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June 2021

A Simple Tip to Make Tax Filing a Lot Easier

A Simple Tip to Make Tax Filing a Lot Easier

Filing your taxes takes focus and great attention to detail. And while this may sound complex, it can be really easy if you follow a simple tip. Keep reading to learn more.

How to Make Tax Filing a Lot Easier

Filing your tax return becomes a breeze when you keep records of all your tax documents.

Efficient recordkeeping helps you identify sources of income, keep track of your expenses and support the information of your tax return. All in all, keeping comprehensive records makes tax filing an easier, simpler, and more precise task.

The Documents You Should Make Sure to Keep

Below is a list of the documents you should make sure to keep.

  • Tax-related documents. This includes wage and earning statements, dividend statements, bank interests, and some government payments, such as unemployment compensation, or virtual currency transactions. You should also keep any receipts, canceled checks, and other documents that help support income, a deduction, or a credit reported on your tax return
  • Letters from the IRS and prior year tax returns. Make sure to keep copies of prior year tax returns, as well as any letter from the IRS. This includes adjustment notices and Economic Impact Payment Notices, among others.
  • Property records. Pay attention to keep all records relating to any property your dispose of or sell.
  • Businesses income and expenses. Taxpayers who own a business must come up with a recordkeeping method that reflects accurately their gross income and expenses. If you have employees, don’t forget that you must keep all employment tax records for at least four years.  
  • Health insurance. Keep records of all the documents related to health insurance for you or your family. You will need that information if you want to claim the premium tax credit.  

Contact the Experts at JT Tax Services

Do you need help preparing your taxes? Do you want to learn more about refunds and credits? 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 (805-984-8890), or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

Did You Receive Unemployment Compensation in 2020? You May Qualify for a Tax Refund

Did You Receive Unemployment Compensation in 2020? You May Qualify for a Tax Refund

If you received unemployment compensation in 2020 then you may qualify for a tax refund.

The IRS is reviewing the tax returns filed before the American Rescue Plan became law in March of this year to determine the taxable amount of unemployment compensation.

The American Rescue Plan excluded up to $10,200 in unemployment compensation per tax payer from taxable income paid in 2020. Please note that this is only the limit of taxable unemployment compensation, not the refund you would receive.

This adjustment is important, because a record number of Americans applied for unemployment benefits in 2020 due to the coronavirus pandemic.

Depending on their individual situation, some taxpayers will receive refunds, while others will have the exceeding amount applied to taxes due or other debt. For some taxpayers there will be no change.

Other Adjustments

Taxpayers may also have their return corrected for other credits that were also affected by the American Rescue Plan: the earned income tax credit, the premium tax credit, and the recovery rebate credit.

You don’t have to take any action to benefit from these adjustments. The IRS will review your return to calculate the correct taxable amount.

If the IRS adjusts your tax return, you will receive a letter from them within about 30 days. The letter will detail what adjustments were made to your return as well as the amount of the adjustment.

And by the way, here’s an extra tip to keep in mind: don’t forget to keep for your records any letter from the IRS.

Contact the Experts at JT Tax Services

Do you need help preparing your taxes? Do you want to learn more about refunds and credits? 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 (805-984-8890), or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

Getting Married? Don’t Forget to Make These Tax Adjustments

Getting Married? Don’t Forget to Make These Tax Adjustments

A marriage is always a happy event, but it also entails obligations that you should keep in mind. If you are getting married soon, don’t forget to make these adjustments to your tax information.  

Name Change

If your name changes after getting married, it’s important to notify this change to the Social Security Administration (SSA).

Remember that the name on your tax return must match the name the SSA has on file. Otherwise, you might experience delays in getting your tax refunds.

To update your information, fill out and file Form SS-5, which can be found on the SSA official website.

Address Change

More often than not, getting married also means changing your address. If that’s your case, don’t forget to inform the IRS by filling out and filing Form 8822, Change of Address.

As an extra tip, don’t forget to notify the United States Postal Service (USPS) about your change of address. This way you’ll be sure to receive any notifications send by the IRS by traditional mail.

Withholding

After getting married, couples must consider adjusting their withholding, that is, the amount of federal tax that your employer withholds from your paycheck.  

By the way, don’t forget that newly married couples must give their employers a new W-4 Form within 10 days!

Your employer uses Form W-4 to witthold the right amount of tax from your paycheck. That’s why it’s important to file a new Form W-4 every year, or every time that your personal situation changes.  

Filing Status

It’s worth keeping in mind that married people can choose to file their taxes jointly or separately.  

Usually, filing your taxes jointly is the more convenient option. However, it’s a Good idea to calculate your taxes both ways to figure out which one is more convenient.  

Finally, remember this useful tip: if a couple is married as of December 31, then they are married for the whole year for tax purposes.

Contact the Experts at JT Tax Services

Do you need help filing your 2020 tax return? Do you want to learn more about Economic Impact Payments? 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 (805-984-8890), or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.