Tax Preparation in Oxnard California Archives - Page 4 of 8

3 Things You Should Do Before the Tax Year Ends

December 1, 2021

Just like the calendar year, the tax year ends on December 31. Most people associate that date with parties and New Year’s resolutions. However, there are some other important things you should do by that date.

Donate to Charity

Remember that now you can claim a deduction of up to $300 (or $600 for couples filing jointly) for cash contributions to qualifying charities during 2021.

The term “cash” includes donations made by credit card, debit card, check, as well as unreimbursed out-of-pocket expenses in connection to volunteer services to a qualifying charity.

If you are planning do donate, use the Tax Exempt Organization Search, a tool created by the IRS to allow taxpayers to check an organization’s federal tax status and filings

Check Your ITIN

The term ITIN stands for Individual Taxpayer Identification Number. You should renew your ITIN if it has expired and you’ll need it for a U.S. federal tax return. Keep the following in mind:

Any ITIN not used on a U.S. federal tax return at least once for years 201, 2019, and 2020 will expire on December 31, 2021.

ITINs with middle digits 70 through 88 have expired.

ITINs with middle digits 90 through 99 have expired, if assigned before 2013.

Get Ready to File Your Return in 2022

This is the ideal time to get ready to file your return in 2022. Take a look at your tax records and make sure you have all the documents you need to support the deductions you intend to claim. Also, if you haven’t done it yet, you may consider choosing direct deposit to get your tax refund: it’s faster and eliminates the possibility that a refund check could be lost or stolen.

If you have any questions or need assistance preparing your return, contact JT Tax Services today. We’ll be happy to answer any questions you may have.

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.

How to Protect Yourself Against Holiday Scams

By: UNIKO Media Group

November 26, 2021

The holidays are here, and that means fun, delicious food, quality time with your family… and scam attempts. Here’s what you need to know to protect yourself.

How to Protect Yourself Against Holiday Scams

According to the FBI, the two most common types of holiday scams are non-delivery and non-payment scams. A 2020 report shows that these two types of schemes cost people more than $265 million, with credit card fraud accounting for another $129 million.

The IRS, for his part, is sounding the alarm about fake charities. Criminals try to take advantage of the goodwill that the holiday season generates to steal funds and personal information. Regardless of the strategy, these easy tips will help you thwart scammers:

The most basic rules of cybersecurity also apply during the holidays. So don’t click on any links or download any attachments contained in suspicious emails.

Consider it a huge red flag if a company sends an unrequested email asking you to change or verify your passport. Find the company’s official phone number and can call them to verify the email is legitimate.

Before making a purchase online, check the website URL (the website address) and make sure it includes the term “https.” If it doesn’t, don’t move forward with the transaction.

When shopping online, avoid using the public or unsecured WiFi available in places like malls or coffee shops.

When it comes to donations, be wary of unrequested calls. Don’t let callers pressure you into making a donation (a huge red flag). Remember: no legitimate charity requests prepaid gift cards as donations.

NEVER wire money directly to a charity or online seller.

When purchasing items online, always get a tracking number so you can monitor the shipping process

Contact the Experts at JT Tax Services

What You Need to Know If You Are Making Donations This Christmas

By: UNIKO Media Group

November 17, 2021

As you know, Christmas is the season of giving. If you are planning to make donations to charities over the next few weeks, keep reading to learn about a special change that can help you claim a deduction for donations on your 2021 federal income tax return.

An Exceptional Measure

The COVID-19 pandemic has wreaked havoc on the finances of a lot of people. As a response, the IRS has taken some extraordinary measures to offer relief to those who need it most.

One of these measures is an exception that allows taxpayers to claim a limited deduction of up to $600 in donations to qualifying charities on their 2021 federal income tax return.

What You Need to Know

Usually, people who opt for the standard deduction cannot claim deductions for their charitable contributions.

However, a new temporary exception allows these taxpayers to claim a limited deduction on their 2021 tax return.

This is important because, according to the IRS, nine out of 10 taxpayers choose the standard deduction, so a lot of people can benefit from this special rule.

The temporary exception allows individual taxpayers (including married taxpayers who file separately) to claim up to $300 for donations in cash made in 2021 to qualifying charities. The limit is increased to $600 for married taxpayers who file jointly.

Keep This In Mind

For the purposes of this rule, cash contributions include donations made by check, credit card, as well as amounts incurred by an individual for unreimbursed out-of-pocket expenses in connection with their volunteer services to a qualifying charitable organization.

To verify the status of a charity, use the Tax Exempt Organization Tool on the IRS website.

Contact the Experts at JT Tax Services

Photo of mother and child illustrates blog "If your Income Changed in 2021, don’t forget to Update Your Child Credit Payments"

If your Income Changed in 2021, don’t forget to Update Your Child Tax Credit Payments

By: UNIKO Media Group

November 4, 2021

If for any reason your income was substantially higher or lower in 2021 than in 2020, don’t forget to update your Child Tax Credit Payments information so that your payments increase or decrease accordingly.

How to Update Your Information

The Child Tax Credit Payments are monthly payments issued by the United States government to help working families with the impact of the COVID-19 pandemic.

The first payments were delivered on July 15 of this year. Since then, millions of families have received these payments every month.

The amount of the payments people receive is based on information from previous years. If your income increased or decreased substantially, it’s a good idea to update your information so that your payments are adjusted accordingly.

To update your income information, just visit the Child Tax Credit Update Portal on the IRS official website and follow the instructions.

Any change you make will be reflected on the payment that will go out on December 15, which is also the last payment scheduled for 2021.

About the Child Tax Credit Payments

The Child Tax Credit Payments are a measure included in the American Rescue Plan.

Since last July, families all over the United States have received up to $300 for every child who’s five or younger and up to $250 for every child ages 6 to 17.

The full amount of the payments is for families that:

Make up to $150,000 for couples.
Make up to $112,500 for families with one parent.

After those limits, the amount of the payments begins to phase off gradually.

If you haven’t enrolled yet to receive the Child Tax Credit Payments, you still have until November 15 to do it. Don’t miss this opportunity!

Contact the Experts at JT Tax Services

What You Need to Keep in Mind About Amended Tax Returns

By: UNIKO Media Group

October 27, 2021

Can you amend a tax return? All tax returns containing errors must be amended? Keep reading to discover the answers to these and other questions about amended tax returns.

What You Need to Keep in Mind About Amended Tax Returns

Although everyone tries to be as precise as possible when it comes to filing their taxes, mistakes happen.

Now, the fact that your tax return contains errors doesn’t automatically mean that you should file an amended return. The IRS catches many math or clerical errors and sends you a letter to notify you about any adjustment.

Similarly, the IRS may accept returns without certain required forms. If you forget to attach a form to your return, don’t file an amended return just yet; wait until the IRS sends you a letter requesting any missing documentation.

On the other hand, these are some cases where you usually DO have to file an amended return:

You entered your income incorrectly
You didn’t claim credits for which you are eligible
You claimed deductions incorrectly

Some Useful Tools

To simplify things, the IRS has created some usuful online tools to help those who need to file an amended return or want to know if they have to file one.

For example, this online assistant can help you determine whether you have to file an amended return.

Those who already filed an amended return can check their status of their return using the online tool Where’s my amended return? To use the tool you will need some basic personal details such as date of birth, Social Security Number (SSN) and ZIP code.

If you have other questions about amended tax returns, or need to file one, don’t hesitate to contact us at JT Tax Services. We are here to answer your questions and provide you with high-quality tax assistance you can trust.

Contact the Experts at JT Tax Services

Are You a Business Owner? Don’t Forget to Correctly Classify Your Workers

By: UNIKO Media Group

September 15, 2021

If you are a business owner, it’s very important that you learn to tell the difference between an employee and an independent contractor. This will help you avoid problems and ensure that your accounting is clear and precise. Keep reading to learn more about this important topic.

Employees or Independent Contractors?

When it comes to classifying your workers for tax purposes, there are two basic options: employees and independent contractors.

To determine whether a worker is an employee or a contractor, you should consider three main factors:

Does the business control, or has the right to control, what the worker does and how they do it?
Does the company control the financial aspects of the worker’s job? (For example, how are they paid, or how are their expenses refunded)
Are there any written contracts or employee-type benefits such as pension plan and vacation pay?

If you answered these questions with“Yes,” then the worker is an employee. By contrast, if the answer is “No,” then the person is an independent contractor.

What Happens if You Misclassify a Worker?

Misclassifying workers adversely affects workers themselves in the first place. For example, if a worker is classified as an independent worker when they are really employees, this means that the employer isn’t retaining and paying income taxes, as well as Social Security and Medicare taxes.

Also, if a company misclassifies a worker without a reasonable basis, then it might be held liable for employment taxes for that worker.

If you have workers whom you are currently treating as contractors, but would like to reclassify as employees for future tax periods, then the Voluntary Classification Settlement Program (VCSP) may interest you.

If you want to learn more about this program or determine whether your company qualifies to participate in it, contact JT Tax Services for more details.

Contact the Experts at JT Tax Services

Do you need help figuring out how to classify your workers or with any other matter related to 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.

Scammers are always on the lookout for new victims. Luckily, when it comes to tax scams, there’s a simple step that will help you avoid most of them. Keep reading to learn more.

The Simple Step That Will Help You Avoid Most Tax Scams

By: UNIKO Media Group

August 25, 2021

Scammers are always on the lookout for new victims. Luckily, when it comes to tax scams, there’s a simple step that will help you avoid most of them. Keep reading to learn more.

How to Avoid Most Tax Scams

As the old saying goes, knowledge is power. So it’s no coincidence that knowledge is the best way to prevent falling prey to a tax scam.

Knowing how the IRS interacts with taxpayers will help you notice more easily the odd behaviors that are the hallmark of scammers. Remember:

The IRS doesn’t normally initiate contact with taxpayers by email. Don’t reply to emails from people claiming to represent the IRS. And remember oficial IRS email addresses end with “irs.gov”
The IRS will never get in touch with you by text message or social media. If you receive this tye of message, don’t respond; someone is trying to scam you.
Private debt collectos may contact taxpayers for the collection of certain tax liablities, but only after the taxpayer has received a written notice.
IRS officers and agents may visit the home or place of business to discuss tax liabilities or delinquent tax returns. However, remember that payments will never be requested to a source other that the Treasury Department.
If you are visited by an IRS representative, don’t forget to ask for credentials. IRS officers and agents can provide two types of credentials: a pocket commission and a Personal Identity Verification Credential.

Knowing this information will help you avoid most tax scams. In case you have further questions, or need assistance navigating any process related to tax collection or tax liabilities, don’t hesitate to contact a tax expert for more information.

Contact the Experts at JT Tax Services

Do you need help preparing your taxes? Did you receive a letter from the IRS? 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.

Scammers Are Targeting Immigrants: Here’s How to Protect Yourself and Others

By: UNIKO Media Group

August 6, 2021

Scammers are always looking for ways to take advantage of vulnerable people, including senior citizens and immigrants. Keep reading to learn how to protect yourself or other people you know from this malicious strategy.

What You Need to Know

The IRS has warned that scammers have chosen immigrants as some of their favorite victims.

According to the agency, this type of scam usually occurs with a phone call from the criminals. In these calls, scammers threaten immigrants with deportation, revocation of their driver’s license, or jail if they don’t pay a bogus tax bill.

Ignore these intimidation tactics. Don’t engage the scammers in any way, as they may try to get you to reveal personal information. Remember that the IRS will never make threats over the phone or request that a specific payment method (such as gift cards) be used to pay your taxes.

It’s worth remembering that in most occasions, when the IRS wants to contact you, they will do it by mail and not by phone.

How to Protect Yourself and Others

It bears repeating: the IRS will never make threats in their communications with you. By keeping in mind this simple rule, you will be able to prevent scammers from intimidating you and parting you with your money.

Another way to protect you is to take advantage of the multilingual resources that the IRS keeps constantly updated. The agency offers content in many languages other than English, including Spanish, Chinese simplified and traditional, Vietnamese, Korean, and Russian.

If you know someone who might be a potential victim of scammers, don’t hesitate to share this information with them. You could sabe them money and many future headaches.

Additionally, you can always turn to a tax profesional you trust when you have questions. The tax experts at JT Taxes stand ready to offer the knowledgeable assistance you need to file and pay your taxes with confidence.

Contact the Experts at JT Tax Services

Do you need help preparing your taxes? Do you have questions about the Child Tax Credit? 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.

Remember: You Must Also Pay Taxes on Income From Hobby Activities

By: UNIKO Media Group

July 7, 2021

Whether it’s knitting, fishing, or reading books, we all need a hobby. However, if your hobby activity is a source of income, then you should make sure to report it on your tax return.

Paying Taxes on Income From Hobby Activities

Let’s begin with some basic definitions. A hobby is an activity you pursue for pure enjoyment, without intentions of making a profit.

While this seems like a clear-cut definition, things are not always so simple. For example, it happens often that people begin selling the products of their hobby. Do they have to report that income on their tax return?

The answer is yes. If you receive income from an activity you carry out with no intention of making a profit, then you should report it on your tax return, specifically on Schedule 1, Form 1040.

On the other hand, any income from for-profit activities should be reported on Schedule C.

When determining whether an activity is a hobby or a for-profit business, the following factors are taken into account:

Whether you carry out that activity like a business, and maintain complete and accurate books and records.
Whether the time and effort you put into the activity shows you intend to make it profitable.
Whether you depend on income from the activity for your livelihood.
Whether any losses are due to circumstances beyond your control or are normal for the startup phase of their type of business.
Whether you change the way you carry out that activity to improve profitability.
Whether you have the knowledge needed to carry out the activity as a successful business.
Whether you were successful in making a profit in similar activities in the past.
Whether the activity makes a profit in some years and how much profit it makes.
Whether you can expect to make a future profit from the appreciation of the assets used in the activity.

If you find it difficult to figure out whether an activity is a hobby or a business, don’t hesitate to contact a tax professional. They will help you figure out the tax strategy that better fits your unique situation.

Contact the Experts at JT Tax Services

Do you need help preparing your taxes? 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.

Beware of Charity Scams

By: UNIKO Media Group

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.