Image

Working Grandparents Could Receive #EITC

art-eitc-awarenessWorking grandparents are encouraged to find out, not guess, if they qualify for this very important credit. To qualify for EITC, the taxpayer must have earned income either from a job or from self-employment and meet basic rules.  EITC eligibility also depends on family size. The IRS recommends using the EITC Assistant, on IRS.gov, to determine eligibility, estimate the amount of credit and more.

When claiming the EITC or ACTC, you should file as soon as you have all necessary documents together to prepare an accurate return. In other words, file as you normally would.

Image

Myth debunked about Delayed #Tax-Refunds!

RefundIt ‘s not true that all refunds are delayed! Read more to get the facts. Continue reading

Image

The Due Date for Employers to File W-2s is tomorrow

Art - Home Office(2)The new deadline is part of legislation signed into law at the end of 2015 to combat identity-theft related refund fraud.

The Social Security Administration encourages all employers to e-file their Forms W-2 by using its Business Services Online.  Employers who file paper Forms W-2 should file them with the Social Security Administration, Data Operations Center, Wilkes-Barre, PA 18769-000

By C Fitts Tax Solutions, LLC Posted in Tax Talk

Bring the Documents You Need to Get the EITC You Deserve

art-eitc-logo

Whether you go to a volunteer return preparation site or a professional tax return preparer, you should bring certain documents to show all your income and expenses and support all your credits, deductions and dependents or qualifying children.

Bring the following to make sure your return is prepared accurately:

  • A valid/unexpired driver’s license or photo identification for both you and your spouse (if married).
  • Social security cards, a social security number verification letter for all persons listed on the return.
  • Birth dates for all persons listed on return.
  • Copies of last year’s state and federal tax returns, if you have them.
  • All income statements: Forms W-2 and 1099, Social Security, unemployment and other statements, such as pensions, stocks, interest and any documents showing taxes withheld. If you own or run a business or farm, collect records of all your income.
  • All records of expenses, such as tuition, mortgage interest, or real estate taxes. If you own or run a business or farm, collect records of all your expenses.
  • Bank routing numbers and account numbers to direct deposit any refund.
  • Dependent child care information: name and address of paid caretakers and either their Social Security number or other tax identification number.
  • If you purchased coverage through the Health Insurance Marketplace, Form 1095-A, Health Insurance Marketplace Statement.
By C Fitts Tax Solutions, LLC Posted in Tax Talk
Image

Communities or groups who may be overlooking the #EITC!

An estimated 1.5 million people with disabilities miss out on this valuable credit because they fail to file a tax return.

 

 

 

By C Fitts Tax Solutions, LLC Posted in Tax Talk
Image

IRS declares today #EITCAwarenessDay!

art-child-tax-creditWhen correctly claimed, #EITC and #CTC greatly reduces poverty for working families. To get the credit, individuals must file a tax return, even if they do not owe any tax or are not required to file. Many qualified individuals and families don’t claim the #EITC because they don’t know about the credit, think they are ineligible, or worry about paying for tax preparation services. Continue reading

By C Fitts Tax Solutions, LLC Posted in Tax Talk
Image

2016 Tax Season Kicks-off with #EITCAwarenessDay

WORKERS MAY QUALIFY FOR FEDERAL TAX CREDIT

Moneygami Car 1024x768 pixels(Columbia, SC)— C Fitts Tax Solutions wants to make life a little easier for workers by alerting them about a special tax credit that can put money in their pockets.

“EITC is a tax benefit for working people and their families and it allows more dollars to flow into our community. It’s money workers can use for groceries, rent, utilities and other bills” said Carolyn. “We want workers who may qualify for EITC to have all the information they need to get the EITC and get it right.” Continue reading

2017 Standard Mileage Rates for Business, Medical and Moving Expenses

IRS logo

Publication 463

Beginning Jan. 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 53.5 cents per mile for business miles driven, down from 54 cents for 2016.
  • 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016.
  • 14 cents per mile driven in service of charitable organizations.

The business mileage rate decreased half a cent per mile and the medical and moving expense rates each dropped 2 cents per mile from 2016. The charitable rate is set by statute and remains unchanged.  The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements are described in Rev. Proc. 2010-51. Notice 2016-79, posted on IRS.gov, contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

By C Fitts Tax Solutions, LLC Posted in Tax Talk
Image

Steps you should take in December to timely file your tax return and get your refund as quickly as possible.

Take Steps Now for Tax Filing Season

Taxpayer Bill of Rights. What You Should Know. What You Need to Know

  • Expecting a refund? Some Refunds must be held until Feb. 15
    • According to a new tax law change, the IRS cannot issue refunds before Feb. 15 for tax returns that claim the Earned Income Tax Credit or the Additional Child Tax Credit.
    • This applies to the entire refund, even the portion not associated with these credits.
  • The IRS will begin to release EITC/ACTC refunds starting Feb. 15. However, the IRS cautions taxpayers that these refunds likely won’t arrive in bank accounts or debit cards until the week of February 27. Read more about refund timing for early EITC/ACTC filers.

What You Need to Do

  • Be careful not to count on getting a refund by a certain date, especially when making major purchases or paying other financial obligations.
  • You don’t need to wait until Feb. 15 to file your tax return. While the IRS must hold the refund until Feb. 15, it will begin taking the steps it normally does to process your tax return once the filing season starts.
  • File a complete and accurate return and include all known refundable credits with your original return.
  • Check Where’s My Refund on IRS.gov or the IRS mobile app, IRS2Go, after February 15 for your personalized refund status.

Here’s how to participate in the IRS “Get Ready” Thunderclap:

  1. Follow this link: http://thndr.me/6BUhKJ 

  1. Click on “Support with” and choose Facebook, Twitter or Tumbler
  2. Authorize Thunderclap to post this one-time message to your social media platform by clicking on the “Add My Support” tab. You will need to input your social media username and password.
By C Fitts Tax Solutions, LLC Posted in Tax Talk
Image

Happy Thanksgiving!

Texas judge blocks new overtime pay rule

Published: Tuesday, November 22nd 2016, 6:36 pm EST  
Updated: Tuesday, November 22nd 2016, 7:29 pm EST | By RNN Staff
Twenty-one states filed suit, saying the law would significantly increase their employment costs. (Source: Raycom Media)Twenty-one states filed suit, saying the law would significantly increase their employment costs. (Source: Raycom Media)

(RNN) – A Texas judge has temporarily blocked a rule to give mandatory overtime pay to workers making less than $47,500 a year.

Twenty-one states filed suit, with many business owners arguing the law would significantly increase their employment costs and that the jump from the current rate of $23,660 was too high.

“The finalized overtime rule hurts the American worker. It limits workplace flexibility without a corresponding increase in pay and forces employers to cut their workers hours,” Texas Attorney General Ken Paxton said in a statement.

The law was set to take effect Dec. 1.

The states of Alabama, Arkansas, Arizona, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, South Carolina, Texas, Utah and Wisconsin all joined the suit.