Tax Guys Inc., 191 W. Shaw Avenue Suite 205, Fresno, CA (2026)

02/09/2023

𝗜𝗥𝗦: 𝗖𝗮𝗹𝗶𝗳𝗼𝗿𝗻𝗶𝗮 𝘀𝘁𝗼𝗿𝗺 𝘃𝗶𝗰𝘁𝗶𝗺𝘀 𝗾𝘂𝗮𝗹𝗶𝗳𝘆 𝗳𝗼𝗿 𝘁𝗮𝘅 𝗿𝗲𝗹𝗶𝗲𝗳; 𝗔𝗽𝗿𝗶𝗹 𝟭𝟴 𝗱𝗲𝗮𝗱𝗹𝗶𝗻𝗲, 𝗼𝘁𝗵𝗲𝗿 𝗱𝗮𝘁𝗲𝘀 𝗲𝘅𝘁𝗲𝗻𝗱𝗲𝗱 𝘁𝗼 𝗠𝗮𝘆 𝟭𝟱

California storm victims now have until May 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and households that reside or have a business in Colusa, El Dorado, Glenn, Humboldt, Los Angeles, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Bernardino, San Diego, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Ventura, Yolo and Yuba counties qualify for tax relief. Other areas added later to the disaster area will also qualify for the same relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on Jan. 8, 2023. As a result, affected individuals and businesses will have until May 15, 2023, to file returns and pay any taxes that were originally due during this period.

This includes 2022 individual income tax returns due on April 18, as well as various 2022 business returns normally due on March 15 and April 18. Among other things, this means that eligible taxpayers will have until May 15 to make 2022 contributions to their IRAs and health savings accounts.

In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until May 15, 2023, to file their 2022 return and pay any tax due. The May 15, 2023, deadline also applies to the quarterly estimated tax payments, normally due on Jan. 17, 2023, and April 18, 2023. This means that individual taxpayers can skip making the fourth quarter estimated tax payment, normally due Jan. 17, 2023, and instead include it with the 2022 return they file, on or before May 15.

The May 15 deadline also applies to the quarterly payroll and excise tax returns normally due on Jan. 31 and April 30, 2023. In addition, penalties on payroll and excise tax deposits due on or after Jan. 8, 2023, and before Jan. 23, 2023, will be abated as long as the tax deposits are made by Jan. 23, 2023.

The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time.

visit disasterassistance.gov.

02/09/2023

𝗧𝗮𝘅 𝗯𝗮𝘀𝗶𝗰𝘀: 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲 𝗯𝗲𝘁𝘄𝗲𝗲𝗻 𝘀𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗮𝗻𝗱 𝗶𝘁𝗲𝗺𝗶𝘇𝗲𝗱 𝗱𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻𝘀

One of the first decisions taxpayers must make when completing a tax return is whether to take the standard deduction or itemize their deductions. There are several factors that can influence a taxpayer’s choice, including changes to their tax situation, any changes to the standard deduction amount and recent tax law changes.

Generally, most taxpayers use the option that gives them the lowest overall tax.

As taxpayers begin to think about filing their tax return, here are some things they should know about standard and itemized deductions.

𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗱𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻
The standard deduction amount increases slightly every year. The standard deduction amount depends on the taxpayer's filing status, whether they are 65 or older or blind, and whether another taxpayer can claim them as a dependent. Taxpayers who are age 65 or older on the last day of the year and don't itemize deductions are entitled to a higher standard deduction.

Most filers who use Form 1040 can find their standard deduction on the first page of the form. The standard deduction for most filers of Form 1040-SR, U.S. Tax Return for Seniors, is on the last page of that form.

According to the Instructions for Form 1040 and 1040-SR, not all taxpayers can take a standard deduction, including:

- A married individual filing as married filing separately whose spouse itemizes
deductions - if one spouse itemizes on a separate return, both must itemize.
-An individual who files a tax return for a period of less than 12 months. This is
uncommon and could be due to a change in their annual accounting period.
-An individual who was a nonresident alien or a dual-status alien during the year.
Nonresident aliens who are married to a U.S. citizen or resident alien, however, can
take the standard deduction in certain situations.

𝗜𝘁𝗲𝗺𝗶𝘇𝗲𝗱 𝗱𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻𝘀
Taxpayers who choose to itemize deductions may do so by filing Schedule A, Form 1040, Itemized Deductions. Itemized deductions that taxpayers may claim can include:

-State and local income or sales taxes.
-Real estate and personal property taxes.
-Home mortgage interest.
-Personal casualty and theft losses from a federally declared disaster.
-Gifts to a qualified charity.
-Unreimbursed medical and dental expenses that exceed 7.5% of adjusted gross
income.

Some itemized deductions, such as the deduction for taxes, may be limited. Taxpayers should review the instructions for Schedule A Form 1040 for more information on limitations.

02/07/2023

𝗜𝗥𝗦 𝗰𝗼𝗺𝗽𝗹𝗲𝘁𝗲𝘀 𝗮𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗰 𝗰𝗼𝗿𝗿𝗲𝗰𝘁𝗶𝗼𝗻𝘀 𝗼𝗳 𝘁𝗮𝘅 𝘆𝗲𝗮𝗿 𝟮𝟬𝟮𝟬 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝘀 𝗿𝗲𝗹𝗮𝘁𝗲𝗱 𝘁𝗼 𝘂𝗻𝗲𝗺𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁 𝗰𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 𝗲𝘅𝗰𝗹𝘂𝘀𝗶𝗼𝗻; 𝟭𝟮 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 𝗿𝗲𝗳𝘂𝗻𝗱𝘀 𝗶𝘀𝘀𝘂𝗲𝗱

The Internal Revenue Service recently completed the final corrections of tax year 2020 accounts for taxpayers who overpaid their taxes on unemployment compensation they received in 2020.

The American Rescue Plan Act of 2021, which became law in March 2021, excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations (up to $10,200 for each spouse if married filing joint). The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000.

To ease the burden on taxpayers, the IRS took steps to review the Forms 1040 and 1040SR that were filed prior to the law's enactment to identify taxpayers who had already reported unemployment compensation as income and were eligible for the correction. The IRS determined the correct taxable amount of unemployment compensation and tax.

Some taxpayers received refunds, while others had the overpayment applied to taxes due or other debts. In some cases, the exclusion only resulted in a reduction in their adjusted gross income. The IRS mailed a letter to these taxpayers to inform them of the corrections. Taxpayers should keep that letter with their tax records.

The IRS corrected approximately 14 million returns. This resulted in nearly 12 million refunds totaling $14.8 billion, with an average refund of $1,232.

Many of the adjustments included corrections to the:

Earned Income Tax Credit
Recovery Rebate Credit
Additional Child Tax Credit
American Opportunity Tax Credit
Premium Tax Credit
Advance Premium Tax Credit

If a taxpayer is eligible for the unemployment compensation exclusion and their account was not corrected by the IRS, they may need to file an amended 2020 tax return to claim the exclusion and any applicable non-refundable or refundable credits impacted by the exclusion.

Taxpayers should not file an amended return if they previously filed one claiming the exclusion. For more information about this, including eligibility requirements, taxpayers should read the 2020 Unemployment Compensation Exclusion FAQs on IRS.gov.

If they do need to amend tax year 2020 Forms 1040 and 1040-SR, taxpayers can file Form 1040-X, Amended U.S. Individual Income Tax Return, electronically with tax filing software.

Taxpayers can view their 2020 tax records in their Online Account or request that a 2020 tax account transcript be mailed to them.

02/06/2023

𝗧𝗮𝘅 𝘁𝗶𝗽𝘀 𝗳𝗼𝗿 𝗴𝗶𝗴 𝗲𝗰𝗼𝗻𝗼𝗺𝘆 𝗲𝗻𝘁𝗿𝗲𝗽𝗿𝗲𝗻𝗲𝘂𝗿𝘀 𝗮𝗻𝗱 𝘄𝗼𝗿𝗸𝗲𝗿𝘀

In recent years, the gig economy has changed how people do business and provide services. Taxpayers must report their gig economy earnings on a tax return – whether they earned that money through a part-time, temporary or side gig. The IRS’ Gig Economy Tax Center provides information and resources to help this group of entrepreneurs and workers understand and meet their federal tax obligations.

Here are key things for individuals involved in the gig economy to remember as they get ready to file in 2023.

𝗚𝗶𝗴 𝗲𝗰𝗼𝗻𝗼𝗺𝘆 𝗶𝗻𝗰𝗼𝗺𝗲 𝗶𝘀 𝘁𝗮𝘅𝗮𝗯𝗹𝗲
-Taxpayers must report all income on their tax return unless excluded by law,
whether they receive an information return such as a 1099 or not.
-Individuals involved in the gig economy may also be required to make quarterly
estimated tax payments to pay income tax and self-employment tax, which includes
Social Security and Medicare taxes. The last estimated tax payment for 2022 is due
Jan. 17, 2023.

𝗪𝗼𝗿𝗸𝗲𝗿𝘀 𝗿𝗲𝗽𝗼𝗿𝘁 𝗶𝗻𝗰𝗼𝗺𝗲 𝗮𝗰𝗰𝗼𝗿𝗱𝗶𝗻𝗴 𝘁𝗼 𝘁𝗵𝗲𝗶𝗿 𝘄𝗼𝗿𝗸𝗲𝗿 𝗰𝗹𝗮𝘀𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻
Gig economy workers who perform services, such as driving a car for booked rides,
running errands and other on demand work, must be correctly classified. Classification helps the taxpayer determine how to properly report their income.

-If they are employees, they report their wages from the Form W-2, Wage and Tax
Statement.
-If they are an independent contractor, they report their income on a Schedule C,
Form 1040, Profit or Loss from Business - Sole Proprietorship.

The business or the platform determines whether the individual providing the services is an employee or independent contractor. The business owners can use the worker classification page on IRS.gov for guidance on properly classifying employees and independent contractors.

𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀 𝗿𝗲𝗹𝗮𝘁𝗲𝗱 𝘁𝗼 𝗴𝗶𝗴 𝗲𝗰𝗼𝗻𝗼𝗺𝘆 𝗶𝗻𝗰𝗼𝗺𝗲 𝗺𝗮𝘆 𝗯𝗲 𝗱𝗲𝗱𝘂𝗰𝘁𝗶𝗯𝗹𝗲
Individuals involved in the gig economy may be able to deduct expenses related to their gig income, depending on tax limits and rules.

-Taxpayers may be able to lower the amount of tax they owe by deducting certain
expenses.
-It is important for taxpayers to keep records of their business expenses.

𝗣𝗮𝘆 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗮𝗺𝗼𝘂𝗻𝘁 𝗼𝗳 𝘁𝗮𝘅𝗲𝘀 𝘁𝗵𝗿𝗼𝘂𝗴𝗵𝗼𝘂𝘁 𝘁𝗵𝗲 𝘆𝗲𝗮𝗿
An employer typically withholds income taxes from their employees' pay to help cover taxes their employees owe.

Individuals involved in the gig economy have two ways to cover their taxes due:

-If they have another job where they are considered an employee, they can submit a
new Form W-4, Employee's Withholding Certificate to their employer to have more
taxes withheld from their paycheck to cover the tax owed from their gig economy
activity.
-They can make quarterly estimated tax payments throughout the year

02/06/2023

𝗛𝗼𝘄 𝘁𝗼 𝗔𝘃𝗼𝗶𝗱 𝗧𝗮𝘅 𝗦𝗰𝗮𝗺𝘀

Thieves are constantly working to steal people’s identity and personal info so they can use it to fraudulently file tax returns and claim refund money that isn’t theirs. Here a few things you should know so you don’t fall victim to these scams. Visit https://www.irs.gov/scams

Tax Guys Inc.

02/09/2023

02/09/2023

02/07/2023

02/06/2023

02/06/2023

Address

Website

Alerts

Contact The Business

Shortcuts

Share

Category