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Avoid Surprises: Remember That Unemployment Compensation is Taxable

Avoid Surprises: Remember That Unemployment Compensation is Taxable

Over the last several months many Americans received unemployment compensation for the first time as part of the stimulus package the Federal Government has deployed to offset the effects of the COVID-19 pandemic.

That’s why today we’d like to remind you that unemployment compensation is taxable. Therefore, it’s advisable to retain those taxes now to avoid owing them when you file your return next year.

The taxable benefits include all those special unemployment compensations authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

These are some of the payments for which you should check your withholding:

  • Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund
  • Railroad unemployment compensation benefits
  • Disability benefits paid as a substitute for unemployment compensation
  • Trade readjustment allowances under the Trade Act of 1974
  • Unemployment assistance under the Disaster Relief and Emergency Assistance Act of 1974, and
  • Unemployment assistance under the Airline Deregulation Act of 1978 Program

About Withholding

Withholding is voluntary. The law allows you to retain a flat 10% to cover all or part of your tax liability.

If you decide to proceed with the withholding, then fill the Form W4V-Voluntary Withholding Request and remember that you are not supposed to send the form to the IRS, but to the agency that pays the benefits. If that agency has its own form, then use that form instead.

Taxpayers who decide not to withhold, or if their withholding is not enough, they can make a quarterly payment of estimated taxes. In that case, there are some dates to keep in mind. The deadline for the first two quarters of 2020 expired on July 15, 2020. The deadlines for the third and for quarters are September 15, 2020, and January 15, 2020, respectively.

Contact the Experts at JT Tax Services

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.

The COVID-19 outbreak has had a tangible impact on taxes. There are many credits and benefits available but also some new obligations you should be aware of. Our experts can help you navigate these new circumstances with confidence.

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.

Don’t Fall for These Tax-Related Scams!

Don’t Fall for These Tax-Related Scams!

We are living months of uncertainty and stress, but that doesn’t deter fraudsters. On the contrary: they try to take advantage of unsuspecting victims using tax-related scams.

Don’t fall for these schemes. Read on to discover how you can protect yourself against these threats.

Phishing, One of the Most Common Tax-Related Scams

Be on the lookout for fake emails or websites that request personal information. Remember this simple rule: the IRS will never initiate contact by email about a tax bill, refund, or Economic Impact Payment. Another simple measure you can take to avoid fraudsters is to never click on links that supposedly come from IRS.

Fake Charities

This is an evergreen fraud scheme that has been adapted to different situations, and the ongoing pandemic is no exception. Don’t let criminals take advantage of your desire to help others. Any unsolicited contact by phone, email, text, social media, or in person should arouse your suspicions.

Phone Calls Impersonating the IRS

Threatening calls impersonating the IRS are another common tactic of criminals. The IRS will never call you threatening with jail or deportation if you don’t settle your tax bill. These supposed charges are fake, and these calls have no connection with the IRS.

Social Media Scams

Social media is one of the main vehicles of disinformation, and scammers take advantage of this fact to lure others into sharing their personal details. Don’t fall for their malicious attempts and keep in mind that criminals may try to send you malicious messages or emails impersonating people you know.

Senior citizens are using social media at an increasing rate and may be particularly vulnerable to fraudsters. If you are a senior citizen yourself, or if you know any senior citizens, on the lookout for suspect messages—they may be an attempt to steal personal information.

Learn More 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

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 by email, telephone or through our social media accounts on Facebook, Twitter and LinkedIn to learn more about our services.

These Are Some Expenses That Educators Can Deduct From Their Taxes

These Are Some Expenses That Educators Can Deduct From Their Taxes

Even during a pandemic, educators are currently preparing for what will be a school year like no other. That’s why today we would like to talk about some expenses that teachers and educators can deduct on their tax return next year.

What Educators Are Eligible?

In order to be eligible for these deductions, educators must meet the following requirements:

  • Be a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide.
  • work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law.

Information to Keep in Mind

The educators who meet the conditions outlined above can deduct up to $250 of trade or business expenses that were not reimbursed. So, it’s advisable that educators who are preparing now for the school year keep their receipts to used them to support their claims for these deductions.

If two educators who are eligible to file their taxes together with the status married filing jointly, the deduction will be $500. However, keep in mind that hese taxpayers cannot deduct more than $250 each.

What Expenses Can Educators Deduct?

There are many expenses that educators can deduct, ranging from courses to services related to computer equipment.

  •  Fees for professional development courses
  • Books
  • Supplies
  • Computer equipment including software (programs) and other related services
  • Other equipment and materials used in the classroom

As you can see, there are many opportunities for tax deductions. If you are an educator, talk today to one of our experts at JT Taxes. They can guide you and provide you with detailed information about all the deductions you may qualify for.

More Tax Resources

Getting more information about taxes is a smart move that help you save money and time. These are some previous posts you may find interesting:

Get Help From the Experts at JT Tax Services

The world of taxes is besieged by myths and other outdated or otherwise unreliable advice. That’s why is important to get help from a tax expert who can guide you with professionalism providing trustworthy information.

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 by email, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

3 Tools You Need After Filing Your Taxes

3 Tools You Need After Filing Your Taxes

The deadline to file and pay your taxes was July 15. If you filed on time, well done! You’ve taken care of what’s arguably the hardest part. However, there is still some work to do. Read on to discover three tools you may find useful after filing your taxes.

Check the Status of Your Refund After Filing Your Taxes

Checking on your refund is easy with the online resources provided by the IRS. The online tool Where’s My Refund is available both on the IRS website and in the mobile app IRS2GO. The information on the website and the app is updated once a day, usually overnight, so there’s no need to check more often than that. To get the status of your refund, you’ll need the following:

  • The first Social Security Number on your tax return.
  • Tax filing status (single, married, head of household).
  • Expected refund amount.

If you don’t have access to a computer or a mobile phone, you can contact the IRS by phone at 800-829-1954.

How to Do a Paycheck Checkup

Doing a paycheck checkup will help you ensure that your employer is withholding the right amount of taxes from your paycheck. This precaution is a smart way to avoid unexpected year-end tax bills or a penalty. To do your paycheck checkup, use the Tax Withholding Estimator provided by the IRS itself.

How to Determine if You Need to Amend a Tax Return

If after filing your taxes you realize that there’s a mistake or information you forgot to include, you can use the interactive assistant Should I File an Amendment Return? to determine whether you should correct and error or make other changes to the tax return you already filed.

As a rule of thumb, the errors that you have to correct are those related to filing status, income, deductions, and credits. Usually, you don’t need to file an amendment return for math errors or if you forgot to attach a form or schedule. In those cases, the IRS will either correct the math error and notify you by mail or request any missing schedule or form, also by mail.

More Tax Resources

Do you want to get more useful information to file your taxes? We’ve got you covered! These are some previous posts you may find useful:

And if you still haven’t filed your taxes, don’t worry! You still have alternatives. Contact our experts at JT Tax Services; they will help you determine what’s the best course of action.

Get Help From the Experts at JT Tax Services

The world of taxes is besieged by myths and other outdated or otherwise unreliable advice. That’s why is important to get help from a tax expert who can guide you with professionalism providing trustworthy information.

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 by email, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

4 Common Myths About Tax Refunds, Debunked

4 Common Myths About Tax Refunds, Debunked

Yesterday, July 15, was the final day to file and pay your taxes. This means that there is a lot of people already eager to know when they’ll get their tax refund. If that’s your situation, keep reading to learn more about five tax refunds myths you should be aware of.

1. Getting a Refund Means You Don’t Need to Adjust Your Withholding for 2020

False. Getting a refund doesn’t mean that your withholdings are 100 percent correct. In fact, you should make adjustments to ensure that neither too much nor too little tax is being withheld from your paycheck. Increased accuracy is always desirable. Use the Tax Withholding Estimator provided by the IRS to determine the right amount.

2. Calling the IRS is the Best Way to Find Out When a Refund Will be Issued

Actually, the best way to check the status of your refund is using the online tool Where’s My Refund, either on the IRS website or on the mobile app IRS2GO. IRS assistors don’t have any special information, neither can they speed up the delivery of your refund. Don’t call the IRS unless the online tool specifically directs you to do so.

3. Ordering a Tax Transcript is a Good Way to Get a Refund Date

Plain and simple, a tax transcript has no impact whatsoever on your refund, nor can it accelerate its delivery.

4. Where’s My Refund Is Wrong Because There’s no Deposit Date Yet/ the Amount Is Smaller Than Expected

There are several reasons why Where’s My Refund doesn’t display a deposit date. Some returns take more time to process for a variety of reasons:

  • The return includes errors
  • Incomplete information
  • Identity theft or fraud
  • Includes a Form 8379, Injured Spouse Allocation, which could take up to 14 weeks to process

If the amount you get on Where’s My Refund is less than expected, these are some of the possible reasons:

  • Taxpayer math errors or calculation mistakes
  • Owing federal or state taxes, child support, student loans or other federal non-tax obligations
  • A portion of the refund is held while IRS reviews an item claimed on the return

Get Help From the Experts at JT Tax Services

The world of taxes is besieged by myths and other outdated or otherwise unreliable advice. That’s why is important to get help from a tax expert who can guide you with professionalism providing trustworthy information.

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 by email, telephone or through our social media accounts on Facebook, Twitter and LinkedIn to learn more about our services.

4 Ideas to Keep in Mind When You File Your Taxes

4 Ideas to Keep in Mind When You File Your Taxes

Remember: the deadline to pay and file your taxes is July 15. Although filing your tax return can be a complex process, there’s no reason to feel overwhelmed. Below you will find four tips that will help you take the stress out of Tax Day.

File Your Taxes Electronically

Filing your taxes electronically is your best option. The process is simple, fast, and secure. Furthermore, filing electronically reduces the risk of mistakes, since all calculations are verified by a tax program. Combining electronic filing with direct deposit is the best way to ensure that you get your tax refund as soon as possible (find more about tax refunds below).

If you don’t know how to file your taxes electronically yourself, or if you need assistance to make sure you stay compliant with all applicable regulations, contact the experts at JT Tax Services. They will be happy to help you take advantage of filing your taxes electronically.

How to Easily Check the Status of Your Refund

Checking the status of your refund is really easy. You have two main options to do this. You can use the online tool Where’s My Refund? provided by the IRS or you can download the IRS2GO mobile app in order to have the same information readily available on your smartphone. These are the most efficient ways to get information about the status of your refund. You can also contact the automated refund hotline at 800-829-1954, but as the IRS points out, there’s no need to call unless the online tool indicates you to do so.

Your Options if You Can’t File or Pay Your Taxes by July 15

Not everybody is ready to file and pay their taxes just yet. These are your options if you need more time in each case.

  • Request an extension to file: If you can’t file your tax return by July 15, you can request an extension to file that will give you time until October 15, 2020, to file your return. You can request an extension by making a payment using IRS Free File and selecting extension as the reason for the payment. Alternatively, you may also mail a Form 4868, Application for Automatic Extension for Time to File, by the July 15 filing deadline.
  • Set up an Installment Agreement: On the other hand, if you can’t pay by July 15, you may qualify for an Installment Agreement to spread out your payment over a set period of time. If you are interested in requesting an Installment Agreement, you can do so online, or by downloading and mailing  Form 9465 (Installment Agreement Request) to the IRS along with a tax return, IRS bill or notice.

Depending on your specific situation, you may have more options available to you if you can’t file or pay your taxes by July 15. You can check some of these additional options here. Contact a tax expert to learn more about the alternatives that best fit your personal situation.

Get Advice From the Experts at JT Tax Services

Equipped with these tips, you will be able to file your taxes easily and with no stress. However, it’s always important to get personalized advice.  Our knowledgeable experts at JT Tax Services will help you so you can take advantage of all the relief initiatives you are eligible for while staying compliant with all regulations that apply.

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 by email, telephone (805-984-8890) or through our social media accounts on Facebook, Twitter and LinkedIn to learn more about our services.

The deadline to file and pay your taxes is July 15.

The Deadline to File and Pay your Taxes is July 15: Everything You Need to Know

July is here already, and that means that July 15, the deadline to file and pay your taxes, is approaching as well.

As you may remember, the original deadline was April 15, but it was extended to July 15 to help those affected by the outbreak of COVID-19. The Internal Revenue Service (IRS) has announced that the date won’t be moved again, so it’s important to take steps to file and pay your taxes if you haven’t done so yet.

Extensions to File

People who can’t file their taxes by July 15 can ask for an extension that allows them to file by October 15. It’s important to remember that an extension to file is not an extension to pay. That means that you still have to pay your taxes totally or partially before July 15. There are two ways to request an extension.

  • Filing form 4868, Automatic Extension of Time to File U.S. Individual Income Tax Return.
  • Paying all or part of their tax due indicating that the payment is for an extension.

In both cases, don’t hesitate to seek the assistance of a tax professional if you need help completing any of the steps involved.

The Options for People who Can’t Pay Their Taxes by July 15

On the other hand, people who can’t pay their taxes by July 15 also have several options available to them. These alternatives include:

  • Online payment agreement: They are available for individuals who owe $50,000 or less (including taxes and penalties).
  • Installment agreement: People who do not qualify for an online payment agreement, or decide not to use it, can take advantage of this option.
  • Temporarily delaying collection: If the IRS determines that a person can’t pay, they can decide to temporarily delay the collection process. However, keep in mind that penalties and interests continue to accrue until the full amount due is paid.
  • Offer in compromise: In some cases, the IRS may reach an agreement to allow a person settle their tax bill for less than the amount they owe. To know if you are eligible for an offer in compromise, use the official IRS tool Offer in Compromise Pre-Qualifier.

State Taxes

It’s important to keep in mind that the July 15 deadline refers to federal taxes. The dates for state taxes may differ, so be sure to get accurate information about your specific location. Here you can find links to the websites of the tax agencies of every state.

Get Help From the Tax Experts at JT Tax Services

Now that you have all the relevant information, you are ready to make better decisions before filing and paying your taxes. Our knowledgeable experts at JT Tax Services will help you so you can take advantage of all the relief initiatives you are eligible for.

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 by email, telephone or through our social media accounts on Facebook, Twitter and LinkedIn to learn more about our services.

Here's what you need to do if you misplace your Economic Impact Payment prepaid card.

Did You Misplace Your Economic Impact Payment Prepaid Card? Here’s What to Do

The Internal Revenue Service (IRS) has processed over 159 million Economic Impact Payments (EIP) to help taxpayers affected by the coronavirus outbreak. About four million of those payments will be delivered by prepaid credit card. This feature can be very convenient for some people. But what happens if you misplace or accidentally destroy your EIP prepaid card? Read on to discover the answer.

Follow These Steps If You Misplace Your Prepaid EIP Card

If you receive your Economic Impact Payment by prepaid debit card and you misplace the card, or the card gets stolen, then follow these steps:

  • Log in online at EIPCard.com to prevent unauthorized transactions or ATM withdrawals while you look for your card.
  • If your card is permanently lost, it’s important to you call customer service at 1.800.240.8100. This way you can report your lost or stolen card immediately.
  • For cards with more than one name, only the primary cardholder (listed first on the card) must make the call.

Once you have reported your card, a replacement card will be ordered. The first replacement card is free, and a $7.50 fee will be applied for any subsequent replacements.

What Should I Do If I Accidentally Destroyed or Misplaced my Card?

On the other hand, if you accidentally destroyed or misplaced your card, call the same service number indicated above (1.800.240.8100) and select the “Lost/Stolen” option. The same replacement fees explained above will be applied, with the first replacement card being free of charge,

Remember that you cannot request the IRS to send your Economic Impact Payment by prepaid debit card. If you haven’t received your Economic Impact Payment yet, you can use the online tool Get My Payment of the IRS website to check the current status of your payment.

You can get more information about the Economic Impact Payment prepaid cards visiting www.eipcard.com. Or the official IRS website, which includes a section dedicated to Economic Impact Payments.

What Are Economic Impact Payments?

Economic Impact Payments are a measure  by the U.S. government to provide financial relief to taxpayers affected by the Coronavirus outbreak. Beneficiaries may receive up to $1,200 for individual taxpayers and $2,400 for couples filing jointly. Additionally, taxpayers may also receive an extra $500 for every qualifying child.

Get More Information About Economic Impact Payments

We have covered Economic Impact Payments extensively to keep you up to date about this important provision. Here are some past posts you may find useful:

Get Help From the Tax Experts at JT Tax Services

It’s important to know this and other relevant provisions to navigate the current circumstances. Our knowledgeable experts at JT Tax Services will help you so you can take advantage of all the relief initiatives you are eligible for.

This is particularly important because Tax Day is approaching. The deadline is July 15, so this is the right time to take steps to ensure that your taxes are filed and paid on time.

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 by email, telephone or through our social media accounts on Facebook, Twitter and LinkedIn to learn more about our services.

Economic Impact Payments are not Social Security Benefits.

Remember: Economic Impact Payments Belong to the Recipient, not to Nursing Homes

The Internal Revenue Service (IRS) issued an alert reminding people that Economic Impact Payments (EIP) generally belong to the recipients, not to nursing homes or the organizations providing care for them.

Economic Impact Payments Are for the Recipients

The IRS  believes that some people may be taking advantage of retirees who receive an Economic Impact Payment, a government measure that offers financial relief to those affected by the coronavirus outbreak.

It’s important to underline that payments are for the recipients. This applies even if a nursing home or facility or provider receives the person’s payment either directly or indirectly by direct deposit or check.

Benefit recipients don’t have to turn over their EIP because the payments they are considered and advance refund for 2020 taxes.  They also do not count as income in determining eligibility for Medicaid and other federal programs

Economic Impact Payments Are Not Social Security Benefits

According to the Social Security Administration (SSA), a representative payee is only responsible for managing Social Security or SSI benefits, but an EIP is not included in that category. If the beneficiary wants to use the EIP independently, the payee should provide the EIP to the beneficiary.

If the SSA receives an allegation that the EIP was not used on behalf of the beneficiary, it may decide to investigate the matter. The SSA may also determine that the representative payee is no longer suitable and appoint a new representative payee.

The IRS has processed about 159 million Economic Impact Payments, totaling almost $267 billion. Beneficiaries may receive up to $1,200 for individual taxpayers and $2,400 for couples filing jointly. Additionally, taxpayers may also receive an extra $500 for every qualifying child.

Get Help From the Experts

The government’s response to the coronavirus outbreak is fluid. Therefore, it’s important to know this and other initiatives to navigate the current circumstances.

Our experts at JT Tax Services will help you take advantage of all the relief initiatives you are eligible for.

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 peace of mind. You will rest easy knowing that you are limiting your liability while staying compliant with all 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.

The Amount of Your Economic Impact Payment Is Incorrect? Here's what to do.

What to Do if the Amount of Your Economic Impact Payment Is Incorrect?

The Internal Revenue Service has processed about 159 million Economic Impact Payments (EIP), a stimulus geared to help taxpayers affected by the coronavirus outbreak.

However, some people are surprised to discover that the amount of their Economic Impact Payment is smaller than they expected. What to do in this situation?

Some Basic Information

It’s worth remembering that eligible taxpayers may get up to $1,200 for individuals, and up to $2,400 for those married filing jointly. Additionally, they may receive $500 for every qualifying child (you can use this chart to check how much you should receive).

As we have seen in a previous post, there are three basic reasons why your Economic Impact Payment may be smaller than expected:

  • You haven’t filed your return for 2019, so your Economic Impact Payment is based on past information.
  • The qualifying child is under 17 years of age (considering how old they are at the end of the year for the tax return on which the IRS bases the payment amount).
  • Your payment was offset by past-due child support payments.

What to Do if the Amount of Your Economic Impact Payment Is Incorrect?

The IRS is not able at this moment to correct or issue additional payments. If you believe the amount of your Economic Impact Payment is incorrect, your option is claiming the additional amount when you file your 2020 tax return.

Keep the Notice 1444, Your Economic Impact Payment, you will receive regarding your Economic Stimulus Payment with your records. This notice is mailed to your last known mail address a couple of weeks after your payment is issued. You can refer to this notice when you file your 2020 tax return. This way you’ll be able to claim additional credits if you qualify for them.

Get Expert Advice

It’s important to know this and other initiatives to navigate the current circumstances. Our knowledgeable experts at JT Tax Services will help you take advantage of all the relief initiatives you are eligible for.

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 by email, telephone or through our social media accounts on Facebook, Twitter and LinkedIn to learn more about our services.

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