Category Archives for "Featured"

COMMON FORMS TO LOOK FOR

 

  • W-2: This is the form you receive from a reg­u­lar employ­er. This form includes infor­ma­tion about your wages and oth­er earn­ings (includ­ing tips, if applic­a­ble). This form also includes infor­ma­tion about how much you have paid in fed­er­al and state tax­es over the course of the year, as well as your pay­roll tax­es.
  • 1099-KIf you earned income as a free­lancer work­ing in the on-demand econ­o­my like Uber or Lyft you may see this form. Form 1099-K reports income processed through third-par­ty net­works, such as Pay­Pal. A pay­ment proces­sor must report income to the IRS using Form 1099-K if your gross pay­ments:
    • Exceed $20,000, AND
    • Exceed 200 trans­ac­tions with­in the tax year
  • 1099-MISC: More and more peo­ple do con­tract work on the side, as free­lancers and con­sul­tants. If you have received earn­ings from such activ­i­ties you can expect to receive a 1099-MISC.
  • Oth­er 1099 forms: The 1099-MISC isn’t the only 1099 form you might receive. If you received inter­est from sav­ings or invest­ments, you will get a 1099-INT. You might also receive 1099-DIV report­ing div­i­dends and dis­tri­b­u­tions from invest­ments, or a 1099-C if you have can­celed debt.
  • 1098: This is the form asso­ci­at­ed with mort­gage inter­est you have paid dur­ing the year. If you item­ize your deduc­tions, this form can be extreme­ly help­ful in ensur­ing that you get the right amount list­ed.

TAX CREDIT

                        TAX CREDITS

TAX CREDIT TAX CREDIT IS A CREDIT GIVEN TO YOU THAT IS SUBTRACTED FROM THE AMOUNT OF TAXES YOU OWE TO THE FEDERAL AND STATE GOVERNMENT

   MOST CREDITS ARE A DOLLAR BY DOLLAR REDUCTION, MEANING IF YOU OWE THE IRS 1500 DOLLARS AND YOU GET A 1500 DOLLAR CREDIT IT WOULD LOWER THE AMOUNT / TAX LIABILITY TO ZERO.

CREDITS CAN BE REFUNDABLE OR NON-REFUNDABLE. THOSE ARE THE TWO TYPES OF CREDITS THERE ARE.

EX- CHILD TAX CREDIT IS A REFUNDABLE  CREDIT SO IF YOU OWE 1000 TO IRS AND GET A CHILD TAX CREDIT OF 1500 DOLLARS YOU WILL GET THE CREDIT OF 500 THE EXCEeD­ING AMOUNT OF TAXES YOU OWE.

WHEREAS NON-REFUNDABLE DOES NOT EXCEED THE AMOUNT YOU OWE. NON REFUNDABLE CREDIT ONLY LOWERS THE AMOUNT TO ZERO OR THE AMOUNT OF THE CREDIT

 

Tax Bill DO WHAT YOU CAN NOW

MOST OF THE TAX BILL CHANGES DON’T TAKE PLACE UNTIL 2018 HERE ARE A FEW THINGS YOU CAN DO because ordi­nary income tax rates should be low­er next year and many expens­es will either no longer be deductible or will be less valu­able in light of high­er stan­dard deduc­tions in 2018. So may want to try a few of these 

 

1. Delay year-end bonus­es or oth­er com­pen­sa­tion. Many employ­ees can­not con­trol the tim­ing of com­pen­sa­tion, but it nev­er hurts to ask. Where shift­ing income from 2017 to 2018 is pos­si­ble, low­er mar­gin­al tax rates should apply in 2018.
2. Max­i­mize retire­ment defer­rals. Be sure to ful­ly fund your 401(k) and/or IRA to fur­ther reduce gross income for 2017. We’ll dis­cuss dur­ing tax sea­son ful­ly fund­ing 2017 SEPs and oth­er retire­ment accounts that can be fund­ed up to April 15.
3. Busi­ness own­ers and con­sul­tants should delay billing. It isn’t prop­er to sim­ply delay deposit­ing checks received before year-end, but you gen­er­al­ly won’t be paid for amounts you haven’t billed. Shift that mid- to late-Decem­ber billing out until Jan­u­ary 1.
4. Pre­pay state income tax. This deduc­tion will be elim­i­nat­ed begin­ning in 2018, so pay the fourth quar­ter esti­mate that is dat­ed Jan­u­ary 2018 by Decem­ber 31, 2017. This strat­e­gy, how­ev­er, requires that you know your sta­tus regard­ing alter­na­tive min­i­mum tax (AMT). If you will be sub­ject to AMT in 2017, it is like­ly that pre­pay­ing your state tax­es will not reduce your 2017 tax­es. In that case, with no ben­e­fit in either year, it makes bet­ter finan­cial sense to make the pay­ment lat­er.
5. Pre­pay prop­er­ty tax­es. The deduc­tion for prop­er­ty tax­es is like­ly to be lim­it­ed to $10,000 begin­ning in 2018. To the extent that you already have an assess­ment that isn’t due until after the first of next year, pay it by Decem­ber 31. For tax­pay­ers with high prop­er­ty tax bills and oth­er large deduc­tions such as mort­gage inter­est and con­tri­bu­tions, accel­er­at­ing the 2018 prop­er­ty tax pay­ment into 2017 may save a deduc­tion due to dis­ap­pear next year. Mid-range tax­pay­ers may need a pro­jec­tion to see if this makes sense. And here again, the strat­e­gy won’t work for those in AMT in 2017.

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Identity Theft

study_cover.jpgIden­ti­ty theft is a bur­den and can be a very hard thing to deal with. Call­ing bank cards, social secu­ri­ty , Irs , check­ing cred­it it’s a lot. There are a few things you can do if you have become a vic­tim.. via www.irs.gov

If you are a vic­tim of iden­ti­ty theft, the Fed­er­al Trade Com­mis­sion rec­om­mends these steps:

File a com­plaint with the FTC at identitytheft.gov.
Con­tact one of the three major cred­it bureaus to place a ‘fraud alert’ on your cred­it records:
Equifax, www.Equifax.com, 800–525-6285
Exper­ian, www.Experian.com, 888–397-3742
Tran­sUnion, www.TransUnion.com, 800–680-7289
Con­tact your finan­cial insti­tu­tions, and close any finan­cial or cred­it accounts opened with­out your per­mis­sion or tam­pered with by iden­ti­ty thieves.

If your SSN is com­pro­mised and you know or sus­pect you are a vic­tim of tax-relat­ed iden­ti­ty theft, make sure you fol­low through with paper work you need to sub­mit. the IRS rec­om­mends these addi­tion­al steps:

Respond imme­di­ate­ly to any IRS notice; call the num­ber pro­vid­ed.
Com­plete IRS Form 14039, Iden­ti­ty Theft Affi­davit, if your efiled return rejects because of a dupli­cate fil­ing under your SSN or you are instruct­ed to do so. Use a fil­l­able form at IRS.gov, print, then attach the form to your return and mail accord­ing to instruc­tions.
If you pre­vi­ous­ly con­tact­ed the IRS and did not have a res­o­lu­tion, con­tact us for spe­cial­ized assis­tance at 1–800-908‑4490. We have teams avail­able to assist.

Hope that helps you out and sor­ry for the bur­den and long tedious process of it all. Good luck

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