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Tax Preparation in Oxnard California

Photo of man in car illustrates blog: "Are Car Expenses Tax Deductible?"

Are Car Expenses Tax Deductible?

When it comes to tax deductions, you want to take advantage of as many of them as possible. But are car expenses tax deductible? In today’s blog post, we answer this and other common questions about cars and tax deductions.

What Is a Tax Deduction?

Before we explain if car expenses are tax deductible, let’s take a closer look at what a tax deduction is.

Simply put, a deduction is an expense you can use to lower your taxable income. In other words, tax deductions help you save on taxes.

For example, donations to qualified charitable institutions are tax deductible.So if you earn $70,000 a year, and you make a $1,000 donation, then your taxable income for that year won’t be $70,000 but $69,000

Are Car Expenses Tax Deductible?

The simple answer is that car expenses are deductible — but only in some cases. Let’s see what this means. 

First off, you can write off your car-related expenses only in certain cases. If you use your vehicle only for personal purposes or to commute to and from work, then you probably won’t be able to claim your car expenses as a deduction on your car return.

However, if you can prove that you use your car for business purposes, then you can deduct some car expenses. 

Taxpayers who use their car for business have two options to deduct the expenses related to their vehicles:

  • Use the actual car expenses
  • Use the standard mileage rates set by the IRS

There are three categories of standard mileage rates: business, charitable, and medical/move. The rates are adjusted every year and you can check them on the IRS website (click here the 2022 standard mileage rates).

If you decide to use your actual car expenses, you have to keep an accurate records of expenses like:

  • Oil
  • Tires
  • Repairs
  • Maintenance
  • Insurance
  • Business-related garage fees

If you have questions about the car expenses you can deduct or want to discover which deductions you qualify for, contact the experts at JT Taxes. We’ll be glad to answer all your questions and make sure you pay only the tax you owe. 

Have Tax Questions? JT Tax Services Is Here To Help!

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.

Photo of confused woman looking at her smartphone illustrates blog: "Beware of Pandemic-Related Scams!"

Beware of Pandemic-Related Scams!

Not even the pandemic can slow down criminals, who never cease to look for ways to lure unsuspecting victims. That’s why in today’s post, we talk about pandemic-related scams and give you tips on how to avoid them. 

Pandemic-Related Scams: What You Need To Know

Scammers are experts at taking advantage of confusing situations to rob people of their money or personal information. The pandemic is no exception to this perverse rule. That’s why we encourage you to be on the lookout for the scams described below. 

Economic Impact Payments Tax Refund Scams

Scammers use Economic Impact Payments (EIPs) as an excuse to try to trick you into sharing your personal information. Here’s what you need to keep in mind:

  • The IRS has already issued all Economic Impact Payments. If you didn’t get yours or received less than the full amount, you may be eligible to claim a Recovery Rebate Credit on your 2020 or 2021 tax return. 
  • The IRS will NEVER initiate contact by phone, email, text, or social media, asking you to provide personal information such as your Social Security number.

Fake Employment Offers

The pandemic has caused shifts in the labor market and some people are urgently looking for a job. Scammers take advantage of jobseekers by using social media to persuade them to share their personal information under the guise of a job offer.

  • Never share your personal information (such as social security number, passwords, or bank accounts) through social media messages.
  • Among other things, criminals can use your information to file a fraudulent tax return and get a fraudulent refund. 

Fake Charities

This is a classic scam, and criminals have been quick to adapt it to the pandemic. If you plan to make charitable donations, be sure to keep the following in mind:

  • If a person tries to pressure you into making a donation quickly, that’s a huge red flag and one of the hallmarks of a scam.
  • Before making a donation, ask the person for the exact name of the charity as well as the address of its website. Then verify all those details online. 
  • NEVER, under any circumstances, make a donation using gift cards or by wiring money. 

Need Help With Your Taxes? Contact JT Tax Services

At JT Taxes, we have made it our mission to take the stress of tax filing off your hands so you can focus on what matters most to you. We maximize your refund and help you stay compliant with all applicable rules and laws.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 wide array of tax services.

Photo of smiling woman with laptop illustrates blog: "Delayed Refund? You Will Receive 5% Interest After July 1"

Delayed Refund? The IRS Will Pay 5% Interest After July 1

If you’re still waiting on your tax refund, we have some good news: the IRS will pay 5% interest to individuals after July 1. Here’s what you need to know. 

What You Need to Know

Typically, the IRS has 45 days after the filing deadline (in 2022 it was 2018) to process your tax return and send your refund. After those 45 days, the IRS starts paying interests to taxpayers.

However, there’s something you should keep in mind: Those interests are taxable.

While the IRS does its best to process returns in a timely fashion, some delays are inevitable due to the disruptions caused by the COVID-19 pandemic. 

If your return is part of the backlog the IRS is actually experiencing, keep reading —  in the next section we explain how to check the status of your refund. 

How to Check the Status of Your Refund

Checking the status of your refund is extremely easy thanks to an online tool created by the IRS. 

The tool is called Where’s My Refund (just click on the link to open the tool) and you can use it 24 hours after filing your 2021 return or four weeks after mailing a paper return. 

Before opening Where’s My Refund, make sure to have the following information ready:

  • Your Social Security Number (SSN) or ITIN
  • Your filing status (single, married filing jointly, married filing separately, etc)
  • Your exact refund amount

Where’s My Refund is updated daily, usually overnight. So if your refund information isn’t available yet, check again the next day. 

Need Help With Your Taxes? Contact JT Tax Services

If you need help with your taxes, you’ve come to the right place.  At JT Taxes, we have made it our mission to take the stress of tax filing off your hands so you can focus on what matters most to you.

We maximize your refund and help you stay compliant with all applicable rules and laws. 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 wide array of tax services.

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How To Contact the IRS

From refunds to tax transcripts, there are many reasons why you may want to contact the IRS. In this post, we talk about how to contact the IRS and give you some tools to make things easier when dealing with some common tax needs.

How To Contact the IRS

How to contact the IRS by phone. If you are a taxpayer with questions about federal taxes, you can get answers at 1-800-829-1040. The help line is open Monday through Friday, from 8:00 am to 8:00 pm local time. 

To request a transcript by phone, call 800-908-9946.

For assistance in a language other than English or Spanish, call 833-553-9895.

Make sure to have the following ready when you call the IRS:

  • Social Security Number (SSN) and birth date
  • Individual Taxpayer Identification Number (ITIN) if you don’t have a Social Security Number
  • Filing status (single, married filing jointly, married filing separately, ec.)
  • Prior-year tax return
  • Tax return you’re calling about
  • Any letter you may have received

When to contact the IRS by email. The IRS encourages taxpayers to contact the agency through its electronic tools (see below). Calling by phone is recommended only in certain cases. But in the specific case of phishing emails, the IRS asks taxpayers to report suspicious emails at phishing@irs.gov (make sure to forward the email with full email headers included).

How To Get Information About Your Tax Refund

If you need information about the status of your tax return, you don’t have to call the IRS. 

Instead of waiting on the phone, use the online tool Where’s My Refund, which has information for the 2021, 2020, and 2019 tax years.

To open the tool, just click the link provided above and make sure to have the following ready:

  • Your Social Security number or ITIN
  • Your filing status
  •  Your exact refund amount

You should call the IRS (again, the number is 1-800-829-1040) only if:

  • It’s been 21 days or more since you e-filed
  • It’s been more than 6 weeks since you mailed your paper return
  • Where’s My Refund says the IRS can provide more information to you over the phone

How To Get a Tax Transcript

We covered this topic in a previous post, but here’s a summary of what you need to know:

  • You can request an IRS transcript online, but first you’ll need to create an online account here.
  • Once you have created an account, you can request your transcript here 
  • Alternatively, you can request to get your transcript by mail. All you have to do is to fill out this form.
  • As a third alternative, you can order your transcript by phone at 800-908-9946

How To Get an EIN

People looking to apply for an Employer Identification Number (EIN) can do it easily without calling the IRS by using this online assistant.

The system operates Monday through Friday, 7:00 am to 10:00 pm Eastern Standard Time. 

How to Contact the IRS in Languages Other Than English

The IRS makes it a point to offer information in different languages other than English to help as many taxpayers as possible. 

People who need assistance in other languages can get the support of a professional interpreter over the phone.

  • For assistance in Spanish, call 800-829-1040
  • For all other languages (including Chinese, Vietnamese, Russian, Farsi, and others), call 833-553-9895

Need Help With Your Taxes? Contact JT Tax Services

If you need help with your taxes, you’ve come to the right place.  At JT Taxes, we have made it our mission to take the stress of tax filing off your hands so you can focus on what matters most to you.

We maximize your refund and help you stay compliant with all applicable rules and laws. 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 wide array of tax services.

Photo of girl looking at documents illustrates blog: "How to Get an IRS Transcript?"

How to Get an IRS Transcript?

Do you need an IRS Transcript? Then keep reading! In this article, we answer the most common questions about IRS transcripts, from a basic definition of IRS transcript, to who needs a transcript, and how to get a transcript from the IRS. 

What Is an IRS Transcript?

Simply put, an IRS transcript is a record of your previous tax returns that shows different kinds of information, depending on the type of transcript. 

There are five types of IRS transcripts:

  • Tax return transcript. Includes most line items from your original Form 1040 tax return, along with any forms and schedules. Note that it doesn’t include changes made after you filed the original return. This type of transcript is available for the current and three previous tax years. 
  • Tax account transcript. Provides basic information such as filing status, taxable income, and payment types. It shows changes made after you filed your original return. It’s available for the current and nine previous tax years (online) or the current and three previous tax years (by mail).
  • Record of account transcript. Combines the two previous transcripts into one. It’s available for the current and three previous tax years. 
  • Wage and income transcript. Shows data from forms such as Forms W-2, 1098, 1099, and 5498. It’s available for the current year and nine previous tax years.
  • Verification of non-filing letter. Shows that the IRS has no record of a processed Form 1040-series tax return as of the date of the request. It’s available for the current year and the three previous tax years.

It’s worth remembering that an IRS transcript isn’t the same as a photocopy of your return. If you need a photocopy, you’ll have to submit Form 4506, Request for Photocopy of Tax Return, and pay a fee of $50 per copy.

Who Needs an IRS Transcript?

The most common use of IRS transcripts is to provide information to lending institutions when you apply for a loan or mortgage. 

IRS transcripts are also helpful when it comes to retrieving information you may need to apply for housing assistance or federal programs. 

How to Get an IRS Transcript?

The IRS recommends taxpayers to request their transcripts online. 

To do this, you’ll have to visit or create your online account here. If you don’t have  an existing IRS username, have your photo identification ready. 

If you can’t request your transcript online, you can get your tax return or tax account transcript by mail by clicking on this link or by calling the IRS at 800-908-9946.

Have Tax Questions? Contact JT Tax Services

Need help getting a tax transcript? Want to learn more about the tax obligations of businesses? At JT Taxes, we have made it our mission to take the stress of tax filing off your hands so you can focus on what matters most to you.

We maximize your refund and help you stay compliant with all applicable rules and laws. 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 wide array of tax services.

Photo of smiling woman behind laptop illustrates blog: "What You Need To Know About the Employer Identification Number (EIN)"

What You Need To Know About the Employer Identification Number (EIN)

If you are a business owner, sole proprietor, or run a non-profit, you are required to have an Employer Identification Number. In today’s post, we tell you everything you need to know about EINs, from a basic definition to how to get yours online. 

What Is an EIN?

The term “EIN” stands for Employer Identification Number, and as the name suggests, this is a unique number assigned to employers by the IRS. 

EINs are useful because they help the IRS identify taxpayers who have to file certain business tax returns.

Some of the organizations that usually must have an EIN include:

  • Employers
  • Sole proprietors
  • Corporations
  • Non-profit associations
  • Partnerships 
  • Trusts
  • Estates
  • Government agencies
  • Other business entities

How Do I Request My EIN?

While the IRS accepts requests by fax or email, the internet is the most popular option to get your Employer Identification Number.

To apply for your EIN online, just visit this website and provide all the information the system requests.

Before you get started, it’s important to remember that:

  • You may apply online for an EIN if your main business is located in the United States or its territories.
  • The person applying online must have a valid tax identification number (ITIN, EIN, SSN).
  • There’s a limit of one EIN per responsible party (the person who exercises effective control over the business entity) per day. 

Make Sure to Keep Your EIN Information Up to Date

As with any other form of identification, it’s important to ensure that the information associated with your EIN is always up to date. 

The IRS asks holders of EINs to report any new information within 60 days of the change taking place. 

Most changes (like changing the name of your business, for example) do NOT result in you having to get a new EIN. However, if the structure or the ownership of the business changes, then you’ll probably have to request a new number.

Have Tax Questions? Contact JT Tax Services

Need help with your EIN? Want to learn more about the tax obligations of businesses? At JT Taxes, we have made it our mission to take the stress of tax filing off your hands so you can focus on what matters most to you.

We maximize your refund and help you stay compliant with all applicable rules and laws. 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 wide array of tax services.

Drawing that shows computer, calculator and sheet of paper that reads "Tax Day" illustrates blog: "Your Ultimate Guide to Tax Day 2022"

Your Ultimate Guide to Tax Day 2022

Federal Tax Day is just 11 days away! From useful checklists to how to check the status of your refund and tips on how to ward off tax scam, this is your definitive guide to Tax Day 2022.

1. When Is Tax Day?

This year, Tax Day will be on Monday, April 18, 2022.

As you probably know, Tax Day is traditionally held on April 15. However, the District of Columbia observes Emancipation Day on April 16, which this year falls on a Saturday. As a consequence, the holiday will be celebrated on April 15, pushing Tax Day to the 18.

2. Make Sure to Get These Details Right

Want to avoid delays with your return? Make sure to double-check these details before filing:

  • Name
  • Date of birth
  • Social Security Number (SNN)
  • Filing status (single, married filing jointly, married filed separately, head of household, qualifying widow(er) with dependent child)
  • Your return must be signed and dated

3. What Happens if I Can’t File My Taxes on Time?

If you can’t file on time, you can request an extension to get an extra six months to file.

Remember, however, that an extension to file is NOT an extension to pay.  You still have to pay all or at least part of your estimated taxes by April 18.

To learn more, check out our previous blog, “Can’t File Your Taxes on Time? Here’s What To Do.”

4. What Happens if I Can’t Pay My Taxes in Full?

If you can’t pay all the taxes you owe, file your rate and pay at least a portion by the April 18 deadline. This way you will avoid the failure-to-pay penalty and will reduce interests on the unpaid balance. 

Talk with  a tax expert you trust to determine if you qualify for an online payment plan or for an installment agreement.

5. Checking the Status of Your Refund

Once your return is filed and your payment is made, you can check the status of your refund using the online tool Where’s My Refund.

You can start checking the status of your refund 24 hours after filing electronically or four weeks after mailing a paper return. 

6. Beware of Tax Scams

Every year, scammers take advantage of tax season to deceive unsuspecting victims. Stay safe by watching out for these red flags:

  • Someone contacts you by text or social media.
  • You are asked to pay a supposed tax bill urgently.
  • Someone threatens you with calling the police or immigration authorities if you don’t pay. 
  • They ask you to pay your taxes by using a specific payment method.
  • They ask you to settle your tax bill with gift cards. 

JT Tax Services: Tax Filing Made Easy

At JT Taxes, we have made it our mission to take the stress of tax filing off your hands so you can focus on what matters most to you.

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 wide array of tax services.

Photo of smiling woman sitting at desk illustrates blog: "Can’t File Your Taxes on Time? Here’s What To Do"

Can’t File Your Taxes on Time? Here’s What To Do

Tax Day, which this year falls on April 18, is just around the corner. Are you ready to file your taxes? If the answer is a panicked “No!” don’t worry: in today’s post we tell you everything you need to know about filing extensions. 

What To Do if You Can’t File Your Taxes on Time

We live in a time when things move fast. Get distracted for a minute, and before you know it, Tax Day is less than one month away and you’re not ready to file your tax return.

Sound familiar? Then we have good news for you.

If you can’t file your taxes on time, you can request a filing extension that will give you a whopping six months (that is, until October 17, 2022) to file your return. 

Needless to say, this is a great option for those who have fallen behind in preparing their taxes. However, there are a couple of caveats to consider.

What You Need To Know

First off, remember that an extension to file is NOT an extension to pay.

This means that even if you get an extension, you still have to pay your taxes by April 18. To do this, you have to estimate your taxes and make the payment before the due date. 

The other important thing to keep in mind is that in order to get an extension, you have to request it no later than the original due date for your return. 

One of the easiest ways to request a filing extension is by making an electronic payment to the IRS indicating that it’s for an extension. 

If you need help filing your taxes or have questions about filing extensions, don’t hesitate to contact the experts at JT Tax Services.

We’ll be happy to offer the knowledgeable, efficient tax assistance you need. 

File Your Taxes With JT Tax Services

At JT Taxes, we have made it our mission to take the stress of tax filing off your hands so you can focus on what matters most to you.

We maximize your refund and help you stay compliant with all applicable rules and laws. 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 wide array of tax services.

Photo of man holding folder illustrates blog: "Filing Your Taxes When You Have Missing or Incorrect Documents"

Filing Your Taxes When You Have Missing or Incorrect Documents

In a perfect world, everyone would have the right documents on hand when filing their taxes. However, things can be different in real life. In today’s post, we tell you how to file your taxes when you have missing or incorrect documents.

Missing or Incorrect Forms W-2 or 1099

Taxpayers who haven’t received a W-2 or Form 1099, or if they are incorrect, should contact their employer or payer and request the missing document.

If for any reason you can’t get the right documents, don’t panic. You can estimate your wages or payments and then report them on Form 4852, which be used as a substitute for Forms W-2 or 1099.

Now, in this scenario, you may receive the corrected Form W-2 or 1099 after filing your return. If this happens and you discover that the correct information differs from the amounts you used on your return, you must file Form 1040-X, Amended U.S. Individual Income Tax Return.

Getting Answers to Your Tax Questions

Whether it’s missing documents or errors on your return, when it comes to taxes, there’s a solution for every situation. What matters is seeking the assistance of a tax professional with a proven track record of success in navigating the U.S. tax system.

With the deadline to file and pay your federal taxes fast approaching, this is more important than ever. At JT Tax Services, we offer assistance with even the toughest tax situations, including:

  • Missing or incorrect forms
  • Amended returns
  • Filing and paying taxes from previous years
  • Installment agreements
  • Failure to file and failure to pay penalties
  • Appeals

At JT Tax services, our dedicated team of tax professionals stands ready to help you. Get in touch today to talk with an expert.

File Your Taxes With JT Tax Services

At JT Taxes, we have made it our mission to take the stress of tax filing off your hands so you can focus on what matters most to you.

We maximize your refund and help you stay compliant with all applicable rules and laws. 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 wide array of tax services.

Photo of student with earphones and smartphone illustrates blog: "What You Need to Know About Education Tax Credits"

What You Need to Know About Education Tax Credits

If you or someone included on your tax return are pursuing higher education, we encourage you to consider two little-known tax credits: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC), two tax breaks that can reduce the amount of tax you owe.

Education Tax Credits: What You Need to Know

The purpose of the AOTC and the LLC is to help with the cost of higher education by lowering the amount of tax you owe. 

Regardless of the differences between these credits (we’ll touch on that later), three conditions must be met in order to qualify for any of them:

  • You, your dependent, or a third party pays qualified education expenses for higher education.
  • An eligible student must be enrolled at an eligible educational institution.
  • The eligible student is yourself, your spouse, or a dependent you list on your tax return.

On the other hand, you CANNOT claim these credits if someone else (such as your parents) lists you on their tax return; if your filing status is married filing separately; if you already claimed or deducted another higher education benefit using the same student or same expenses; or if you or your spouse were a non-resident alien for any part of the year and did not choose to be treated as a resident alien for tax purposes.

Differences Between AOTC and LLC

One of the most relevant differences between these two credits is that the AOTC, applies only when the student hasn’t completed four years of post-secondary education before 2021. Plus, the student must be pursuing a degree or other recognized education credential and must have no felony drug convictions as of the end of 2021.

By contrast, it’s possible to qualify for the LLC with all years of post-secondary education and for courses to acquire or improve job skills. Additionally, the student does not need to be pursuing a degree or other recognized education credential. Finally, the requirement of no felony drug convictions does not apply in this case. 

Another important difference is that the AOTC is a partially refundable tax credit (40%), while the LLC is not refundable. This distinction is worth keeping in mind because not refundable tax credits cannot be used to increase your tax refund or to create a tax refund when you don’t have one.

If you are interested in learning more about education tax credits, contact us today. We’ll be glad to help you make sense of these tax breaks and determine if you qualify for any of them. 

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

Do you need assistance with personal or business taxes?  JT Tax Services is here to help! 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.

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