Posts Tagged :

Taxes in Oxnard

christmas is the season of giving

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

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

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.

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

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

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

How to Update Your Information

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

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

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

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

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

About the Child Tax Credit Payments

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

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

The full amount of the payments is for families that:

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

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

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

Contact the Experts at JT Tax Services

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.

Photo of shocked man in front of computer illustrates blog "3 Scary Tax Situations to Avoid This Halloween"

3 Scary Tax Situations to Avoid This Halloween

Taxes are a complex topic that can be scary to some people. That’s why today we give you some tips to deal with three scary tax situations to avoid this Halloween. 

What to Do If You Get a Letter From the IRS

If you get a letter from the IRS, the first thing to do is not to panic. Read the letter carefully because it contains instructions about the next steps you should take.  

In many cases, the purpose of these letters is to inform you about a correction to your tax return. If you agree with the correction, don’t forget to make a note on your return. If you don’t agree with the change, you have to send a letter contesting the correction.  

Whatever the case, don’t worry: our experts are here to help you make sense of any letter or notice you receive. 

How to Handle Tax Debts

Tax debts are definitely stressful—more stressful than any haunted house or creepy urban legend. If you owe taxes and have been putting off addressing your situation, this is a good time to roll up your sleeves and get down to work. 

Again, the key is not to panic. Remember that in most cases, there are options to resolve your debt, and you may even reach a compromise that allows you to settle yur debt with the IRS paying a lower amount than what you owe.  

When it comes to tax debt, every case is unique. Get in touch with our team to talk about your situation and find a solution that meets your needs.  

How to Avoid Tax Scams

Scammers can be more annoying than any imaginary monster. Luckily, avoiding tax scams is easy by taking some basic precautions. We recommend to keep the following in mind:

  • The IRS will NEVER contact you using social media or text messages.
  • The IRS will NEVER ask you to settle a tax debt using gift cards. 
  • IRS agents will NEVER threaten you with jail or deportation to force you to settle a tax bill. 
  • NEVER send personal information such as Social Security Number or credit card numbers by email or social media. 
  • If you receive a suspicious email, DON’T click on any links, DON’T download any attachments, and DON’T respond to the message.  

Contact the Experts at JT Tax Services

Do you need help 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.

Photo of different types of workers illustrates blog: "Are You a Business Owner? Don’t Forget to Correctly Classify Your Workers"

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

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.

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 FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

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

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

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.

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 FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

3 Basic Mistakes to Avoid When Filing Your Taxes

3 Basic Mistakes to Avoid When Filing Your Taxes

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.

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 FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

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

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

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.  

Need Help With Your Taxes? 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.

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 FacebookTwitter, and LinkedIn to schedule a consultation or to learn more about our services.

Remember: Tax Season Is Almost Here!

Remember: Tax Season Is Almost Here!

Tax season begins Friday, February 12! This means that starting from that date, the IRS will accept and process 2020 tax returns. Here are some tips you should keep in mind to ensure that your tax filing experience is smooth, agile, and stress-free.

General Tips

The IRS recommends that all taxpayers consider these tips as they prepare their tax return:

  • Combining electronic filing with direct deposit ensures that you get your refund as soon as possible.
  • Don’t count on receiving your refund by a specific date, especially if you plan to use that money to pay bills.
  • Remember that unemployment compensation is taxable

The Documents You Should Gather

This is the right time to get your tax records in order, so make sure to have all the documents that apply among the following:

  • Any receipts, canceled checks, and other documents that support an item on your return.
  • Forms W-2, Wage and Tax Statement
  • Form 1099-MISC, Miscellaneous Income
  • Form 1099-INT, Interest Income
  • Form 1099-NEC, Nonemployee Compensation
  • Form 1099-G, Certain Government Payments; like unemployment compensation or state tax refund
  • Form 1095-A, Health Insurance Marketplace Statements

Other Important Tax Dates to Keep in Mind

In addition to February 12, other important dates that taxpayers should keep in mind during 2021 include:

  • Thursday, April 15. Due date for filing 2020 tax returns or requesting extension of time to file.
  • Thursday, April 15. Due date for paying 2020 tax owed to avoid owing interest and penalties.
  • Friday, October 15. Due date to file for those requesting an extension on their 2020 tax returns.

More Tips About Taxes

Interested in learning more about taxes? Then you’ve come to the right place! Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

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, or through our social media accounts on FacebookTwitter, 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 FacebookTwitter, and LinkedIn to learn more about our services.

We will be closed Saturday, Sunday and Monday (July 2nd - 4th)
Close