Valenzuela Income Tax Service

04/02/2023

It's April and around the corner your taxes are due. April 18th is the last day for filing. Need help preparing your taxes call or text me at 661-662-8910. My email address is: [email protected]

03/31/2023

Hello, my name is Maria Valenzuela. I have been a Tax professional for 32 years. I worked for H&R Block for 25 years and decided to start my own business. It has been 6 years running my own business as Valenzuela Income Tax Service. Please feel free to contact me for any questions regarding taxes and advice at 661-662-8910. My email address is: [email protected]

01/29/2021

If you did not received your first & second stimulus, there is a Recovery Rebate credit available.

You can file a return for the Recovery Rebate credit Who qualifies for a recovery rebate credit (stimulus backpay)?
The qualifications start with stimulus eligibility. For the first and second stimulus payments, that includes everyone except those:

Who can be claimed as a dependent on someone else’s return;
Without a valid SSN (except for certain U.S. armed forces if on spouse has an SSN)*;
With AGI above the maximum phase-out;
Nonresidents;
Estates and trusts.
*A qualifying child for the payments can have an SSN or ATIN

For single or married filing separately taxpayers, the credit is phased-out (or lowered) for those with AGI over $75,000.

For head of household filers, the phaseout begins with AGI over $112,500 and married filing jointly phaseout begins with AGI over $150,000.

If your eligibility or situation changed (such as a first-time filer), you might find that you’ll receive additional stimulus money. Check out the section below on how to claim the recovery rebate credit.

Here are a few examples of who might have missed out on stimulus money:

Families with birth or adoption
Separated and divorced parents who alternate years to claim their children
Some first-time filers, such as college students who are no longer dependents
People who haven’t filed in a while
People with a lower Adjusted Gross Income (AGI) in 2020
That last example—lower income—may describe you if you experienced unemployment, reduced hours or a job change in the last year.

While the additional stimulus money from the recovery rebate is good news, you should take note that the situations above can also affect your tax refund (or what you owe). We cover that information in our Top 5 coronavirus tax impacts article.

01/29/2021

What is the Recovery Rebate Credit?
The Recovery Rebate Credit is authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the COVID-related Tax Relief Act. It is a tax credit against your 2020 income tax. Generally, this credit will increase the amount of your tax refund or decrease the amount of the tax you owe.

The Recovery Rebate Credit was eligible to be paid in two rounds of advance payments during 2020 and early 2021. These advanced payments of the Recovery Rebate Credit are referred to as the first and second Economic Impact Payments.

Individuals who received the full amounts of both Economic Impact Payments do not need to complete any information about the Recovery Rebate Credit on their 2020 tax returns. They already received the full amount of the Recovery Rebate Credit as Economic Impact Payments. You received the full amounts of both Economic Impact Payments if:

Your first Economic Impact Payment was $1,200 ($2,400 if married filing jointly for 2020) plus $500 for each qualifying child you had in 2020; and.
Your second Economic Impact Payment was $600 ($1,200 if married filing jointly for 2020) plus $600 for each qualifying child you had in 2020.
Who can claim the Recovery Rebate Credit?
Eligible individuals who did not receive the full amounts of both Economic Impact Payments may claim the Recovery Rebate Credit on their 2020 Form 1040 or 1040-SR. To determine whether you are an eligible individual or the amount of your Recovery Rebate Credit, complete the Recovery Rebate Credit Worksheet in the Instructions for Form 1040 and Form 1040-SR.

Generally, you are eligible to claim the Recovery Rebate Credit if you were a U.S. citizen or U.S. resident alien in 2020, cannot be claimed as a dependent of another taxpayer for tax year 2020, and have a Social Security number valid for employment that is issued before the due date of your 2020 tax return (including extensions).

You must file Form 1040 or Form 1040-SR to claim the Recovery Rebate Credit even if you are normally not required to file a tax return. Anyone with income of $72,000 or less can file their Federal tax return electronically. The safest and fastest way to get a tax refund is to combine electronic filing with Direct Deposit.

01/21/2021

https://www.msn.com/en-us/money/taxes/stimulus-checks-and-your-2020-taxes-important-things-you-don-t-want-to-overlook/ar-BB19BAoH?ocid=msedgntp

Go into the above link for some important tax information.

Your second stimulus payment -- and likely third payment -- are determined by your federal tax returns. With Tax Season 2020 starting in the coming weeks, we're here to tell you all you need to know.

01/17/2021

Tax Preparation Checklist: What Do I Need To File My Taxes?
A checklist for all the information you need can make the tax preparation process easier. Often, your income and tax figures are provided to you on special forms, but sometimes you have to rely on your own records for your source of income. Although most people have their taxable income reported to them — and the IRS — on official tax forms, you are required to report all of your taxable income, even if you don’t receive a form.

For example, a company only has to prepare a W-2 for you if you earned more than $600. However, if you earned $500, you’re still required to report that income on your tax return even though you likely won’t receive a W-2.

Here’s a tax-filing checklist of all the information you need to file your tax return:

Personal Information
Your name, address and Social Security number
Your spouse’s name and Social Security number, if applicable
Direct deposit information, such as routing and checking or savings account numbers in case of a refund

Dependent Information
Social Security number or taxpayer identification number and birthdate for each dependent
Form 8332 from the custodial parent if you are a noncustodial parent entitled to claim a child as your dependent for the year
Income From Working
W-2 from each job (reported on Form 1040)
Self-employment forms or records (such as Form 1099-MISC), records of business income received or business expenses paid for your own business
Royalty income (reported on Form 1099-MISC)

Learn: How To File Self-Employment Taxes

Investment Income
Rental income records, including income, expenses and depreciation (reported on Schedule E)
Interest income received (reported on Form 1099-INT)
Capital gains (often reported on Form 1099-B) and other investment income like dividends (reported on Form 1099-DIV)

Distributions From Special Accounts
Retirement income, including distributions from pensions and annuities (reported on Form 1099-R)
Social Security income or railroad benefits (reported on Form 1099-SSA or Form RRB-1099)
Health savings account distributions (reported on Form 8889)

Other Income
Unemployment benefits or state income tax refunds (reported on Form 1099-G)
Gambling income (reported on Form W-2G)

Distributions from 529 Plans and Coverdell educational savings accounts (reported on Form 1099-Q)
Income from sales of property (reported on Form 1099-C)
Prior year installment sale information (reported on Form 6252)
Business or farming income (reported on Schedule F and Form 4835)

01/17/2021

This is my husband's business card.

01/17/2021

Look at my business card.

01/16/2021

Tips for taxpayers to make filing easier
To speed refunds and help with their tax filing, the IRS urges people to follow these simple steps:

File electronically and use direct deposit for the quickest refunds.

Check IRS.gov for the latest tax information, including the latest on Economic Impact Payments. There is no need to call.

For those who may be eligible for stimulus payments, they should carefully review the guidelines for the Recovery Rebate Credit. Most people received Economic Impact Payments automatically, and anyone who received the maximum amount does not need to include any information about their payments when they file. However, those who didn't receive a payment or only received a partial payment may be eligible to claim the Recovery Rebate Credit when they file their 2020 tax return. Tax preparation software, will help taxpayers figure the amount.

Remember, advance stimulus payments received separately are not taxable, and they do not reduce the taxpayer's refund when they file in 2021.

01/15/2021

2021 tax filing season begins Feb. 12; IRS outlines steps to speed refunds during pandemic.

IR-2021-16, January 15, 2021

WASHINGTON ― The Internal Revenue Service announced that the nation's tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.

The February 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.

This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.

To speed refunds during the pandemic, the IRS urges taxpayers to file electronically with direct deposit as soon as they have the information they need. People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners. These groups are starting to accept tax returns now, and the returns will be transmitted to the IRS starting February 12.

"Planning for the nation's filing season process is a massive undertaking, and IRS teams have been working non-stop to prepare for this as well as delivering Economic Impact Payments in record time," said IRS Commissioner Chuck Rettig. "Given the pandemic, this is one of the nation's most important filing seasons ever. This start date will ensure that people get their needed tax refunds quickly while also making sure they receive any remaining stimulus payments they are eligible for as quickly as possible."

Last year's average tax refund was more than $2,500. More than 150 million tax returns are expected to be filed this year, with the vast majority before the Thursday, April 15 deadline.

Under the PATH Act, the IRS cannot issue a refund involving the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) before mid-February. The law provides this additional time to help the IRS stop fraudulent refunds and claims from being issued, including to identity thieves.

The IRS anticipates a first week of March refund for many EITC and ACTC taxpayers if they file electronically with direct deposit and there are no issues with their tax returns. This would be the same experience for taxpayers if the filing season opened in late January. Taxpayers will need to check Where's My Refund for their personalized refund date.

Overall, the IRS anticipates nine out of 10 taxpayers will receive their refund within 21 days of when they file electronically with direct deposit if there are no issues with their tax return. The IRS urges taxpayers and tax professionals to file electronically. To avoid delays in processing, people should avoid filing paper returns wherever possible.

01/15/2021

It's that time, sure feels like yesterday you had your taxes prepared and filed. I am back again for another year. For those that are my previous clients, please refer your family members, or friends. I am here to help you with your taxes. For those that are new, my name is Maria Valenzuela, been a tax preparer for 30 years. I worked for a tax company for 25 years and been self-employed for 5 years. I work out of my home. Please call me at 661-662-8910 or text me or email me at [email protected]. My husband, Edward Valenzuela, will be joining this year, as a tax preparer. You can reach him at 661-404-8910 or text him.

04/07/2020

IR-2020-64, April 2, 2020

WASHINGTON — The Internal Revenue Service today urged taxpayers to be on the lookout for a surge of calls and email phishing attempts about the Coronavirus, or COVID-19. These contacts can lead to tax-related fraud and identity theft.

"We urge people to take extra care during this period. The IRS isn't going to call you asking to verify or provide your financial information so you can get an economic impact payment or your refund faster," said IRS Commissioner Chuck Rettig. "That also applies to surprise emails that appear to be coming from the IRS. Remember, don't open them or click on attachments or links. Go to IRS.gov for the most up-to-date information."

Taxpayers should watch not only for emails but text messages, websites and social media attempts that request money or personal information.

"History has shown that criminals take every opportunity to perpetrate a fraud on unsuspecting victims, especially when a group of people is vulnerable or in a state of need," said IRS Criminal Investigation Chief Don Fort. "While you are waiting to hear about your economic impact payment, criminals are working hard to trick you into getting their hands on it. The IRS Criminal Investigation Division is working hard to find these scammers and shut them down, but in the meantime, we ask people to remain vigilant."