Taxes in Oxnard Archives - Page 4 of 5

This Important Tax Deadline Is Less Than One Month Away

January 8, 2021

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:

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

The IRS Begins Delivering Second Round of Economic Impact Payments

By: UNIKO Media Group

December 30, 2020

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

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.

This Christmas, Beware of Hacking Attempts

By: UNIKO Media Group

December 24, 2020

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.

3 New Things to Consider When You File Your 2020 Tax Return

By: UNIKO Media Group

December 18, 2020

This year has been out of the ordinary from every point of view, including taxes. There are some new things you should consider when you file your 2020 tax return. Keep reading to learn more.

Recovery Rebate Credit

You may be able to claim this credit if you met the eligibility requirements for an Economic Impact Payment in 2020 and one of the following applies to you:

You didn’t receive an Economic Impact Payment in 2020.
You are single and your payment was less than $1,200.
You are married, filed jointly for 2018 or 2019 and your payment was less than $2,400.
You didn’t receive $500 for each qualifying child.

Refund Interest Payment

If you received a federal tax refund in 2020, keep in mind that interest payments are taxable and must be returned on your 2020 federal tax return. Next January, the IRS will send a form to any person who received interest payments of at least $10 during the last year.

New Charitable Deduction

If you don’t itemize your deductions, you can take this year a new charitable deduction of up to $300 for donations made during 2020 to qualifying institutions. If you are interested in this deduction, check out this previous post where we take a closer look at this interesting topic.

Finally, remember that you shouldn’t rely on receiving your refund by a certain date. This is particularly important if you are planning to make a big purchase or pay important bills. While the IRS processes tax returns as soon as possible, some returns require more time, so your refund may take longer than you expect.

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

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.

The Scam You Should be Aware of During This Holiday Season

Remember: Gift Cards are NOT to Be Used to Make Tax Payments

By: UNIKO Media Group

November 11, 2020

Gift cards are a convenient option people use every holiday season. It makes sense: these cards allow you to give a gift to someone you care about without running the risk of giving them something they don’t like. However, gift cards are NOT to be used to make tax payments. Read on to learn how to identify, avoid, and report this type of scam.

How the Scam Works

Scammers often impersonate the IRS or other reputable institution and try to get people to pay fake tax bills with prepaid gift cards. This may sound absurd on its face (and it is), but a lot of people fall for this scheme every year, so it’s better to be prepared.

Criminals prefer gift cards because they are difficult to trace or recover when the transaction has been completed. So once you have provided them with the information they need, it’s very difficult to get your money back.

Pay Attention to These Red Flags

These are some red flags that can help you identify scammers using this scheme:

The contact you unsolicited either by phone, email, text, or social media.
Scammers may tell you that you are somehow linked to illegal activity (for example, that your identity has been stolen and used for fraudulent purposes).
They use threats and/or harassment to get you to pay a fake tax penalty.
They instruct you to buy gift cards from different stores.
Once you buy the gift cards, they ask you to provide the gift card number and PIN.

How to Report a Gift Card Scam Attempt

If you believe you have been targeted by scammers, you can use the IRS Impersonation Scam Reporting website or call 800-366-4484.

In the case of phone scams, you can report them to the Federal Trade Commission, making sure to add “IRS phone scam” in the notes.

If you receive threatening or harassing phone calls, you can report them directly to the IRS to phishing@IRS.gov, including the phrase “IRS phone scam” in the subject line.

More Tips About Taxes

Learning more about the options available to you as a taxpayer is more important than ever. Check out these previous posts for more useful tax tips:

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. 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.

Need to Recover Tax Returns From Previous Years? Here’s What to Do

By: UNIKO Media Group

October 21, 2020

In theory, you are supposed to keep copies of your tax returns and all supporting documents for at least three years. If you lost your tax returns, or you couldn’t keep them for any other reason, don’t worry. These are your options if you need tax returns from previous years.

Ask Your Tax Preparer or Software Provider

If you work with a software provider or a tax preparer, the first step is asking them. They may be able to provide you with copies of past tax returns.

Request a Transcript

If you don’t work with a software provider or tax preparer, or if they don’t have copies of your returns, you can request a tax transcript from the Internal Revenue Service (IRS). This document is free but conceals some personal information to protect the identity of taxpayers. Other than that, all financial entries are fully visible. There are three ways to request a transcript:

Online: Use the tool Get Transcript to view, print, or download all types of transcripts. If you prefer so, you can also decide to get your transcript by traditional mail (in that case, consider that it may take five to 10 days for it to arrive).
By phone: Call the IRS at 800-908-9946.
By mail: Complete and send forms 4506-T (to request a transcript of your tax return) or 4506-T-EZ (to request other tax records such as W-2 information or 1099 information, among others).

Request a Copy of Your Tax Return

To get a copy of your tax return, complete Form 4506 and mail it to the IRS that appears on the form. Keep in mind that a fee of $50 for each copy applies and that it may take the IRS up to 75 days to process your request. Copies are available for the current tax year and up to six years prior.

More Tax Tips

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:

Get Advice From the Experts at JT Tax Services

Our experts at JT Tax Services stand ready to meet all your tax needs. We help you 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 (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

Phishing and Taxes: Everything You Need to Know

By: UNIKO Media Group

October 16, 2020

Fraudsters evolve with the times, so it’s no surprise that they are exploiting the internet to take advantage of unsuspecting victims. Phishing is one of the favorite tactics of cybercriminals, who often (and illegally) mention taxes or pose as tax institutions as part of the ruse.

Keep reading to learn more about phishing and to discover ways to protect yourself against this threat.

What Is Phishing?

Phishing is a type of scam where cybercriminals pose as trustworthy institutions (such as banks or the IRS itself) and send malicious emails or create fake websites with the intent of luring you into providing your personal information.

How to Protect Yourself Against Phishing

Phishing can be particularly insidious, but these simple steps go a long way toward avoiding falling prey to cybercriminals.

Be wary of unsolicited emails, social media messages, or text messages.
Don’t reply to suspect messages.
Bad grammar and poor spelling are some tell-tale signs of fraud.
Scare tactics and threats are red flags that should put you on alert.
If you receive a suspect email, don’t open any attachments and don’t click on any links.

Keep in mind that phishing may assume many forms. For example, you may encounter it as messages that pop up when you open a website. It may even occur as phone and VoIP calls, so make sure to keep your guard up at all times.

How to Report Phishing Attempts

We repeat this tip from the previous section because it’s extremely important: don’t reply to suspect emails.

If the email is tax-related, forward it to the IRS at (phishing@irs.gov) preferably with the full email headers.

If you experience a monetary loss due to an IRS-related phishing incident, you should report it to the Treasury Inspector General for Tax Administration (TIGA) and file a complaint with the Federal Trade Commission (FTC).

In the case of text messages, you can forward the text to the IRS at 202-552-1226 and, if possible, forward the originating number in a separate message.

Get Advice From the Experts at JT Tax Services

At JT Tax Services we have the experience, the knowledge, and the drive to meet all your tax needs. We help you 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 (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

Do You Know Your Correct Tax Filing Status?

By: UNIKO Media Group

October 8, 2020

Knowing your correct tax filing status is essential because it determines the amount of tax you should pay, the credits you can claim, and your standard deduction amount, among other things.

Generally speaking, your status depends on whether you are married or single on December 31. That fact determines your status for the whole year.

In some cases, more than one filing status may apply (for example, married filing separately or jointly). In those cases, you can choose the status that allows you to pay the least amount of tax.

What Are the 5 Filing Statuses?

Single: this is normally the correct status if you are unmarried, divorced, or legally separated under a divorce or separate maintenance decree governed by state law.
Married filing jointly: if you are married, you can file together with your spouse. When a spouse passes away, the other person can normally file a joint return for that year.
Married filing separately: married couples may opt for filing separately. This option may result in a lower tax bill compared to filing jointly.
Head of household: if you are unmarried you may also qualify for this status, although special rules apply. One of the most basic is that you must have paid more than half the cost of keeping up a home for themselves and a qualifying person living in the home for half the year.
Qualifying widow(er) with dependent child: this status applies to taxpayers whose spouse died during one of the previous two years and they have a dependent child. There are other conditions that may apply as well.

If you have trouble figuring out our filing status, you can use the online assistant What Is My Filing Status? Answer some easy questions and you’ll get your correct filing status at the end.

More Tips About Taxes

Contact the Experts at JT Tax Services

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.

Don’t Forget This Essential Step if You Are Starting a New Business

By: UNIKO Media Group

September 24, 2020

Starting a new business is a process that involves many steps, and one of the most important is getting an Employer Identification Number, or EIN.

Read on to learn more about this important step and to discover how to apply for an EIN.

What Is An Employer Identification Number?

An Employer Identification Number (EIN), also known as Federal Tax Identification Number, is used to identify employers for tax purposes, and most businesses need one. EINs have nine digits and are assigned by the Internal Revenue Service. If you already have an EIN and the organization or ownership of your business changes, then you may need a new number.

How to Know if I Need an EIN?

Finding out whether you need an EIN is a very simple process. Ask yourself the following six questions. If you answer “Yes” to any of them, then you need an EIN.

Does your company has employees?
Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
Does your business operate as a corporation or partnership?
Do you withhold taxes on income, other than wages, paid to a non-resident alien?
Do you have a Keogh plan?
Are you involved with any of the following types of organizations?

Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
Estates
Real estate mortgage investment conduits
Non-profit organizations
Farmers’ cooperatives
Plan administrators

How to Apply for an EIN?

You can apply for an EIN in a variety of ways, including by fax, mail, telephone (for international applicants), and online. The IRS offers this service for free and issues only one EIN per responsible party per day.

Keep This in Mind About EINs

Above all, an important fact to keep in mind about EINs is that you must make sure to keep your business mailing address, location, and responsible party up to date. EIN holders must report changes in the responsible party within 60 days. Therefore you must be diligent when any of these modifications take place.

Contact the Experts at JT Tax Services

If you are starting a new business and need help choosing the right structure, contact the experts at JT Tax Services today. 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.

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

By: UNIKO Media Group

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.