JT Tax Services

Tax Services

Most Unheeded Tax Deductions

Amongst the chaos of the daily life of the American citizen, it is easy to overlook common tax deductions that will save you money at the end of the year. The deductions that are missed due to the stress of waiting until the last minute to do your taxes can possibly save you hundreds more dollars. Here are a few tax deductions that are commonly overlooked.

Party Expenses

Throwing parties is an effective strategy for maintaining suitable relationships with your clients and attracting new business with associates. If you throw a party that is related to your business in any way, then you can use the money you spend on it as a tax deductible. However, it is important to remember that when it comes to entertainment, the IRS can be reasonably strict. In order for party expenses to qualify as a deductible, there must be a business discussion before, during, or after the event. Also, remember to document the event in the form of pictures, videos, or invitations.

Moving Expenses

If you have a new job and it is at least 50 miles from your old residence, then your moving expenses are tax deductible. It is important to remember that the IRS wants you to take the shortest possible route between your new job and your old residence, or the expenses will not qualify as tax deductibles. Also, you must work for a minimum of 39 weeks during the year from the moment you arrive at your new residence.

Mileage Expenses

Vehicle expense are tax deductible if you are using your car for business, medical, or charitable purposes. If you owned or leased a vehicle in 2017, American citizens were able to deduct 53.5 cents per mile. By keeping detailed records, you can choose to use the actual vehicle expenses instead of the standard mileage rate. Lastly, the standard mileage rate may not be used for more than 4 vehicles simultaneously or any vehicle used as equipment.

Deportation Won’t Fix our Broken Economic System

Deportation Won’t Fix our Broken Economic System

It is a widespread belief that undocumented immigrants use up our country’s resources and don’t give back. What the public isn’t aware of is that this belief was invented to cover up corporate spending that favor special interests and establishments. According to itep.org, undocumented immigrants cooperatively contribute around $11.74 billion to our country in sales, personal income, and property taxes. Adding insult to injury, most taxes in this country are collected from people regardless of their citizenship status. Some of these taxes include but are not limited to: state and local, sales, property, and income taxes. In some cases, undocumented immigrants contributed more of their income than the top 1%. To be more exact, the 11 million immigrants in our nation pay 8 percent of their income while the 1% only pay 5.4% on average.

Aside from the fact that undocumented immigrants contribute their fair share of capital to our economy, it is unrealistic to assume that they are taking jobs away from American citizens. Almost all of these immigrants are working in blue-collar jobs that require no education and are therefore less desirable. According to pewhispanic.org, in 2012 one-third of immigrants in the U.S held service jobs such as janitors, cooks, or child-care workers.

At the federal level, a study from the Social Security Administration showed that undocumented immigrants paid $12 billion to the social security trust fund while only drawing $1 billion. If the country decides to go for full immigration reform, the deficit would take a nasty hit as well as generating $450 billion in additional federal revenue over the next 10 years.

It is especially important to remember these facts at a time when the leaders of this prosperous country are favoring the privileged and wealthy side of our society. At a time when our own President is making false claims about undocumented immigrants not contributing to the economy, our country should be unifying and trying to solve the problem together.

Multi-State Tax Law Complexity

Taxes are already complicated as it is, but when you factor in the possibility that you may have to do business in different states, well then you are going to have to step your game up. The realm of multi-state tax is complex because each state is sovereign when it creates tax laws. This is particularly relevant when a foreign company wants to do business with the U.S.


The first factor that may cause some confusion among tax-filers is the concept of nexus. Nexus basically means connection, but in the world of taxes, it is the minimum amount of presence that a company must have in a state in order for that company to have to abide to the tax laws in that particular state. The challenging part of this is that the amount of presence it takes for a company to reach nexus varies in each state.

Federal and State

The blurred line between federal and state rules on taxes is another issue that companies have to deal with. Federal tax rules apply to all citizens living in the U.S. The laws are created by legislators and enforced by the IRS, a Federal agency, on all citizens regardless of which state they live in. Apart from federal tax returns, citizens must also file state tax returns to the individual State’s government. Each state has separate rules regarding taxes, there is no system that adjoins all the state tax laws.

From Product to Service

A significant change that has recently found its way into the U.S is the transformation from products to services. Technology, the culprit behind this transformation, changes so fast that state tax laws cannot keep up. As new services are introduced into our economy, companies and legislators become more and more complex.


It is important for companies to be aware of these anomalies so that they can maximize their revenues and avoid penalties.

deducting commuting expense

Deducting Commuting Expenses

Commuting is the time you spend driving to and from your home to your business. Unfortunately, expenses related to commuting and are not deductible because the IRS defines them as personal expenses. Even if you are working while commuting, these expenses remain un-deductible. Using your car to transport materials for work is an example of a commuting expense. Talking on a cellphone about business while commuting is another example. Two exceptions that leave room for deducting commuting expenses are the temporary distant worksite and the home office.

 Deducting Commuting Expenses with a Temporary Distant Worksite

A “Temporary Distant Worksite” exception is the cost of going between home and a temporary work location. A work location is considered temporary when it is expected to last for no more than a year.

Deducting Commuting Expenses with a Home Office

The “Home Office” is the second and most common exception when it comes to deducting commuting expenses. The costs of travel between home and a location that is in the same business can be deducted from a taxpayer. In order for these costs to be deducted one of the following tests must be passed.

  1. The principal place of business test requires you to use your home office “exclusively and on a regular basis” as your principal place of business. This entails two smaller tests called the “management or administrative activities” test and the “relative importance” test. The former means that you should use your home office for administrative or management activities of your business. The latter means that your home office should be the most important place where you conduct your business.
  2. It is used on a regular basis to meet with clients, patients, or customers.
  3. You are entitled to home office deductions if your office is in a structure that is separate from your house, like an off-site garage.


Tax-Filing Procrastinators

Tips for Tax-Filing Procrastinators

Due to the hassles of every-day life, American citizens tend to wait until the last minute to file their taxes. According to the IRS, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax. Here are a few tips that will help you get your taxes in on time:

 Go to a Tax Professional to Prepare Your Taxes 

Going to tax professionals will not only save you time, but it will often increase your chances of saving money due to their knowledge of possible deductions and credits that you can qualify for. Along with their expertise in saving you money, a tax preparer can also be of great assistance in the event of a possible audit. They can communicate directly to the IRS on your behalf and make the process a lot more stress-free for you.

 File your Taxes Online 

The capabilities of an online program that calculates your taxes greatly reduces the chances of you making an expensive mistake on your numbers. Furthermore, when you file your taxes online you are creating an electronic record for reference in the future.

 Have Paperwork and Documentation Ready

 A tax organizer can help you accumulate the necessary forms you need to file your taxes. You can input information so that the program can deduct what forms you will need. Then create a checklist and cross of each item after it is taken care of.

Ask for an Extension

 Amidst the panic of filing your taxes at the last second, people tend to make mistakes. Requesting an extension can give you an extra 6 months to help you get your affairs in order in a more timely and precise manner. However, it is important to have an estimate of your final tax bill and make payments so that you don’t begin accumulating interest after the original filing deadline passes.

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