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A Simple Tip to Make Tax Filing a Lot Easier

A Simple Tip to Make Tax Filing a Lot Easier

Filing your taxes takes focus and great attention to detail. And while this may sound complex, it can be really easy if you follow a simple tip. Keep reading to learn more.

How to Make Tax Filing a Lot Easier

Filing your tax return becomes a breeze when you keep records of all your tax documents.

Efficient recordkeeping helps you identify sources of income, keep track of your expenses and support the information of your tax return. All in all, keeping comprehensive records makes tax filing an easier, simpler, and more precise task.

The Documents You Should Make Sure to Keep

Below is a list of the documents you should make sure to keep.

  • Tax-related documents. This includes wage and earning statements, dividend statements, bank interests, and some government payments, such as unemployment compensation, or virtual currency transactions. You should also keep any receipts, canceled checks, and other documents that help support income, a deduction, or a credit reported on your tax return
  • Letters from the IRS and prior year tax returns. Make sure to keep copies of prior year tax returns, as well as any letter from the IRS. This includes adjustment notices and Economic Impact Payment Notices, among others.
  • Property records. Pay attention to keep all records relating to any property your dispose of or sell.
  • Businesses income and expenses. Taxpayers who own a business must come up with a recordkeeping method that reflects accurately their gross income and expenses. If you have employees, don’t forget that you must keep all employment tax records for at least four years.  
  • Health insurance. Keep records of all the documents related to health insurance for you or your family. You will need that information if you want to claim the premium tax credit.  

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

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

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

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

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

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

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.

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

What Is an Amended Tax Return?

What Is an Amended Tax Return?

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

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.

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

3 Basic Mistakes to Avoid When Filing Your Taxes

3 Basic Mistakes to Avoid When Filing Your Taxes

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

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.

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

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

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

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

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.

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 FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our 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

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

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.

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 FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our 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

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

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.

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

Everything You Need to Know About Tax Refunds This 2021

Everything You Need to Know About Tax Refunds This 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

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.

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

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

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

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

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.

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