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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 FacebookTwitter 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 FacebookTwitter 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 FacebookTwitter 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 FacebookTwitter 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 FacebookTwitter and LinkedIn to learn more about our services.

Some people will receive their Economic Impact Payments by debit card.

The IRS Will Deliver Some Economic Impact Payments by Debit Card

The Internal Revenue Service will deliver the Economic Impact Payments of nearly four million people by by prepaid debit card instead of paper check.

According to the official website for the cards, this method will be used to deliver the payments of taxpayers whose bank details the IRS doesn’t have.

This Is What Your Debit Card Will Allow You to Do

If you receive your Economic Impact Payment by prepaid card, you will get some benefits that include:

  • Making purchases online or at any retail location where Visa payments are accepted
  • Getting cash from in-network ATMs
  • Transferring funds to your personal bank account.
  • Checking you balance card by mobile app or by phone.
  • Enjoying the same consumer protections available to traditional bank account owners, such as protection against fraud and loss.

The prepaid cards arrive in a plain envelope from Money Network Card Holder Services. The Visa name appears on the front of the card, while the back of the card has the name of the Issuing bank, MetaBank®, N.A. Information included with the card specifies that the card is an Economic Impact Payment.

Users who receive their Economic Impact Payments by prepaid card will have to activate their cards calling the number 1.800.240.8100 and validating their identity providing at least their name, address and social security number.

As of this moment you cannot request the IRS to send Economic Impact Payment as a debit card. For more information about the Economic Impact Payment prepaid cards, visit www.eipcard.com.

Get Advice From the Experts

As you can see, the IRS’ response to COVID-19 changes constantly, so it’s important to stay updated. You can check the IRS website or this blog. It’s also a good idea to get advice from a reliable, experienced source.

Our knowledgeable tax experts at JT Tax Services will help you so you can take advantage of all the government 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 FacebookTwitter and LinkedIn to learn more about our services.

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

Remember: You Have Until July 15 to File and Pay Your Taxes

It’s important to keep in mind that the deadline to file and pay your taxes is July 15.

Tax Day was originally scheduled for April 15, but it was moved due to the impact of the coronavirus outbreak. You don’t have to fill any form, take any further action or contact the Internal Revenue Service (IRS) to take advantage of this extension. It has been applied automatically to all taxpayers.

Benefits of Paying and Filing Your Taxes Electronically

If you expect to get a refund, it’s advisable to make sure that your filing and payment are done electronically. This way, you would get your refund within approximately 21 days. On the other hand, taxpayers who file on paper by mail have to wait up to six weeks to get their refunds.

Filing and paying your taxes electronically is a precise, convenient and safe option because all data is protected with modern encryption techniques.

Tax-Filing Extensions

If you need more time to file your taxes beyond July 15, then you can request a tax-filing extension in two ways:

  • Filing form 4868 through their tax professional or through the IRS’ website.
  • Submitting an electronic payment and selecting form 4868 as the payment type.

Remember that an extension to file is not an extension to pay. You still have to pay your taxes by the original deadline

Get Advice From a Reliable Tax Professional

Finally, remember that this extension applies only to federal taxes. Check with your local tax agency or a trusted tax professional to stay up to date regarding deadlines to file and pay state taxes.

It’s important to know this and other updates to navigate the current circumstances. Our knowledgeable, friendly 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 FacebookTwitter and LinkedIn to learn more about our services.

3 Reasons Why Your Economic Impact Payment May be Different Than Expected

Economic Impact Payments, the stimulus unrolled by the Internal Revenue Service (IRS), have been successful for the most part. However,  some taxpayers may get a different amount that they expected.

It’s worth remembering that under normal circumstances the amounts are allotted as follows:

  • Up to $1,200 for eligible individuals
  • Up to $2,400 for eligible married couples
  • Up to $500 for each qualifying child for eligible individuals

Read on to discover three factors that may affect your payment and reduce these amounts.

You Haven’t Filed Your 2019 Tax Return

The amount of your Economic Impact Payment is based on your most recent tax return. So, if you haven’t filed a return for 2019, your payment will be based on information from 2018. Alternatively, it’s also possible that the IRS has not finished processing your 2019 return yet.

The Qualifying Child is 17 or Older

In order to qualify for the additional $500, the qualifying child must be under the age of 17 at the end of the year for the tax return on which the IRS bases the payment. If a dependent is 17 or older (including other relatives and college students), they don’t qualify for this additional amount.

Your Payment Was Offset by Past-Due Child Support

This is the only offset that can affect the amount of your payment, since federal law allows creditors to garnish a payment once it’s deposited into a bank account.

What to Do

If you receive an Economic Impact Payment for an amount that is smaller than expected, you can claim the additional credits you qualify for when you file your tax return for 2020.

It’s important to stay up to date with and other initiatives 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.

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 FacebookTwitter and LinkedIn to learn more about our services.

The credit for paid sick and family leave aims to help employers impacted by the coronavirus outbreak.

What Is the Tax Credit for Sick and Family Leave?

The Internal Revenue Service (IRS) has unrolled provisions to offer financial relief to taxpayers who have been affected by the coronavirus outbreak. One of those measures is the Tax Credit for Sick and Family Leave.

This credit applies to leaves taken by employees unable to work because they present coronavirus symptoms, because they have to take care of someone with coronavirus, or because they have to look after children because schools and daycares are closed due to the outbreak.

Employees Unable to Work Because They Have Coronavirus Symptoms

Employees unable to work due to the quarantine or because they have coronavirus symptoms, are entitled to a paid sick leave for up to ten days (up to 80 hours) at the employee’s regular rate of pay, or, if higher, the Federal minimum wage or any applicable State or local minimum wage, up to $511 per day, but no more than $5,110 in total. This includes telework

Employees Who Care For Someone With Coronavirus

There are employees who can’t work because they have to care for someone with coronavirus, or because they have to care for a child because the child’s school or day care is closed due to the coronavirus. In those cases, the employee is entitled to paid sick leave for up to two weeks (up to 80 hours) at two-thirds the employee’s regular rate of pay or, if higher, the Federal minimum wage or any applicable State or local minimum wage, up to $200 per day, but no more than $2,000 in total.

Employees Who Must Take Care of a Child Due to Daycare or School Closure

This tax credit also covers employees unable to work because they need to care for children whose school or place of care is closed. Those workers are also entitled to paid family and medical leave equal to two-thirds of the employee’s regular pay, up to $200 per day and $10,000 in total. Up to ten weeks of qualifying leave can be counted towards the family leave credit.

How Much Is the Credit Worth?

Eligible employers are entitled to receive a credit in the full amount of the required sick leave and family leave, plus related health plan expenses and the employer’s share of Medicare tax on the leave, for the period of April 1, 2020, through December 31, 2020.  The refundable credit is applied against certain employment taxes on wages paid to all employees. Eligible employers can reduce federal employment tax deposits in anticipation of the credit.

Two of Three New Tax Credits For Employers

The Paid Sick and Family Leave tax credits are two of three new tax credits geared to help employers. The other one is the Employee Retention Credit that we discussed previously here.

It’s important to know these and other measures 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.

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

This Is Why You Get “Status Not Available” on Your Economic Impact Payment

The IRS is sending Economic Impact Payments to taxpayers impacted by the coronavirus outbreak. However, the process has not been completely smooth. When some people get online to verify the status of their payment, they get the message “Status Not Available.”

This message is displayed by the “Get My Payment” online tool of the IRS for several reasons, as you will see below.

You May Not Be Eligible for an Economic Impact Payment

If you are not eligible for an Economic Impact Payment, then you will get the “Status Not Available” message. Keep in mind that eligibility for Economic Impact Payments depends on your Adjusted Gross Income (AGI). You are eligible for an Economic Impact Payment if your AGI is up to:

  • $75,000 for individuals
  • $112,500 for head of household filers
  • $150,000 for married couples filing joint returns

If your AGI exceeds these limits, your are still eligible for a reduced Economic Impact Payment if your AGI is between:

  • $75,000 and $99,000 if your filing status was single or married filing separately
  • 112,500 and $136,500 for head of household
  • $150,000 and $198,000 if your filing status was married filing jointly

Users Who File a Tax Return

If you are eligible and filed tax returns, but still get the “Status Not Available” message, then the IRS hasn’t finished processing your 2019 tax return. It’s also possible that the online application doesn’t have your data for other reason, but that may be solved soon because the IRS updates information on the website every day.

Remember that the information on the online tool is updated once a day, usually overnight. Therefore, the IRS encourages users to check the status of their payment only once every 24 hours to avoid excessive traffic on the website and allow other people to check their payments as well.

Users Who Don’t Usually File a Tax Return

If you receive SSI or VA benefits, you get the “Status Not Available Message” because your information hasn’t been loaded yet onto the system. On the other hand, if you used the Non-Filers: Enter Payment Info Here feature on the IRS website to provide your information, then your entry hasn’t been processed yet.

It’s important to learn more about this and other initiatives to navigate the current, unprecedented 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.

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 FacebookTwitter and LinkedIn to learn more about our services.