S A Johnson Accounting & Tax Services

02/11/2023

As much as we spend on our pets, they are not deductions on our income tax returns.

Although we love them like our children, pets do not qualify as dependents no matter how you dress them up. To learn more about who qualifies as a dependent, check out: www.irs.gov/pub929

01/31/2023

The IRS officially started tax season on January 23rd, but today is the last day for businesses to send out tax forms. Please make sure that you have received all tax documents before filing you 2022 income tax return. This will elimated errors and having to file an amended tax return.

Contact S A Johnson Accounting & Tax Services for assistance with filing your 2022 income tax return.

02/19/2021

Should you file a 2020 federal tax return?

Most people with gross income of $12,400 or more must file a federal tax return. Some people with a lower income are not required to file. However, these individuals should still consider filing for a refund of federal income tax withheld. They may also be eligible for certain tax credits, like the earned income tax credit, the recovery rebate credit and others.

**Here are a few important things for taxpayers to know this year.

-Anyone who is eligible for an Economic Impact
Payment but did not get the payments or did
not get the full amount, must file a tax return to
claim the recovery rebate credit even if they
aren’t normally required to file.

-Unemployment benefits are taxable. You
should receive in te mail a Form 1099-G.

02/19/2021

First step of tax preparation is gathering records:

As you get ready to file your 2020 tax return, you should start by gathering your records. You should gather all year-end income documents to help ensure you file a complete and accurate 2020 tax return and avoid refund delays.

You should have all necessary records handy, such as W-2s, 1099s, receipts, canceled checks and other documents that support any income, deductions or credits on your tax return.

10/08/2020

Even though the filing deadline was moved from April 15 to July 15 in 2020, the tax extension deadline is still October 15. A tax extension gives you until then to file your tax return. It's not an extension of time to pay your taxes — those are still due in July.

02/03/2020

Are you eligble for the Earned Income Tax Credit?

The earned income tax credit benefits working individuals and families with low to moderate incomes. EITC can lower a taxpayer’s taxes, and even result in a refund.

To take advantage of this credit, taxpayers must file a tax return and claim the credit. They should do so even if they don’t owe tax and aren’t required to file. EITC can be worth up to $6,557 for tax year 2019.

Taxpayers should first find out if they qualify for the credit. Here are some things for taxpayers to consider:

•Major life events may cause taxpayers to move in and out of eligibility for the credit from year to year. Because of this, it's a good idea for people to find out if they qualify.
•Eligible taxpayers must have earned income from working for an employer or from running or owning a business or farm. They must also meet basic rules.
•Taxpayers without children may also qualify for EITC.
•Taxpayers can't claim EITC if their filing status is married filing separately.
•Taxpayers must have valid Social Security numbers for themselves, their spouse, and any qualifying child listed for the credit on their tax return.

Before claiming the credit, taxpayers should also learn the EITC rules:

•Taxpayers may be married or unmarried. If married, they must file a joint return.
•Those who claim the credit without a qualifying child must meet rules for age, residency and dependency.
•For a child to qualify, they must live with the taxpayer for more than six months of the year.
•In addition, the child must meet rules for age, relationship, support, citizenship and joint return.
•Special rules apply for members of the U.S. military serving in a combat zone.

Taxpayers can use the EITC Assistant to determine if they’re eligible for the credit. This tool also estimates the amount of the taxpayer’s credit. The EITC Assistant is available in English or Spanish.

01/11/2020

Before filing make sure you have all reportable documents.

01/08/2020

Electronic filing begins January 27th. It is important that you make sure you have all documents needed before filing. That can cause tax refund delays, inaccurate filing, and red flag for an audit.

02/06/2018

TAX NEWS TUESDAY:

The IRS is now accepting tax returns as the annual tax filing season is underway. Here are some things for taxpayers to consider as they are filing:

* People have until Tuesday, April 17, 2018, to file their 2017 returns and pay any taxes due.

* Choosing e-file and direct deposit is the fastest and safest way to file an accurate income tax return and receive a refund.

* By law, the IRS cannot issue some refunds before mid-February. These refunds are for tax returns that claim the Earned Income Tax Credit or the Additional Child Tax Credit. The IRS expects the earliest refunds related to EITC and ACTC to be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2018.

* The best way for taxpayers to check the status of a refund is to use “Where's My Refund?” ‎on IRS.gov or the IRS2Go mobile app.

* Taxpayers should have their year-end statements in hand before filing. This includes Forms W-2 from employers and Forms 1099 from banks and other payers. Doing this helps avoid refund delays and the need to file an amended return.

01/25/2018

IRS SCAM: Phone calls indicating you owe, and you will go to jail if you do not pay.

NOTE: Please know that the IRS will NEVER call. They will send correspondence by mail only.

01/16/2018

01/24/2017

It is official...tax season has begun.