Tax Preparation in California Archives - Page 2 of 3

Beware of Charity Scams

July 1, 2021

Scammers have no qualms about taking advantage of your willingness to help, that’s why you should keep an eye out for charity scams. Here’s what you need to know.

How do Charity Scams Work?

A charity scam is the act of asking for money to supposedly help a noble cause, although actually the money ends up lining the pockets of criminals.

Any natural disaster or catastrophic event that makes the news creates the perfect conditions for fake charity scams.

Needless to say, criminals were quick to take advantage of the concern caused by the coronavirus pandemic, sparking an uptick in scam attempts that has become a major concern for authorities.

How to Avoid Charity Scams

Luckily, avoiding charity scams is easy if you know how to identify legitimate charities.

If you are interested in claiming a tax deduction after donating money or goods, the IRS online tool Tax Exempt Organization Search will help you determine whether the institution you have in mind is a qualified charity.

Here are other guidelines to help you ward off charity scams:

Don’t let anyone pressure you into donating. This is a red flag that should put you on alert. If the other person wants you to donate as soon as possible, chances are that they want to prevent you from doing a thorough research.
Before donating ask for the exact name, web address, and mailing address so that you can confirm all this information yourself. Keep in mind that scammers will try to confuse you by using names that are similar to those of reputable charities.
Never donate to a charity by buying gift cards or wiring money. This is a well-known scam and no legitimate organization raises funds this way. The safest for you is to make your donations by credit card or check after doing all the necessary research.

Contact the Experts at JT Tax Services

Do you need help preparing your taxes? Do you want to learn more about refunds and credits? 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 Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services.

A Simple Tip to Make Tax Filing a Lot Easier

By: UNIKO Media Group

June 22, 2021

Filing your taxes takes focus and great attention to detail. And while this may sound complex, it can be really easy if you follow a simple tip. Keep reading to learn more.

How to Make Tax Filing a Lot Easier

Filing your tax return becomes a breeze when you keep records of all your tax documents.

Efficient recordkeeping helps you identify sources of income, keep track of your expenses and support the information of your tax return. All in all, keeping comprehensive records makes tax filing an easier, simpler, and more precise task.

The Documents You Should Make Sure to Keep

Below is a list of the documents you should make sure to keep.

Tax-related documents. This includes wage and earning statements, dividend statements, bank interests, and some government payments, such as unemployment compensation, or virtual currency transactions. You should also keep any receipts, canceled checks, and other documents that help support income, a deduction, or a credit reported on your tax return
Letters from the IRS and prior year tax returns. Make sure to keep copies of prior year tax returns, as well as any letter from the IRS. This includes adjustment notices and Economic Impact Payment Notices, among others.
Property records. Pay attention to keep all records relating to any property your dispose of or sell.
Businesses income and expenses. Taxpayers who own a business must come up with a recordkeeping method that reflects accurately their gross income and expenses. If you have employees, don’t forget that you must keep all employment tax records for at least four years.
Health insurance. Keep records of all the documents related to health insurance for you or your family. You will need that information if you want to claim the premium tax credit.

Contact the Experts at JT Tax Services

Everything You Need to Know About Tax Refunds This 2021

By: UNIKO Media Group

April 1, 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.

Everything You Need to Know About the Third Stimulus Payment

By: UNIKO Media Group

March 17, 2021

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

You May Receive Your Second Stimulus Payment by Credit Card

Some People Will Receive Their Second Stimulus Payment by Debit Card

By: UNIKO Media Group

January 20, 2021

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 Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services.

How to Make Tax Filing Easier This 2021

By: UNIKO Media Group

January 14, 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.

This Important Tax Deadline Is Less Than One Month Away

By: UNIKO Media Group

January 8, 2021

The year has just begun, but an important tax deadline is already less than one month away. If you are an employer, don’t forget that you should issue and file wage statements by Monday, February 1, 2021. Keep reading to discover what are the statements and forms you should keep in mind.

Form W-2

Companies should complete and file a W-2 form for every employee to whom they pay a salary. Don’t forget that you should also send your employees copies of their W-2 forms by February 1, 2021, so that they can file their taxes before the due date (April 15, 2021).

Form W-3

This form (official name: Transmittal of Wages and Tax Statements) is a detailed summary of all the W-2 forms filed by your company. This form is used by the Social Security Administration (SSA) to keep track of the salaries, commissions, tips, and other compensations that employees receive throughout the year.

Form 1099-MISC

File a 1099-MISC Form for every person to whom you paid the following during the last year:

At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
At least $600 in:
- Prizes and awards.
- Other income payments.
- Medical and health care payments.
- Crop insurance proceeds.
- Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
- Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
- Payments to an attorney.
- Any fishing boat proceeds.

As is the case with Forms W-2, you should also send Forms 1099-MISC to recipients before February 1, 2021.

Form 1099-NEC

You should file Form 1099-NEC, Nonemployee Compensation, if all the following statements apply:

You made the payment to a person who is not your employee
The payment was for services in the course of your trade or business
You made the payment to an individual, a partnership, an estate, or a corporation
Payments were at least $600 during the year

Also in this case, keep in mind that recipients of Forms 1099-NEC should receive their copies by February 1, 2021.

More Tips About Taxes

Do you want to learn more about taxes and Economic Impact Payments? Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

The IRS Begins Delivering Second Round of Economic Impact Payments

By: UNIKO Media Group

December 30, 2020

The Internal Revenue Service (IRS) announced that it has begun delivering a second round of Economic Impact Payments (EIP) as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021.

The agency began sending payments through direct deposit yesterday (Tuesday), and it will begin sending paper checks today.

Do I Have to Take Any Actions to Receive my Economic Impact Payment?

Economic Impact Payments are automatic. This means that no action is needed on the part of recipients. The IRS has requested taxpayers not to contact financial institutions or the IRS itself with payment timing questions.

Keep in mind that the delivery method may be different for the second stimulus payment. If you received the previous Economic Impact Payment, but don’t receive a direct deposit, then you will receive a check or a debit card.

On the other hand, if you were eligible but didn’t receive either the first or the second payment, you will be able to claim it when you file your taxes for 2020.

How Much is the Second Stimulus Check?

The amounts of the second stimulus payment will be determined as follows: up to $600 for individuals; up to $1,200 for married couples filing jointly: and up to $600 for every qualifying child

Generally, if you have adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing jointly and surviving spouses, you will receive the full amount of the second payment.

How Can I Check the Status of My EIP?

You will be able to check the status of your payment using the online tool Get my Payment. The service is offline at the moment as the information is being updated. However, the IRS expects that the tool will be available again shortly.

More Tips About Taxes

Do you want to learn more about taxes and Economic Impact Payments? Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

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

This Christmas, Beware of Hacking Attempts

By: UNIKO Media Group

December 24, 2020

Christmas is the merriest season of the year, but it also offers ideal conditions for hacking attempts. Keep reading to learn why you should be especially careful these days, and what steps you can take to protect your data.

Why Are Hacking Attempts Common During the Holidays?

The holidays, and in particular the days around Christmas, have become a hunting ground for hackers looking to steal personal information. This phenomenon is caused by a combination of circumstances that favor cyber-criminals:

Many employees are on vacation, which means that many companies have to let their guard down.
People are more willing to open unsolicited emails, especially if they promise holiday deals/discounts.
The holiday season offers myriad opportunities to trick unsuspecting victims through email: virtual greeting cards, invitations, and other holiday-related content.

How to Protect Yourself

In order for most hacking attempts to succeed, you must be tricked into performing certain actions, such as clicking on a link or downloading a file. This means that being cautious when you use the internet is your best line of defense. Other steps you can take include:

Use safe passwords. Choose passwords of at least eight characters that include a mix of upper and lower case, special characters and numbers.
Use multi-factor authentication. When available, use this feature, where a website asks you for two pieces of information before granting access. This is not a silver bullet but makes hacking attacks less likely.
Be extremely careful with links and attachments. These are the resources that hackers use more often, so don’t click on a link or download an attachment unless you know the sender.
Backup your data. In itself, this doesn’t prevent hacking attacks, but it can make all the difference if you can’t access your data after a breach.

More Tips About Taxes

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

Contact the Experts at JT Tax Services

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

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

3 New Things to Consider When You File Your 2020 Tax Return

By: UNIKO Media Group

December 18, 2020

This year has been out of the ordinary from every point of view, including taxes. There are some new things you should consider when you file your 2020 tax return. Keep reading to learn more.

Recovery Rebate Credit

You may be able to claim this credit if you met the eligibility requirements for an Economic Impact Payment in 2020 and one of the following applies to you:

You didn’t receive an Economic Impact Payment in 2020.
You are single and your payment was less than $1,200.
You are married, filed jointly for 2018 or 2019 and your payment was less than $2,400.
You didn’t receive $500 for each qualifying child.

Refund Interest Payment

If you received a federal tax refund in 2020, keep in mind that interest payments are taxable and must be returned on your 2020 federal tax return. Next January, the IRS will send a form to any person who received interest payments of at least $10 during the last year.

New Charitable Deduction

If you don’t itemize your deductions, you can take this year a new charitable deduction of up to $300 for donations made during 2020 to qualifying institutions. If you are interested in this deduction, check out this previous post where we take a closer look at this interesting topic.

Finally, remember that you shouldn’t rely on receiving your refund by a certain date. This is particularly important if you are planning to make a big purchase or pay important bills. While the IRS processes tax returns as soon as possible, some returns require more time, so your refund may take longer than you expect.

More Tips About Taxes

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

Contact the Experts at JT Tax Services

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