Dayes Financial Services

02/06/2025

Accepting New Clients!

02/05/2025

Need an Amendment? We can help! Contact us today for assistance.

If you have documents that you missed on original return, 810 Refund Freeze or just got caught up in the hype. We can help!

01/30/2025

Don’t you dare leave money on the table! Contact us today!

01/19/2025

Choosing us as your trusted partner in tax preparation is your best choice!

Ready to file click the link below

Please click the link to complete this form.

01/18/2025

📌IMPORTANT INFORMATION PLEASE READ

The Internal Revenue Service and partners in the Coalition of Scam and Scheme Threats (CASST) today released changes for the 2025 filing season designed to help protect taxpayers from becoming victims of a scam or scheme and preventing tax professionals from having their credentials compromised.

The changes to protect taxpayers include a new form involving the Fuel Tax Credit that’s designed to make it harder for well-meaning taxpayers to be misled into claiming the credit by promoters. This specialized credit that’s been promoted on social media is designed for off-highway business and farming use. Taxpayers need a business purpose and a qualifying business activity such as running a farm or purchasing aviation gasoline to be eligible for the credit. Most taxpayers don’t qualify for this credit.

The IRS is also stepping up review on a variety of “other withholding” claims on Form 1040 that have been targets of scammers and schemers. And the IRS is reaching out to taxpayers who have potentially been using “ghost preparers” to prepare tax returns. These preparers don’t identify themselves on the tax return, which is a red flag for taxpayers to be misled into a scam or scheme.

Here are key details:

➡️Who should file the new statement? Individuals filing Form 1040, U.S. Individual Income Tax Return, for tax year 2024 who claim nontaxable use of gasoline, aviation gasoline, undyed diesel fuel or undyed kerosene on Form 4136, Credit For Federal Tax Paid On Fuels.

➡️Where is the new statement located? “Statement Supporting Fuel Tax Credit (FTC) Computation – 1” is located in the instructions for Form 4136 for tax year 2024. The statement should be completed and attached to Form 1040 with Form 4136.

➡️What information is the statement asking for? The statement asks for the business information, including name and Employer Identification Number or EIN (if applicable), and make, model and type of machinery or vehicle for which the fuel was purchased.
The taxpayer will also be required to complete a table to show the relationship between the estimated purchase price of the fuel compared to the actual cost and gallons reported as being purchased on Form 4136. The IRS used Gasoline and Diesel Fuel Update - U.S. Energy Information Administration (EIA), when determining the average price of fuel for the year.

➡️Should documentation to support the claim be included with the statement? No. Taxpayers should not include any receipts or explanation with their tax return but maintain them with their books and records for their tax return. Taxpayers may be asked at a later time to submit proof, such as receipts, of the actual costs paid for each fuel type.

➡️What happens if the Fuel Tax Credit is claimed erroneously? Claims and filings that are based upon a position identified as frivolous by the IRS or reflect a desire to delay or impede tax administration are subject to the Internal Revenue Code (IRC) 6702(a) penalty. This penalty is $5,000 for each return (or copy of return) claiming an improper credit as defined above. The penalty is assessed against each spouse on a married filing joint return. (Notice 2010-33)

📌Increased Review of “Other Withholding” Claims – To protect taxpayers, the IRS is increasing its review of “Other Withholding” on Line 25C of Form 1040. To reduce potential delays in verifying the “Other Withholding” claimed, taxpayers are encouraged to attach the supporting documentation to their return. Key forms covered by Line 25c, “Other Withholding”, include Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding; Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax; Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests; Form W2G, Certain Gambling Winnings; Form 8959, Additional Medicare Tax; and Schedule K1, Partner’s Share of Income, Deductions, Credits, etc.

📌Increased “Ghost Preparer” Education – During the 2025 filing season, the IRS will send letters to taxpayers whose tax returns appear to have been completed by a paid tax preparer who did not sign or include their preparer tax identification number (PTIN) on the tax return. The letters are meant to educate the taxpayer about “ghost preparers” and to help the IRS identify those who are being paid to prepare returns and are not signing or including their PTIN on the return. The IRS continues to see instances where ghost preparers dupe taxpayers into filing inaccurate tax returns for bigger refunds. The preparers later vanish like a ghost, leaving the taxpayer exposed to inaccurate claims.




Contact us for more info or assistance 608-671-6150

01/18/2025

🗣️IMPORTANT 🚨🚨🚨🚨

IRS just announced Jan 27th is the date they will accept 2024 tax returns.

Let’s get ready for an awesome tax season

Things to remember

1. Gather all tax documents, if you’re waiting for W2s please wait to file
2. If you have an IP PIN, retrieve it by accessing your ID.me account
3. If your children was issued an IP PIN, you should have received a letter from the IRS
4. By having all of your documents organized will help for a seamless process.
5. Contact Dayes Financial Services for assistance

Ready to file now ➡️ https://portal.dayesfinancial.com/intake

Want to get the process started ➡️ https://form.jotform.com/243217668146057

Please click the link to complete this form.

01/17/2025

🔑 Why Do Small Business Owners Choose Daye's Financial Services? 💼

At Daye’s Financial Services, we understand the unique challenges that small business owners face when it comes to taxes. Here’s why so many choose us to handle their tax needs year after year:

📈 Maximize Deductions & Savings: We don’t just file your taxes – we uncover every deduction, credit, and strategy to help you keep more of your hard-earned money!
👨‍💼 Personalized Service: Your business isn’t just a number to us. We take the time to understand your goals and tailor our approach to fit your specific needs.
🔒 IRS Compliance Experts: No need to stress about audits! We keep you compliant and ensure you avoid penalties with our extensive knowledge of IRS regulations.
💡 Year-Round Support: Taxes aren’t just a once-a-year thing. We provide guidance all year long to make sure you’re always prepared for tax season.
⚖️ Trusted and Reliable: Our clients count on us for accurate, timely service and tax strategies that deliver results.

Let us handle your taxes so you can focus on growing your business. 💼✨

Contact Daye’s Financial Services today to get started!
dayesfinancial.com
608-671-6150
https://form.jotform.com/243217668146057

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01/17/2025

🚨There is some confusion about the W-4 form and withholdings 🚨

CHECK OUT THESE FAQ’S

1. Why redesign the W-4?

➡️ The new design reduces the form's complexity and increases the transparency and accuracy of the withholding system. While it uses the same underlying information as the old design, it replaces complicated worksheets with more straightforward questions that make accurate withholding easier for employees.

2. What happened to withholding allowances?

➡️ Allowances are no longer used for the redesigned Form W-4. This change is meant to increase transparency, simplicity, and accuracy of the form. In the past, the value of a withholding allowance was tied to the amount of the personal exemption. Due to changes in law, currently you cannot claim personal exemptions or dependency exemptions.

3. What happens if I only fill out section 1 of the W-4 and then sign the form?

➡️ Your withholding will be computed based on your filing status's standard deduction and tax rates, with no other adjustments.

4. When should I increase my withholding?

➡️ You should generally increase your withholding if:

✅you hold more than one job at a time or you and your spouse both have jobs (Step 2) or
you have income from sources other than jobs or self-employment that is not subject to withholding (Step 4(a)).
✅ If you do not make adjustments to your withholding for these situations, you will very likely owe additional tax when filing your tax return, and you may owe penalties. For income from sources other than jobs, you can pay estimated tax instead of having extra withholding.

5. When should I decrease my withholding?

➡️ You should generally decrease your withholding if:

✅you are eligible for income tax credits such as the child tax credit or credit for other dependents (Step 3), and/or
✅ you are eligible for deductions other than the basic standard deduction, such as itemized deductions, the deduction for IRA contributions, or the deduction for student loan interest (Step 4(b)).

6. I want a refund when I file my tax return. How should I complete the redesigned W-4?

➡️ The redesigned Form W-4 makes it easier for you to have your withholding match your tax liability. But if you prefer to have more tax than necessary withheld from each paycheck, you will get that money back as a refund when you file your tax return (keep in mind though you do not earn interest on the amount you overpay). The simplest way to increase your withholding is to enter in Step 4(c) the additional amount you would like your employer to withhold from each paycheck. Note, even if you don't have any income tax withheld from your wages, you may get a refund if you are eligible for tax credits such as the Earned Income Credit, the Additional Child Tax Credit, or American Opportunity Credit.

CONTACT US FOR MORE INFO OR ASSISTANCE 608-671-6150

01/16/2025

🚨IMPORTANT ANNOUNCEMENT🚨

There are 16 states offering child tax credits eligibility and amount varies by state, with 12 of the states making the credit refundable, so you can get a refund even if you don't owe tax.

✅ Arizona: $100 per dependent child under the age of 17, nonrefundable.

✅ California: $1,117 per qualifying dependent child under the age of 6, refundable. Income must be under $25,000 for full amount, amount reduced for families with income between $25,000 and $30,931. Must also qualify for the state's Earned Income Tax Credit.

✅ Colorado: Up to $3,200 per qualifying dependent under the age of 16, refundable. Exact amount will vary based on income, filing status, and the age of the child.

✅ Idaho: $205 per dependent child under the age of 17, nonrefundable.

✅ Illinois: Credit worth 20% of the state's Earned Income Tax Credit per dependent child under the age of 12, refundable.

✅ Maine: $300 per dependent child under the age of 17, refundable.

✅ Maryland: $500 per qualifying dependent child under the age of 17, refundable. However, the child must have a disability and the family's adjusted gross income must be $6,000 or less to qualify.

✅ Massachusetts: $180 for one dependent child under the age of 12, or $360 for two or more, refundable. Credit also applicable for adults 65 or older or anyone with a disability.

✅ Minnesota: $1,750 per dependent child, refundable, for individual filers making $29,500 or less, or $35,000 for joint filers.

✅ New Jersey: $500 per dependent child under the age of 6 for taxpayers making less than $30,000, refundable. Credit decreases in increments of $100 as income bracket increases, with the smallest credit, $100 per dependent, available to those with income of $120,000-$150,000.

✅ New Mexico: Between $75 and $175 per dependent child under the age of 17, depending on income level, refundable.

✅ New York: Credit is whichever value is higher for the taxpayer: either 33% of the portion of the federal child tax credit and federal additional child tax credit attributable to qualifying children, or $100 times the number of qualifying children. Credit refundable, children must be 16 or younger.

✅ Oklahoma: 5% of the federal child tax credit per household, nonrefundable. Not available for married couples filing jointly with gross income over $100,000.

✅ Oregon: $1,000 per dependent child under the age of 5, refundable. Only available for families making less than $30,000.

✅ Utah: $1,000 per dependent child between the ages of 1 and 3, nonrefundable. Credit decreases by $10 for every $1 of income over a certain threshold: $27,000 for married filing separately filers, $43,000 for single filers or $54,000 for joint filers.

✅ Vermont: $1,000 per dependent child under the age of 5 for taxpayers making less than $125,000, refundable.

Contact us today for assistance 608-671-6150

Ready to file ➡️ https://portal.dayesfinancial.com/intake

Want to get the process started but waiting on tax documents➡️ https://form.jotform.com/243217668146057

01/10/2025

🚨IMPORTANT INFORMATION ABOUT BOI REPORTING🚨

➡️In light of this recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

➡️The guidance contained in these FAQs addresses the requirements of the CTA and FinCEN’s implementing regulations. As these requirements are currently enjoined, the guidance here should be understood to address the requirements at such a time as the injunction may be lifted. While the injunction is in effect, reporting companies are not required to file beneficial ownership information with FinCEN.

Please visit FINCEN website to view the FAQs.

Contact us 608-671-6150 for assistance

01/07/2025

W4 Form
W-4 is an important document that you will fill out when you start working at a new job. It is also known as an employee’s withholding certificate. Your employer uses this document to determine how much tax to withhold from your pay.

🚨PLEASE UPDATE W4 WHEN YOUR SITUATION CHANGES!!🚨

🚫 IF not enough tax is withheld from your paychecks, you may owe taxes to the government.🚫

💵Alternatively, if more money is withheld from your paycheck than what you owe in income taxes, you may receive a tax refund. 💵

📌Filling out a W-4 form accurately matters, because the IRS will use this information to determine how much income tax you owe at the end of the year. The following steps will show you how to correctly fill out a W-4:📌

✅STEP 1: Enter Your Personal Information (name, address, ssn and filing status)
*The filing status that you select will dictate the amount of income tax you are responsible for paying annually, based on your family situation.*

✅STEP 2: Multiple Jobs or Spouse Works
*Complete this step is you hold more than 1 job or is filing married filing jointly and your spouse works.*
*Make sure to complete Steps 3–4(B) on the W-4 of your highest-paying job only.*

✅STEP 3: Claim Dependents and Other Credits
*On the first line multiply the number of qualifying children under 17 by $2,000.*
*On the second line multiply the number of other dependents over 17 by $500.*
Add these 2 numbers together to find your total dependent credit amount. Showing that you plan to claim dependents on your tax return will lower the monthly income tax withholding. You can also leave the section empty. More money will be withheld from each of your paychecks, however, you might later receive a tax refund.

✅STEP 4: Other Adjustments
*You may wish to change your deductions for extra withholdings.*

✅STEP 5: Sign and Date
*Once you have completed the form, verify that all information is correct. Sign and date the form and give it to your employer. You may wish to keep a copy for your records, as well.