Thank you for visiting our website. Our dedication to quality client service includes an informative firm website as we endeavor to provide the highest quality professional service.

2023 Tax Season Information

Your 2023 individual income tax returns are due Monday, April 15, 2024. We can promise to have your returns completed and back to you in time for filing, only if your completed organizer and tax information are in our office by Monday, March 4, 2024. Please plan to return your signed E-file authorization forms to us no later than Monday, April 8, 2024.

Entity returns are due on various dates which are in the schedule in this letter. Please review the dates that data is due in our office, as well as filing and extension dates. Please forward this letter to your bookkeepers so that they can get your data to you in a timely manner.

Organizers- Please complete your data organizer as thoroughly as possible. The better organized you are, the faster your income tax returns can be completed which, in turn, will reduce the preparation time and costs. Please let us know if you would like your original tax data returned to you. We are planning to use CCH ProSystems to process your 2023 income tax returns. We have used CCH ProSystems services for over thirty-five years, and we have been very pleased with their confidential and professional processing of returns.

We have the option of sending you an electronic organizer through the SafeSend Organizer program.  This is an interactive tool so that you can fill out your tax information online and upload tax documents directly into the SafeSend Organizer.  When completed, you can electronically send back to us.  We plan to use these SafeSend organizers next year exclusively, unless you request a paper copy to fill out.

Completing an Organizer - Please review your organizer carefully. Cross out any items that are pre-printed, but no longer apply to you (children filing their own returns, bank accounts, etc.). If you receive W-2's, 1099's, brokerage statements, K-1's, clip them to the appropriate pages in the organizer. There is no need to rewrite this information. The organizer is a guide for you to gather the paperwork we will need to prepare the return.  Please keep your organizer until it is complete.  If you always have a late K-1 however, send everything else and note what you are waiting for.  If you upload your data, please request a link from our office when your data is substantially complete.

SafeSend Return Delivery – We will continue to deliver all tax returns electronically, via SafeSend.  SafeSend is a safe delivery method that protects your data and allows you to review your returns, electronically sign e-File forms, pay tax due payments

and estimates.

Mandatory Health Insurance (Individual Coverage Responsibility – California Only)

Prior to 2019 the IRS was handling the enforcement of mandatory health insurance coverage for individuals as previously enacted by the "Obamacare Act".  The penalty for failure to maintain a minimum health insurance coverage was administered via the federal tax return.  Starting in 2019 the IRS is no longer enforcing a required mandatory coverage.  However please be aware that California and some other states have their own mandatory health insurance coverage provisions.  Furthermore, please note that if you availed yourself of Advance Premium Credits for your health insurance and the amount of such credit taken is higher than the allowed based on your Modified Adjusted Gross Income you will still be required to repay the excess credit so taken on your 2020 federal tax return.  Therefore, it is imperative to submit with your tax data to us any Form 1095-A, 1095-B or 1095-C you will receive from your health insurance provider so that we can correctly prepare the applicable form on your federal tax to reconcile the Advance Premium Credits.  Failure to do so will result in delays of your tax return processing by the taxing authority and generally the IRS will issue a notice requiring you to submit the credit reconciliation form before your filed federal tax return can be processed.  Similarly, it is important to provide to us the California equivalent tax forms (Form 3895) supplied by your health insurance provider which are separate from the federal forms and are essential to apply the mandatory minimum health coverage reconciliation on your 2022 California tax return.

New Rules for Clean Vehicle Credit

Unlike the last several years, 2023 did not bring any new significant changes from tax legislation.  However, the Inflation Reduction Act of 2022 significantly revised the electric vehicle tax credit rules.  Starting in January of 2023 it is very important to verify that an electric vehicle is a qualifying vehicle since the act is bringing strict manufacturing rules for the eligibility of the credit.  Please consult the dealer whether the car is eligible when you are considering a purchase.  You can cross-reference their statements by using the lookup tool provided by the IRS on the official IRS website.  Furthermore, effective 01/01/2023 the credit will only be available to taxpayers subject to gross income limitations: $300,000 for married filing jointly, $225,000 for Head of Household and $150,000 for all other taxpayers.  Finally, the credit will be available only for vehicles with MSRP not exceeding $80,000 for vans, pick-up trucks or SUV’s and not exceeding $55,000 for other vehicles.                                                                                                            

We are looking forward to working with you again this year.

Jorstad Incorporated

Timothy Jorstad

Rado Simeonov

John Kirk

Michael Stites

These are standard billing rates, higher rates may apply to special projects

E-Mail & Website - Jorstad Incorporated's website provides company information, financial tools such as loan amortization calculators, newsletters and other articles concerning financial and tax matters and a calendar of important due dates and deadlines. Please take a minute to tour our web site. All staff members have e-mail addresses which appear on the website. www.jorstad.com