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The May 17 deadline to file your taxes is almost here, so it’s worth keeping in mind that even if you can’t pay your taxes in full, you still have to file on time. If you have difficulties paying your taxes in full this 2021, don't worry. Keep reading to learn more about your options.

File Your Taxes by May 17 Even if You Can’t Pay Your Tax Bill in Full

The May 17 deadline to file your taxes is almost here, so it’s worth keeping in mind that even if you can’t pay your taxes in full, you still have to file on time. If you have difficulties paying your taxes in full this 2021, don’t worry. Keep reading to learn more about your options.

Make Sure to File by May 17

First off, make sure to file by the May 17 deadline to avoid a failure-to-pay penalty. If you can’t file your return by the due date, you can request an extension that will give you until October 15, 2021, to file your return. If you do get an extension, remember that this is an extension to file, not an extension to pay, so you still have to pay at least a portion of your taxes by May 17.

Pay as Much as Possible by May 17

If you can’t pay your taxes in full, you should still file your return by the May deadline and pay as much as you can to avoid penalties and interest. In some cases, the IRS is able to waive penalties, but not the interest charges on unpaid tax bills. Throughout this process, you may find useful to seek the assistance of a tax professional who can offer guidance and advice.  

Set Up a Payment Plan

If you cannot pay your taxes in full by May 17, you can also set up a payment plan to pay your tax bill in more manageable installments. You can apply for a payment plan online or using Form 9465, Installment Agreement Request. Also in this case, the assistance of tax professional can prove invaluable to ensure that the process is agile, fast, and stress-free.

Need Help With Your Taxes? Contact the Experts at JT Tax Services

Do you need help filing your 2020 tax return? Do you want to learn more about Economic Impact Payments? At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

Everything You Need to Know About Tax Refunds This 2021

Everything You Need to Know About Tax Refunds This 2021

If you already filed your tax return, chances are that you are already looking forward to your refund. That’s why today we bring you everything you need to know about tax refunds this 2021, from how to verify the status of your refund to how long could it take for your refund to arrive.

How Can I Verify the Status of My Refund?

Verifying the status of your refund has never been this easy. All you have to do is access the IRS online tool Where’s My Refund? with some basic information on hand:

  • Your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
  • The filing status on your tax return (single, married filing jointly, etc.)
  • The exact amount of your refund

You can start verifying the status of your refund 24 hours after the IRS acknowledges receipt of a return filed electronically or four weeks after mailing a paper return.

How Long Will It Take for My Refund to Arrive?

Generally speaking, refunds are issued within 21 days, but this is far from a hard-and-fast rule. There are some factors that may delay your refund, for example:

  • A return that includes errors or is incomplete.
  • A return affected by identity theft or fraud.
  • Some banks do not process payments on weekends or holidays.

Since it’s not possible to establish with certainty when your refund will arrive, it’s a Good idea to not count on receiving your refund by a certain date, especially if you plan to use that money to make payments.

Some Additional Notes

These are some pointers about tax refunds worth keeping in mind:

  • Where’s My Refund? is updated once a day, usually overnight, so it’s not necessary to check it more tan once every 254 hours.
  • Calling the IRS won’t speed up your refund. The information you get by phone is the same as in Where’s My Refund?
  • Should the IRS need more information to process your return, they will contact you by mail.  

Need Help With Your Taxes? Contact the Experts at JT Tax Services

Do you need help filing your 2020 tax return? Do you want to learn more about Economic Impact Payments? At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

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

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

The COVID-19 pandemic has created many changes, and taxes are not an exception. Remember that, unlike other years, this 2021 the federal Tax Day for individuals has been extended to May 17.

Keep reading to learn more about this and other useful tax tips.

What You Need to Know

Although most years the Federal Tax Day is April 15, this year will be different.

The disruptions caused by the coronavirus pandemic have led the Internal Revenue Service (IRS) and the Treasury Department to move the federal Tax Day to Monday, May 17, 2021.

This extension applies automatically to all taxpayers, so you don’t have to take any action to take advantage of this measure.

What If I Need More Time to File My Tax Return?

If even with the new date you need more time to pay your federal taxes, you can request a filing extension using Form 4868. In this case, you would have until October 15, 2021, to file your tax return.

It’s worth remembering that an extension to file is not an extension to pay. This means that even if you request a filing extension you still have to pay your taxes by May 17 to avoid interests and penalties.

Also, keep in mind that the 17 May date applies only to federal taxes, so you should make sure to check with your local tax agency to learn more about the filing and payment deadlines for your state taxes.

Need Help With Your Taxes? Contact the Experts at JT Tax Services

Do you need help filing your 2020 tax return? Do you want to learn more about Economic Impact Payments? At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

Photo of couple illustrates blog: Everything You Need to Know About the Third Stimulus Payment

Everything You Need to Know About the Third Stimulus Payment

The third stimulus payment is already being delivered to taxpayers all over the United States. That’s why today we bring you everything you need to know about your stimulus payment, from how to check the status of your payment to how much you would receive

What Do I Have to Do to Get My Payment?

The third round of Economic Impact Payments is delivered automatically, which means that in most cases you don’t have to take any action to get your payment. A lot of people will receive the third payment in the same way they received the previous two.

How Can I Check the Status of My Payment?

Knowing when and how the IRS will send your payment is quite easy thanks to the internet. All you have to do is access the online tool Get my Payment and enter all the necessary information. The IRS asks taxpayers not to call if they need to check the status of their payments. Use the online tool instead and keep in mind that it’s updated once a day, usually overnight, so there’s no need to check more than once a day.

How Much Will I Get?

Most people will receive $1,400 plus $1,400 for every qualifying dependent that they claim on their tax return.

Remember that the eligible income levels have changed for the third round of payments. This means that some people who qualified for the first and second payments won’t be eligible for the third one. Payments will begin to be reduced for people who earn $75,000 or more in Adjusted Gross Income (or $150,000 for married couples filing jointly).

At What Level of Income Do the Payments Stop?

Reduced payments stop at $80,000 Adjusted Gross Income for individuals ($160,000 for married couples). Taxpayers with income above those levels are not eligible for the third Economic Impact Payment.

Contact the Experts at JT Tax Services

Do you need help filing your 2020 tax return? Do you want to learn more about Economic Impact Payments? At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

How to Avoid Scams This Tax Season

How to Avoid Scams This Tax Season

The tax season involves gathering and organizing documents, double-checking information, but also avoiding scammers because they never take a day off.

Below you will find the most common types of scams, along with tips on how to protect yourself against them.

“Phishing” Scams by Email

“Phishing” occurs when cybercriminals send emails impersonating the IRS or other trustworthy organization to lure you into providing them with your personal information.

Remember, in some special occasions the IRS may call you or come to your home or business. However, the agency does not initiate contact by email to request personal or financial information.

If you receive an email that you suspect is a “phishing” attempt, don’t reply, don’t open any attached file, and don’t click on any link. You should report “phishing” attempts related to the IRS, the Treasury Department, or taxes to the email address phishing@irs.gov.

Telephone Scams

It’s important to pay close attention to telephone scams because criminals can spoof numbers belonging to the IRS or local agencies in order to appear more convincing.

When criminals contact you by phone, they usually resort to threats to force you to pay a fake tax bill. These are some facts worth keeping in mind:

  • The IRS does not leave pre-recorderd messages with threats.
  • The agency does not threaten to deport you or to bring the police immediately if you don’t pay.  
  • The IRS will not call you to force you to pay a supposed tax bill with prepaid cards, gift cards, or wire transfers.
  • The IRS does not ask for checks to third parties.
  • With the IRS, you can question or appeal the amount you owe.

If you detect this type of scam, report it to the Treasury Inspector General for Tax Administration, to the  Federal Trade Commission, and to the IRS using the emal phishing@irs.gov, making sure to include in the subject line the words “IRS phone scam”.

More Tips About Taxes

Interested in learning more about taxes? Then you’ve come to the right place! Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

Image of woman with calculator illustrates blog: Standard Deduction or Itemized Deductions: What Is the Difference?

Standard Deduction or Itemized Deductions: What Is the Difference?

Today, we talk about a basic tax topic: the difference between standard deduction and itemized deductions. Keep reading to learn more!

What Is the Standard Deduction

The standard deduction is an amount that reduces taxable income. This deduction is adjusted every year and varies according to your filing status.

You can benefit from the standard deduction if your standard deduction is larger than the total of your allowable itemized deductions.

To know how much is your standard deductions and to figure out whether you must detail your deductions, use this interactive assistant made by the IRS.

What Are Itemized Deductions?

In some cases, itemized deductions allow taxpayers to get a larger deduction, but to take advantage of this you must keep rigorous records of your expenses. Also, it’s important to keep in mind that some taxpayers are not allowed to use the standard deduction.

You ca benefit from itemizing your deductions if you:

  • Had large uninsured medical and dental expenses
  • Paid interest and taxes on their home
  • Had large uninsured casualty or theft losses
  • Made large contributions to qualified charities

Donations

Tax law changes allow taxpayers to deduct cash donations of up to $300 made by December 31, 2020, without having to itemize when they file their 2020 tax return.

If you need help deciding whether you should go for the standard deduction or itemized deductions, don’t hesitate to contact our experts at JT Tax Services. We’ll be more than happy to offer the knowledgeable assistance you need.

More Tips About Taxes

Interested in learning more about taxes? Then you’ve come to the right place! Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

Image of man in front of computer illustrates blog: 5 Mistakes to Avoid When Filing Your Tax Return

5 Mistakes to Avoid When Filing Your Tax Return

With tax season just around the corner, this is the perfect time to review five mistakes you should avoid to make tax filing easier, faster, and more accurate.

1. Basic Information That Is Wrong or Missing

Getting the basics right goes a long way toward filing a precise, error-free tax return. As you prepare your return, triple check to make sure that these fields are included and are accurate:

  • Social Security numbers: Every SSN on your tax return should appear exactly as printed on the Social Security Card.
  • Misspelled names: The same principle applies here—all names must appear as written on the Social Security card of the person.
  • Incorrect filing status: This information indicates whether you were married or single on December 31, 2020, and determines the amount of tax you should pay. To learn more about filing statuses, take a look at this previous post. You can also use the IRS Interactive Assistant to figure out your correct status.
  • Incorrect bank account numbers: Your routing and account numbers should be accurate, so you can get your refund as soon as possible.

2. Math Errors

Let’s admit it: Math is not everyone’s strong suit. That’s why you should pay special attention to the math on your tax return. Using tax software or working with a professional tax preparer greatly reduces this type of mistakes. However, every taxpayer should always double check the math on their return.

3. Mistakes Figuring Credits or Reductions

There have been many changes to tax law due to the COVID-19 pandemic, so the odds or making this type of mistake are higher than usual. With options available that include earned income tax credit, child and dependent tax credit, and recovery rebate credit, it’s advisable to seek assistance from a professional to determine which are the options you qualify for.

4. Unsigned Forms

This is particularly important because an unsigned tax return isn’t valid. There are some exceptions, as in the case of members of the armed forces or taxpayers with a valid power of attorney. But generally speaking, all taxpayers must make sure that their return is signed.

5. Expired ITIN

ITIN stands for Individual Taxpayer Identification Number, and as its name suggests, it helps the IRS keep track of every individual taxpayer. If your ITIN expired, the IRS will treat it as a return filed on time, but it won’t apply any exemptions or credits. Once you renew your ITIN, the agency will process your return normally.

More Tips About Taxes

Interested in learning more about taxes? Then you’ve come to the right place! Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

Remember: Tax Season Is Almost Here!

Remember: Tax Season Is Almost Here!

Tax season begins Friday, February 12! This means that starting from that date, the IRS will accept and process 2020 tax returns. Here are some tips you should keep in mind to ensure that your tax filing experience is smooth, agile, and stress-free.

General Tips

The IRS recommends that all taxpayers consider these tips as they prepare their tax return:

  • Combining electronic filing with direct deposit ensures that you get your refund as soon as possible.
  • Don’t count on receiving your refund by a specific date, especially if you plan to use that money to pay bills.
  • Remember that unemployment compensation is taxable

The Documents You Should Gather

This is the right time to get your tax records in order, so make sure to have all the documents that apply among the following:

  • Any receipts, canceled checks, and other documents that support an item on your return.
  • Forms W-2, Wage and Tax Statement
  • Form 1099-MISC, Miscellaneous Income
  • Form 1099-INT, Interest Income
  • Form 1099-NEC, Nonemployee Compensation
  • Form 1099-G, Certain Government Payments; like unemployment compensation or state tax refund
  • Form 1095-A, Health Insurance Marketplace Statements

Other Important Tax Dates to Keep in Mind

In addition to February 12, other important dates that taxpayers should keep in mind during 2021 include:

  • Thursday, April 15. Due date for filing 2020 tax returns or requesting extension of time to file.
  • Thursday, April 15. Due date for paying 2020 tax owed to avoid owing interest and penalties.
  • Friday, October 15. Due date to file for those requesting an extension on their 2020 tax returns.

More Tips About Taxes

Interested in learning more about taxes? Then you’ve come to the right place! Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone, or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

You May Receive Your Second Stimulus Payment by Credit Card

Some People Will Receive Their Second Stimulus Payment by Debit Card

Some people will receive their second stimulus payment by prepaid debit card. Read on to discover the aspects you should keep in mind.

In fact, this method was already used in some cases to deliver the first round of Economic Impact Payments, also known as stimulus payments.

Keep in mind that the form of payment may vary between your first and your second stimulus payment. If you received your first payment by paper check you could receive your second payment via prepaid debit card. Conversely, if you received your first payment by prepaid card, you may receive it now by paper check.

You can use the online tool Get My Payment to check whether your payment has been mailed.

The prepaid debit cards arrive in a while envelope that displays prominently the seal of the Department of the Treasury of the United States. The envelope displays the statement “Not a bill or an advertisement. Important information about your Economic Impact Payment.”

What You Can Do With Your Card

The name of the issuing bank, MetaBank, N.A., appears on the back on the card while the name Visa appears on the front. Your card will allow you to do the following without having to pay a fee:

  • Transfer funds to a personal bank account
  • Make signature or PIN-debit purchases anywhere Visa Debit
  • Cards are accepted — in stores, online or over the phone
  • Get cash back with a PIN debit purchase where available
  • Get cash from in-network ATMs
  • Get a replacement EIP Card, if needed
  • Check their card balance online, through a mobile app or by phone

More Tips About Taxes

Interested in learning more about taxes? Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone, or through our social media accounts on FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

How to Make Tax Filing Easier This 2021

How to Make Tax Filing Easier This 2021

With the holidays already behind us, this is the right time to start preparing for the upcoming tax season. Here are six tips to help you make tax filing easier this 2021.

1.- Get Your Form W-2. This form shows the amount of taxes withheld from your paycheck throughout the year and is essential to file your tax return. It’s worth keeping in mind that employers have until Monday, February 1, 2021, to file Forms W-2 and send their copies to their employees.

2.- Gather Forms 1099. You should receive these forms if you received payments as an independent contractor last year. Just like Form W-2, companies should send these forms by February 1, 2021.

3.- Verify Your Individual Tax Identification Number (ITIN) to make sure it’s still valid. Any ITIN NOT used on a federal tax return at least once in the last three years expired on December 31, 2020. Additionally, all ITINs issued before 2013 with middle digits of 88 (For example 9XX-88-XXXX) expired at the end of 2020. Those with middle digits 90, 91, 92, 94, 95, 96, 97, 98, or 99, that were assigned before 2013 and have not already been renewed, expired as well.

4.- Make sure you’ve withheld enough tax. You can do this by using the Tax Withholding Estimator on the IRS website. Take a look and determine whether you should adjust your withholding and submit a new Form W-4 to your employer.

5.- Did you receive an Economic Impact Payment? remember to keep your Notice 1444. The IRS mailed notice 1444 to the last known address of every person who received an Economic Impact Payment. This letter includes information about the amount of your payment, how it was made, and how to report any payment you didn’t receive.

6.- Did you change your address? You have to notify the IRS. You should notify the IRS about any address change using Form 8811 del IRS. If you change your name, remember that you must notify the Social Security Administration (SSA).

More Tips About Taxes

Interested in learning more tax tips to simplify things this tax season? Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

At JT Tax Services we have the experience, the knowledge, and the drive to assist you in the preparation of your taxes. We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

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

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