Tax preparer in Oxnard California Archives

Parents with girl who is wearing glasses and reading book.

Adoption Tax Credit: What You Need To Know

April 3, 2024

The Adoption Tax Credit serves as a valuable help with some of the financial aspects of adoption. In this blog post, we will explore the Adoption Tax Credit, its benefits, eligibility criteria, and essential information that prospective adoptive parents need to know.

Understanding the Adoption Tax Credit

The Adoption Tax Credit is a non-refundable tax credit provided by the Internal Revenue Service (IRS) to assist adoptive parents with the expenses incurred during the adoption process.

This credit helps offset qualifying adoption expenses, making adoption more accessible and affordable for families.

Note that taxpayers who adopt their spouse’s child can’t claim this credit.

Benefits of the Adoption Tax Credit

One of the primary benefits of the Adoption Tax Credit is its financial assistance to adoptive parents.

It allows eligible families to claim a tax credit for qualified adoption expenses, including adoption fees, court costs, attorney fees, travel expenses, and other related costs.

The credit helps reduce the financial barriers associated with adoption and encourages more families to consider adoption as a viable option for expanding their families.

Eligibility Criteria for the Adoption Tax Credit

To qualify for the Adoption Tax Credit, adoptive parents must meet certain criteria set forth by the IRS. Some key eligibility requirements include:

The adoption must be finalized.
The child must be under the age of 18 or have a physical, mental, or emotional disability.
Qualifying adoption expenses include reasonable and necessary adoption fees, court costs, legal fees, and adoption-related travel expenses, among others.
The adoptive parents’ modified adjusted gross income must be within the specified limits to claim the full credit.

It is essential for adoptive parents to review the specific guidelines and requirements outlined by the IRS to determine their eligibility for the Adoption Tax Credit.

Claiming the Adoption Tax Credit

Adoptive parents can claim the Adoption Tax Credit by filing IRS Form 8839, Qualified Adoption Expenses, along with their federal tax return. The form requires detailed information about the adoption, the child, and the qualified adoption expenses incurred. It is crucial to maintain accurate records and documentation of all adoption-related expenses to support the claim for the tax credit.

Wrapping It Up

The Adoption Tax Credit provides valuable financial support to adoptive parents, making the adoption process more feasible and affordable.

By understanding the benefits, eligibility criteria, and claiming process of the Adoption Tax Credit, prospective adoptive parents can navigate the financial aspects of adoption with confidence.

If you are considering adoption or in the midst of the adoption process, exploring the Adoption Tax Credit can help you effectively deal with some of the financial concerns associated with adoption.

JT Tax Services: Taxes Made Easy

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. Feel free to contact us today!

Why Is Bookkeeping Important for Independent Contractors?

By: UNIKO Media Group

January 31, 2024

Independent contractors, whether they are freelancers, consultants, or gig workers, enjoy the freedom and flexibility that come with being their own bosses. While autonomy is a significant perk, it also comes with the responsibility of managing various aspects of their business, including bookkeeping.

Financial Clarity

Maintaining accurate and organized financial records is paramount for independent contractors. Bookkeeping provides a clear and comprehensive overview of income, expenses, and overall financial health.

This clarity is invaluable when making business decisions, planning for taxes, or assessing the feasibility of taking on new projects.

Tax Compliance

Independent contractors are responsible for handling their own taxes, including income tax and self-employment tax.

Proper bookkeeping ensures that all income is accounted for, and expenses are accurately documented, making the tax filing process smoother and reducing the risk of errors. Timely and accurate tax reporting is crucial to avoid penalties and legal complications.

Budgeting and Financial Planning

Effective bookkeeping allows independent contractors to create realistic budgets and financial plans. By tracking income and expenses, contractors can identify patterns, allocate resources strategically, and set achievable financial goals.

This proactive approach enhances financial stability and facilitates long-term business growth.

Legal Compliance

Maintaining meticulous financial records is not just about taxes; it also helps independent contractors stay compliant with various legal requirements.

From business licenses to contractual agreements, having organized financial documentation ensures that contractors can easily access the information needed to fulfill legal obligations and navigate regulatory requirements.

Business Growth and Funding Opportunities

For independent contractors looking to expand their business or explore funding opportunities, organized financial records are essential.

Lenders and investors often require a thorough understanding of a business’s financial health before providing support. Bookkeeping ensures that contractors can present a clear and compelling case for business growth or investment.

Wrapping It Up

Bookkeeping is a cornerstone of success for independent contractors. It goes beyond mere record-keeping; it is a proactive and strategic tool that supports financial stability, legal compliance, and business growth. I

ndependent contractors who prioritize bookkeeping invest in the long-term success and sustainability of their ventures, ensuring they can navigate the complexities of self-employment with confidence and efficiency.

JT Tax Services: Taxes Made Easy

IRS Further Postpones tax-filing and tax-payment deadline for California Storm Victims

By: UNIKO Media Group

October 18, 2023

Individuals and businesses in 55 of California’s 58 counties will be able to take advantage of the new federal deadline. Keep reading to learn all the details.

What You Need To Know

The Internal Revenue Service (IRS) has announced that it will postpone for a second time the federal tax-filing and tax-payment deadline for victims of storms that hit California earlier this year.

Individuals and businesses in 55 of California’s 55 counties (the exceptions are Lassen, Modoc and Shasta counties) will have until Thursday, November 16 (instead of October 16), to file and pay their 2022 tax returns.

The eligible returns and payments include those listed below (keep in mind that this extension applies only to federal taxes):

2022 individual income tax returns and payments normally due on April 18.
For eligible taxpayers, 2022 contributions to IRAs and health savings accounts.
Quarterly estimated tax payments normally due on April 18, June 15 and Sept. 15.
Calendar-year 2022 partnership and S corporation returns normally due on March 15.
Calendar-year 2022 corporate and fiduciary income tax returns and payments normally due on April 18.
Quarterly payroll and excise tax returns normally due on May 1, July 31 and Oct. 31.
Calendar-year 2022 returns filed by tax-exempt organizations normally due on May 15.

Other returns and payments qualify. Visit the IRS Disaster Assistance and Emergency Relief page for more details.

Taxpayers in the affected areas don’t have to contact the IRS or take any other action to take advantage of the extended deadline. The IRS will automatically provide filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area.

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). To learn more, contact the IRS or get in touch with our experts at JT Tax Services.

JT Tax Services: Taxes Made Easy

Closeup of a man talking on the phone illustrates blog "Scammers Impersonating the IRS on the Phone: What You Need To Know"

What You Need To Know About Scammers Impersonating the IRS on the Phone

By: UNIKO Media Group

September 28, 2023

The Internal Revenue Service (IRS) is the federal agency responsible for administering and enforcing the nation’s tax laws. Unfortunately, scammers and fraudsters have found a way to exploit the agency’s reputation and use it to perpetrate fraud schemes. Here’s what you need to know about this scheme.

How IRS Phone Scams Work

Scammers use different tactics to defraud taxpayers, but the most common method is to mimic the IRS. They call unsuspecting victims, often telling them they owe back taxes or claiming there is an issue with their tax return.

The scammer then demands immediate payment or threatens legal action, including arrest, deportation, or revocation of their driver’s license.

They may also ask for personal or financial information to “verify” the target’s identity or eligibility for a refund. These calls often use scare tactics or urgency to get the victim to act quickly without verifying the validity of the caller or the information provided.

How To Spot an IRS Phone Scam

Knowing the red flags of a scam call can help you avoid becoming a victim. Some common signs of an IRS phone scam include:

A caller who demands immediate payment over the phone or threatens legal action.
A caller who uses aggressive or abusive language, or speaks in a robotic or scripted tone.
A caller who claims to be from the IRS but doesn’t know your name or other personal details.
A caller who asks for sensitive information, such as your Social Security number, bank account number, or credit card information.
A caller who asks you to transfer money or buy gift cards or other prepaid cards.

What To Do if You Receive an IRS Phone Scam Call

If you receive a call from someone who claims to be from the IRS and you suspect it’s a fraudulent call, don’t panic or engage with the caller. Here are some steps you can take to protect yourself:

Hang up immediately
Don’t give out any personal information
Don’t make any payment or transfer money
If possible, note the caller ID information or the number the caller used
Report the call to the IRS and the Federal Trade Commission (FTC)
How to report an IRS phone scam

Reporting IRS phone scams is essential to help law enforcement catch the perpetrators and prevent them from defrauding others.

If you think you’ve been targeted by an IRS phone scam, report it to the IRS by email at phishing@irs.gov (Subject: IRS Phone Scam). Make sure to include the number of the caller, any phone number you are instructed to call, and a brief description of the communication.

JT Tax Services: Taxes Made Easy

When it comes to taxes, knowledge is power. That’s why at At JT Tax Services, we give you the peace of mind that comes with knowing that you are working with experienced professionals with in-depth knowledge of all applicable tax laws and 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. Feel free to contact us today!

Understanding Double Taxation: What It Is and How It Affects You

By: UNIKO Media Group

September 20, 2023

If you’re a business owner or an employee of a company, you have probably heard of the term “double taxation.” It can be a confusing and complex concept to grasp, but understanding it is crucial, especially when it comes to handling taxes.

What Is Double Taxation?

Simply put, double taxation refers to the imposition of two or more tax obligations on the same income, asset, or financial transaction.

This can happen in several situations; one of the most common is when a business earns profits, and the earnings are taxed at both the corporate and personal levels. In other words, the profit generated by the company is taxed at the corporate level, and the dividends paid to shareholders are subject to personal taxes.

Another situation where double taxation occurs is in international trade. When a foreign company does business in a particular country, the profits they make are taxed in both the country of origin and the country where they operate.

Double Taxation: What You Need To Keep in Mind

Double taxation may seem unfair, but it is standard practice in many countries. The US, for example, is known to have one of the highest corporate tax rates globally, which makes it essential for businesses to consider double taxation when planning their investments.

To avoid double taxation, several strategies can be employed. For businesses, choosing a legal entity, such as a partnership or a limited liability company (LLC), can help lower the tax burden.

For individuals, it’s essential to take advantage of any tax allowances or credits that may apply.

Wrapping It Up

In summary, double taxation is a complex issue that can affect both businesses and individuals.

Understanding the basics of double taxation and implementing strategies to reduce the tax burden can help businesses and individuals stay compliant while maximizing their tax savings.

So it’s crucial to seek the advice of a tax professional who can help navigate through different tax jurisdictions and ensure you comply with all relevant tax laws.

JT Tax Services: Taxes Made Easy

What Is a C Corporation and How Does It Work?

By: UNIKO Media Group

September 8, 2023

When starting a new business, it’s important to choose the right structure for your company. One popular option is a C Corporation. But what are they, exactly? Read on to learn more about C corporations, from a basic definition to their pros and cons.

Definition of a C Corporation

A C Corporation is a type of business structure in which the company is owned by shareholders who have limited liability for the company’s debts and obligations.

The corporation operates as a separate legal entity that can conduct business, own assets, and enter into contracts.

This means that the corporation can sue and be sued, enter into agreements, and pay taxes separately from its owners.

How a C Corporation Works

A C Corporation is managed by a board of directors who are elected by the shareholders.

The board of directors is responsible for making major business decisions, such as choosing the company’s officers, approving budgets, and setting corporate policies. The officers of the corporation, such as the CEO and CFO, are responsible for the day-to-day operations of the business.

C Corporations issue stock to shareholders, which represents their ownership in the business. Shareholders are not involved in the day-to-day operations of the business and do not have liability for the debts and obligations of the corporation.

Advantages of a C Corporation

One of the main advantages of a C Corporation is that it offers limited liability to its shareholders.

This means that the personal assets of the shareholders are protected from the corporation’s debts and obligations. Additionally, the corporation can raise capital by issuing stock to investors, which can help the business grow and expand.

Another advantage of a C Corporation is that it can deduct certain business expenses, such as salaries, benefits, and property taxes. This can help reduce the company’s tax liability and increase its profits.

Disadvantages of a C Corporation

One of the main disadvantages of a C Corporation is that it is subject to double taxation. This means that the corporation pays taxes on its profits, and then the shareholders pay taxes on any dividends they receive. This can result in a higher overall tax liability for the company and its shareholders.

Another disadvantage of a C Corporation is that it requires more formalities and paperwork than other business structures, such as a sole proprietorship or partnership. This can result in higher administrative costs and more time spent on compliance.

JT Tax Services: Taxes Made Easy

Tax Filing Tips for Small Businesses

By: UNIKO Media Group

March 27, 2023

For many small business owners, tax season may seem like a daunting task. The rules and regulations surrounding taxes can be overwhelming and intimidating. But with the right information and preparation, filing taxes doesn’t have to be a headache. Keep reading to learn some helpful tips for small business owners so you can file your taxes with confidence!

Start Early

When it comes to your taxes, it’s never too early to start preparing. By getting a head start on your taxes, you’ll have plenty of time to make sure you’re taking advantage of all available deductions and credits that could save you money. Plus, if there’s an issue or mistake on your return, you’ll have plenty of time to resolve it before the deadline.

Take Advantage of All Available Deductions

One of the most important things small business owners should do is take full advantage of all available deductions and credits. This means researching what types of expenses are deductible as well as which tax credits can help reduce your overall tax burden

There are also numerous tax credits available for businesses. Get in touch with a tax professional to discover how to best take advantage of all these opportunities.

Keep Accurate Records

Wait! Before you can take full advantage of the deductions available to you, it’s essential to keep accurate records throughout the year — not just during tax season!

This will ensure that you don’t miss out on any potential deductions when filing your return. Make sure you accurately track each expense throughout the year so that you don’t end up paying more than it’s necessary when filing your return.

Work With a Tax Pro

If you feel that taxes are just too tricky for you, consider hiring a professional accountant or tax preparer who can help make sense of all the paperwork and regulations associated with filing a business return correctly and on time each year – especially if you’re dealing with state-level taxation issues in addition to Federal ones!

A tax pro not only can help ensure that everything is filed correctly but they’ll also be able to provide helpful advice about how best to structure your finances going forward so that next year’s return isn’t nearly as painful!

JT Tax Services Is Here To Answer Your Tax Questions

Beware of Pandemic-Related Scams!

By: UNIKO Media Group

June 30, 2022

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

By: UNIKO Media Group

June 16, 2022

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.

Your Ultimate Guide to Tax Day 2022

By: UNIKO Media Group

April 7, 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.