Taxes in California Archives - Page 2 of 4

Your Ultimate Guide to Tax Day 2022

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.

Filing Your Taxes When You Have Missing or Incorrect Documents

By: UNIKO Media Group

March 23, 2022

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.

What You Need to Know About Education Tax Credits

By: UNIKO Media Group

January 19, 2022

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.

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

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 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.

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.

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

By: UNIKO Media Group

June 17, 2021

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

3 Basic Mistakes to Avoid When Filing Your Taxes

By: UNIKO Media Group

May 11, 2021

As the deadline to file your taxes approaches, it’s important to make sure to file a tax return free of errors. That’s why today we take a closer look at three basic mistakes to avoid when filing your taxes.

1. Sign and Date Your Tax Return

In taxes, as in many other things, getting the basics rights makes everything easier. Be sure to sign and date your tax return before filing it, and don’t forget that if you file your taxes jointly, both spouses must sign and date their tax return.

2. Double-Check Names and Social Security Numbers

Again, basic details are crucial. Remember that all Social Security Numbers (SSN) and names on your return must appear just as they are printed on the Social Security card. Your return must include the name and Social Security number of any person you claim as a depending. If a person you claim on your return is not eligible for a Social Security Number, then include the ITIN (Individual Taxpayer Identification Number).

3. Choose the Right Filing Status

Even though everyone knows the importance of accuracy in names and Social Security Numbers, fiiling statuses are les known but equally relevant. Your filing status is a category that determines how much you pay in taxes and your eligibility for certain tax credtis. Below is a list with the five filing statuses.

Single
Married filing jointly
Married filing separately
Head of household
Qualifying widow(er) with dependent child

As you select your filing status, keep in mind that your marital status on December 31 determines your filing status for the rest of the year.

As you can see, the five filing statuses are quite straightforward. However, don’t hesitate to seek the assistance of a tax professional should you have any questions about this or any other tax topic

Contact the Experts at JT Tax Services

Do you need help filing your 2020 tax return? Do you want to learn more about Economic Impact Payments? At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

Can’t File Your Taxes by May 17? You Can Request an Extension to File

By: UNIKO Media Group

May 5, 2021

The deadline to file your tax return is approaching. If you can’t file your tax return by May 17, don’t worry—you can request an extension file that will give you more time to prepare your return. Here’s everything you need to know about this useful alternative.

What Is an Extension to File?

An extension to file allows you to file your tax return after the official deadline. In this case, an extension would give you until October 15, 2021, to file your taxes.

To request an extension to file, you must do one of two things:

File form 4868 (you can request assistance from a tax professional if you are not sure how to do it)
Send an electronic payment via Direct Pay, debit card, or credit card indicating Form 4868 or extension as the payment type. Also in this case, a tax professional can offer expert assistance if you need help.

Rmember: an Extension to File Is Not an Extension to Pay

If you want to request an extension to file, the key is to remember that an extension to file is not an extension to pay.

This means that even with an extension to file, you should pay your taxes by may 17 in order to avoid penalties and interests.

It’s worth keeping in mind that some people get more time to file and pay their taxes. This includes victims of distasters, as well as members of the military, and eligible support personnel serving in combat zones.