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January 2021

You May Receive Your Second Stimulus Payment by Credit Card

Some People Will Receive Their Second Stimulus Payment by Debit Card

Some people will receive their second stimulus payment by prepaid debit card. Read on to discover the aspects you should keep in mind.

In fact, this method was already used in some cases to deliver the first round of Economic Impact Payments, also known as stimulus payments.

Keep in mind that the form of payment may vary between your first and your second stimulus payment. If you received your first payment by paper check you could receive your second payment via prepaid debit card. Conversely, if you received your first payment by prepaid card, you may receive it now by paper check.

You can use the online tool Get My Payment to check whether your payment has been mailed.

The prepaid debit cards arrive in a while envelope that displays prominently the seal of the Department of the Treasury of the United States. The envelope displays the statement “Not a bill or an advertisement. Important information about your Economic Impact Payment.”

What You Can Do With Your Card

The name of the issuing bank, MetaBank, N.A., appears on the back on the card while the name Visa appears on the front. Your card will allow you to do the following without having to pay a fee:

  • Transfer funds to a personal bank account
  • Make signature or PIN-debit purchases anywhere Visa Debit
  • Cards are accepted — in stores, online or over the phone
  • Get cash back with a PIN debit purchase where available
  • Get cash from in-network ATMs
  • Get a replacement EIP Card, if needed
  • Check their card balance online, through a mobile app or by phone

More Tips About Taxes

Interested in learning more about taxes? Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone, or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

How to Make Tax Filing Easier This 2021

How to Make Tax Filing Easier This 2021

With the holidays already behind us, this is the right time to start preparing for the upcoming tax season. Here are six tips to help you make tax filing easier this 2021.

1.- Get Your Form W-2. This form shows the amount of taxes withheld from your paycheck throughout the year and is essential to file your tax return. It’s worth keeping in mind that employers have until Monday, February 1, 2021, to file Forms W-2 and send their copies to their employees.

2.- Gather Forms 1099. You should receive these forms if you received payments as an independent contractor last year. Just like Form W-2, companies should send these forms by February 1, 2021.

3.- Verify Your Individual Tax Identification Number (ITIN) to make sure it’s still valid. Any ITIN NOT used on a federal tax return at least once in the last three years expired on December 31, 2020. Additionally, all ITINs issued before 2013 with middle digits of 88 (For example 9XX-88-XXXX) expired at the end of 2020. Those with middle digits 90, 91, 92, 94, 95, 96, 97, 98, or 99, that were assigned before 2013 and have not already been renewed, expired as well.

4.- Make sure you’ve withheld enough tax. You can do this by using the Tax Withholding Estimator on the IRS website. Take a look and determine whether you should adjust your withholding and submit a new Form W-4 to your employer.

5.- Did you receive an Economic Impact Payment? remember to keep your Notice 1444. The IRS mailed notice 1444 to the last known address of every person who received an Economic Impact Payment. This letter includes information about the amount of your payment, how it was made, and how to report any payment you didn’t receive.

6.- Did you change your address? You have to notify the IRS. You should notify the IRS about any address change using Form 8811 del IRS. If you change your name, remember that you must notify the Social Security Administration (SSA).

More Tips About Taxes

Interested in learning more tax tips to simplify things this tax season? Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

At JT Tax Services we have the experience, the knowledge, and the drive to assist you in the preparation of your taxes. We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

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

Photo of businessman illustrates blog:This Important Tax Deadline Is Less Than One Month Away

This Important Tax Deadline Is Less Than One Month Away

The year has just begun, but an important tax deadline is already less than one month away. If you are an employer, don’t forget that you should issue and file wage statements by Monday, February 1, 2021. Keep reading to discover what are the statements and forms you should keep in mind.

Form W-2

Companies should complete and file a W-2 form for every employee to whom they pay a salary. Don’t forget that you should also send your employees copies of their W-2 forms by February 1, 2021, so that they can file their taxes before the due date (April 15, 2021).

Form W-3

This form (official name: Transmittal of Wages and Tax Statements) is a detailed summary of all the W-2 forms filed by your company. This form is used by the Social Security Administration (SSA) to keep track of the salaries, commissions, tips, and other compensations that employees receive throughout the year.

Form 1099-MISC

File a 1099-MISC Form for every person to whom you paid the following during the last year:

  • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
  • At least $600 in:
    • Prizes and awards.
    • Other income payments.
    • Medical and health care payments.
    • Crop insurance proceeds.
    • Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
    • Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
    • Payments to an attorney.
    • Any fishing boat proceeds.

As is the case with Forms W-2, you should also send Forms 1099-MISC to recipients before February 1, 2021.

Form 1099-NEC

You should file Form 1099-NEC, Nonemployee Compensation, if all the following statements apply:

  1. You made the payment to a person who is not your employee
  2. The payment was for services in the course of your trade or business
  3. You made the payment to an individual, a partnership, an estate, or a corporation
  4. Payments were at least $600 during the year

Also in this case, keep in mind that recipients of Forms 1099-NEC should receive their copies by February 1, 2021.

More Tips About Taxes

Do you want to learn more about taxes and Economic Impact Payments? Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

At JT Tax Services we have the experience, the knowledge, and the drive to assist you in the preparation of your taxes. We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

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