New Electronic Tax Return Delivery

System

As part of our effort to create a better client experience and streamline the e-signing and tax delivery process, DDK will now be using SafeSend Returns. SafeSend is a secure and easy program that allows our clients to receive, review, and e-sign their tax returns from their computer, tablet, and smartphone.

Easy 5-Step Electronic Tax Return Delivery Process

  1. You will receive an email from noreply@safesendreturns.com. The DDK logo will appear in this email. 
  2. Click on the secure access link contained in the e-mail.
  3. Verify your identity by entering the last four digits of your Social Security number.
  4. Check your email for a unique Access Code. If you don’t see it in your inbox, check your spam or junk folders.
  5. Congratulations! You now have access to your tax return. SafeSend Returns will walk you through the review and e-signature process with step-by-step instructions.

Video Walkthroughs of the Delivery Process:

Individual Client Tax Return Help

 

Entity Client Tax Return Help

  

Common Questions About our Tax Delivery System

Q: Is it safe to enter part of my Social Security Number?

A: Yes. SafeSend Returns offers a secure system to view and sign your e-file authorization form(s). Look for https:// at the beginning of the site URL and a locked padlock symbol in your browser’s URL bar to confirm you are on the secure site.

Q: What if I don’t receive an email with my access code?

A: Check your spam/junk email folder. You can also search your email for noreply@safesendreturns.com.      Some email clients hide items they’ve labeled spam or junk, making certain emails difficult to find. If you do not receive your code within the 10-minute time limit, please request another code.

Q: Will this work on any internet-connected device? Does SafeSend Returns offer an app for my smartphone?

A: There is currently no SafeSend Returns app available, but the signature process can be completed on any computer, smartphone or tablet via a web browser.

Q: I’d rather print and sign my e-file authorization form(s). Can I do that?

A: Yes - You can still print, sign and mail your e-file form(s) back to DDK if you’d prefer to do so.

Q: Will I have to print and mail anything to the government?

A: The only items you may need to print and mail out to government authorities is the tax and estimate payment vouchers. If forms need to be printed and mailed, you will receive clear instructions. You will also be provided options to make tax payments electronically if you prefer not to mail payments.

Q: My Spouse and I are filing our return jointly – How can we both sign the e-file authorization form(s)?

A: There are a couple of options:

If both spouses have an email address on file, both will receive an email with a link to view the return and sign the e-file authorization form(s). First, one spouse will receive the link with identity verification questions specific to him/her. He or she will sign the e-file authorization form(s), and an email link will be sent to the second spouse. The second spouse will answer identity verification questions specific to him/her, then sign the form(s).

If only one spouse has an email address on file, that spouse will first receive the link with identity verification questions specific to him/her. He or she will sign the e-file authorization form(s) and then enter an email address for the second spouse. The second spouse will then receive the email link with identity verification questions specific to him/her. Once the second spouse electronically signs the e-file authorization form(s), DDK will be notified that signing is complete.

If a couple shares an email address, the primary signer will first receive a link with identity verification questions specific to him/her. After the primary signer signs the e-file authorization form(s), he/she can then enter the shared email address again. A new link will be sent with identity verification questions specific to the second spouse.

Q: Where do the identity verification questions come from? What if I don’t remember the answers?

A: The questions SafeSend Returns asks are knowledge-based questions pulled from government and credit sources. You may be asked questions such as where you lived in a given year, or when you bought your car or home. In the event the questions do not apply to you, simply choose the answer that accurately reflects this. If you don’t remember the answers to the questions, or you answer incorrectly, you won't be able to electronically sign your e-file authorization form(s). You can instead print, sign and return your e-file authorization form(s) to DDK.

Q: How is this process different from e-filing?

A: SafeSend Returns allows you to electronically sign your e-file authorization form(s), but it won't submit your return to the IRS. Once signed, DDK is automatically notified, and we will then complete the filing process for you, including submission to the IRS.

Q: Can I sign my dependent's individual return electronically?

A: DDK will deliver your dependent’s return using SafeSend Returns. However, some dependents may not have sufficient government and financial data available to successfully complete the electronic signature process. If there is not enough data available, your dependent will be given the option to download and sign their forms.

Q: Can I set up reminders for my quarterly estimated payment?

A: If estimated payments are included in your review copy, you will automatically receive an email reminder seven days before your payment is due.

Q: Will I receive a notification when my individual return is ready to sign?

A: Yes. Email notifications will be sent from DDK at noreply@safesendreturns.com. We recommend adding this email address to your safe list to prevent the email from getting filtered to spam/junk.

Q: After signing my individual e-file authorization form(s), will I receive confirmation that it was successfully submitted?

A: Yes, once you sign your e-file authorization form(s), you will receive an email stating it was successful. The email will also include a link to download a copy of your tax return for your records.

 Client Portal Login           Secure File Exchange
   SafeSend Returns
Blog

Investment swings: What’s the tax impact?

If your investments have fluctuated wildly this year, you may have already recognized some significant gains and losses. But nothing is decided tax-wise until year end when the final results of your trades will reveal your 2023 tax situation. Here’s what you need to know to avoid tax surprises.

Tax-favored retirement accounts and taxable accounts 

If you’ve had wild swings in the value of investments held in a tax-favored 401(k), traditional IRA, Roth IRA or self-employed SEP account, there’s no current tax impact. While these changes affect your account value, they have no tax consequences until you finally start taking withdrawals. At that point, the size of your balance(s) will affect your tax bills. If you have investments in a Roth IRA, qualified withdrawals taken after age 59½ can be federal-income-tax-free.

With taxable accounts, your cumulative gains and losses from executed trades during the year are what matter. Unrealized gains and losses don’t affect your tax bill.

Overall loss for 2023

If your losses for the year exceed your gains, you have a net capital loss. To determine and apply the loss:

  1. Divide your gains and losses into short-term gains and losses from investments held for one year or less and long-term gains and losses from investments held for more than one year.
    • If your short-term losses exceed your short- and long-term gains, you have a net short-term capital loss for the year.
    • If your long-term losses exceed the total of your long- and short-term gains, you have a net long-term capital loss for the year.
  2. Claim your allowable net capital loss deduction of up $3,000 ($1,500 if you use married filing separate status).
  3. Carry over any remaining net short-term or long-term capital loss after Step 2 to next year where it can be used to offset capital gains in 2024 and beyond.

Overall gain for 2023

If your gains for the year exceed your losses, you have a net capital gain. To figure out the gain:

  • Divide your gains and losses into short-term gains and losses from investments held for one year or less and long-term gains and losses from investments held for more than one year.
    • If your short-term gains exceed the total of your short- and long-term losses, you have a net short-term capital gain for the year.
    • If your long-term gains exceed the total of your long- and short-term losses, you have a net long-term capital gain for the year.

Net short-term and long-term gain

A net short-term capital gain is taxed at your regular federal income tax rate, which can be up to 37%. You may also owe the 3.8% net investment income tax (NIIT) (see below) and state income tax, too.

A net long-term capital gain (LTCG) is taxed at the lower federal capital gain tax rates of 0%, 15%, and 20%. Most individuals pay 15%. High-income folks will owe the maximum 20% rate on the lesser of: 1) net LTCG or 2) the excess of taxable income, including any net LTCG, over the applicable threshold. For 2023, the thresholds are $553,850 for married joint-filers, $492,300 for singles and $523,050 for heads of households. You may also owe the NIIT and state income tax, too.

Watch out for the NIIT

The 3.8% NIIT hits the lesser of your net investment income, including capital gains, or the amount by which your modified adjusted gross income exceeds the applicable threshold. The thresholds are:

  • $250,000 for married joint-filers,
  • $200,000 for singles and heads of households, and
  • $125,000 for married individuals filing separate.

Year end is still months away

As explained earlier, your tax results for 2023 are up in the air until all the gains and losses from trades executed during the year are tallied up. If you have questions or want more information, consult with us.

Back To Top