Identity theft can have a devastating effect on your finances, your credit rating, and your overall well-being. This is particularly important when it comes to taxes because criminals love to impersonate the IRS to lure victims into sharing their personal information. The good news is that there are things you can do to protect yourself from becoming a victim of identity theft.

1. Be Cautious With Your Personal Information

Be cautious about who you give your personal information to. Never give out your social security number, credit card information, or bank account number to someone you don’t know without verifying their legitimacy. 

Do not share your date of birth publicly, especially on social media. Be vigilant about phishing scams where fraudsters call to ask for other personal information.

2. Monitor Your Accounts

Make it a habit of regularly monitoring your bank accounts and credit cards at least once a month.

This way, you can quickly detect any suspicious activity and protect your accounts from identity theft. The sooner you catch suspicious activity, the sooner you can report it and safeguard your data.

3. Invest in Antivirus and Security Software

It is essential to protect your computer and mobile devices from hackers and virus attacks. That’s why you should invest in premium antivirus and security software, and always keep it up to date. Avoid connecting to public Wi-Fi as well, as it can leave your personal data vunerable to breaches.

4. Shred Old Documents

The world has evolved, but criminals are willing to stick to old methods if they work. 

Fraudsters still go through physical trash cans looking for personal documents they can use to steal your identity. 

Make sure you shred all financial documents such as bank statements, receipts, and credit card statements. Destroying these documents minimizes the risk of malicious actors snooping through your trash to harvest data.

5. Use Strong Passwords

Using strong passwords to access your accounts can go a long way toward protecting your personal information. 

A strong password contains a mix of letters, numbers and characters. Remember to change your passwords often and avoid using the same password for all your accounts. By using unique passwords, you make it harder for hackers to gain access to your accounts.

JT Tax Services: Taxes Made Easy

When it comes to taxes, knowledge is power. That’s why at At JT Tax Services, we give you the peace of mind that comes with knowing that you are working with experienced professionals with in-depth knowledge of all applicable tax laws and 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.

One aspect of taxes that often causes confusion is filing status. What is it, and why does it matter? Understanding your filing status can have a significant impact on your tax liability, so it’s essential to know the basics. Keep reading to learn more!

What is a Filing Status?

Your filing status is a category that defines your tax-filing group. It determines your tax rate, standard deduction, and eligibility for certain credits and deductions. 

There are five filing statuses. Each status has its unique requirements and tax implications:

• Single
• Married Filing Jointly
• Married Filing Separately
• Head of Household
• Qualifying Widow(er) with Dependent Child

Single Filing Status

This is your status if you’re unmarried or legally separated from your spouse on the last day of the year and don’t qualify for other filing status.

Married Filing Jointly & Separately

If you’re married, you can choose to file jointly or separately. Filing jointly combines your income with your spouse’s and allows for many deductions and credits. Both spouses must agree to file jointly.

Head of Household Filing Status

A head of household is an individual who: 1) is unmarried on the last day of the year, 2) paid more than half the cost of keeping up a home for the year, and 3)  had a qualifying person living with them in the home for more than half the year (although this does not apply to dependent parents).

Qualifying Widow(er) with Dependent Child Filing Status

If your spouse died during a previous tax year, and you have a dependent child, you may qualify for the qualifying widow(er) filing status. This status provides a two-year window to transition from joint filer to unmarried filer.

To learn more about taxes, check out our previous blogs, “How to Organize Your Tax Records” and “2023 Tax Deadline: What You Need To Know.”

JT Tax Services: Taxes Made Easy

When it comes to taxes, knowledge is power. That’s why at At JT Tax Services, we give you the peace of mind that comes with knowing that you are working with experienced professionals with in-depth knowledge of all applicable tax laws and 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.

Being diligent about organizing your tax records throughout the year can alleviate some of that filing season stress and make tax filing so much easier. With that in mind, here are some tips on how to effectively organize your tax records.

1. Keep Track of Your Income

Keeping track of your income is crucial in preparing your taxes. If you are an employee, you will receive a W-2 form from your employer at the end of the year. If you are self-employed or a freelancer, you should keep track of your income by saving all the receipts, invoices, and bank statements to document your earnings.

2. Save Your Expense Receipts

For individuals running a business, keeping track of expenses is just as important as keeping track of income. Certain portions of expenses such as rent, utilities, and supplies can be deducted from your taxes. Make sure to save all your receipts throughout the year and keep them organized.

3. Maintain Your Investment Records

Investments can be a bit complicated when it comes to taxes. It is essential to keep records of all your investment purchases and sales, including stocks, bonds, and mutual funds. This information is necessary for calculating capital gains or losses when filing your taxes.

4. Create a Tax Folder

Create a tax folder to store all your documentation relating to taxes. This folder can include all your important tax documents, such as your W-2 form, receipts and invoices, investment records, etc. You can use a physical folder, a digital folder, or both. You can also consider using a color-coded system to make it easier to identify documents and keep track of documents relating to different tax years.

5. Consult with a Professional

If the task of organizing your tax records seems daunting, it may be helpful to consult with a tax professional. An accountant can offer advice on what documents to keep, provide guidance on how to organize them, and answer any tax-related questions. This can be extremely helpful, especially for individuals with complex tax situations. At JT Taxes, our whole team of tax professionals stands ready to help!

Wrapping It Up

Organizing your tax records throughout the year goes a long way toward a stress-free tax season. 

Keeping track of your income, saving receipts for expenses, maintaining investment records, creating a tax folder, and consulting a professional can all help simplify the tax filing process. 

Whether you are an individual or business, establishing a system to organize your tax records will save you time, money, and stress. 

JT Tax Services: Taxes Made Easy

When it comes to taxes, knowledge is power. That’s why at At JT Tax Services, we give you the peace of mind that comes with knowing that you are working with experienced professionals with in-depth knowledge of all applicable tax laws and 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.