Contact the following agencies to report a phishing or scam attempt:
1/ FTC - https://reportfraud.ftc.gov/#/?pid=A
3/ IRS - Report Phishing to email@example.com
Be selective about who you choose to file your taxes. Consider asking them the following questions:
1/ How will we exchange files and sensitive information?
2/ Who at your firm has access to my data?
3/ Are our communications end-to-end encrypted?
4/ What types of network security have you implemented?
5/ How do you back up client data?
We try to post weekly tax tips with significant Tax law changes. So our clients could keep up with their financial and tax planning through the year. This effort could help our clients save thousands of dollars per year.
*** Check your mail for IRS letter 6419 about the total amount CTC you received in 2021, and report it for your 2021 tax return.
Why is IRS sending money to my bank account?
What is the Child Tax Credit CTC?
How will it affect my 2021 tax return?
Will I have to pay it back?
2021 Child Tax Credit is part of the American Rescue Plan Act only affects the tax year 2021. Let compare Child Tax Credit 2021 vs. previous years.
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Starting a new business can be very exciting and can also be a little overwhelming. Understand and choose the best fitting business structure which could save you thousands of dollars right from the start. You always have an option to change your business structure later but it could cost you some transition fees.
* Sole Proprietorship: An unincorporated business owned by an individual. There’s no distinction between the taxpayer and their business.
* Partnership: An unincorporated business with ownership shared between two or more people.
* Corporation: Also known as a C corporation. It is a separate entity owned by shareholders.
* S Corporation: A corporation that elects to pass corporate income, losses, deductions, and credits through to the shareholders.
* Limited Liability Company: A business structure allowed by state statue NOT IRS. LLC can be filed under different entities with IRS.
Taxes are pay-as-you-go.
If you are Sole-Proprietor, Self-employed, or Single LLC, you should be aware of paying the Estimated Tax during earning year to avoid late payment penalties and interest.
Here are the four Estimated Tax Due Date payments:
Jan. 7 - IRS begins accepting all business tax returns.
Feb. 12 – IRS systems start opening to receive e-file returns, but taxpayers don't have to wait until then to file returns.
Feb. 15 – Any return is claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) can't get refunded until after this date.
Feb. 28 – Your refunds will start arriving in bank accounts or debit cards.
Apr. 18 – Last day to file 2021 tax returns and pay any tax due.
90% Refunds are issued within 21 days. Most of our clients receive their refund within eight days.
Business Due Date Jan. 31 with payment include:
4th Quarter Reports:
1 - To State: Unemployment Tax for employees W2.
2 - To State: Income Tax for employees W2.
3 - To IRS: Form 941 Employer's QUARTERLY Fed. Tax Return.
1 - W-2 forms must be filed with the IRS & the SSA.
2 - To IRS: Form 1099-NEC Non-Employee Compensation.
3 - To IRS: Form 944 Employer's ANNUAL Fed. Tax Return (if not file Form 941).
4 - To IRS: Form 940 FUTA Employer's Annual Federal Unemployment.
Business Tax Returns Due Date:
Mar. 15 - Partnerships (Form 1065) and S Corporations (Form 1120S)
Apr. 15 - C Corporations (Form 1120) and Sole Proprietor (Schedule C)
May 15 - Exempt organizations (Form 990)
*** If filing an extension, deadlines will be different dates. Contact a tax professional for more specific dates and file the extension.
1st, 2nd, 3rd Quarter Reports Due Dates: Apr. 30, Jul. 31, Oct. 31 with payment:
1 - To State: Unemployment Tax and Income Tax to State for employees.
2 - To IRS: Form 941 Employer's QUARTERLY Fed. Tax Return.
Texas State taxes:
1 - Sales and Use Tax Due Date on 20th of each month OR Apr. 20, Jul. 20, Oct. 20, Jan. 20 for quarterly reports.
2 - Annual Franchise Tax Reports due May 15.
Each year, some taxpayers are hurt financially because they choose the wrong tax return preparer. Basically, anyone can prepare your tax return. The IRS doesn't have specific requirements regarding who can file your tax return. However, be smart, the IRS has a system to verify and recommend excellent tax preparers. Choose the tax preparer who is able to e-file your tax return since these tax preparers have passed a Suitability Check by IRS. Confirm the tax preparer's credentials.
Jan. 24 - IRS systems start opening to receive e-file returns, but taxpayers don't have to wait until then to file returns.
Feb. 15 - Any return is claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) can't get refunded until after this date.
Feb. 28 - Your refunds will start arriving in bank accounts or debit cards.
Apr. 18 - Last day to file 2021 tax returns and pay any tax due.
* 90% Refunds are issued within 21 days. Most of our clients receive their refund within eight days.
Oct. 17 - Due date for taxpayers who request an extension to file, but this does not extend your payment.
Check out these fun and entertaining stories and videos about the Earned Income Tax Credit. Knowledge about Tax law for both taxpayers and tax preparers is always needed.
With school back in session, parents and students should remember that tax credits may be available that can help with the cost of higher education.
The two credits available are the American Opportunity Tax Credit and the Lifetime Learning Credit. A taxpayer or a dependent must have received a Form 1098-T from an eligible educational institution.
The American Opportunity Tax Credit is:
• Worth a maximum benefit up to $2,500 per eligible student.
• Only for the first four years at an eligible college or vocational school.
• For students pursuing a degree or other recognized education credential.
The Lifetime Learning Credit is:
• Worth a maximum benefit up to $2,000 per tax return, per year, no matter how many students qualify.
• Available for all years of post-secondary education and for courses to acquire or improve job skills.
• Available for an unlimited number of tax years.
Tiffany has prepared many Amended Tax Returns to save thousands of dollars for clients even if they used tax preparation software. Please read instructions and IRS publications for your special case if you use tax software. Keep related tax records and being organized could save you a lot of time and money.
Taxpayers who discover they made mistakes or omissions on their tax return can correct them by filing an amended tax return. Those who need to amend should remember these tips:
VITA is a FREE tax preparation service for individuals and families who earn up to $55,000 per year. All tax preparers are IRS-trained and certified.
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All information on this website is for general information only. There is no implied, legal, tax advice or financial guidance for any personal or business situation. Don't hesitate to get in touch with a Tax Professional and Insurance Agent for your specific situation.
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