Stay Safe And Save Money

Contact the following agencies to report a phishing or scam attempt:

1/ FTC - https://reportfraud.ftc.gov/#/?pid=A

2/ IRS - https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity

3/ IRS - Report Phishing to phishing@irs.gov

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.

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 2022 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:

• File using paper form. Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct the tax return. Taxpayers can’t file amended returns electronically. They can obtain the form on IRS.gov/forms. Mail the Form 1040X to the address listed in the form’s instructions. 
  
• Amend to correct errors. File an amended tax return to correct errors or make changes to an original tax return; for example, taxpayers should amend to change their filing status or to correct their income, deductions or credits.  
  
• Don’t amend for math errors, missing forms. Taxpayers generally don’t need to file an amended return to correct math errors on their original return. The IRS will automatically correct these items. In addition, taxpayers don’t need to file an amended return if they forgot to attach tax forms, such as a Form W-2 or a schedule. The IRS will mail a request to the taxpayer, if needed.  
  
• File within three-year time limit. Taxpayers usually have three years from the date they filed the original tax return to file Form 1040X to claim a refund. Taxpayers can file it within two years from the date they paid the tax, if that date is later.
  
• Use separate forms for each year. Taxpayers who are amending more than one tax return must file a Form 1040X for each tax year. They should mail each year’s Form 1040X in separate envelopes to avoid confusion. Taxpayers should check the box for the calendar year or enter the other calendar year or fiscal year they are amending. The form’s instructions have the mailing address for the amended return. 

• Attach other forms with changes. Taxpayers who use other IRS forms or schedules to make changes must attach them to the Form 1040X.  
  
• Wait to file for corrected refund for tax year 2017. Taxpayers who are due refunds from their original tax year 2017 return should wait to get it before filing Form 1040X to claim an additional refund. Amended returns may take up to 16 weeks to process.

• Pay additional tax. Taxpayers who will owe more tax should file Form 1040X and pay the tax as soon as possible to avoid penalties and interest. They should consider using IRS Direct Pay to pay any tax directly from a checking or savings account at no cost. 
  
• Track amended return. Generally, taxpayers can track the status of their amended tax return three weeks after they file, using ‘Where’s My Amended Return?’ It’s available in English, Spanish, Chinese, Korean, Vietnamese and Russian. The tool can track the status of an amended return for the current year and up to three previous years. Taxpayers who have filed amended returns for multiple years can check each year, one at a time.
• Click on button below for $69,000 income or less Free File Software options.

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.