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August 2020

Avoid Surprises: Remember That Unemployment Compensation is Taxable

Avoid Surprises: Remember That Unemployment Compensation is Taxable

Over the last several months many Americans received unemployment compensation for the first time as part of the stimulus package the Federal Government has deployed to offset the effects of the COVID-19 pandemic.

That’s why today we’d like to remind you that unemployment compensation is taxable. Therefore, it’s advisable to retain those taxes now to avoid owing them when you file your return next year.

The taxable benefits include all those special unemployment compensations authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

These are some of the payments for which you should check your withholding:

  • Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund
  • Railroad unemployment compensation benefits
  • Disability benefits paid as a substitute for unemployment compensation
  • Trade readjustment allowances under the Trade Act of 1974
  • Unemployment assistance under the Disaster Relief and Emergency Assistance Act of 1974, and
  • Unemployment assistance under the Airline Deregulation Act of 1978 Program

About Withholding

Withholding is voluntary. The law allows you to retain a flat 10% to cover all or part of your tax liability.

If you decide to proceed with the withholding, then fill the Form W4V-Voluntary Withholding Request and remember that you are not supposed to send the form to the IRS, but to the agency that pays the benefits. If that agency has its own form, then use that form instead.

Taxpayers who decide not to withhold, or if their withholding is not enough, they can make a quarterly payment of estimated taxes. In that case, there are some dates to keep in mind. The deadline for the first two quarters of 2020 expired on July 15, 2020. The deadlines for the third and for quarters are September 15, 2020, and January 15, 2020, respectively.

Contact the Experts at JT Tax Services

At JT Tax Services we have the experience, the knowledge, and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

The COVID-19 outbreak has had a tangible impact on taxes. There are many credits and benefits available but also some new obligations you should be aware of. Our experts can help you navigate these new circumstances with confidence.

We are located in Oxnard, California. Contact us by email, telephone, or through our social media accounts on FacebookTwitter, and LinkedIn to learn more about our services.

Don’t Fall for These Tax-Related Scams!

Don’t Fall for These Tax-Related Scams!

We are living months of uncertainty and stress, but that doesn’t deter fraudsters. On the contrary: they try to take advantage of unsuspecting victims using tax-related scams.

Don’t fall for these schemes. Read on to discover how you can protect yourself against these threats.

Phishing, One of the Most Common Tax-Related Scams

Be on the lookout for fake emails or websites that request personal information. Remember this simple rule: the IRS will never initiate contact by email about a tax bill, refund, or Economic Impact Payment. Another simple measure you can take to avoid fraudsters is to never click on links that supposedly come from IRS.

Fake Charities

This is an evergreen fraud scheme that has been adapted to different situations, and the ongoing pandemic is no exception. Don’t let criminals take advantage of your desire to help others. Any unsolicited contact by phone, email, text, social media, or in person should arouse your suspicions.

Phone Calls Impersonating the IRS

Threatening calls impersonating the IRS are another common tactic of criminals. The IRS will never call you threatening with jail or deportation if you don’t settle your tax bill. These supposed charges are fake, and these calls have no connection with the IRS.

Social Media Scams

Social media is one of the main vehicles of disinformation, and scammers take advantage of this fact to lure others into sharing their personal details. Don’t fall for their malicious attempts and keep in mind that criminals may try to send you malicious messages or emails impersonating people you know.

Senior citizens are using social media at an increasing rate and may be particularly vulnerable to fraudsters. If you are a senior citizen yourself, or if you know any senior citizens, on the lookout for suspect messages—they may be an attempt to steal personal information.

Learn More About Taxes

Learning more about taxes is well worth the effort: It can save you time, money, and frustration! Check out these previous posts to learn more about deductions, deadlines, tax credits, and everything in between:

Contact the Experts at JT Tax Services

At JT Tax Services we have the experience, the knowledge and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

We are located in Oxnard, California. Contact us by email, telephone or through our social media accounts on FacebookTwitter and LinkedIn to learn more about our services.

These Are Some Expenses That Educators Can Deduct From Their Taxes

These Are Some Expenses That Educators Can Deduct From Their Taxes

Even during a pandemic, educators are currently preparing for what will be a school year like no other. That’s why today we would like to talk about some expenses that teachers and educators can deduct on their tax return next year.

What Educators Are Eligible?

In order to be eligible for these deductions, educators must meet the following requirements:

  • Be a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide.
  • work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law.

Information to Keep in Mind

The educators who meet the conditions outlined above can deduct up to $250 of trade or business expenses that were not reimbursed. So, it’s advisable that educators who are preparing now for the school year keep their receipts to used them to support their claims for these deductions.

If two educators who are eligible to file their taxes together with the status married filing jointly, the deduction will be $500. However, keep in mind that hese taxpayers cannot deduct more than $250 each.

What Expenses Can Educators Deduct?

There are many expenses that educators can deduct, ranging from courses to services related to computer equipment.

  •  Fees for professional development courses
  • Books
  • Supplies
  • Computer equipment including software (programs) and other related services
  • Other equipment and materials used in the classroom

As you can see, there are many opportunities for tax deductions. If you are an educator, talk today to one of our experts at JT Taxes. They can guide you and provide you with detailed information about all the deductions you may qualify for.

More Tax Resources

Getting more information about taxes is a smart move that help you save money and time. These are some previous posts you may find interesting:

Get Help From the Experts at JT Tax Services

The world of taxes is besieged by myths and other outdated or otherwise unreliable advice. That’s why is important to get help from a tax expert who can guide you with professionalism providing trustworthy information.

At JT Tax Services we have the experience, the knowledge, and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

We are located in Oxnard, California. Contact us by email, telephone, or through our social media accounts on FacebookTwitter, and LinkedIn to learn more about our services.