When you sign your tax return, you’re declaring that under penalty of perjury that you have examined it and you believe that it is true. So – should you look at your tax return before you sign it? Yes, yes you should! #TaxTwitter https://t.co/UvlvNSeN3g
Category: TAXES – INDIVIDUAL & SCH C
From Individual tax returns to Schedule C & Profit/Loss Statements
ONLINE SERVICES OFFERED BY THE IRS
Taxpayers can visit IRS.gov from the safety of their home for answers to tax questions
As people get ready to file their 2020 tax return, the IRS reminds taxpayers they can find answers to their tax questions from the safety of their home using IRS online tools and resources. These IRS.gov tools are easy to use and available 24 hours a day.
- IRS Free File. Almost everyone can file their tax return electronically for free. The software does all the work of finding deductions, credits and exemptions. It’s free for those who earned $72,000 or less in 2020. Some of the Free File packages also offer free state tax return preparation. Taxpayers who are comfortable filling out tax forms electronically can use Free File Fillable Forms, regardless of income, to file their tax returns either by mail or online.
- Choosing a preparer. The IRS has several options for finding a tax preparer. One resource is Choosing a Tax Professional, which offers a wealth of information for selecting a tax professional. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help taxpayers find preparers in their area who currently hold professional credentials recognized by the IRS or who have an Annual Filing Season Program Record of Completion.
- Interactive tax assistant. This tool has recently been updated with answers to even more tax questions. It can also help a taxpayer determine if a type of income is taxable. Many people experienced changes to income and other life events in 2020. This tool can help them find tax credits and deductions.
Taxpayers may qualify for the child tax credit and child and dependent care credit. Those who are not eligible for the child tax credit might be able to claim the credit for other dependents. Individuals paying higher education costs for themselves, a spouse or a dependent, may be eligible to save some money with education tax credits or deductions. Additionally, low- to moderate-income taxpayers may qualify for the earned income tax credit.
- Where’s My Refund? Taxpayers who have filed a return and are waiting for their refund can use Where’s My Refund? to check the status of a refund payment. This tool is available at IRS.gov or through the IRS2Go app. Updates are available within 24 hours after the IRS receives an e-filed return or four weeks after the agency receives a mailed paper return.
Taxpayers should file electronically and choose direct deposit for the most accurate and fastest way to get their refund. People who don’t have a bank account can visit the FDIC website for information and help opening an account online.
- View federal tax account information online. Individuals can visit IRS.gov to set up their account. If they already have a username and password, they can log in to view their federal tax account balance, payment history and key information from their most recent tax return as originally filed. Before accessing their account for the first time, taxpayers must authenticate their identity through the secure access process.
- Pay a tax bill. The IRS offers several ways for taxpayers to pay their taxes including online, by phone or through the IRS2Go app. Direct Pay is free and a safe way to pay taxes or estimated tax directly from a checking or savings account. Direct Pay has five simple steps to pay in a single online session and is also available with the IRS2Go mobile app.
Publication 5348, Get Ready to File
Publication 5349, Year-Round Tax Planning is for Everyone
2021 IS HERE!! Check your Tax Withholding
Taxpayers can start the new tax year off right by checking their withholding
A new year means a fresh start. One way people can get the new tax year off to a good start is by checking their federal income tax withholding. They can do this using the Tax Withholding Estimator on IRS.gov.
This online tool helps employees avoid having too much or too little tax withheld from their wages. It also helps self-employed people make accurate estimated tax payments. Having too little withheld can result in an unexpected tax bill or even a penalty at tax time. Having too much withheld results in less money in their pocket.
All taxpayers can use the results from the Tax Withholding Estimator to determine if they should:
• Complete a new Form W-4, Employee’s Withholding Allowance Certificate and submit it to their employer.
• Complete a new Form W-4P, Withholding Certificate for Pension or Annuity Payments and submit it to their payer.
• Make an additional or estimated tax payment to the IRS.
The Tax Withholding Estimator asks taxpayers to estimate:
• Their 2021 income.
• The number of children to be claimed for the child tax credit and earned income tax credit.
• Other items that will affect their 2021 taxes.
The Tax Withholding Estimator does not ask for personally-identifiable information, such as a name, Social Security number, address and bank account numbers. The IRS doesn’t save or record the information entered in the Estimator.
Before using the Estimator, taxpayers should gather their 2019 tax return, most recent pay stubs and income documents including:
• Form W-2 from employers.
• Form 1099 from banks and other payers.
• Forms 1095-A from the marketplace for those claiming the premium tax credit.
• Form 1099-NEC, Nonemployee Compensation.
Most income is taxable, including unemployment compensation, refund interest and income from the gig economy and virtual currencies. Therefore, taxpayers should also gather any documents from these types of earnings. These documents will help taxpayers estimate 2021 income and answer other questions asked during the process.
The Tax Withholding Estimator results will only be as accurate as the information entered by the taxpayer. People with more complex tax situations should use the instructions in Publication 505, Tax Withholding and Estimated Tax. This includes taxpayers who owe alternative minimum tax or certain other taxes, and people with long-term capital gains or qualified dividends.
Got Your W2’s?
End-of-year checklist for small businesses | QuickBooks
Check Your Payroll Tax Withholding Annually
This year has brought about changes for many people. Visit the #IRS Withholding Estimator to make sure your taxes are still covered in your current financial situation.
In The Military??? You Have Special Tax Benefits…
Members of the military and their families have special tax benefits available to them such as free tax preparation, filing assistance during the tax filing season and more. Read: https://go.usa.gov/xfaYe#IRS
IRS – Reporting Tip Income – Tip (Hahahaha)
Three things can help you correctly report your tip income to the #IRS:
•Keep a daily tip record.
•Report tips to your employer.
•Report all tips on your income tax return.