A question we often get from clients is what receipts should they be saving throughout the year, so they can write off those expenses off on their taxes. There are lots of ways to try and reduce the amount of tax due on your return at the end of the year, one of them being through deducting expenses you have throughout the year. It’s important to remember that not all of your expenses are deductible on your tax return. Knowing which receipts to save and which to throw away can help you maximize your tax refund or lower your tax liability and minimize the amount of paper you must keep for your tax return each year. A good first place to start looking is at bills you’ve already paid and purchases you have already made this year.
If you’re like most taxpayers, chances are you haven’t read The Tax Cuts and Jobs Act, which is understandable as the tax reform legislation is over 500 pages long and can be confusing and hard to understand for the average taxpayer. The good news is we’ve read through the new tax law and we can help you understand some of the major changes that will affect you and your business! Here is part two of our series of going through the different tax law changes and letting you know what the changes are and how they will affect you! You can also catch part one of the tax law changes here!
So you filed your tax return and you later realize that you made a mistake!! If you made a mistake on your tax return after you filed it, the IRS will allow you to prepare and file an amended return to fix the errors in the originally filed return. A lot of taxpayers tend to choose the wrong filing status or notice mathematical errors on their returns. It’s important that if you do realize you made a mistake on your federal tax return, that you file an amended return as soon as possible.
If you’re like most taxpayers, chances are you haven’t read The Tax Cuts and Jobs Act, which is understandable as the tax reform legislation is over 500 pages long and can be confusing and hard to understand for the average taxpayer. The good news is we’ve read through the new tax law and we can help you understand some of the major changes that will affect you and your business! Here is part one of our series of going through the different tax law changes and letting you know what the changes are and how they will affect you!
n important tax deadline is coming up and missing it could cause you to collect some IRS penalties. 3rd quarter estimated tax payments (ETP) are due Monday, September 17th. Estimated tax payments are a method of paying the tax on income that is not subject to withholding tax. This can include income from self-employment, business earnings, interest, rent, or other sources. The IRS requires these payments to be made quarterly. If you underpay your estimated tax payments, you will end up having to write a bigger check to the IRS when you file your tax return. If you overpay, you will receive the excess amount as a tax refund once you file. If this is your first time making an estimated tax payment or you aren’t sure if this applies to you, the process is simple.
It doesn’t matter how much money you have, how famous you are or if you are talented, if you owe money to the IRS, they will contact you and will take action to get their money back. It’s easy for people with any level of income to get into to tax trouble. Here are just a few celebrities who had a run in with Uncle Sam.
Taxpayer’s don’t forget!! The tax reform legislation enacted in December 2017 gives you more time to challenge an IRS levy! The legislation extended the time limit from nine months to two years for taxpayers to take action against a wrongful IRS levy. This will help taxpayers who are wanting to file an administrative claim or bring civil action for wrongful levy or seizure. This change only applies to levies made after December 22,2017.
While a lot of people know about the resources out there for you when you lose your job, many people don’t know that unemployment compensation can cause a tax problem. The IRS views unemployment compensation as taxable income, meaning you must put that compensation as income on your federal tax return. If you receive unemployment benefits this year, you will receive a Form 10-99-G “Certain Government Payments”. This form will list the total amount of compensation you have received for the year. Beware, some states do count unemployment benefits as taxable income as well.
The IRS is responding to the tri-state area trying to work around the new federal caps on deductions for state and local taxes. New York, New Jersey and Connecticut approved charitable workarounds following the $10,000 cap on state and local tax deductions. The IRS is saying those workarounds are not acceptable to the federal government.
It’s never too early to make sure you’re taking advantage of every tax credit possible. With so many different credits and deductions, the easiest ones can slip right through your fingers. Here are a few easy ways you can boost your tax refund in time for tax season!