Gigantic LED Screen Premieres on East Wall of Thousand Oaks Civic Art Plaza

Last night, a gigantic LED sign premiered on the east wall of the Thousand Oaks Civic Arts Plaza. Constructed in 1994, the Civic Arts Plaza will make its presence even more apparent to passing motorists on the northbound 101.

Project Manager R.U. Kidinme remarked "We are excited to swap the Copper Curtain for a more modern Times Square look on the east side of the building." Assistant Manager Noah Wei nodded his head in agreement.

The original design featured over 2,000 17 inch strips of copper that were meant to flutter in the wind like a wave. Due to concerns about safety and noise, the strips were nailed to the building.

The new LED sign, measuring approximately 240 by 330 square feet, will emit the brightest neon light display on the west coast. Thousand Oaks resident April Fuwels said "Although I'll need to keep my sunglasses handy as I drive by, I just love this new look."

April fools! this is view of the civic arts plaza the morning of monday, april 1, 2024. Yes, we had some storms all easter weekend which brought snow to the local mountains in the background!

Rotary Club of Simi Sunrise "Simi Smiles" Peace Project Rock Exchange at Corriganville Park

Rotary Club of Simi Sunrise recently installed a community peace themed rock exchange at Corriganville Park, 7001 Smith Road, Simi Valley.

Through the efforts of Simi Sunrise, the city of Simi Valley has been established as an International City of Peace, one of 375 Cities of Peace in 70 countries.

To encourage the community to promote peace, students were invited to design hand-painted rocks to spread peace, love and friendship. Over 500 rocks with these themes were created and were placed in a large peace sign formation adjacent to the Corriganville Park parking lot.

Learn more about the Rotary Club of Simi Sunrise at rotaryclubofsimisunrise.org.

More on the International Cities of Peace movement at www.internationalcitiesofpeace.org. Other local Cities of Peace include Ojai, Santa Barbara and Los Angeles.

Chinese Year of the Water Rabbit Starts Today, January 22, 2023

Lunar year 2023, starting today, January 22nd, through February 9, 2024, is the Chinese Year of the Rabbit.

The Rabbit is the 4th animal on the Chinese zodiac, which also includes the Rat, Ox, Tiger, Dragon, Snake, Horse, Goat, Monkey, Rooster, Dog and Pig. Twelve animals in all, on a 12 year rotation. The Rabbit is a symbol of longevity, peace and prosperity in Chinese culture.

2023 is the year of the Water Rabbit. There are five elements associated with the Zodiac signs - Wood, Fire, Earth, Metal and Water. Combined with the 12 zodiac animals, each combination of animal and element rotates in on a sixty year cycle. Those born in Water years are agile, easygoing, approachable, and adaptable.

Celebrity Water Rabbits include Michael Jordan, Johnny Depp, Quentin Tarantino, Brad Pitt, Jennifer Beals, Phoebe Cates, Mike Myers, Helen Hunt and Lisa Kudrow.

Rabbits are, of course, the namesake of the Conejo Valley, and we are so close to the Pacific Ocean that the Year of the Water Rabbit is particularly special for residents of this beautiful area.

California 16 and 17 Year Olds Can Pre-Register to Vote Online

In 2014, California Governor Jerry Brown signed Senate Bill 113 by Sen. Hannah-Beth Jackson which allowed voter pre-registration beginning at age 16 once the California’s statewide voter registration database, VoteCal, was certified. VoteCal was certified in September 2016. 

Pre-registering to vote helps enable California youth to vote as soon as they turn 18. The process can be done online at registertovote.ca.gov as long as 16 and 17 year olds have signatures on file with the DMV. If signatures are not on file, they may pre-register by completing a paper form and mailing to their county elections office.

Pre-registration applies to California youth who are 16 or 17, a U.S. citiizen and resident of California, not currently in state or federal prison or on parole for a felony and not currently found mentally incompetent to vote by a court.

My 17 year old did it and said it took less than 5 minutes.

Learn more at www.sos.ca.gov/elections/pre-register-16-vote-18.

All About the Advance Child Tax Credits That Commenced Today, July 15, 2021

Today, the IRS started sending out “Advance Child Tax Credits” to eligible taxpayers for 2021 that were voted into law as part of the American Rescue Plan Act in March.

The law did a number of things for the 2021 tax year only:

• It increased the amount of the Child Tax Credit from $2,000 for dependents under age 17 to $3,600 for ages 5 and under and $3,000 for ages 17 and under.

  • Dependents age 18 and up continue to generate a $500 tax credit, with no advance credit.

  • Note that in prior years, the credit dropped from $2,000 to $500 at age 17, not age 18. So effectively the Child Tax Credit for dependents age 17 increased from $500 to $3,000 for year 2021, which is quite substantial.

  • The ages are determined as of 12/31/21.

• The law allows for Advance Child Tax Credit payments to taxpayers over a 6 month period beginning July 15 through December 15, 2021. The advance payments are as follows:

  • Up to $1,800 of the $3,600 tax credit for ages 5 and under at a rate of $300 per month, beginning July 15th.

  • Up to $1,500 of the $3,000 tax credit for ages 6 to 17 at a rate of $250 per month, beginning July 15th.

  • The remaining 50% of the tax credit will be applied as usual when you file your 2021 tax return in 2022.

• However, there is a “first phaseout” of the increased Child Tax Credit in 2021 once your 2021 modified Adjusted Gross Income (AGI) reaches $150,000 for married filing joint, $112,500 for head of household and $75,000 for single filers.

  • This first phaseout begins to reduce the Child Tax Credit from $3,000 or $3,600 down to $2,000.

  • The reduction is $50 of tax credit for each $1,000 in AGI in excess of the limits shown above. That means the Child Tax Credit drops to $2,000 if your income is $30,000 (ages 6 to 17) or $36,000 (ages 5 and under) greater than the limits.

• There’s also a “second phaseout” if your income reaches $400,000 married filing joint or $200,000 for other filing statuses as there has been in prior years.

Isn’t this great how uncomplicated the rules are? <sarcasm>

How do they determine if you will be receiving the Advance Child Tax Credit? Based on your 2020, or if not filed yet, your 2019 tax return.

The IRS will be sending out “Letter 6419” next January to show the total amount of Advance Child Tax Credits paid. They will need to be included in your 2021 tax returns to derive any remaining Child Tax Credit.

The Advance Child Tax Credits are not taxable income. HOWEVER, if your tax situation changes significantly in 2021 and as a result you are not eligible for the full Child Tax Credit, but you receive the Advance Child Tax Credits, you may have to pay back some of the money when you file the return. For example:

• Your income increased in 2021 and you are no longer eligible for the increased tax credit.

• You no longer claim the dependent for whatever reason.

If you think you are in this situation, you can OPT OUT of receiving the Advance Child Tax Credits at https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021.

• You cannot opt out of payments already received, but you can opt out of future payments.

Inversely, your tax situation may have changed in 2021 that would allow you to receive more Advance Child Tax Credits:

• You had a baby in 2021 or otherwise have additional dependents under age 18.

• Your AGI dropped in 2021 and as a result you are now eligible for Child Tax Credits based on your reduced income.

• Your tax filing status changed in 2021 (single to married, or vice versa) and that changes your eligibility for Child Tax Credits.

Goldstein Weiss, CPAs www.goldsteinweiss.com 818-876-8380

Go to the link above to update your information with the IRS to start receiving Advance Child Tax Credits.

How Much of the 2021 Recovery Rebates Will You Receive and When Will You Receive Them?

The latest stimulus payment is called the 2021 Recovery Rebates to Individuals, written into Part 1 of H.R. 1319 - American Rescue Plan Act of 2021. The American Rescue Plan was signed into law yesterday, March 11, 2021.

Recovery “Rebate” is a bit of a misnomer, as a rebate usually refers to refunding something that was previously paid. That is obviously not the case here. But hey, we can get past that.

How much is it?

The Recovery Rebates are up to $1,400 per person, including the primary taxpayers and their dependents. So a family of four can receive up to $5,600. A single taxpayer can receive up to $1,400. The Brady Bunch could receive as much as $11,200 (or even $12,600 if Alice was claimed as a dependent by Mike and Carol Brady). That’s some serious cash! Or a single parent with one kid could receive as much as $2,800.

This $1,400 per person is for ANY dependent properly claimed by the taxpayer, unlike the previously two credits, which limited the dependents to kids under age 17. That’s a huge change for some taxpayers.

What are the income caps?

• Single and Married Filed Separate: You get the full rebate if your “Adjusted Gross Income” (AGI) was under $75,000 and it phases out at $80,000.

• Head of Household: Full rebate if your AGI was under $112,500, completely phasing out at $120,000.

• Married Filing Joint: Full rebate under $150,000; completely phasing out at $160,000.

Those are some very narrow phaseout ranges!

Based on what?

• If your most recently filed tax return is for 2019, your AGI will be based on that.

• If you have already filed your 2020 return and the IRS has processed it, your AGI will be based on this return.

• What if you’ve filed 2020 already but your 2019 AGI is lower than your 2020 AGI? While I’m not clear on it from my read of the law, I would assume they use the lesser of the two.

What if I haven’t filed 2020 yet?

• If you haven’t filed 2020 yet and did not receive the full payment based on your 2019 return, you have another chance to receive a payment if you get your return filed the earlier of 90 days after the 2020 filing deadline (April 15th plus 90 days = July 15th) or September 1st.

• Huh? That’s strange. Why isn’t it just July 15th? I guess because if the IRS decides to extend the due date of the returns, then September 1st will be the absolute final day to get another payment in 2020. Short of that, plan on July 15th.

• Long story short: GET YOUR 2020 TAX RETURNS FILED ASAP if your 2019 AGI precludes you from getting a 2021 Recovery Rebate.

THE IRS HAS A PAYMENT LOOKUP TOOL TO SEE IF YOU’RE GETTING PAID AND WHEN THEY PLAN TO PAY IT AT sa.www4.irs.gov/irfof-wmsp/login

What if I don’t get the rebate based on my 2019 or 2020 returns?

• You’ve got one more chance! When you file your 2021 tax return in 2022!

• If you fall into this category and are on the cusp of receiving a payment but your income is too high, perhaps some tax planning is in order:

  • Perhaps you are a single mom with one kid and you make $80,000 in 2021.

  • You earned too much in 2019 and 2020 to receive the $2,800 credit.

  • Get that $80,000 down to $75,000 by contributing $5,000 to your work 401(k) or to an Individual Retirement Account (IRA) and, wallah, you get a $2,800 refundable credit on your 2021 tax return. That’s an immediate 56% tax-free return on your $5,000 investment.

• Another example:

  • You are a family of 5 - Mom, Pop, Little Joey, Big Sis Allie and Granny Mabel, who is claimed as a dependent. That’s, ka-ching, That’s $7,000 in Recovery Cash (hey, I like the sound of that better than Recovery Rebate!).

  • Mom and Pop made had AGI of over $160,000 in 2019 and 2020 and thus did not receive any of this rebate.

  • They know in late summer they will have and AGI of $160,000. So, once again, consider putting $10,000 into a 401(k) or IRA (traditional, not Roth) to get that AGI down to $150,000. Invest $10,000 and receive $7,000 in rebates. Hard to beat that investment!

Other Questions

• Are these payments taxable? No.

• What if I don’t file 2019/2020 tax returns? If you received a previous stimulus payment without filing taxes, you’ll probably receive one again (assuming you are still eligible). Perhaps the IRS may have a 2021 Recovery Rebate tool to input your banking info again at www.irs.gov/coronavirus/non-filers-enter-payment-info-here.

• I really don’t need this extra money. What can I do with it? Donate it to Conejo Valley Guide, and we will put it to work in the local economy by purchasing gift cards and giving them away in drawings on our Facebook page at www.facebook.com/ConejoValleyGuide. Donations via credit card at bit.ly/CVGFund, paypal.me/ConejoValleyGuide or Venmo (@CVGuide).

Pressing tax questions? Call us at 818-876-8380. Goldstein Weiss, CPAs is located in Calabasas.

Beginning in Tax Year 2020, Eligible U.S. Taxpayers May Deduct up to $300 in Charitable Contributions from Gross Income

The CARES Act of 2020 brought about a change in how the IRS defines “Adjusted Gross Income” (AGI) on your tax returns.

Starting in 2020, “the amount (not to exceed $300) of qualified charitable contributions made by an eligible individual during the taxable year” are deducted, among other things, from gross income, in determining AGI.

The above language came out of the Internal Revenue Code. Let’s attempt to decipher this into language actual humans can understand.

The Short Answer

II you do not itemize deductions, starting in 2020, you can take as much as $300 in charitable contributions you make during the year. This reduces your taxable income and you may owe less taxes as a result.

How much less in taxes depend on your tax bracket, which can vary from 0 to 37% on your federal tax return. If you are already paying no federal taxes, this won’t change your tax bill. But otherwise, if you’re in, say, the 22% bracket and you gave $300 to charity, your tax bill will be lower by about $66.

What about state taxes? It’s not clear yet if California state law will conform to this law. If it does, that could save you a few more $$ on your state tax return.

Cash Contributions Only

Only charitable contributions made in cash (or credit card) are considered for this deduction. Non-cash deductions, such as giving used household items to Goodwill, are not included.

As a reminder, cash contributions to charities less than $250 require one of the following forms of documentation by the IRS: A bank record (e.g. canceled check or bank/credit card statement); a receipt showing the date, amount and name of the charity; or a payroll record, if it was withheld from your paycheck. Cash contributions over $250 also require a written acknowledgement from the charity showing date and amount and if any goods or services (other than religious benefits) were provided. You don’t need to attach this information to your return or anything; just keep it in your files.

$300 Per Return

So how does the $300 work for married couples? Is it $300 each? Nope. The $300 applies to all taxpayers. Yet another example of the “marriage penalty.” The $300 is per return.

What if you file married filing separate? There has been no clarification on this yet. We shall see.

Can I Take the Deduction If We Itemize Deductions?

No. If you itemize deductions, take the deduction there. If you are reading this, chances are that you did not itemize deductions in 2019. Before the Tax Cuts and Jobs Act of 2017 (TCJA), about 30% of taxpayers itemized deductions. After TCJA, it is estimated that only 10% of taxpayers itemize.

So give away if you can! Local Ventura County area charities at THIS LINK.