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March 2020

Tax Day Is Now 15 July

The outbreak of COVID-15 is forcing people to make changes all around the world, and taxes couldn’t be an exception. That’s why the Internal Revenue Service determined to extend the filing deadline and federal tax payments from April 15 to July 15, 2020.

This measure aims to offer relief to American taxpayers that may have been affected by the outbreak, and may be experiencing difficulties filing their taxes.

An Automatic Measure

You don’t have to contact the IRS send any new forms, or take any additional action to take advantage of this extension. The new date will be automatically applied to all taxpayers, including individuals, trusts, estates, corporations, and other non-corporate tax filers as well as those who pay self-employment tax.

The IRS encourages tax payers who are owned a refund to file as soon as possible, as refunds are issued within 21 days. IRS Commissioner Chuck Rettig advises that filing electronically and with direct deposit is the quickest way to get your refund.

As part of this relief package, taxpayers will also be able to defer federal income tax payments to July 15, 2020, without penalties or interests regardless of the amount owed. Remember that these measures apply to federal taxes, so it’s advisable to check with a tax expert to know more about deadlines and possible extensions for state taxes.

If you would like to request an extension to file your taxes after July 15, you should use Form 4868 with the assistance of a tax professional or using tax software. Companies looking for an extension should use Form 7004.

Get More Information

The situation and measures related to COVID-19 in the United Stated are fluid. The IRS has created a website with specific information about this topic. You can check it here to read the most recent updates and information about relief measures for taxpayers. If you wish to obtain more general information regarding COVID-19, check this official page from the United States government where you’ll find information, resources as well as the latest official news.

Our friendly experts at JT Tax Services are able to offer assistance so you can take advantage of the IRS tax relief measures related to the outbreak of COVID-19.

At JT Tax Services we are committed to providing solutions tailored to your unique needs. Contact us today by email, telephone (805-984-8890) or through our social media accounts on Facebook, Twitter and LinkedIn to get more information or to learn more about our services.

5 Tax Tips for Gig Workers

If you don’t know what the gig economy is, you probably have been part of it already if you have taken an Uber ride recently.

The gig economy, or shared economy, is defined as an activity where people earn income providing on-demand work, services or goods. Often, this happens through a digital platform such as apps or websites.

Some examples of gig work include driving a car for booked rides or deliveries, renting out property or part of it, selling goods online and providing creative or professional services.

Create a Separate Business Account

It’s advisable that you create a business bank account that’s separate from your personal account. This way it will be easier to track your income and it will also be useful when you make a deduction. Use your business account for job-related purchases and payments. Make sure to take advantage of all the features provided with your account, which may include alerts, and other tools to manage your income.

Track Earnings From All Your Jobs

Unlike people with a full-time employment, gig workers don’t receive a W-2 form from an employer. Therefore, they must keep records of income earned from all their jobs throughout the year. This is important to consider, as people may have more than one gig job.

Use the Right Forms

You should use the 1099-MISC form to report income other than a traditional salary. If you worked different gig jobs during the year, make sure you receive a 1099-MISC from any company that paid you more than $600. On the other hand, form 1099-K is for tracking income earned by third-party transactions through providers such as PayPal.

Track and Take Advantage of Write-offs

Those who take part in the gig economy can deduct many costs. From gas expenses, wear and tear on your vehicle, materials, and meals, there are many write-offs you must make sure to track throughout the year. You should try to keep your paper receipts, but if you lose one, bank statements are also considered a valid proof of any transaction.

Get Advice From an Expert

If you are a gig economy wage earner, a tax expert can help you lower your tax burden and offer guidance on all your financial needs. With their help, you can identify the write-offs you may have and file your taxes using all the right forms.

At JT Tax Services we are committed to provide solutions tailored to your unique needs. Contact us today by email or telephone (805-984-8890) to schedule an appointment or to learn more about our services.

5 Tips Veterans Should Consider When Filing Their Taxes

Due to the nature of their work, veterans often face unique fiscal situations. Therefore, it’s extremely important to stay abreast of the most recent developments on this topic, that may change drastically from year to year.

The following tips provide a general guide to gain a better understanding of the benefits you may qualify for and the resources that the Internal Revenue Service (IRS) puts at your disposal as a veteran.

Keep Your Records in a Safe Place

Changes of residence may represent a risk for your documents. Make sure to keep them in a dry, safe place and to make multiple copies that you can store in separate locations. Some of the most important documents include your Social Security Number, a copy of a government-issued ID and digital copies of forms DD214, DD257 and NGB22.

Some Benefits Are Taxable

When filing your taxes, keep in mind that some of the benefits you receive as a veteran are taxable, for example retirement pay, severance and healthcare. Healthcare represents a special case, since veterans can opt to stick with their VA coverage, or purchase their own. Consider that if you decide to keep your VA coverage you may not be eligible for premium tax credits.

Benefits Change on a State-to-state Basis

Don’t forget that benefits for veterans may change depending on your location, since every estate has its own Veteran Affairs office. These benefits include income and property tax exemptions as well as retirement pay exemptions.

Also, keep in mind that benefits may change from year to year, so it’s important to contact a tax expert or your local VA office to get information specific to your individual situation.

Take Advantage of the Resources at your Disposal

The IRS offers many resources you can use when filing your taxes as a veteran. Many of them are available online for your convenience. From education benefits to filing deadlines, this comprehensive list provides information of interest for current and former members of the military.

You May Be Eligible for Earned Income Tax Credit

This refundable federal income tax credit is geared towards low- to moderate-income workers and their families, and it may allow you to keep more of the money you have earned. That extra amount can be very important for veterans, since they can use it to create an emergency fund to face unexpected occurrences.

As with all matters regarding taxes, the best is to seek advice from the professionals. Get in touch with our experts at JT Tax Services to take advantage of their know-how. Don’t hesitate to contact us by email, telephone (805-984-8890) or through our accounts on Facebook, Twitter and LinkedIn.