Message from Joyce Burchett
January 1, 2020
Dear Clients and Friends,
As I sit here and contemplate the last year, there are so many emotions. The 2018 tax year brought us the largest piece of tax changes in the “Tax Cuts and Jobs Act” passed December 19, 2017 in 30 years (3 decades). It is still being defined, interpreted and debated.
This will be my 33rd year in the tax business. It doesn’t seem possible. I remember my first client, the stress was so bad my hands were sweating. Unfortunately, that client passed away in the last year or so along with many more (9 in the last year). It brings me a sadness that I just lost my best friend. You are my adopted family and I just want you to know how much I appreciate your years of support and friendship. Don’t forget those people who have been beside you along the way and remember to thank them as you go. Thank you for your business in the years past and those ahead of us.
The Burchett Financial Services team will continue to consist of Lorraine, Fran, George and our greeter Riley who was 13 years old in December and continues to be going strong. We will be adding an additional person this year to break into the field.
We ask that you go through the checklist and prepare all of your information as instructed. Please update any information on the Client Information/Drop Off sheets before coming to the office. We have put this sheet on-line for your convenience and mailed a copy with your newsletter. Please don’t forget new emails, addresses and phone numbers as well as bank account info if direct deposit is desired.
Lastly, we will have to be very diligent with time management this year. My staff will have me adhere to a tight schedule. I will be cutting back on hours at the office so that I can give my full attention to your returns with fewer distractions. So I ask for your cooperation in this by being prepared for your appointment, have all necessary paperwork available and limit your questions to tax related subjects. If you need retirement or financial advice, please schedule those appointments during non-tax season time.
I thank you in advance for your cooperation, support, kind words, thoughtful gestures, friendship and referrals. I will be selective in referrals again this year so that I will be able to take care of my current client base and not extend myself beyond my capabilities.
I hope you had a great Holiday Season and look forward to seeing you soon!
Burchett Financial Services
Updates and Changes for 2019 & 2020 (Download & Print)
The Traditional IRA and Roth IRA jumps to $6,000 in 2019 and 2020 and if you’re 50 and over, you can contribute $1,000 more.
Income ceilings for Roth pay-ins phase out at $193,000 to $203,000 for couples and $122,000 to $137,000 for individuals.
For 2020, maximum 401K, 403B and 457 contribution rises to $19,500 and over 50 can contribute
an extra $6,500. The cap on simple plans goes to $13,500 and over 50 can put in $3,000 more.
The 2019 standard mileage rate for business driving goes to 58 cents a mile.
Expired tax breaks for 2018 have now been extended. They include private mortgage insurance
write-off , $2M exclusively for forgiven debt on a home, deduction for college tuition, lower
medical AGI deduction on Schedule A and bio diesel credit.
There is a revamped Form W-4 or a withholding form for 2020. You are not required to submit a new W-4 for 2020. The service has a new on-line withholding estimation to help you figure out whether you are having the correct amounts withheld from paychecks and retirement income.
Congress agreed on the government funding bill, just in time for the holidays so no government shut-down this year. A lot of tax and retirement provisions were added on at the last minute.
The batch of expired tax breaks from 2017 and some for 2018 have been extended through 2020. This means you can go back and amend returns for 2018.
Retirement savings legislation is in the package. The Secure Act increases age for RMD’s from 70 ½ to 72 and others.
Relief for taxpayers affected by natural disasters similar to hurricane Harvey, Irma and Maria.
Not included are the fixes to technical glitches in the 2017 tax reform law. Tax breaks for green energy and an expanded income credit and child credit.
We can’t include everything here but I will be updating the website at www.burchettfinancial.com
We have included on the website the highlights of the 2018 tax reform and updated it with the changes. Please check it out and we will keep you updated during the tax season and beyond --------
That’s all folks!!!!!!!!!!!!