August 2022 - JT Tax Services

Are Car Expenses Tax Deductible?

August 24, 2022

When it comes to tax deductions, you want to take advantage of as many of them as possible. But are car expenses tax deductible? In today’s blog post, we answer this and other common questions about cars and tax deductions.

What Is a Tax Deduction?

Before we explain if car expenses are tax deductible, let’s take a closer look at what a tax deduction is.

Simply put, a deduction is an expense you can use to lower your taxable income. In other words, tax deductions help you save on taxes.

For example, donations to qualified charitable institutions are tax deductible.So if you earn $70,000 a year, and you make a $1,000 donation, then your taxable income for that year won’t be $70,000 but $69,000

Are Car Expenses Tax Deductible?

The simple answer is that car expenses are deductible — but only in some cases. Let’s see what this means.

First off, you can write off your car-related expenses only in certain cases. If you use your vehicle only for personal purposes or to commute to and from work, then you probably won’t be able to claim your car expenses as a deduction on your car return.

However, if you can prove that you use your car for business purposes, then you can deduct some car expenses.

Taxpayers who use their car for business have two options to deduct the expenses related to their vehicles:

Use the actual car expenses
Use the standard mileage rates set by the IRS

There are three categories of standard mileage rates: business, charitable, and medical/move. The rates are adjusted every year and you can check them on the IRS website (click here the 2022 standard mileage rates).

If you decide to use your actual car expenses, you have to keep an accurate records of expenses like:

Oil
Tires
Repairs
Maintenance
Insurance
Business-related garage fees

If you have questions about the car expenses you can deduct or want to discover which deductions you qualify for, contact the experts at JT Taxes. We’ll be glad to answer all your questions and make sure you pay only the tax you owe.

Have Tax Questions? JT Tax Services Is Here To Help!

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 Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services.

Can Taxes Be Filed After the Official Deadline?

By: UNIKO Media Group

August 11, 2022

In case it passed you by, Tax Day this year was on April 18. If you said “Oops!” after reading that, you’ll be interested in today’s blog: can you file your taxes after the official deadline? Keep reading to find out.

Can Taxes Be Filed After the Official Deadline?

The short and simple answer is yes, you can file your tax return even after the official deadline has passed.

Ideally, you should always file and pay your taxes by the due date. However, even though taxes are a priority for most people, it’s not uncommon to find yourself in a situation when you can’t file on time.

Here are some good reasons to file your taxes even if you missed the original deadline:

Avoid interests and penalties. These can add up fast, so filing and paying even a part of what you owe can make a big difference.
Claim your refund. In addition to giving you peace of mind, filing a past due tax return is als an opportunity to claim a refund
Protect your social security benefits. If you are self-employed and don’t file a federal tax return, any self-employment income will not be reported to the Social Security Administration.
Avoid issues with loans. When you apply for a loan, most financial institutions will require you to provide copies of filed tax returns.

Filing Back Tax Returns

If you didn’t file your taxes on time, seek the assistance of a tax professional to file and pay as soon as possible. This will save you headaches and will limit any failure-to-file and failure-to-pay penalties.

It’s worth keeping in mind that there are no penalties for late filing if you are owed a refund.

As always, remember that all this information refers to federal taxes. Local taxes have different rules and deadlines.

If you need help filing a past due return, contact the IRS or get in touch with JT Tax Services. We’ll be glad to offer assistance and answer all your questions.

Have Tax Questions? JT Tax Services Is Here To Help!

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.

Can You File Your Taxes Without a Social Security Number?

By: UNIKO Media Group

August 4, 2022

Filing an income tax return is mandatory if you make more than a certain amount for the year. But can you file your taxes without a social security number? Keep reading to discover the answer.

Can You File Your Taxes Without a Social Security Number?

A Social Security Number (SSN) is a nine-digit number assigned to all United States citizens and other residents for identification purposes, including tracking their income information.

Now, although the Social Security Number is one of the most common ways to identify an individual in the U.S., not every person living in the country is eligible for one.

In those cases, people who are not eligible for a Social Security Number can use an Individual Tax Identification Number or ITIN.

So, in short, the answer is yes, you can file your taxes without a Social Security Number by using an ITIN instead.

What Is an ITIN?

As we mentioned earlier, the term ITIN stands for Individual Tax Identification Number.

An ITIN is a tax processing number that the IRS issues to people who are required to file a tax return but don’t have a Social Security Number.

While you can have an ITIN regardless of your immigration status, you should keep in mind that an ITIN does NOT:

Authorize work in the U.S.
Provide eligibility for Social Security benefits
Qualify a dependent for Earned Income Tax Credit Purposes

How To Know if You Need an ITIN

You need an Individual Tax Identification Number if the following applies to you:

You don’t have a Social Security Number (SSN)
You have a requirement to file a tax return
You belong to one of the following categories:

Nonresident alien who is required to file a U.S. tax return
U.S. resident alien who is (based on days present in the United States) filing a U.S. tax return
Dependent or spouse of a U.S. citizen/resident alien
Dependent or spouse of a nonresident alien visa holder
Nonresident alien claiming a tax treaty benefit
Nonresident alien student, professor or researcher filing a U.S. tax return or claiming an exception

Have Tax Questions? 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 (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.