Tax Year 2024
Access your folder in the portal: https://www.encyro.com/my
Welcome to 2025!
I hope that each of you had a lovely holiday and that the New Year is off to a good start.
While 2024 was a rather ‘slow news’ year on the tax front, it is likely that 2025 will be quite active. The tax provision from the 2017 Tax Cuts and Job Act are set to sunset at the end of this year. It is unlikely that congress will allow them all to expire. Thus, there could be some new legislation.
We have all had our first years’ experience with Encyro, the new portal. They have recently made a number of changes and enhancements that I feel are very positive. I suggest that you log in to your folder and give it a look before you are ready to upload your docs. If you spend a bit of time exploring, you may find that it is easier to use.
To access your folder click: https://www.encyro.com/my This will take you to the log-in page. If you set up your folder last year with a password, you do not need a new link to access the portal. Reminder: your email address is your username. If you want to use a difference email address, I can make that change for you. Your password from last year will continue to work. You can reset your password, if you wish, from the log-in page.
With the increased standard deductions, many people who had traditionally itemized their deductions have taken the standard deduction for the past several years. For 2024 the standard deductions are: $14,600 for Single and $29,200 for Married filing jointly. Those age 65 and above have additions to these deductions (S- $1,950; MFJ- $1,550). For many state returns, itemized deductions are tied to the federal. In some cases, it saves overall to itemize deductions even when the total is less than the federal standard because of the savings for the state. Feel free to send all of your itemized deduction figures so that I can evaluate which works best for you. With the $10,000 cap on deductible taxes, the sales tax deduction can sometimes be more advantageous than the state tax deduction. If you bought a car in 2024, be sure to give me the sales tax paid. Also, include non-taxables such as VA disability for this calculation.
For retirement contributions: the IRA contribution increases to $7,000 (plus $1,000 for those age 50+) for 2024. This remains $7,000 for 2025. Contributions to employer plans (401k, 403b, TSP) are $23,000 (plus $7,500 for age 50+) for 2024 and $23,500 (plus $7,500 for age 50+) for 2025.
You can send your info by mail, drop off at my house or upload electronically. If you are mailing your documents, be sure to send copies and keep your originals. You do not want your original documents going through the mail. Please use the client folder on my website when sending your documentation electronically. Do not attach your documents that contain private personal information to an email. The IRS requires that I send and receive sensitive information securely. Email attachments are not secure thus should not be used to send your sensitive personal information. Please do not attach documents to text messages. I will not open attachments. It is too risky for the safety of your personal information.
The IRS has become increasingly vigilant with procedures for security and requirements for documentation. Many of you are aware of the tremendous problem of identity theft. In addition there have been cases of criminals hacking into tax preparers’ computers and stealing sensitive information and filing fraudulent returns. The IRS is requiring even more password protection than ever. I also take this very seriously and have my computer and my software password protected. Mail theft has become an increased threat. I advise being very careful with what you send in the mail.
I am including your Tax Organizer worksheets. The Organizer is a tool for you to use to gather your tax documentation. On the first page of the Organizer make sure that all of your contact information is current and verify that your driver’s license info is accurate. Please answer each question on the 3 pages of questions.
I hope you will use some of the helpful tools that are available on my website. There are newsletters and calculators as well as the portal to the secure client area. Feel free to take advantage of these resources.
You have probably already begun to receive those precious envelopes marked: "Important Tax Information". I am ready as soon as you get your info together.