Taxes in California Archives - Page 4 of 4

Does Your ITIN Expire This Year? Renew It to Avoid Refund Delays

September 5, 2020

If your ITIN expires this year, or if it already expired, you should renew it as soon as possible to avoid unnecessary refund delays when you file your tax return next year.

Read on to discover what ITIN stands for, what ITINs expire this year, and how to renew this important identification number.

What Is an ITIN?

It’s worth remembering that ITIN stands for Individual Taxpayer Identification Number. This is a 9-digit number that the Internal Revenue Service (IRS) assigns to those taxpayers who don’t qualify for a Social Security Number (SSN) but need an identification number for tax purposes.

What ITINs Expire in 2020?

The following ITINs expire on December 31, 2020. They must be renewed to avoid delays in your tax refund next year:

ITINs with middle digits 88
Those with middle digits 90, 91, 92, 94, 95, 96, 97, 98 or 99, if assigned before 2013 and if not already renewed

How to Renew an ITIN

To renew your ITIN, fill out Form W-7 and submit all required documentation. When you submit the form you are not required to attach a tax return, but you must indicate the reason why you need an ITIN.

Later this summer the IRS will send notices to people whose ITIN expires this year. The notices include instructions about how to renew the ITIN. If your ITIN expired already and you expect to file a tax return in 2021, you can renew your ITIN any time.

If you receive a renewal letter, you have the option of renewing ITINs for your entire family at the same time. This includes the tax filer, spouse, and any dependents claimed on the tax return.

Avoid These Common Mistakes When Renewing Your ITIN

These are some common mistakes people make when they renew their ITIN. Avoid them to ensure that the process is as agile and fast as possible.

Mailing identification documentation without a Form W-7
Missing information on the Form W-7
Insufficient supporting documentation, such as proof of U.S. residency or documents that support name changes.

Contact the Experts at JT Tax Services

Looking for expert, dependable advice on taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax 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.

Avoid Surprises: Remember That Unemployment Compensation is Taxable

By: UNIKO Media Group

August 26, 2020

Over the last several months many Americans received unemployment compensation for the first time as part of the stimulus package the Federal Government has deployed to offset the effects of the COVID-19 pandemic.

That’s why today we’d like to remind you that unemployment compensation is taxable. Therefore, it’s advisable to retain those taxes now to avoid owing them when you file your return next year.

The taxable benefits include all those special unemployment compensations authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

These are some of the payments for which you should check your withholding:

Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund
Railroad unemployment compensation benefits
Disability benefits paid as a substitute for unemployment compensation
Trade readjustment allowances under the Trade Act of 1974
Unemployment assistance under the Disaster Relief and Emergency Assistance Act of 1974, and
Unemployment assistance under the Airline Deregulation Act of 1978 Program

About Withholding

Withholding is voluntary. The law allows you to retain a flat 10% to cover all or part of your tax liability.

If you decide to proceed with the withholding, then fill the Form W4V-Voluntary Withholding Request and remember that you are not supposed to send the form to the IRS, but to the agency that pays the benefits. If that agency has its own form, then use that form instead.

Taxpayers who decide not to withhold, or if their withholding is not enough, they can make a quarterly payment of estimated taxes. In that case, there are some dates to keep in mind. The deadline for the first two quarters of 2020 expired on July 15, 2020. The deadlines for the third and for quarters are September 15, 2020, and January 15, 2020, respectively.

Contact the Experts at JT Tax Services

At JT Tax Services we have the experience, the knowledge, and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

The COVID-19 outbreak has had a tangible impact on taxes. There are many credits and benefits available but also some new obligations you should be aware of. Our experts can help you navigate these new circumstances with confidence.

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

Don’t Fall for These Tax-Related Scams!

By: UNIKO Media Group

August 20, 2020

We are living months of uncertainty and stress, but that doesn’t deter fraudsters. On the contrary: they try to take advantage of unsuspecting victims using tax-related scams.

Don’t fall for these schemes. Read on to discover how you can protect yourself against these threats.

Phishing, One of the Most Common Tax-Related Scams

Be on the lookout for fake emails or websites that request personal information. Remember this simple rule: the IRS will never initiate contact by email about a tax bill, refund, or Economic Impact Payment. Another simple measure you can take to avoid fraudsters is to never click on links that supposedly come from IRS.

Fake Charities

This is an evergreen fraud scheme that has been adapted to different situations, and the ongoing pandemic is no exception. Don’t let criminals take advantage of your desire to help others. Any unsolicited contact by phone, email, text, social media, or in person should arouse your suspicions.

Phone Calls Impersonating the IRS

Threatening calls impersonating the IRS are another common tactic of criminals. The IRS will never call you threatening with jail or deportation if you don’t settle your tax bill. These supposed charges are fake, and these calls have no connection with the IRS.

Social Media Scams

Social media is one of the main vehicles of disinformation, and scammers take advantage of this fact to lure others into sharing their personal details. Don’t fall for their malicious attempts and keep in mind that criminals may try to send you malicious messages or emails impersonating people you know.

Senior citizens are using social media at an increasing rate and may be particularly vulnerable to fraudsters. If you are a senior citizen yourself, or if you know any senior citizens, on the lookout for suspect messages—they may be an attempt to steal personal information.

Learn More About Taxes

Learning more about taxes is well worth the effort: It can save you time, money, and frustration! Check out these previous posts to learn more about deductions, deadlines, tax credits, and everything in between:

Contact the Experts at JT Tax Services

At JT Tax Services we have the experience, the knowledge and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

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

3 Tools You Need After Filing Your Taxes

By: UNIKO Media Group

July 23, 2020

The deadline to file and pay your taxes was July 15. If you filed on time, well done! You’ve taken care of what’s arguably the hardest part. However, there is still some work to do. Read on to discover three tools you may find useful after filing your taxes.

Check the Status of Your Refund After Filing Your Taxes

Checking on your refund is easy with the online resources provided by the IRS. The online tool Where’s My Refund is available both on the IRS website and in the mobile app IRS2GO. The information on the website and the app is updated once a day, usually overnight, so there’s no need to check more often than that. To get the status of your refund, you’ll need the following:

The first Social Security Number on your tax return.
Tax filing status (single, married, head of household).
Expected refund amount.

If you don’t have access to a computer or a mobile phone, you can contact the IRS by phone at 800-829-1954.

How to Do a Paycheck Checkup

Doing a paycheck checkup will help you ensure that your employer is withholding the right amount of taxes from your paycheck. This precaution is a smart way to avoid unexpected year-end tax bills or a penalty. To do your paycheck checkup, use the Tax Withholding Estimator provided by the IRS itself.

How to Determine if You Need to Amend a Tax Return

If after filing your taxes you realize that there’s a mistake or information you forgot to include, you can use the interactive assistant Should I File an Amendment Return? to determine whether you should correct and error or make other changes to the tax return you already filed.

As a rule of thumb, the errors that you have to correct are those related to filing status, income, deductions, and credits. Usually, you don’t need to file an amendment return for math errors or if you forgot to attach a form or schedule. In those cases, the IRS will either correct the math error and notify you by mail or request any missing schedule or form, also by mail.

More Tax Resources

Do you want to get more useful information to file your taxes? We’ve got you covered! These are some previous posts you may find useful:

And if you still haven’t filed your taxes, don’t worry! You still have alternatives. Contact our experts at JT Tax Services; they will help you determine what’s the best course of action.

Get Help From the Experts at JT Tax Services

The world of taxes is besieged by myths and other outdated or otherwise unreliable advice. That’s why is important to get help from a tax expert who can guide you with professionalism providing trustworthy information.

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

4 Common Myths About Tax Refunds, Debunked

By: UNIKO Media Group

July 16, 2020

Yesterday, July 15, was the final day to file and pay your taxes. This means that there is a lot of people already eager to know when they’ll get their tax refund. If that’s your situation, keep reading to learn more about five tax refunds myths you should be aware of.

1. Getting a Refund Means You Don’t Need to Adjust Your Withholding for 2020

False. Getting a refund doesn’t mean that your withholdings are 100 percent correct. In fact, you should make adjustments to ensure that neither too much nor too little tax is being withheld from your paycheck. Increased accuracy is always desirable. Use the Tax Withholding Estimator provided by the IRS to determine the right amount.

2. Calling the IRS is the Best Way to Find Out When a Refund Will be Issued

Actually, the best way to check the status of your refund is using the online tool Where’s My Refund, either on the IRS website or on the mobile app IRS2GO. IRS assistors don’t have any special information, neither can they speed up the delivery of your refund. Don’t call the IRS unless the online tool specifically directs you to do so.

3. Ordering a Tax Transcript is a Good Way to Get a Refund Date

Plain and simple, a tax transcript has no impact whatsoever on your refund, nor can it accelerate its delivery.

4. Where’s My Refund Is Wrong Because There’s no Deposit Date Yet/ the Amount Is Smaller Than Expected

There are several reasons why Where’s My Refund doesn’t display a deposit date. Some returns take more time to process for a variety of reasons:

The return includes errors
Incomplete information
Identity theft or fraud
Includes a Form 8379, Injured Spouse Allocation, which could take up to 14 weeks to process

If the amount you get on Where’s My Refund is less than expected, these are some of the possible reasons:

Taxpayer math errors or calculation mistakes
Owing federal or state taxes, child support, student loans or other federal non-tax obligations
A portion of the refund is held while IRS reviews an item claimed on the return

Get Help From the Experts at JT Tax Services

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

The Deadline to File and Pay your Taxes is July 15: Everything You Need to Know

By: UNIKO Media Group

July 1, 2020

July is here already, and that means that July 15, the deadline to file and pay your taxes, is approaching as well.

As you may remember, the original deadline was April 15, but it was extended to July 15 to help those affected by the outbreak of COVID-19. The Internal Revenue Service (IRS) has announced that the date won’t be moved again, so it’s important to take steps to file and pay your taxes if you haven’t done so yet.

Extensions to File

People who can’t file their taxes by July 15 can ask for an extension that allows them to file by October 15. It’s important to remember that an extension to file is not an extension to pay. That means that you still have to pay your taxes totally or partially before July 15. There are two ways to request an extension.

Filing form 4868, Automatic Extension of Time to File U.S. Individual Income Tax Return.
Paying all or part of their tax due indicating that the payment is for an extension.

In both cases, don’t hesitate to seek the assistance of a tax professional if you need help completing any of the steps involved.

The Options for People who Can’t Pay Their Taxes by July 15

On the other hand, people who can’t pay their taxes by July 15 also have several options available to them. These alternatives include:

Online payment agreement: They are available for individuals who owe $50,000 or less (including taxes and penalties).
Installment agreement: People who do not qualify for an online payment agreement, or decide not to use it, can take advantage of this option.
Temporarily delaying collection: If the IRS determines that a person can’t pay, they can decide to temporarily delay the collection process. However, keep in mind that penalties and interests continue to accrue until the full amount due is paid.
Offer in compromise: In some cases, the IRS may reach an agreement to allow a person settle their tax bill for less than the amount they owe. To know if you are eligible for an offer in compromise, use the official IRS tool Offer in Compromise Pre-Qualifier.

State Taxes

It’s important to keep in mind that the July 15 deadline refers to federal taxes. The dates for state taxes may differ, so be sure to get accurate information about your specific location. Here you can find links to the websites of the tax agencies of every state.

Get Help From the Tax Experts at JT Tax Services

Now that you have all the relevant information, you are ready to make better decisions before filing and paying your taxes. Our knowledgeable experts at JT Tax Services will help you so you can take advantage of all the relief initiatives you are eligible for.

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

Some people will receive their Economic Impact Payments by debit card.

The IRS Will Deliver Some Economic Impact Payments by Debit Card

By: UNIKO Media Group

June 3, 2020

The Internal Revenue Service will deliver the Economic Impact Payments of nearly four million people by by prepaid debit card instead of paper check.

According to the official website for the cards, this method will be used to deliver the payments of taxpayers whose bank details the IRS doesn’t have.

This Is What Your Debit Card Will Allow You to Do

If you receive your Economic Impact Payment by prepaid card, you will get some benefits that include:

Making purchases online or at any retail location where Visa payments are accepted
Getting cash from in-network ATMs
Transferring funds to your personal bank account.
Checking you balance card by mobile app or by phone.
Enjoying the same consumer protections available to traditional bank account owners, such as protection against fraud and loss.

The prepaid cards arrive in a plain envelope from Money Network Card Holder Services. The Visa name appears on the front of the card, while the back of the card has the name of the Issuing bank, MetaBank®, N.A. Information included with the card specifies that the card is an Economic Impact Payment.

Users who receive their Economic Impact Payments by prepaid card will have to activate their cards calling the number 1.800.240.8100 and validating their identity providing at least their name, address and social security number.

As of this moment you cannot request the IRS to send Economic Impact Payment as a debit card. For more information about the Economic Impact Payment prepaid cards, visit www.eipcard.com.

Get Advice From the Experts

As you can see, the IRS’ response to COVID-19 changes constantly, so it’s important to stay updated. You can check the IRS website or this blog. It’s also a good idea to get advice from a reliable, experienced source.

Our knowledgeable tax experts at JT Tax Services will help you so you can take advantage of all the government relief initiatives you are eligible for.

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