UNIKO Media Group, Author at JT Tax Services

Advance Child Tax Credit Payments and your 2022 Tax Return

December 10, 2021

The Advance Child Tax Credit Payments were one of the most important tax provisions of 2021. These payments helped millions of families weather the economic impact of the COVID-19 pandemic. But what does it all mean for your 2022 tax return? Keep reading to learn more.

Advance Child Tax Credit Payments and your 2022 Tax Return

In short, the Advance Child Tax Credit Payments were monthly payments that American families received throughout 2021 (the last payment is scheduled to go out on December 15, 2021) as a form of financial relief.

Families received $300 per month for every child under the age of six and $250 per month for every child between the ages of six and 17. Now, what does this all mean for your 2022 tax return?

First, remember that these payments were technically a 50% cash advance on the child tax credit you were expected to qualify for on your 2022 return. This means that there are two basic scenarios:

You received less than the amount you were eligible for.
You received more that you were eligible for.

If you received LESS money than you were supposed to, you will be able to claim a credit for the remaining amount on your 2022 tax return.

On the other hand, if you received MORE than you were eligible for, you may need to repay a part of all the extra money when you file your taxes next year.

In January 2022, the IRS will send you a letter that states the total amount of Advance Child Tax Credit Payments you received in 2021. Make sure to keep this letter, along with any other letter about your Child Tax Credit.

If you need assistance with your Child Tax Credit or with your 2022 Tax return, get in touch with JT Taxes. Our team stands ready to answer your questions and offer the dependable, friendly assistance you need.

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

Do you need assistance with personal or business 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.

3 Things You Should Do Before the Tax Year Ends

By: UNIKO Media Group

December 1, 2021

Just like the calendar year, the tax year ends on December 31. Most people associate that date with parties and New Year’s resolutions. However, there are some other important things you should do by that date.

Donate to Charity

Remember that now you can claim a deduction of up to $300 (or $600 for couples filing jointly) for cash contributions to qualifying charities during 2021.

The term “cash” includes donations made by credit card, debit card, check, as well as unreimbursed out-of-pocket expenses in connection to volunteer services to a qualifying charity.

If you are planning do donate, use the Tax Exempt Organization Search, a tool created by the IRS to allow taxpayers to check an organization’s federal tax status and filings

Check Your ITIN

The term ITIN stands for Individual Taxpayer Identification Number. You should renew your ITIN if it has expired and you’ll need it for a U.S. federal tax return. Keep the following in mind:

Any ITIN not used on a U.S. federal tax return at least once for years 201, 2019, and 2020 will expire on December 31, 2021.

ITINs with middle digits 70 through 88 have expired.

ITINs with middle digits 90 through 99 have expired, if assigned before 2013.

Get Ready to File Your Return in 2022

This is the ideal time to get ready to file your return in 2022. Take a look at your tax records and make sure you have all the documents you need to support the deductions you intend to claim. Also, if you haven’t done it yet, you may consider choosing direct deposit to get your tax refund: it’s faster and eliminates the possibility that a refund check could be lost or stolen.

If you have any questions or need assistance preparing your return, contact JT Tax Services today. We’ll be happy to answer any questions you may have.

Contact the Experts at JT Tax Services

How to Protect Yourself Against Holiday Scams

By: UNIKO Media Group

November 26, 2021

The holidays are here, and that means fun, delicious food, quality time with your family… and scam attempts. Here’s what you need to know to protect yourself.

How to Protect Yourself Against Holiday Scams

According to the FBI, the two most common types of holiday scams are non-delivery and non-payment scams. A 2020 report shows that these two types of schemes cost people more than $265 million, with credit card fraud accounting for another $129 million.

The IRS, for his part, is sounding the alarm about fake charities. Criminals try to take advantage of the goodwill that the holiday season generates to steal funds and personal information. Regardless of the strategy, these easy tips will help you thwart scammers:

The most basic rules of cybersecurity also apply during the holidays. So don’t click on any links or download any attachments contained in suspicious emails.

Consider it a huge red flag if a company sends an unrequested email asking you to change or verify your passport. Find the company’s official phone number and can call them to verify the email is legitimate.

Before making a purchase online, check the website URL (the website address) and make sure it includes the term “https.” If it doesn’t, don’t move forward with the transaction.

When shopping online, avoid using the public or unsecured WiFi available in places like malls or coffee shops.

When it comes to donations, be wary of unrequested calls. Don’t let callers pressure you into making a donation (a huge red flag). Remember: no legitimate charity requests prepaid gift cards as donations.

NEVER wire money directly to a charity or online seller.

When purchasing items online, always get a tracking number so you can monitor the shipping process

Contact the Experts at JT Tax Services

What You Need to Know If You Are Making Donations This Christmas

By: UNIKO Media Group

November 17, 2021

As you know, Christmas is the season of giving. If you are planning to make donations to charities over the next few weeks, keep reading to learn about a special change that can help you claim a deduction for donations on your 2021 federal income tax return.

An Exceptional Measure

The COVID-19 pandemic has wreaked havoc on the finances of a lot of people. As a response, the IRS has taken some extraordinary measures to offer relief to those who need it most.

One of these measures is an exception that allows taxpayers to claim a limited deduction of up to $600 in donations to qualifying charities on their 2021 federal income tax return.

What You Need to Know

Usually, people who opt for the standard deduction cannot claim deductions for their charitable contributions.

However, a new temporary exception allows these taxpayers to claim a limited deduction on their 2021 tax return.

This is important because, according to the IRS, nine out of 10 taxpayers choose the standard deduction, so a lot of people can benefit from this special rule.

The temporary exception allows individual taxpayers (including married taxpayers who file separately) to claim up to $300 for donations in cash made in 2021 to qualifying charities. The limit is increased to $600 for married taxpayers who file jointly.

Keep This In Mind

For the purposes of this rule, cash contributions include donations made by check, credit card, as well as amounts incurred by an individual for unreimbursed out-of-pocket expenses in connection with their volunteer services to a qualifying charitable organization.

To verify the status of a charity, use the Tax Exempt Organization Tool on the IRS website.

Contact the Experts at JT Tax Services

Photo of mother and child illustrates blog "If your Income Changed in 2021, don’t forget to Update Your Child Credit Payments"

If your Income Changed in 2021, don’t forget to Update Your Child Tax Credit Payments

By: UNIKO Media Group

November 4, 2021

If for any reason your income was substantially higher or lower in 2021 than in 2020, don’t forget to update your Child Tax Credit Payments information so that your payments increase or decrease accordingly.

How to Update Your Information

The Child Tax Credit Payments are monthly payments issued by the United States government to help working families with the impact of the COVID-19 pandemic.

The first payments were delivered on July 15 of this year. Since then, millions of families have received these payments every month.

The amount of the payments people receive is based on information from previous years. If your income increased or decreased substantially, it’s a good idea to update your information so that your payments are adjusted accordingly.

To update your income information, just visit the Child Tax Credit Update Portal on the IRS official website and follow the instructions.

Any change you make will be reflected on the payment that will go out on December 15, which is also the last payment scheduled for 2021.

About the Child Tax Credit Payments

The Child Tax Credit Payments are a measure included in the American Rescue Plan.

Since last July, families all over the United States have received up to $300 for every child who’s five or younger and up to $250 for every child ages 6 to 17.

The full amount of the payments is for families that:

Make up to $150,000 for couples.
Make up to $112,500 for families with one parent.

After those limits, the amount of the payments begins to phase off gradually.

If you haven’t enrolled yet to receive the Child Tax Credit Payments, you still have until November 15 to do it. Don’t miss this opportunity!

Contact the Experts at JT Tax Services

What You Need to Keep in Mind About Amended Tax Returns

By: UNIKO Media Group

October 27, 2021

Can you amend a tax return? All tax returns containing errors must be amended? Keep reading to discover the answers to these and other questions about amended tax returns.

What You Need to Keep in Mind About Amended Tax Returns

Although everyone tries to be as precise as possible when it comes to filing their taxes, mistakes happen.

Now, the fact that your tax return contains errors doesn’t automatically mean that you should file an amended return. The IRS catches many math or clerical errors and sends you a letter to notify you about any adjustment.

Similarly, the IRS may accept returns without certain required forms. If you forget to attach a form to your return, don’t file an amended return just yet; wait until the IRS sends you a letter requesting any missing documentation.

On the other hand, these are some cases where you usually DO have to file an amended return:

You entered your income incorrectly
You didn’t claim credits for which you are eligible
You claimed deductions incorrectly

Some Useful Tools

To simplify things, the IRS has created some usuful online tools to help those who need to file an amended return or want to know if they have to file one.

For example, this online assistant can help you determine whether you have to file an amended return.

Those who already filed an amended return can check their status of their return using the online tool Where’s my amended return? To use the tool you will need some basic personal details such as date of birth, Social Security Number (SSN) and ZIP code.

If you have other questions about amended tax returns, or need to file one, don’t hesitate to contact us at JT Tax Services. We are here to answer your questions and provide you with high-quality tax assistance you can trust.

Contact the Experts at JT Tax Services

3 Scary Tax Situations to Avoid This Halloween

By: UNIKO Media Group

October 20, 2021

Taxes are a complex topic that can be scary to some people. That’s why today we give you some tips to deal with three scary tax situations to avoid this Halloween.

What to Do If You Get a Letter From the IRS

If you get a letter from the IRS, the first thing to do is not to panic. Read the letter carefully because it contains instructions about the next steps you should take.

In many cases, the purpose of these letters is to inform you about a correction to your tax return. If you agree with the correction, don’t forget to make a note on your return. If you don’t agree with the change, you have to send a letter contesting the correction.

Whatever the case, don’t worry: our experts are here to help you make sense of any letter or notice you receive.

How to Handle Tax Debts

Tax debts are definitely stressful—more stressful than any haunted house or creepy urban legend. If you owe taxes and have been putting off addressing your situation, this is a good time to roll up your sleeves and get down to work.

Again, the key is not to panic. Remember that in most cases, there are options to resolve your debt, and you may even reach a compromise that allows you to settle yur debt with the IRS paying a lower amount than what you owe.

When it comes to tax debt, every case is unique. Get in touch with our team to talk about your situation and find a solution that meets your needs.

How to Avoid Tax Scams

Scammers can be more annoying than any imaginary monster. Luckily, avoiding tax scams is easy by taking some basic precautions. We recommend to keep the following in mind:

The IRS will NEVER contact you using social media or text messages.
The IRS will NEVER ask you to settle a tax debt using gift cards.
IRS agents will NEVER threaten you with jail or deportation to force you to settle a tax bill.
NEVER send personal information such as Social Security Number or credit card numbers by email or social media.
If you receive a suspicious email, DON’T click on any links, DON’T download any attachments, and DON’T respond to the message.

Contact the Experts at JT Tax Services

Do you need help with personal or business 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.

Families of Many Types Qualify for the Child Tax Credit Payments

Many Types of Families Qualify for the Child Tax Credit Payments

By: UNIKO Media Group

October 13, 2021

The monthly payments of the Tax Child Credit are an important form of financial relief for American families affected by the COVID-19 pandemic. What not everyone knows is that not only traditional families qualify for these payments. Keep reading to learn more.

Families ofMany Types Qualify for the Child Tax Credit Payments

There are many types of families, from grandparents who take care of their grandsons to parents who have adopted one or more children. That’s why the payments of the Child Tax Credit apply to a wide variety of scenarios besides traditional families.

When it comes to the Child Tax Credit Payments, the child who qualifies can be a filer’s:

Son or daughter
Adopted child
Eligible foster child
Siblings, including stepsiblings or half-siblings
A descendent of any of the above (for example, a grandchild, niece or nephew)

What You Need to Know About the Child Tax Credit Payments

The Advance Child Tax Credit Payments are monthly payments whose goal is to offer financial relief to families affected by the COVID-19 pandemic.

Since last July 15, families that qualify have been receiving each month payments of $250 or $300 for every qualifying child.

Working families will get the full credit if they make up to $150,000 for couples or $112,500 for families with a single parent.

To know if you qualify for the Advance Child Tax Credit Payments, use the online Advance Child Tax Credit Eligibility Assistance.

If you need assistance or have questions about the Advance Child Tax Credit, don’t hesitate to contact our experts to get dependable, personalized assistance.

Contact the Experts at JT Tax Services

Do you need help figuring out how the Advance Child Tax Credit Payments? 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.

What Parents Who Share Custody Should Know About the Advance Child Tax Credit Payments

By: UNIKO Media Group

October 6, 2021

The Advance Child Tax Credit Payments are a provision that offers financial relief to millions of American families. But what happens when parents share custody of one or more children? Keep reading to discover the answer.

What Are the Advance Child Tax Credit Payments?

The Advance Child Tax Credit Payments are a measure included in the American rescue plan to offer financial relief to American families affected by the COVID-19 pandemic.

Since the last 15 of July, families have been receiving monthly payments of $250 or $300 for each qualifying child under the age of 17. The families that will receive the total amount are those who earn up to $150,000 for couples or $112,500 for families with a single parent.

What Parents Who Share Custody Should Know About the Advance Child Tax Credit Payments

When it comes to parents who share custody, the most obvious question is: Who would receive the Advance Child Tax Credit Payments?

In that case, the parent who should receive the payments is the one who claimed the Child Tax Credit on their 2020 tax return, or on their 2019 return, if their 2020 return has not been processed yet.

If a non-eligible parent receives the Advance Child Tax Credit Payments, it’s advisable to unenroll to stop receiving the payments. To unenroll, just visit the Child Tax Credit Update Portal on the IRS website.

If you receive the Advance Child Tax Credit Payments without being eligible, it’s important to unenroll because otherwise, you will have to return those payments when you file your tax return next year.

Contact the Experts at JT Tax Services

4 Tax Tips for Small Business Owners

By: UNIKO Media Group

September 29, 2021

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.