113 Maple Road — Lexington, SC 29073 — Phone: 356-1963

First let us wish you a blessed holiday season for 2003. The news from BRB TAX for the year 2003 is good.

I would like to welcome H&H Tax clients to BRB TAX, LLC. I was sorry to hear about Grace passing away as she had been a friend for over ten years. Your files have been transferred to my office and I will be glad to assist you in your tax needs. For those who do not know, BRB Associates purchased H&H Tax and has now changed the name to BRB TAX, LLC. By adding H&H Tax to BRB, it has been necessary to make business changes. I have merged the prices of the two businesses to form one standard pricing, most people will not notice more than a $10.00 difference from last years pricing. The parking has been increased from six to a total of 18 parking places. The two places on the West Columbia side are for handicapped parking only, and the other parking places are all on the Lexington side. Because of the increase in vehicle traffic it will be necessary that everyone enter on the Lexington side and exit on the West Columbia side. The drive goes around the back.

Lexington side is Entrance Only

West Columbia side is Exit Only

Other business changes: You may phone: 803-356-1963 or 803-359-0013, to contact us. The fax number is 803-356-2741. The office will be offering RALís (Refund Anticipation Loans). In addition there is now a website at brbtax.com. If any of you have e-mail addresses and would like to receive newsletters via e-mail please sign up for this when you come in or log on and sign up. Because of the volume of work that the office will be doing it is necessary to hire additional people. My son, Jonathan will be working with me preparing tax returns, bookkeeping and payroll. There may be additional preparers in the office at peak times. It will also be necessary to hire two or three people to answer phones and file. This is part-time, temporary work for January through April. The hours will be split amongst two or three people. If you or someone you know is interested send or bring me a letter or resume with prior work experience and hours available.

New office hours for January through April will be: Monday through Friday, 9:00 a.m. to 8:00 p.m. and Saturday 9:00 a.m. to 4:00 p.m. We will make appointments for Jonathan and myself, Brenda Brazell and will take walk in traffic as well. Due to the volume of calls that will be coming in, please do not ask for Brenda just to make an appointment. I cannot take all the calls. If you have a question please let the person who answers the phone take a message and your call will be returned.

Please let us know what you would like done with your files prior to 2000. If you choose not to take them, they will be shredded. IRS requires that we keep files for three years, we will keep four. Normally taxpayers should keep returns for three years from due date or date filed, easier to say four. But if you have capital gains, sale of houses, rental property, businesses that may have losses that need carried back, etc you may need more than this. I suggest you keep all copies of your tax returns. The backup for the returns should be kept for four years.

Income Tax News: In order to boost the economy, Congress has implemented some planned tax changes early. These changes will only be for two years and then will again revert to old law. One change was the Advanced Child Tax Credit. The Child Tax Credit was changed from $600 to $1000 for all children under age 17. In order to boost the economy $400 was advanced to the parents. When we file your tax return, we will show the $1000 less the amount you have already received. If you would have received the money except it was applied to a debt you owed, you are deemed to have received it and it will be subtracted on your tax return. You can see it will be important to know how much you received or would have received. We will need the paper or card you received from the IRS. If you do not have it or do not know the amount then please try to obtain this information before your tax visit. You can log on to the IRS website (irs.gov) and find out the amount or you can call the IRS at 1-800-829-1040. If you do not bring this amount with you it will delay the processing of your tax return and refund. In 2005 the Child Tax Credit will go to $700 per child under age 17.

Another change implemented early was the amount of the standard deduction and tax brackets for the Married Filing Joint clients. The amounts are now twice the amount of the single person. This will help the people who do not itemize and will help all MFJ filers on the tax brackets. This should be a savings worth a minimum of $300 for MFJ clients. This will be good for two years and then will go back down and be phased in again in 2008 or 2009. In 2002 the standard deduction for MFJ was $7850 and for 2003 will be $9500. This saving should have been seen in your withholding from your paycheck. This will not necessarily mean a larger refund when you file your tax return. If you do itemize it may mean a smaller refund since you received a larger paycheck due to the smaller amount withheld from your paycheck.

  • For the 2003 tax return, the Earned Income Credit has been changed. The maximum EIC someone can receive for no children is $382. For one child it is $2547 and for two or more children it is $4204. The maximum income is $11,230 for no children, $30,666 for one child and $34,692 for two or more children. Late this year or early next year 25,000 people in the United States will receive form 8836, Earned Income Credit---pre-certification. If you receive this form you need to act promptly as your tax refund will be delayed until IRS receives this information and processes it.
  • The Child Care Credit (Daycare) has been increased from a maximum of $480 to $600 per child.
  • Divorced or Separated Parents: If the non-custodial parent is to claim the child dependency exemption then the form 8332 must be filled out and attached to your tax return. The divorce decree will not be sufficient now. The custodial parent is who the divorce decree says the child lives with the majority of the time. It does not matter who the child lives with but who the divorce decree says. This form can be filled out for one or more years. It may be filled out for future years.
  • If you move you should file a change of address with the IRS, form 8822. The IRS uses your last known address or what is on your tax return. If you move please also notify BRB TAX, LLC.
  • Any form needed can be obtained by calling the IRS at 1-800-829-3676, logging on to the IRS website, irs.gov or by coming by BRB TAX, LLC.
  • The personal exemption for 2003 is $3050. One of the dependency tests is the gross income test. If the person is not a full time student and under age 24 can I claim them as a dependent? Not if they make $3050 for 2003. Is my child required to file? A dependent is required to file if they earn $4750.
  • Did you refinance your home? If so bring your closing papers. Do you have a student loan? Did you check on refinancing of this? You may be able to lower your interest rate.
  • Did you default on a loan or credit card? This may result in a form being mailed to you where you must include an amount as income on your tax return.
  • Please make sure you have all W-2ís and necessary tax information before you come.
  • Education Credits Ėtuition and books for taxpayer, spouse and dependents, this is on amounts not covered by scholarships and grants, but does include money you finance through student loans.
  • The maximum IRA Contribution is $3000 or $3500 for over age 50. There is a savers credit, which may help you finance the amount of your IRA contributions. It is for taxpayers who put money in a retirement plan, do not take distributions and are not full time students. Income must be less than $25,000 for single, $37,500 for head of households and $50,000 for married filing joint.
  • Did you get married, divorced, have a baby, change your name, if so we need copies of your social security cards. If you bring the social security cards, we will make copies and keep them in your file in our office.
  • Did you pay estimated taxes in 2002: Please bring amounts and dates paid.
  • Over the counter medicine is allowed for Flexible Spending Account deductions but not for Schedule A, medical deductions.
  • Charitable contributions of $250 or more need receipts.
  • Did you sell a home with an office in the home in 2002 or 2003, please let us know. The rules were changed and amending your 2002 return may result in a refund.
  • Capital Gains can be taxed at different rates depending on holding period and dates of sale. Dates purchased and sale dates are very important. (5%, 8%, 10%, 15%, 18%, 20%, 25%, and 28%)
  • Mileage rates are: 2003 Business 36 cents/mile, Charity 14 cents and medical and moving 12 cents
  • Names and Social Security Numbers on W-2ís and 1099ís must match the personís social security card. Please verify this information with your employees and subcontractors.
  • Depreciation: Section 179 expensing up to 100,000, depending on dates purchased 30% or 50% additional bonus depreciation is also available. Bring the dates you purchased assets. The bonus depreciation is not allowed on the SC return.
Copyright © 2003-2006 BRB TAX, LLC. All rights reserved.