administrative assistant will guide you through the return details during this visit.

Upon signing the tax return and settling the invoice, we will promptly file your tax return.

We accept payments in the form of check, cash, or credit card (over the phone). Additionally, ACH deposit setups for tax refunds or amounts due can be arranged upon request.

Kindly note that both spouses must sign the tax return.

Having trouble locating your Marketplace Healthcare 1095 form? Please click this link for a guide.

Extensions

If you anticipate the need for an extension, please inform us in advance. It’s crucial to understand that an extension to file does not extend the time to pay. Any taxes owed may accrue interest and late fees during this period.

The sooner you provide us with your tax documents, the smoother and quicker the entire process will be. We appreciate our clients who have already contacted us and been proactive regarding their tax return details.

Thank you for choosing us for your tax filing needs. We look forward to serving you.

Best regards, Brunette Tax & Accounting

Our first newsletter in 2024 contains important tax updates for businesses and individuals.

The Corporate Transparency Act (CTA) was enacted into law for 2021 but does not apply to businesses until 2024. This requires the disclosure of the beneficial ownership information (BOI) of certain entities from people who own or control a company.

What entities are required to comply with this requirement?

Entities organized both in the US and outside the US may be required to file a report. Domestic companies include corporations, limited liability companies (LLC), or any similar entity created by filing a document with the state.

If the entity was not created by filing a document with the state, then there is no filing requirement.

Are there any exemptions from the filing requirements?

Yes. The more common ones are (see the link below for all exemptions): banks, investment advisors registered with the SEC, insurance companies who are subject to supervision by the insurance commissioner, tax exempt entities, and a large operating company. A large operating company has the following: employs more than 20 full time employees in the US, has an office in the US, and has filed a tax return for the previous year that shows more than $5,000,000 in gross receipts or sales (net of returns and allowances) within the US.

Who is a beneficial owner?

A beneficial owner is any individual who, directly or indirectly, either exercises substantial control over a reporting company or owns/controls at least 25 percent of the company. Senior officers of the company can exercise substantial control even if they have no ownership in the company.

When must companies file?

New entities must file within 30 days of creation (for 2024 only, the time frame is 90 days from creation). Existing entities must file by 1/1/25. If a company makes a change (ex: new owner, new officer that can exercise substantial control), an update must be filed within 30 days of the change.

What information will be reported?

Companies will report their full name, any DBA’s, address, state, and IRS identification number.

Beneficial owners will have to report name, birthdate, address, and a unique ID number from an acceptable document (ex: driver’s license or passport) and an image of that document.

What if I don’t file?

The penalty for not complying with this requirement can result in a fine of $500 per day and up to $10,000 with up to two years of jail time.

Where do I file?

The report can be filed here: https://www.fincen.gov/boi. Additional information can also be found on that site.

Can Brunette Tax file this for me?

We are unable to file this for you. This can be considered practicing law which we are not licensed to do. We cannot advise on completing this form either as it would constitute practicing law. The FAQ section on the link above has a lot of information. If you need help with this form, go to the link above or else contact a lawyer.

To see if a vehicle itself qualifies for the Electric Vehicle Tax Credit, you can visit this Fueleconomy.gov tool. Note that there are additional rules that come into play:

• The cost of the vehicle can’t exceed $80,000 for vans, SUVs, and trucks. Other vehicles can’t exceed $55,000.
• You only qualify for the credit if your income is less than $300,000 for married filing jointly, $225,000 for head of household, or $150,000 for all other filers

See the IRS page Credits for New Clean Vehicles Purchased in 2023 or After or contact us for more information.

The IRS has set the 2023 mileage rates as follows:

Business	65.5 cents per mile
Charity	14 cents per mile
Medical	22 cents per mile

Our year end newsletter is available here. Thank you for being a valued customer.

Here are some highlights from the Inflation Reduction Act that was signed into law on August 16^th:

1. The cost of Marketplace health insurance remains capped for everyone. You only have to pay at most 8.5% of your income or the total cost of the premiums, whichever is lower. This was extended through 2025.
2. The 2021 Energy-efficient Home Improvement Credit was extended through 2022. The lifetime limit is $500.
3. The Energy-efficient Home Improvement Credit was expanded for 2023 and going forward. The credit resets annually (as opposed to a lifetime limit) and has a $1200 limit.
4. Solar, geothermal, wind, biomass fuel, and fuel cell tax credits will go back up to 30% until 2032. The percentage had been slowly decreasing.
5. The Qualified Plug-in Electric Drive Motor Vehicle Credit is now the Clean Vehicle Credit. If you signed a contract/purchased a vehicle before August 16, 2022, the old rules apply. If you sign into a contract for a car after this date, there are more restrictions on who/what qualifies:
   • The vehicle needs to have final assembly in North America starting August 16, 2022. The manufacturer will have this info.
   • Starting in 2023, there are limits on where the battery components can come from and still qualify. Starting in 2024, critical minerals of the battery have limits on where they can come from as well. The car manufacturer will have to provide this information to the buyer.
   • There are income limits to who can claim the credit. Your adjusted gross income (AGI) must be below $300,000 for married people, $225,000 for head of household filers, and $150,000 for single tax payers. This starts in 2023.
   • Car makers that were previously phased out of the credit due to number of sales will have their vehicles eligible for the credit again if they meet the requirements listed in the first two bullet points.
   • Used electric vehicles can potentially qualify for a smaller version of credit.

See this article for more information: Inflation Reduction Act and Taxes | Kiplinger or feel free to contact us.

Starting July 1, 2022, the IRS has updated the mileage rate for the rest of 2022 to be $0.625 per mile. Please separate out any mileage logs to show Jan-Jun and Jul-Dec mileage. Here is more information from the IRS.

Wisconsin Help for Homeowners is a program that was just released. You may qualify to receive some funds from the state if you meet all of the following:

1. You are a Wisconsin homeowner living in a:
   1. Single family home
   2. Duplex
   3. Condo
   4. Factory-built home
2. You have been financially impacted since January 21, 2020
3. Your household income is at or below 100% of the county median. Check your income here

For more information and to find out how to apply, visit the Wisconsin Help for Homeowners information page.