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NEWSLETTER

IMPORTANT DUE DATES (2ND QUARTER)

APRIL 1-Deadline for first RMD to be taken (for qualified individuals)APRIL 15-Form 1040 (Individual tax returns) due without extension -Deadline for prior year IRA and HSA contributions -First quarter estimated tax payments due MAY 15 -Form 990 (Exempt organization tax returns) due with extensionJUNE 15 -Second quarter estimated tax payments due

HAS YOUR TAX SITUATION CHANGED?

Life events can have a profound impact on a person's tax situation. These events can lead to changes in income, deductions, and credits, all of which can significantly influence the amount of taxes an individual owes or receives as a refund. Below, we will explore some common life events and how they can affect your tax situation.
1. Marriage: One of the most significant life events that can affect your tax situation is marriage. When two individuals tie the knot, they have the option to file jointly or separately. This choice can impact their tax brackets, deductions, and credits. In many cases, filing jointly can lead to lower overall, but it is essential to analyze each couple's unique financial situation to determine the best approach.2. Divorce: Conversely, divorce is another life event with significant tax implications. Alimony, child support, and property settlements can all influence how taxes are handled. Are there children involved? Who gets to claim the child as a dependent? These have a large impact on your tax situation.3. Children: The birth or adoption of a child can alter a taxpayer's situation. Parents may qualify for various credits and deductions, such as the Child Tax Credit and the Earned Income Tax Credit. Additionally, childcare expenses may be eligible for the Child and Dependent Care Credit, reducing the tax burden for working parents.4. Homeownership: Purchasing a home can lead to several tax advantages. Mortgage interest and property taxes are often deductible, potentially lower a taxpayer's taxable income. Additionally, if you sell your primary residence, you may be eligible for a capital gains exclusion, which can shield a significant portion of the profit from taxation.5. Job Changes: Changing jobs or starting a new career can also impact one's tax situation. Different employers may offer varying benefits and retirement plans that affect both income and taxes. Is enough tax being withheld at the new job? Too much tax being withheld? Visit the IRS Withholding Estimator tool to find out...IRS Withholding Estimator6. Retirement: The transition into retirement is a significant financial milestone. Understanding the tax implications of withdrawals from retirement accounts, Social Security benefits, and other income sources is essential for ensuring a comfortable retirement without unnecessary tax burdens.7. Education Expenses: When taxpayers or their dependents pursue higher education, there are often tax benefits available. These can include the American Opportunity Credit, the Lifetime Learning Credit, and tax-free scholarships or grants. Making the most of these opportunities can help you reduce the cost of education.8. Inheritance or Windfall: Receiving an inheritance or a windfall can be both a blessing and a potential tax challenge. The tax consequences of these events depend on various factors, such as the type and size of the assets received. Proper financial planning and tax strategies can help you make the most of your newfound wealth.
In conclusion, a person's tax situation is not a static concept but one that evolves with life's changes. Eight Eleven Tax and Financial can play a vital role in helping you navigate these transitions, making sure you are aware of the tax implications and opportunities associated with their unique life events. By providing informed and proactive guidance, we can assist you in optimizing your financial well-being while minimizing tax liabilities.

DO YOU QUALIFY FOR A REDUCTION IN YOUR PROPERTY TAXES?

What is the Homestead Exemption? - Some states also offer homestead exemptions as a form of property tax relief. Under this type of exemption, homeowners may be eligible for a reduction in their property tax liability on their primary residence, effectively lowering the amount of property taxes they owe.
What is the exemption amount?- The specific amount of the homestead exemption can vary widely by state. Some states have a fixed dollar amount, while others base the exemption on a percentage of the property's assessed value or fair market value. The exemption amount may also vary depending on the homeowner's age, income, or disability status.
What are the eligibility requirements?- To qualify for a homestead exemption, homeowners typically need to meet certain eligibility criteria. These criteria can include using the property as their primary residence, being a legal resident of the state, and meeting specific income or age requirements, if applicable.
Are there any restrictions?- Homestead exemptions typically apply only to the primary residence, and they may not cover second homes, investment properties, or commercial properties. Additionally, there may be limits on the size of the property or acreage that can qualify for the exemption.
What are the filing requirements?- In many states, homeowners are required to file an application or claim for the homestead exemption with their local tax assessor's office. It's important to follow the rules and deadlines established by the state or local government to ensure that the exemption is properly applied.
How long does it last?- Homestead exemptions can provide protection for as long as the homeowner maintains their primary residence status and meets the eligibility requirements. If a homeowner moves or changes the use of the property, the exemption may no longer apply.
It's essential to consult with a tax professional or legal advisor who is knowledgeable about the specific laws and regulations in your state to understand the homestead exemption available to you and how it may impact your financial situation and property ownership. The details and benefits of homestead exemptions can vary significantly depending on where you live.Since we are located in Ohio, here is the link to the Ohio Department of Taxation's FAQ page.

NEED A NOTARY?

A notary public plays a crucial role in various legal and business transactions by providing authentication and verification services. You may need a notary for several reasons:
Document Authentication: Notaries are responsible for verifying the identities of the signatories on important documents, such as contracts, affidavits, deeds, and wills. Their seal and signature on the document confirm that the individuals signing it are who they claim to be.
Preventing Fraud: Notaries help deter fraud by ensuring that individuals aren't coerced or tricked into signing documents against their will. They also confirm that signatories are of sound mind and not under duress.
Legal Obligation: Some documents and transactions legally require notarization. These might include real estate transactions, wills, powers of attorney, and certain financial or legal agreements. Without notarization, these documents may not be legally valid.
Crossing Borders: If you're dealing with international transactions or documents, notarization can be essential for authentication. Many countries require notarized documents to validate their authenticity.
Financial Transactions: Notaries are often involved in financial transactions, such as loan signings, mortgage documents, and refinancing agreements. Their presence ensures that the parties involved are fully aware of the financial terms and that their identities are verified.
Custody and Guardianship Agreements: When establishing legal arrangements for the care of minors or incapacitated adults, notarized documents may be necessary to confirm the parties' intent and identities.
Compliance: Some businesses and organizations require notarization as part of their internal processes or to meet legal or regulatory requirements.
Dispute Prevention: Having documents notarized can help prevent future disputes by creating a clear and legally binding record of the parties' intentions and consent.
Peace of Mind: Notarization can provide peace of mind for all parties involved in a transaction, knowing that the process has been verified by a neutral third party.
Legal Record: Notarized documents create a legal record of the transaction, which can be important in case of future legal challenges.
To use a notary's services, you typically need to bring the document to be notarized, along with valid identification, to a notary public. The notary will verify your identity, witness the signing of the document, and affix their seal and signature to the document to complete the notarization process. The specific requirements and fees for notarization can vary by jurisdiction, so it's a good idea to check with your local notary or consult legal counsel to ensure compliance with applicable laws and regulations.Did you know that Eight Eleven Tax & Financial can provide you with Notary services? Contact us to schedule an appointment.

STRANGE NEWS!!!

BY AMY BETH HANSONUpdated 11:00 AM EDT, May 1, 2024ShareGalena, a 6-year-old house cat from Utah, likes hiding and playing with cardboard.Earlier this month, the combination of the two made for a stressful trip in an Amazon package, a feverish search, a California rescue and a tearful reunion.Her family is still waiting to “reintroduce cardboard to her again,” owner Carrie Clark said Tuesday, because they don’t want to stress her out.Clark got Galena as a kitten after her aunt rescued a pregnant feral cat. The American short hair with calico and Siamese coloring has been a constant companion and source of emotional support.“I’ve been through a bunch of health things and she and I have gone through all of that together. And she’s she just has this extra great part about her personality that’s very loving. And she can tell when you don’t feel well,” Clark said. “And she’s just really, really special to me.”So when Galena disappeared on April 10, Clark was beside herself.They searched the neighborhood, put up flyers and posted notices on Facebook lost pet pages in Lehi, Utah.“Not knowing what had happened to her was pretty excruciating,” Clark said, “I cried my eyes out for seven days trying to figure out what had happened.” Clark also ran through all the worst-case scenarios, wondering if the cat could have gotten out of the house and been nabbed by a predator or run over by a vehicle.Clark said she received a “text that changed my life” on April 17, saying that Galena’s microchip had been scanned, so Clark knew she had been found somewhere. Soon after, she got a call saying her cat was near Riverside, California, after being found in a box along with steel-toed boots that had been returned to an Amazon warehouse.Clark’s husband had ordered several pairs of boots, kept one and returned the rest in a large box on April 10.“We realized that that our sweet kitty must have jumped into that box without us knowing,” she said.Amazon employees knew just who to call when they found the feline — co-worker Brandy Hunter, who rescues cats, Clark said.Hunter took the cat home and to the vet the next day, where the microchip was scanned.Clark spoke with Hunter who “calmed me down and told me that my kitty was OK,” despite having spent six days in a cardboard box without food or water.“I wanted desperately to be with her,” Clark said. She and her husband flew to California the next day, reunited with Galena at the veterinarian’s office and rented a car to drive home.“We did what we needed to do because I just adore her,” Clark said.It was an intensely emotional week.“I went from hysterically laughing that she was stuck like that — we mailed our cat — you know ... just the humor part of that, to hysterically crying all within like five seconds,” Clark said.The family was lucky to get Galena back, Clark said, in part because the weather was not harsh during the time the cat was missing, the box was torn at a seam, allowing her to get more air, and because Hunter who took her to a vet and had her scanned for a microchip.Since word got out, Clark has been sharing her cat’s story, with advice to microchip your pets and to double-check your Amazon boxes before returning them.Galena is a quiet cat, Clark said.“She didn’t meow,” Clark said. “We would have loved for her to meow so we knew that she was,” in the box.