UNIKO Media Group, Author at JT Tax Services

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

June 17, 2021

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

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

By: UNIKO Media Group

June 9, 2021

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.

What Is an Amended Tax Return?

By: UNIKO Media Group

May 27, 2021

If you filed your taxes by the May 17 deadline but just realized that your return has errors or is missing information, then you may need to file an amended return. Keep reading to learn everything about amended returns, from what they are to how to file one.

What Is an Amended Tax Return?

An amended tax return is a return you file to correct an error or omission included in the return you filed previously.

While the basic principle is simple, not all errors and omissions merit filing an amended return, as we’ll see in the next section.

When Should I File an Amended Return?

The IRS recommends filing an amended return only in certain situations. For example, you are NOT usually required to file an amended return to correct math errors or if you forgot to include a schedule or a form with your original return.

In the scenarios described above, the IRS usually corrects math errors and then notifies you by mail. When it comes to schedules and forms, the agency will send you a letter requesting any missing documents.

On the other hand, there are some cases where you are expected to file an amended tax return. This includes all the errors related to your filing status, income, deductions, and credits.

If you are still not sure whether you should file an amended tax return, you can use the free online tool Should I File an Amended Tax Return? provided by the IRS.

How to File an Amended Return?

If you need to file an amended tax return, you can submit Form 1040-X electronically. It’s worth keeping in mind that if you are expecting a refund, you should not file an amended return before the original return has been processed.

If you need assistance with this or any other tax topic, don’t hesitate to seek the assistance of a professional who can offer guidance and advice. This way you’ll save time and money!

Contact the Experts at JT Tax Services

3 Basic Mistakes to Avoid When Filing Your Taxes

By: UNIKO Media Group

May 11, 2021

As the deadline to file your taxes approaches, it’s important to make sure to file a tax return free of errors. That’s why today we take a closer look at three basic mistakes to avoid when filing your taxes.

1. Sign and Date Your Tax Return

In taxes, as in many other things, getting the basics rights makes everything easier. Be sure to sign and date your tax return before filing it, and don’t forget that if you file your taxes jointly, both spouses must sign and date their tax return.

2. Double-Check Names and Social Security Numbers

Again, basic details are crucial. Remember that all Social Security Numbers (SSN) and names on your return must appear just as they are printed on the Social Security card. Your return must include the name and Social Security number of any person you claim as a depending. If a person you claim on your return is not eligible for a Social Security Number, then include the ITIN (Individual Taxpayer Identification Number).

3. Choose the Right Filing Status

Even though everyone knows the importance of accuracy in names and Social Security Numbers, fiiling statuses are les known but equally relevant. Your filing status is a category that determines how much you pay in taxes and your eligibility for certain tax credtis. Below is a list with the five filing statuses.

Single
Married filing jointly
Married filing separately
Head of household
Qualifying widow(er) with dependent child

As you select your filing status, keep in mind that your marital status on December 31 determines your filing status for the rest of the year.

As you can see, the five filing statuses are quite straightforward. However, don’t hesitate to seek the assistance of a tax professional should you have any questions about this or any other tax topic

Contact the Experts at JT Tax Services

Can’t File Your Taxes by May 17? You Can Request an Extension to File

By: UNIKO Media Group

May 5, 2021

The deadline to file your tax return is approaching. If you can’t file your tax return by May 17, don’t worry—you can request an extension file that will give you more time to prepare your return. Here’s everything you need to know about this useful alternative.

What Is an Extension to File?

An extension to file allows you to file your tax return after the official deadline. In this case, an extension would give you until October 15, 2021, to file your taxes.

To request an extension to file, you must do one of two things:

File form 4868 (you can request assistance from a tax professional if you are not sure how to do it)
Send an electronic payment via Direct Pay, debit card, or credit card indicating Form 4868 or extension as the payment type. Also in this case, a tax professional can offer expert assistance if you need help.

Rmember: an Extension to File Is Not an Extension to Pay

If you want to request an extension to file, the key is to remember that an extension to file is not an extension to pay.

This means that even with an extension to file, you should pay your taxes by may 17 in order to avoid penalties and interests.

It’s worth keeping in mind that some people get more time to file and pay their taxes. This includes victims of distasters, as well as members of the military, and eligible support personnel serving in combat zones.

Need Help With Your Taxes? Contact the Experts at JT Tax Services

With tax season in full swing, some people are already thinking of their tax refund. That’s why today we debunk the most common myth about tax refunds and share some other important considerations you should keep in mind.

The Most Common Myth About Tax Refunds, Debunked

By: UNIKO Media Group

April 27, 2021

With tax season in full swing, some people are already thinking of their tax refund. That’s why today we debunk the most common myth about tax refunds and share some other important considerations you should keep in mind.

The Most Common Myth About Tax Refunds, Debunked

One of the most common misconceptions about tax refunds is that if you receive a tax refund this year, that means you don’t have to adjust your withholding for 2021. This is false.

The truth is that it’s important to make adjustments now to avoid mistakes on your return next year.

One of the most important things you should do from a tax standpoint is to adjust your tax withholding with your employer. You can do this easily using the Online Tax Withholding Estimator. This simple verification will help you determine whether your employer is withholding the right amount of tax.

Other Important Considerations

Don’t forget to adjust your withholding if you get married, get a divorce, have a child, or adopt. All these life events impact your taxes.

In some cases, your refund may be smaller than expected. This may happen for a variety of reasons. For example, you may have made a math errors, or you may owe taxes from past years o other federal non-tax obligations such as student loans and child support.

Contrary to what many people believe, actions like calling the IRS or ordering a tax transcript won’t help you get a more accurate date for your tax refund. If you want to check the status and date of your refund, the only reliable source is the online tool Where’s My Refund.

Need Help With Your Taxes? Contact the Experts at JT Tax Services

The May 17 deadline to file your taxes is almost here, so it’s worth keeping in mind that even if you can’t pay your taxes in full, you still have to file on time. If you have difficulties paying your taxes in full this 2021, don't worry. Keep reading to learn more about your options.

File Your Taxes by May 17 Even if You Can’t Pay Your Tax Bill in Full

By: UNIKO Media Group

April 21, 2021

The May 17 deadline to file your taxes is almost here, so it’s worth keeping in mind that even if you can’t pay your taxes in full, you still have to file on time. If you have difficulties paying your taxes in full this 2021, don’t worry. Keep reading to learn more about your options.

Make Sure to File by May 17

First off, make sure to file by the May 17 deadline to avoid a failure-to-pay penalty. If you can’t file your return by the due date, you can request an extension that will give you until October 15, 2021, to file your return. If you do get an extension, remember that this is an extension to file, not an extension to pay, so you still have to pay at least a portion of your taxes by May 17.

Pay as Much as Possible by May 17

If you can’t pay your taxes in full, you should still file your return by the May deadline and pay as much as you can to avoid penalties and interest. In some cases, the IRS is able to waive penalties, but not the interest charges on unpaid tax bills. Throughout this process, you may find useful to seek the assistance of a tax professional who can offer guidance and advice.

Set Up a Payment Plan

If you cannot pay your taxes in full by May 17, you can also set up a payment plan to pay your tax bill in more manageable installments. You can apply for a payment plan online or using Form 9465, Installment Agreement Request. Also in this case, the assistance of tax professional can prove invaluable to ensure that the process is agile, fast, and stress-free.

Need Help With Your Taxes? Contact the Experts at JT Tax Services

Everything You Need to Know About Tax Refunds This 2021

By: UNIKO Media Group

April 1, 2021

If you already filed your tax return, chances are that you are already looking forward to your refund. That’s why today we bring you everything you need to know about tax refunds this 2021, from how to verify the status of your refund to how long could it take for your refund to arrive.

How Can I Verify the Status of My Refund?

Verifying the status of your refund has never been this easy. All you have to do is access the IRS online tool Where’s My Refund? with some basic information on hand:

Your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)

The filing status on your tax return (single, married filing jointly, etc.)

The exact amount of your refund

You can start verifying the status of your refund 24 hours after the IRS acknowledges receipt of a return filed electronically or four weeks after mailing a paper return.

How Long Will It Take for My Refund to Arrive?

Generally speaking, refunds are issued within 21 days, but this is far from a hard-and-fast rule. There are some factors that may delay your refund, for example:

A return that includes errors or is incomplete.
A return affected by identity theft or fraud.
Some banks do not process payments on weekends or holidays.

Since it’s not possible to establish with certainty when your refund will arrive, it’s a Good idea to not count on receiving your refund by a certain date, especially if you plan to use that money to make payments.

Some Additional Notes

These are some pointers about tax refunds worth keeping in mind:

Where’s My Refund? is updated once a day, usually overnight, so it’s not necessary to check it more tan once every 254 hours.
Calling the IRS won’t speed up your refund. The information you get by phone is the same as in Where’s My Refund?
Should the IRS need more information to process your return, they will contact you by mail.

Need Help With Your Taxes? Contact the Experts at JT Tax Services

Remember: the Federal Tax Day for Individuals Is Now May 17

By: UNIKO Media Group

March 25, 2021

The COVID-19 pandemic has created many changes, and taxes are not an exception. Remember that, unlike other years, this 2021 the federal Tax Day for individuals has been extended to May 17.

Keep reading to learn more about this and other useful tax tips.

What You Need to Know

Although most years the Federal Tax Day is April 15, this year will be different.

The disruptions caused by the coronavirus pandemic have led the Internal Revenue Service (IRS) and the Treasury Department to move the federal Tax Day to Monday, May 17, 2021.

This extension applies automatically to all taxpayers, so you don’t have to take any action to take advantage of this measure.

What If I Need More Time to File My Tax Return?

If even with the new date you need more time to pay your federal taxes, you can request a filing extension using Form 4868. In this case, you would have until October 15, 2021, to file your tax return.

It’s worth remembering that an extension to file is not an extension to pay. This means that even if you request a filing extension you still have to pay your taxes by May 17 to avoid interests and penalties.

Also, keep in mind that the 17 May date applies only to federal taxes, so you should make sure to check with your local tax agency to learn more about the filing and payment deadlines for your state taxes.

Need Help With Your Taxes? Contact the Experts at JT Tax Services

Everything You Need to Know About the Third Stimulus Payment

By: UNIKO Media Group

March 17, 2021

The third stimulus payment is already being delivered to taxpayers all over the United States. That’s why today we bring you everything you need to know about your stimulus payment, from how to check the status of your payment to how much you would receive

What Do I Have to Do to Get My Payment?

The third round of Economic Impact Payments is delivered automatically, which means that in most cases you don’t have to take any action to get your payment. A lot of people will receive the third payment in the same way they received the previous two.

How Can I Check the Status of My Payment?

Knowing when and how the IRS will send your payment is quite easy thanks to the internet. All you have to do is access the online tool Get my Payment and enter all the necessary information. The IRS asks taxpayers not to call if they need to check the status of their payments. Use the online tool instead and keep in mind that it’s updated once a day, usually overnight, so there’s no need to check more than once a day.

How Much Will I Get?

Most people will receive $1,400 plus $1,400 for every qualifying dependent that they claim on their tax return.

Remember that the eligible income levels have changed for the third round of payments. This means that some people who qualified for the first and second payments won’t be eligible for the third one. Payments will begin to be reduced for people who earn $75,000 or more in Adjusted Gross Income (or $150,000 for married couples filing jointly).

At What Level of Income Do the Payments Stop?

Reduced payments stop at $80,000 Adjusted Gross Income for individuals ($160,000 for married couples). Taxpayers with income above those levels are not eligible for the third Economic Impact Payment.