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.

Criminals love to use fake information about taxes to lure unsuspecting victims into sharing their personal information. These nefarious schemes often come in the form of phishing or spear phishing. Keep reading to learn more about these two tactics employed by criminals.

Phishing and Spear Phishing

Phishing is a type of online scam where the attacker attempts to trick individuals into revealing their sensitive information, such as usernames, passwords, or credit card numbers by impersonating a legitimate institution (such as a bank, or even the IRS) through emails, messages, or websites. 

Spear phishing, on the other hand, is a type of phishing campaign that targets a specific person or group and often will include information known to be of interest to the target, such as current events or financial documents.

With so many people talking about taxes these days (due to the April 18 tax deadline and the extension for Californians affected by the storms of early 2023), the phishing season is in full swing. 

The good news is that there are some simple steps you can take to ward off phishing attempts:

• Be wary of unsolicited emails or messages

• Never provide personal or financial information over emails or links, and avoid clicking on suspicious links or attachments.

• Verify the identity of the sender by contacting the organization directly, to confirm the authenticity of the email or message.

• Stay informed and up-to-date about the latest phishing techniques, by researching, reading online resources, and attending webinars.

• Use strong and unique passwords, and enable multi-factor authentication wherever possible to protect your personal information3.

• Do not be intimidated by an email that appears to be threatening or urgent, and check for tell-tale signs of phishing, such as misspellings, generic greetings, or unfamiliar URLs. This is particularly important when it comes to taxes, as criminals impersonating the IRS often use threats to scare victims into providing their information.

• Be careful while using public Wi-Fi, as hackers can intercept your sensitive data through unsecured networks.

To learn more about taxes, check out our previous blogs, “Missed the April 18 Tax-Filing Deadline? Here’s What You Need To Do”

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.

April 18 was the federal tax deadline for most people in the United States. And while everyone tries their best to be accurate with their taxes, things sometimes get In the way. So what to do if you missed the tax filing deadline? Keep reading to find out. 

What To Do if You Missed the Tax-Filing Deadline

If you live in California, the first thing to do if you missed the April 18 deadline is to check if you qualify for the extended deadline granted to the victims of the storm that hit California in early 2023.

If you live or have a business in any of the designated localities, you can take advantage of an extension that gives you until October 16, 2023 to file taxes and make the related payments. This includes things like: 

• Individual income tax returns, originally due on April 18
• Various business returns, normally due on March 15 and April 18
• Returns of tax-exempt organizations, normally due on May 15

For a full list of the localities that can take advantage of the extended deadline, check out the section Tax Relief in Disaster Situations on the IRS website.

Requesting a Filing Extension

If you missed the April 18 deadline to file your tax return, you can request a filing extension that will give you until October 16 to file your taxes.

Keep in mind that in order to do this you’ll need to pay all or part of your estimated income tax due indicating the payment is for an extension.

Also, remember that an extension to file is NOT an extension to pay. That’s why you are required to pay all or part of your taxes when requesting an extension. 

Need help? Our team of tax pros stand ready to assist you! Contact us today and get answers to all your tax questions. 

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.

Tipping culture is prevalent across different industries and services, from restaurants and cafes to hotels and salons. However, when it comes to taxes, things can get a bit confusing. Are tips taxable? Do you need to declare them on your tax return? In this blog post, we’ll dive into the world of taxes and tips to answer all your questions.

Are Tips Taxable? 

The Internal Revenue Service (IRS) considers tips as income, just like your regular salary or wages. 

If you receive tips as part of your job, you are required to:

• Keep a daily tip record.
• Report your tips to your employer unless the total is less than $20 per month per employer
• Report all tips on an individual income tax return.

There’s no official form to report your tips to your employer. However, the document must include the following information:

• Employee signature,
• Employee’s name, address, and social security number,
• Employer’s name and address (establishment name if different),
• Month or period the report covers, and
• Total of tips received during the month or period.

Taxes and Tips: Some Practical Advice

You are required to report your tips to your employer by the 10th of the month after the month the tips are received. If the 10th falls on a Saturday, Sunday, or legal holiday, an employee may give the report to the employer by the next day that is not a Saturday, Sunday, or legal holiday.

Now, you may be wondering, how do I keep track of my tips? It’s a good idea to keep a daily log of your tips, including the date, the amount, and the source (e.g., cash or credit card). You can use a notebook, a spreadsheet, or a tip-tracking app to make it easier. By keeping an accurate record of your tips, you can ensure that you’re reporting the correct amount on your tax return.

Remember that you also need to keep a record of the date and value of any noncash tips you receive. This includes things like tickets, passes, or other items of value. Although you are not required to report these noncash tips to your employer, you must report them on your tax return.

For more tax tips check out our previous blogs, “Filing Status: What Is It and Why It Matters” and “How To Organize Your Tax Records.”

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.

For most of the United States, the deadline to submit and pay federal tax returns is April 18, 2023. However, things are different if you live in California. Keep reading to learn more, and get some tips for a stress-free tax season. 

When Is the 2023 Tax Deadline?

This year’s tax deadline for most of the U.S. is Tuesday, April 18, 2023. However, the Internal Revenue Service (IRS) has offered an extended deadline of Monday, October 16, 2023 to tax payers in disaster areas located in most of California and parts of Alabama and Georgia. 

According to the IRS, the October 16 extension applies to

• Individual income tax returns, originally due on April 18
• Various business returns, normally due on March 15 and April 18
• Returns of tax-exempt organizations, normally due on May 15

Additionally, this means that eligible taxpayers will also have until October 16, 2023, to make 2022 contributions to their IRAs and health savings accounts.

Where Does It Apply?

So far this year, the IRS has issued three Tax relief bulletins concerning California. Each bulletin contains a list of counties that will receive tax relief in the form of an extension. If you reside or have a business in any of these localities, you can take advantage of the extended deadline.

The lists below are accurate as of publication, although new localities may be added. To check the most recent bulletins and updates, visit the Tax Relief in Disaster Situations section on the IRS website.

Victims of severe winter storms, flooding, and mudslides in California beginning January 8, 2023,  (issued January 10, 2023):

Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo, and Yuba counties.

Victims of severe winter storms, flooding, landslides, and mudslides beginning December 27, 2022 (issued January 24, 2023):

Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Inyo, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, Nevada, Placer, Sacramento, San Benito, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, San Diego, San Francisco, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Ventura, and Yolo counties.

Victims of severe winter storms, flooding, landslides and mudslides in California beginning March 9, 2023. (issued March 17, 2023)

Alpine, Amador, Butte, Calaveras, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Los Angeles, Madera, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Nevada, Orange, Placer, Plumas, Sacramento, San Benito, San Bernardino, San Francisco, San Joaquin, San Mateo, San Luis Obispo, Santa Barbara, Santa Clara, Santa Cruz, Sierra, Sonoma, Stanislaus, Trinity, Tulare, Tuolumne and Yuba counties

For more tax tips, check out our previous blogs, “2023 Tax Refund schedule: When Will I Get My Refund?” and “Will Tax Refunds Be Bigger in 2023?”

JT Tax Services Is Here To Answer Your Tax Questions

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.