JT Tax Services

Tax Services
Girl with cellphone and credit card illustrates blog "Remember: This Year There Is a Special Deduction for Charitable Donations"

Remember: This Year There Is a Special Deduction for Charitable Donations

Generally speaking, we should always strive to make a difference, but this mindset is more important than ever this 2020. That’s why this year the IRS offers taxpayers a special tax deduction for cash donations to qualifying charities.

Read on to learn more about this special deduction and what aspects to keep in mind if you decide to claim it.

A Deduction of Up to $300

The Coronavirus Aid, Relief and Economic Security (CARES) Act enacted last spring includes a special tax deduction available until December 31, 2020, to taxpayers who give a donation of up to $300 in cash to a qualifying charitable institution and choose the standardized deduction instead of itemizing their deductions.

It’s worth remembering that in this case “cash” also includes donations made by check, credit card, or debit card.

The deduction lowers both adjusted gross income and taxable income, translating into tax savings.

Two Things to Keep in Mind

If you decide to donate to a charity and you wish to claim this special deduction, there are two important things to keep in mind.

First, prior to making your donation, don’t forget to use the IRS online tool Tax Exempt Organization Search to make sure the institution is eligible for tax-deductible donations.

Finally, once you have made your donation, make sure to keep all related documents. This is as simple as obtaining a receipt or acknowledgment letter from the charity before filing your tax return and retaining a canceled check or credit card receipt.

More Tips About Taxes

Learning more about taxes is always a smart move, as it helps you avoid fines and missed deductions. Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

Need help preparing your taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. 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, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

4 Steps You Can Take to Start Preparing Your 2020 Tax Return

4 Steps You Can Take to Start Preparing Your 2020 Tax Return

December is almost here, the best season to celebrate and also the ideal moment to start working on your 2020 tax return. Here are four steps you can take now to ensure that the process is as easy and simple as possible.

Check Your Withholding

First, make sure that your tax withholding is correct. This can be done easily using the Tax Withholding Estimator from the IRS.

Checking your withholding is important because it helps you avoid unexpected tax bills when you file your 2020 tax return. These are some cases when checking your withholding is particularly important:

  • Your refund was smaller than expected when you filed your 2019 taxes this year.
  • You owed an unexpected tax bill last year.
  • If you got married, bought a house, had a child, or adopted a child.

Get The Documents You Need for Your 2020 Tax Return

Having the right documents on hand makes things a lot easier when you prepare your tax return. These are some of the documents you should start gathering:

  • 2019 tax return.
  • Form W-2 from your employer.
  • Form 1099 from banks and other payers.
  • Forms 1095-A if you claim the premium tax credit.
  • Notice 1444 that you received with your Economic Impact Payment.

Keep in mind that most income is taxable, including income from the gig economy and virtual currencies, so don’t forget to get any documents related to these types of earnings as well.

Confirm Your Email and Mailing Addresses

You want to get all the forms you need on time, so it’s always a good idea to confirm that your employer and banks, as well as any other payers, have your current email and mailing addresses.

Make Sure Your ITIN Hasn’t Expired

Some Individual Tax Identification Numbers, or ITINs, expire at the end of 2020. They include:

  • All ITINs not used at least once on a federal tax return during the last three years.
  • All ITINs issued before 2013 with middle digits 88 (for example, 9XX-88-XXXX)
  • ITINs with middle digits 90, 91, 92, 94, 95, 96, 97, 98 or 99 that were assigned before 2013 and have not been used.

If your ITIN expires, then you can submit Form W-7 to the IRS to renew it. Taking this step before filing your return will help you avoid delays in your refund and stay eligible for certain tax credits.

More Tips About Taxes

Learning more about taxes is always a smart move. Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

Need help preparing your taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. 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, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

The Scam You Should be Aware of During This Holiday Season

Remember: Gift Cards are NOT to Be Used to Make Tax Payments

Gift cards are a convenient option people use every holiday season. It makes sense: these cards allow you to give a gift to someone you care about without running the risk of giving them something they don’t like. However, gift cards are NOT to be used to make tax payments. Read on to learn how to identify, avoid, and report this type of scam.

How the Scam Works

Scammers often impersonate the IRS or other reputable institution and try to get people to pay fake tax bills with prepaid gift cards. This may sound absurd on its face (and it is), but a lot of people fall for this scheme every year, so it’s better to be prepared.

Criminals prefer gift cards because they are difficult to trace or recover when the transaction has been completed. So once you have provided them with the information they need, it’s very difficult to get your money back.

Pay Attention to These Red Flags

These are some red flags that can help you identify scammers using this scheme:

  • The contact you unsolicited either by phone, email, text, or social media.
  • Scammers may tell you that you are somehow linked to illegal activity (for example, that your identity has been stolen and used for fraudulent purposes).
  • They use threats and/or harassment to get you to pay a fake tax penalty.
  • They instruct you to buy gift cards from different stores.
  • Once you buy the gift cards, they ask you to provide the gift card number and PIN.

How to Report a Gift Card Scam Attempt

If you believe you have been targeted by scammers, you can use the IRS Impersonation Scam Reporting website or call 800-366-4484.

In the case of phone scams, you can report them to the Federal Trade Commission, making sure to add “IRS phone scam” in the notes.

If you receive threatening or harassing phone calls, you can report them directly to the IRS to phishing@IRS.gov, including the phrase “IRS phone scam” in the subject line.

More Tips About Taxes

Learning more about the options available to you as a taxpayer is more important than ever. Check out these previous posts for more useful tax tips:

Contact the Experts at JT Tax Services

Looking for expert, dependable advice on taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. 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, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

IRS Announces New Relief Options for Taxpayers Impacted by COVID-19

IRS Announces New Relief Options for Taxpayers Impacted by COVID-19

The IRS announced this week its Taxpayer Relief Initiative, a series of measures designed to help taxpayers impacted by the COVID-19 pandemic. The provisions include more flexible terms to resolve tax liabilities and make it easier for taxpayers to set up installment agreements.

  • If you qualify for a short-term payment plan you may now have up to 180 days to resolve your tax liabilities instead of 120.
  • The IRS may be flexible if you are temporarily unable to meet the terms of an accepted Offer in Compromise.
  • If you owe less than $250,000 you may be able to set up an installment agreement without providing a financial statement if your monthly payment proposal is sufficient.
  • Those taxpayers who owe only for the 2019 tax year and owe less than $250,000 may qualify to set up an Installment Agreement without a notice of federal tax lien filed by the IRS.
  • Qualified taxpayers with existing Direct Debit Installment Agreements may now be able to use the Online Payment Agreement system to propose lower monthly payment amounts and change their payment due dates.

These are other aspects of the Taxpayer Relief Initiative that are worth keeping in mind:

  • You can request to temporarily delay collection. If the IRS determines that you are unable to pay, it may delay the collection process.
  • You may settle your tax bill for less than the amount you owe by submitting an Offer in Compromise. To check if you are eligible, use this online tool: Offer in Compromise Pre-Qualifier.
  • Some taxpayers may get relief from penalties. You may qualify for reasonable cause assistance if you have failure to file, pay, and deposit penalties. Additionally, first-time penalty relief is available if you have never been subject to tax penalties before.

More Tips About Taxes

Learning more about the options available to you as a taxpayer is more important than ever. Check out these previous posts for more useful tax tips:

Contact the Experts at JT Tax Services

Looking for expert, dependable advice on taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. 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, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

Need to Recover Tax Returns From Previous Years? Here’s What to Do

Need to Recover Tax Returns From Previous Years? Here’s What to Do

In theory, you are supposed to keep copies of your tax returns and all supporting documents for at least three years. If you lost your tax returns, or you couldn’t keep them for any other reason, don’t worry. These are your options if you need tax returns from previous years.

Ask Your Tax Preparer or Software Provider

If you work with a software provider or a tax preparer, the first step is asking them. They may be able to provide you with copies of past tax returns.

Request a Transcript

If you don’t work with a software provider or tax preparer, or if they don’t have copies of your returns, you can request a tax transcript from the Internal Revenue Service (IRS). This document is free but conceals some personal information to protect the identity of taxpayers. Other than that, all financial entries are fully visible. There are three ways to request a transcript:

  • Online: Use the tool Get Transcript to view, print, or download all types of transcripts. If you prefer so, you can also decide to get your transcript by traditional mail (in that case, consider that it may take five to 10 days for it to arrive).
  • By phone: Call the IRS at 800-908-9946.
  • By mail: Complete and send forms 4506-T (to request a transcript of your tax return) or 4506-T-EZ (to request other tax records such as W-2 information or 1099 information, among others).

Request a Copy of Your Tax Return

To get a copy of your tax return, complete Form 4506 and mail it to the IRS that appears on the form. Keep in mind that a fee of $50 for each copy applies and that it may take the IRS up to 75 days to process your request. Copies are available for the current tax year and up to six years prior.

More Tax Tips

Learning more about taxes is well worth the effort: It can save you time, money, and frustration! Check out these previous posts to learn more about deductions, deadlines, tax credits, and everything in between:

Get Advice From the Experts at JT Tax Services

Our experts at JT Tax Services stand ready to meet all your tax needs. We help you file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

We are located in Oxnard, California. Contact us by email, telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

Phishing and Taxes: Everything You Need to Know

Phishing and Taxes: Everything You Need to Know

Fraudsters evolve with the times, so it’s no surprise that they are exploiting the internet to take advantage of unsuspecting victims. Phishing is one of the favorite tactics of cybercriminals, who often (and illegally) mention taxes or pose as tax institutions as part of the ruse.

Keep reading to learn more about phishing and to discover ways to protect yourself against this threat.

What Is Phishing?

Phishing is a type of scam where cybercriminals pose as trustworthy institutions (such as banks or the IRS itself) and send malicious emails or create fake websites with the intent of luring you into providing your personal information.

How to Protect Yourself Against Phishing

Phishing can be particularly insidious, but these simple steps go a long way toward avoiding falling prey to cybercriminals.

  • Be wary of unsolicited emails, social media messages, or text messages.
  • Don’t reply to suspect messages.
  • Bad grammar and poor spelling are some tell-tale signs of fraud.
  • Scare tactics and threats are red flags that should put you on alert.
  • If you receive a suspect email, don’t open any attachments and don’t click on any links.

Keep in mind that phishing may assume many forms. For example, you may encounter it as messages that pop up when you open a website. It may even occur as phone and VoIP calls, so make sure to keep your guard up at all times.

How to Report Phishing Attempts

We repeat this tip from the previous section because it’s extremely important: don’t reply to suspect emails.

If the email is tax-related, forward it to the IRS at (phishing@irs.gov) preferably with the full email headers.

If you experience a monetary loss due to an IRS-related phishing incident, you should report it to the Treasury Inspector General for Tax Administration (TIGA) and file a complaint with the Federal Trade Commission (FTC).

In the case of text messages, you can forward the text to the IRS at 202-552-1226 and, if possible, forward the originating number in a separate message.

Get Advice From the Experts at JT Tax Services

At JT Tax Services we have the experience, the knowledge, and the drive to meet all your tax needs. We help you file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

We are located in Oxnard, California. Contact us by email, telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

Do You Know Your Correct Tax Filing Status?

Do You Know Your Correct Tax Filing Status?

Knowing your correct tax filing status is essential because it determines the amount of tax you should pay, the credits you can claim, and your standard deduction amount, among other things.

Generally speaking, your status depends on whether you are married or single on December 31. That fact determines your status for the whole year.

In some cases, more than one filing status may apply (for example, married filing separately or jointly). In those cases, you can choose the status that allows you to pay the least amount of tax.

What Are the 5 Filing Statuses?

  • Single: this is normally the correct status if you are unmarried, divorced, or legally separated under a divorce or separate maintenance decree governed by state law.
  • Married filing jointly: if you are married, you can file together with your spouse. When a spouse passes away, the other person can normally file a joint return for that year.
  • Married filing separately: married couples may opt for filing separately. This option may result in a lower tax bill compared to filing jointly.
  • Head of household: if you are unmarried you may also qualify for this status, although special rules apply. One of the most basic is that you must have paid more than half the cost of keeping up a home for themselves and a qualifying person living in the home for half the year.
  • Qualifying widow(er) with dependent child: this status applies to taxpayers whose spouse died during one of the previous two years and they have a dependent child. There are other conditions that may apply as well.

If you have trouble figuring out our filing status, you can use the online assistant What Is My Filing Status? Answer some easy questions and you’ll get your correct filing status at the end.

More Tips About Taxes

Learning more about taxes is well worth the effort: It can save you time, money, and frustration! Check out these previous posts to learn more about deductions, deadlines, tax credits, and everything in between:

Contact the Experts at JT Tax Services

Looking for expert, dependable advice on taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. 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, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

Don’t Forget This Essential Step if You Are Starting a New Business

Don’t Forget This Essential Step if You Are Starting a New Business

Starting a new business is a process that involves many steps, and one of the most important is getting an Employer Identification Number, or EIN.

Read on to learn more about this important step and to discover how to apply for an EIN. 

What Is An Employer Identification Number?

An Employer Identification Number (EIN), also known as Federal Tax Identification Number, is used to identify employers for tax purposes, and most businesses need one. EINs have nine digits and are assigned by the Internal Revenue Service. If you already have an EIN and the organization or ownership of your business changes, then you may need a new number.

How to Know if I Need an EIN?

Finding out whether you need an EIN is a very simple process. Ask yourself the following six questions. If you answer “Yes” to any of them, then you need an EIN. 

  1. Does your company has employees?
  2. Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
  3. Does your business operate as a corporation or partnership? 
  4. Do you withhold taxes on income, other than wages, paid to a non-resident alien?
  5. Do you have a Keogh plan?
  6. Are you involved with any of the following types of organizations?
  • Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
  • Estates
  • Real estate mortgage investment conduits
  • Non-profit organizations
  • Farmers’ cooperatives
  • Plan administrators

How to Apply for an EIN?

You can apply for an EIN in a variety of ways, including by fax, mail, telephone (for international applicants), and online. The IRS offers this service for free and issues only one EIN per responsible party per day.  

Keep This in Mind About EINs

Above all, an important fact to keep in mind about EINs is that you must make sure to keep your business mailing address, location, and responsible party up to date. EIN holders must report changes in the responsible party within 60 days. Therefore you must be diligent when any of these modifications take place.

Contact the Experts at JT Tax Services

If you are starting a new business and need help choosing the right structure, contact the experts at JT Tax Services today. We have the experience, the knowledge, and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

We are located in Oxnard, California. Contact us by email, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

Did You Request an Extension to File Your Taxes? Don’t Forget This Important Date

Did You Request an Extension to File Your Taxes? Don’t Forget This Important Date

If you filed an extension to file your taxes you should keep in mind that the October 15 due date is less than one month away.

If you didn’t request an extension and haven’t filed a tax return yet, then you should take action as soon as possible. This is important, as it will help you avoid additional interests and penalties. 

Taxpayers who expect a refund should choose direct deposit to have the money deposited directly into their financial account. This is a much faster way to get your refund than expecting a paper check to arrive by regular mail.

Useful Online Resources

If what you want is tracking the status of your refund, this can be easily done using the Where’s My Refund tool available on the IRS website, or downloading the mobile app IRS2GO, available for Android and iOS devices.

There are other tools provided by the IRS that you may find useful after filing your taxes. The Tax Withholding Estimator helps you check that your employer is withholding the right amount of taxes from your paycheck. On the other hand, if you discover a mistake in your return after filing it, you can use the tool Should I File an Amended Return to determine if you should file an amended return or make other changes.

Some Important Exceptions

While October 15 is the due date for most taxpayers, there are exceptions to this rule. Members of the military and other personnel serving in a combat zone have 180 days after they leave the combat zone to file returns and pay their taxes. Another important exception is taxpayers in federally-declared disaster areas who already have a valid extension.

The IRS puts at the disposal of taxpayers online options to file and pay taxes. However, it’s always a good idea to seek the assistance of a tax expert. This way you’ll to ensure that your withholding is correct and that you get the credits you qualify for.

Contact the Experts at JT Tax Services

Looking for expert, dependable advice on taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. 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, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

Does Your ITIN Expire This Year? Renew It to Avoid Refund Delays

Does Your ITIN Expire This Year? Renew It to Avoid Refund Delays

If your ITIN expires this year, or if it already expired, you should renew it as soon as possible to avoid unnecessary refund delays when you file your tax return next year. 

Read on to discover what ITIN stands for, what ITINs expire this year, and how to renew this important identification number.

What Is an ITIN?

It’s worth remembering that ITIN stands for Individual Taxpayer Identification Number. This is a 9-digit number that the Internal Revenue Service (IRS) assigns to those taxpayers who don’t qualify for a Social Security Number (SSN) but need an identification number for tax purposes. 

What ITINs Expire in 2020?

The following ITINs expire on December 31, 2020. They must be renewed to avoid delays in your tax refund next year:

  • ITINs with middle digits 88
  • Those with middle digits 90, 91, 92, 94, 95, 96, 97, 98 or 99, if assigned before 2013 and if not already renewed

How to Renew an ITIN

To renew your ITIN, fill out Form W-7 and submit all required documentation. When you submit the form you are not required to attach a tax return, but you must indicate the reason why you need an ITIN. 

Later this summer the IRS will send notices to people whose ITIN expires this year. The notices include instructions about how to renew the ITIN. If your ITIN expired already and you expect to file a tax return in 2021, you can renew your ITIN any time.

If you receive a renewal letter, you have the option of renewing ITINs for your entire family at the same time. This includes the tax filer, spouse, and any dependents claimed on the tax return.

Avoid These Common Mistakes When Renewing Your ITIN

These are some common mistakes people make when they renew their ITIN. Avoid them to ensure that the process is as agile and fast as possible.

  • Mailing identification documentation without a Form W-7
  • Missing information on the Form W-7
  • Insufficient supporting documentation, such as proof of U.S. residency or documents that support name changes.

Contact the Experts at JT Tax Services

Looking for expert, dependable advice on taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

We are located in Oxnard, California. Contact us today by email, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

We will be closed Saturday, Sunday and Monday (July 2nd - 4th)
Close