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Tax Services in Oxnard California

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.

When Is Tax Day 2022?

When Is Tax Day in 2022?

New Year’s is almost here! But before you turn the page on 2021, make sure to mark this important tax date on your calendar for 2022.

When Is Tax Day in 2022?

Tax Day is the deadline to submit your federal tax return. This day is usually April 15 or the Monday after if the 15 falls on Saturday, Sunday, or a Festivity. 

The Federal Tax Day next year will be April 18, 2022, because April 15 is Emancipation Day, a regional government holiday observed in Washington D.C.

In 2020 and 2021, Tax Day was moved due to the COVID-19 pandemic. The IRS deemed it necessary to give taxpayers more time to file their taxes given the disruptions caused by the COVID-19 pandemic. 

However, there are no official plans to push Tax Day to a different date in 2022, so it’s a good idea to begin gathering any supporting documents you may need and contact a tax expert if you have any questions. 

When Is the First Day to File Your Taxes?

Each year, during the first days of January, the IRS issues a statement announcing the first day to file taxes. Stay tuned to learn when you can begin filing, as well as other useful tips from our experts. 

Once you are ready to file, you can do it either by mail or using electronic filing (or e-file). E-file is usually the most convenient option, as it helps you get your tax refund faster. 

Finally, keep in mind that this information (including the April 18 deadline) applies only to federal taxes — the dates and processes for state taxes may be different. Contact your local tax agency or a tax expert you trust to ensure you file and pay all your taxes on time. 

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.

What You Need to Keep in Mind About Amended Tax Returns

What You Need to Keep in Mind About Amended Tax Returns

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

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.

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

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.

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

A Simple Tip to Make Tax Filing a Lot Easier

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

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.

Did You Receive Unemployment Compensation in 2020? You May Qualify for a Tax Refund

Did You Receive Unemployment Compensation in 2020? You May Qualify for a Tax Refund

If you received unemployment compensation in 2020 then you may qualify for a tax refund.

The IRS is reviewing the tax returns filed before the American Rescue Plan became law in March of this year to determine the taxable amount of unemployment compensation.

The American Rescue Plan excluded up to $10,200 in unemployment compensation per tax payer from taxable income paid in 2020. Please note that this is only the limit of taxable unemployment compensation, not the refund you would receive.

This adjustment is important, because a record number of Americans applied for unemployment benefits in 2020 due to the coronavirus pandemic.

Depending on their individual situation, some taxpayers will receive refunds, while others will have the exceeding amount applied to taxes due or other debt. For some taxpayers there will be no change.

Other Adjustments

Taxpayers may also have their return corrected for other credits that were also affected by the American Rescue Plan: the earned income tax credit, the premium tax credit, and the recovery rebate credit.

You don’t have to take any action to benefit from these adjustments. The IRS will review your return to calculate the correct taxable amount.

If the IRS adjusts your tax return, you will receive a letter from them within about 30 days. The letter will detail what adjustments were made to your return as well as the amount of the adjustment.

And by the way, here’s an extra tip to keep in mind: don’t forget to keep for your records any letter from the IRS.

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.

How to Make Tax Filing Easier This 2021

How to Make Tax Filing Easier This 2021

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

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

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

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

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

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

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

More Tips About Taxes

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

Contact the Experts at JT Tax Services

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

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

Photo of businessman illustrates blog:This Important Tax Deadline Is Less Than One Month Away

This Important Tax Deadline Is Less Than One Month Away

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:

  1. You made the payment to a person who is not your employee
  2. The payment was for services in the course of your trade or business
  3. You made the payment to an individual, a partnership, an estate, or a corporation
  4. 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

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

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

Image of check illustrates blog: The IRS Begins Delivering Second Round of Economic Impact Payments

The IRS Begins Delivering Second Round of Economic Impact Payments

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

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

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

Photo of person using laptop illustrates blog: This Christmas, Beware of Hacking Attempts

This Christmas, Beware of Hacking Attempts

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.

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