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September 2021

4 Tax Tips for Small Business Owners

4 Tax Tips for Small Business Owners

If you are a small-business owner, don’t miss these four useful tax tips that can make a big difference for you and your employees. 

Encourage Your Employees to Learn More About the Tax Child Credit

The child tax credit represents a much-needed relief measure geared toward working families, who can receive monthly payments between $250 or $300 dollars per child. The American Rescue Plan includes provisions to deliver these payments to families who make up to  $150,000 for a couple or $112,500 for families with a single parent. Encourage your employees to learn more about this credit that can make a big difference for the financial well-being of their families.

Check if You Qualify for the Home Office Deduction

This measure allows taxpayers to deduct certain home expenses if they work from home. If you are interested in this deduction, keep the following in mind:

  • Employees are not eligible to claim this deduction.
  • There are two basic requirements to claim this deduction: There must be exclusive use of a portion of the home for conducting business on a regular basis and the home must be the taxpayer’s principal place of business.
  • Even if you meet these requirements, be sure to talk with a tax professional to check whether you qualify for this deduction.  

Learn More About the Renewed Work Opportunity Tax Credit

This tax credit is designed to help certified companies that hire people who belong to any of the following ten categories:

  • Temporary Assistance for Needy Families (TANF) recipients,
  • Unemployed veterans, including disabled veterans,
  • Formerly incarcerated individuals,
  • Designated community residents living in Empowerment Zones or Rural Renewal Counties,
  • Vocational rehabilitation referrals,
  • Summer youth employees living in Empowerment Zones,
  • Supplemental Nutrition Assistance Program (SNAP) recipients,
  • Supplemental Security Income (SSI) recipients,
  • Long-term family assistance recipients,
  • Long-term unemployment recipients.

A tax professional can help you certify your company and make sure you meet all the necessary requirements to claim this credit.  

Seek the Assistance of a Tax Professional

The tax framework for small businesses changes constantly. New opportunities for credits and deductions arise every year, but in order to take advantage of them, it is necessary to work with reliable tax professionals who are up to date with the most recent developments in tax legislation. At JT Tax Experts we have the experience and the know-how to limit your liabilities and ensure that you stay compliant with all relevant regulations.

Contact the Experts at JT Tax Services

Do you need help figuring out how to classify your workers or with any other matter related to taxes?  JT Tax Services is here to help! 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 Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services.

Photo of different types of workers illustrates blog: "Are You a Business Owner? Don’t Forget to Correctly Classify Your Workers"

Are You a Business Owner? Don’t Forget to Correctly Classify Your Workers

If you are a business owner, it’s very important that you learn to tell the difference between an employee and an independent contractor. This will help you avoid problems and ensure that your accounting is clear and precise. Keep reading to learn more about this important topic.  

Employees or Independent Contractors?

When it comes to classifying your workers for tax purposes, there are two basic options: employees and independent contractors.

To determine whether a worker is an employee or a contractor, you should consider three main factors:

  • Does the business control, or has the right to control, what the worker does and how they do it?
  • Does the company control the financial aspects of the worker’s job? (For example, how are they paid, or how are their expenses refunded)
  • Are there any written contracts or employee-type benefits such as pension plan and vacation pay?

If you answered these questions with“Yes,” then the worker is an employee. By contrast, if the answer is “No,” then the person is an independent contractor.

What Happens if You Misclassify a Worker?

Misclassifying workers adversely affects workers themselves in the first place. For example, if a worker is classified as an independent worker when they are really employees, this means that the employer isn’t retaining and paying income taxes, as well as Social Security and Medicare taxes.

Also, if a company misclassifies a worker without a reasonable basis, then it might be held liable for employment taxes for that worker.

If you have workers whom you are currently treating as contractors, but would like to reclassify as employees for future tax periods, then the Voluntary Classification Settlement Program (VCSP) may interest you.  

If you want to learn more about this program or determine whether your company qualifies to participate in it, contact JT Tax Services for more details.   

Contact the Experts at JT Tax Services

Do you need help figuring out how to classify your workers or with any other matter related to taxes?  JT Tax Services is here to help! 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.

The Filing Extension Deadline Is Almost Here!

The Filing Extension Deadline Is Almost Here!

The filing extension deadline for most 2020 federal tax returns is fast approaching, so don’t let it sneak up on you! Here’s what you need to know.

Tax Filing Extension Deadline in 2021

The tax filing extension deadline for most 2020 tax returns is October 15, 2021.

Originally, taxpayers were supposed to file their taxes by May 17. However, those who weren’t able to file on time could request an extension that gives them more time to file.

Rember: an extension to file is not an extension to pay. If you didn’t pay your taxes by May 17 2021, you may face penalties and interests. Talk with a tax expert you trust if you need help understanding your situation.  

Some Useful Information

  • If you are an extended filer, the most important concept you should keep in mind is the Mailbox Rule. According to this rule, your return must be postmarked and sent by October 15 in order to comply with the filing extension deadline.
  • As with any tax return, you can make things a lot easier by gathering your Forms W-2 s and all the documents you need to support the tax credits and deductions you want to claim.  
  • While the filing extension deadline is just around the corner, you still have time to find a dependable tax professional to help you prepare your return. At JT Taxes we offer assistance in all matters related to taxes delivered with friendliness, efficiency, and professionalism.
  • Remember that this deadline refers to federal taxes. Filing dates for state taxes vary depending on the state, so check with your local tax agency to find out which deadlines you must adhere to when it comes to local taxes.
  • Finally, keep in mind that the tax filing extension deadline won’t be extended, so this is your last chance to file your taxes without facing interests and penalties.

Contact the Experts at JT Tax Services

Do you need help preparing your taxes? Did you receive a letter from the IRS?  JT Tax Services is here to help! 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.

4 Tax Tips for Labor Day Weekend

4 Tax Tips for Labor Day Weekend

With Labor Day weekend just around the corner, this is the perfect time to put your taxes in order. Today we show you four simple things you can do over the long weekend to save time and money down the line.

4 Tax Tips for Labor Day Weekend

As the old saying goes, forewarned is forearmed. This long weekend, find the time to put into practice these four simple tips that will help you avoid a lot of headaches.

Take a Look at Your Tax Records

This is a good time to take a look at your tax records. If you don’t have one, then take advantage of the long weekend to create one.

Remember that, as a general rule, the IRS recommends keeping tax records for three years after filing the corresponding tax return. Once your tax records are complete, make sure to keep the documents in a safe place.

Make Copies of Important Documents

Another way you can take advantage o the long weekend is by making copies of any important tax document. The documents you may want to photocopy include tax returns, letters from the IRS, and any document related to your wages/salary, among others.

As with your tax records, you should store these copies in a dry, safe place.

Check Your Withholding

Simply put, checking your withholding means making sure that your employee is retaining the right amount of tax from your paycheck.  

This is an easy way to ward off surprises, because if your employer is withholding less money than they are supposed to, you may have a big tax bill next year, or you may even have to pay a penalty.

Luckily, you can check your withholdings without even leaving your home. Just open the official Tax Withholding Estimator, and follow the instructions as they appear on your screen.

Contact a Tax Pro

From IRS debts to relief measures related to the coronavirus pandemic, most people have questions about taxes, but they feel they never have the time to contact a tax professional and get answers.  

If that’s your case too, the long weekend is the perfect time to finally pick up the phone or send that email and contact a tax expert who can give you the assistance you need.   

Contact the Experts at JT Tax Services

Do you need help preparing your taxes? Did you receive a letter from the IRS?  JT Tax Services is here to help! 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.