Bridge closure effects travel to Tax Appointment
Please be aware that State Road 13 is partially closed due to bridge work. The closure will affect travelers exiting I-69 and moving toward Fortville on SR 13 to access 1000 S and King Tax Services. A detour is in place. We recommend using 800 W to 750 S to 1000 S to avoid the closure. Please allow extra travel time to make sure to make it to your scheduled appointment on time. The SR 13 bridge project is expected to be under construction into and through the end of April.
Published: 1-3-2025 by King Tax Services. Update 1-29-25.
Published: 1-3-2025 by King Tax Services. Update 1-29-25.
IRS Announces official opening of Tax Season
IR-2024-05 - WASHINGTON --
The Internal Revenue Service and The Indiana Department of Revenue (DOR) have announced that Monday, January 27, 2025, will be the beginning of the 2025 tax season when officially, the agency will begin accepting and processing 2024 tax year returns.
King Tax Services will begin accepting appointments on February 1, 2025.
Tips for the 2025 tax season
The IRS recommends several things for people to keep in mind for a smooth filing experience this year, including having the right information before filing.
Filing an accurate tax return can help taxpayers avoid delays or later IRS notices. Sometimes this means waiting to make sure individuals have accounted for all their income and the related documents. This is especially important for people who may receive one of the various Forms 1099 from banks, investment accounts or other payers reporting unemployment compensation, dividends, pension, annuity or retirement plan distributions.
People should also remember that most income is taxable, including unemployment income, interest received or money earned from the gig economy or digital assets [crypto investment activity]. Individuals should make sure they report the correct amount on their tax return to avoid processing delays.
Speed refunds by filing electronically and choosing direct deposit. There are important steps people can take to help ensure their tax return and refund are processed without delays. The most important is to file electronically with direct deposit.
Most refunds are issued in less than 21 days. The IRS anticipates most taxpayers will receive their refund within 21 days of when they file electronically, if they choose direct deposit and there are no issues with their tax return.
Published: 1-1-2025, by King Tax Services. Source IRS.gov
The Internal Revenue Service and The Indiana Department of Revenue (DOR) have announced that Monday, January 27, 2025, will be the beginning of the 2025 tax season when officially, the agency will begin accepting and processing 2024 tax year returns.
King Tax Services will begin accepting appointments on February 1, 2025.
Tips for the 2025 tax season
The IRS recommends several things for people to keep in mind for a smooth filing experience this year, including having the right information before filing.
Filing an accurate tax return can help taxpayers avoid delays or later IRS notices. Sometimes this means waiting to make sure individuals have accounted for all their income and the related documents. This is especially important for people who may receive one of the various Forms 1099 from banks, investment accounts or other payers reporting unemployment compensation, dividends, pension, annuity or retirement plan distributions.
People should also remember that most income is taxable, including unemployment income, interest received or money earned from the gig economy or digital assets [crypto investment activity]. Individuals should make sure they report the correct amount on their tax return to avoid processing delays.
Speed refunds by filing electronically and choosing direct deposit. There are important steps people can take to help ensure their tax return and refund are processed without delays. The most important is to file electronically with direct deposit.
Most refunds are issued in less than 21 days. The IRS anticipates most taxpayers will receive their refund within 21 days of when they file electronically, if they choose direct deposit and there are no issues with their tax return.
Published: 1-1-2025, by King Tax Services. Source IRS.gov
Ten Tips to Help You Choose a Tax Preparer
When it comes time to file your tax return you want to make sure you are choosing a professional and qualified Registered Tax Return Preparer. You can rest assured that Vicktoria has met every requirement set forth by the IRS to maintain certification and annual requirements. The IRS urges you to choose your preparer carefully. Even if someone else prepares your return, you are legally responsible for what is on it.
Here are ten tips to keep in mind when choosing a tax return preparer:
1. Check the preparer’s qualifications. All paid tax return preparers are required to have a Preparer Tax Identification Number [PTIN]. In addition to making sure they have a PTIN, ask if the preparer attends continuing education classes.
2. Check on the preparer’s history. Check with the Better Business Bureau to see if the preparer has a questionable history. Also check for any disciplinary actions and for the status of their licenses. For certified public accountants, check with the state boards of accountancy. For attorneys, check with the state bar associations. For enrolled agents, check with the IRS Office of Enrollment.
3. Ask about service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers can. Also, always make sure any refund due is sent to you or deposited into an account in your name. Taxpayers should NEVER deposit their refund into a preparer’s bank account.
4. Ask to e-file your return. Make sure your preparer offers IRS e-file. Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return. IRS has safely and securely processed more than one billion individual tax returns since the debut of electronic filing in 1990.
5. Make sure the preparer is accessible. Make sure you will be able to contact the tax preparer after you file your return, even after the April 15 due date. This may be helpful in the event questions arise about your tax return.
6. Provide records and receipts. Reputable preparers will request to see your records and receipts. They will ask you questions to determine your total income and your qualifications for deductions, credits and other items. Do not use a preparer who is willing to e-file your return by using your last pay stub before you receive your Form W-2. This is against IRS e-file rules.
7. Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.
8. Review the entire return before signing. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
9. Make sure the preparer signs and includes their PTIN. A paid preparer must sign the return and include their PTIN as required by law. The preparer must also give you a copy of the return.
10. Report abusive tax preparers to the IRS. You can report abusive tax preparers and suspected tax fraud to the IRS on Form 14157, Complaint: Tax Return Preparer. If you suspect a return preparer filed or altered a return without your consent, you should also file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit.
Here are ten tips to keep in mind when choosing a tax return preparer:
1. Check the preparer’s qualifications. All paid tax return preparers are required to have a Preparer Tax Identification Number [PTIN]. In addition to making sure they have a PTIN, ask if the preparer attends continuing education classes.
2. Check on the preparer’s history. Check with the Better Business Bureau to see if the preparer has a questionable history. Also check for any disciplinary actions and for the status of their licenses. For certified public accountants, check with the state boards of accountancy. For attorneys, check with the state bar associations. For enrolled agents, check with the IRS Office of Enrollment.
3. Ask about service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers can. Also, always make sure any refund due is sent to you or deposited into an account in your name. Taxpayers should NEVER deposit their refund into a preparer’s bank account.
4. Ask to e-file your return. Make sure your preparer offers IRS e-file. Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return. IRS has safely and securely processed more than one billion individual tax returns since the debut of electronic filing in 1990.
5. Make sure the preparer is accessible. Make sure you will be able to contact the tax preparer after you file your return, even after the April 15 due date. This may be helpful in the event questions arise about your tax return.
6. Provide records and receipts. Reputable preparers will request to see your records and receipts. They will ask you questions to determine your total income and your qualifications for deductions, credits and other items. Do not use a preparer who is willing to e-file your return by using your last pay stub before you receive your Form W-2. This is against IRS e-file rules.
7. Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.
8. Review the entire return before signing. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
9. Make sure the preparer signs and includes their PTIN. A paid preparer must sign the return and include their PTIN as required by law. The preparer must also give you a copy of the return.
10. Report abusive tax preparers to the IRS. You can report abusive tax preparers and suspected tax fraud to the IRS on Form 14157, Complaint: Tax Return Preparer. If you suspect a return preparer filed or altered a return without your consent, you should also file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit.
Finance Study finds Many Americans thought they were getting a bigger 2022 tax refund
Rebecca Chen - Yahoo! Finance Reporter
Tax refunds are likely a big letdown this season for a good chunk of Americans, who expected and needed more at a time when their finances are shakier. Almost half of Americans anticipated they would receive refunds that were the same size or even bigger than last year’s. Just 30% expected the smaller refunds that are coming in, which experts had warned about after pandemic-era tax enhancements expired. The smaller windfalls come as Americans are saving less and as inflation continues to eat into their budgets.
Refund shrinkage
Tax experts have been warning about refund shrinkage this year due to the federal government ending pandemic relief and credits. So far, the average tax refund is 11% smaller year-over-year as of March 3, the latest stats from the Internal Revenue Service show. And the decline has been consistent since the start of the tax season.
"With the loss of the Child Tax Credit and Earned Income Tax Credit expansions, families and individuals are receiving smaller refunds this tax season," Joanna Ain, associate director of policy for nonprofit Prosperity Now, previously told Yahoo Finance. The amount of the Child and Dependent Care Credit also reverted to its lower, pre-pandemic value. The above-the-line charitable contribution deduction also wasn’t extended, while the mortgage insurance premium deduction expired.
Tax refunds play a big role in taxpayers' financial well-being. The majority of Americans rely on them to catch up or get a boost during tax season, according to Christopher Manderfield, Keybank's executive vice president.
"Somewhere around a quarter of consumers are actually going to save their tax refunds," Manderfield said. "Another roughly 20% are going to use it to pay household bills, and another 20% were actually going to pay off debt." So, those smaller refunds mean bigger money woes, especially as inflation, in particular, remains a stubborn financial obstacle for everyone.
"Housing, food, services, goods, durable or otherwise just cost more." Manderfield said. "So I don't think the consumer was positioned for that hard of a pivot coming from 2021 to 2022."
Inflation ranked as the top financial concern for most Americans in 2023. And a big part of that is because wage growth remains behind for most. One expert said that because people are paying more for the very basic needs, they have to reduce their savings, retirement plans, and charitable giving to make ends meet.
"The prices of goods and services are rising and people's incomes aren't necessarily rising to match," Akeiva Ellis, a certified financial planner, said. "So naturally, one of [the outcomes is] less savings."
Recent research shows that only 40% of Americans are confident they could come up with $2,000 during an emergency in 2022, an 11 percentage point drop from the prior year, according to a study published by KeyBank, a bank-based financial service company. The decline “was significant, it was statistically significant,” Manderfield said. “And [it was] the lowest percent that we have seen since 2019.”
Published: 3-25-2023, by King Tax Services. Source Yahoo Finance
Tax refunds are likely a big letdown this season for a good chunk of Americans, who expected and needed more at a time when their finances are shakier. Almost half of Americans anticipated they would receive refunds that were the same size or even bigger than last year’s. Just 30% expected the smaller refunds that are coming in, which experts had warned about after pandemic-era tax enhancements expired. The smaller windfalls come as Americans are saving less and as inflation continues to eat into their budgets.
Refund shrinkage
Tax experts have been warning about refund shrinkage this year due to the federal government ending pandemic relief and credits. So far, the average tax refund is 11% smaller year-over-year as of March 3, the latest stats from the Internal Revenue Service show. And the decline has been consistent since the start of the tax season.
"With the loss of the Child Tax Credit and Earned Income Tax Credit expansions, families and individuals are receiving smaller refunds this tax season," Joanna Ain, associate director of policy for nonprofit Prosperity Now, previously told Yahoo Finance. The amount of the Child and Dependent Care Credit also reverted to its lower, pre-pandemic value. The above-the-line charitable contribution deduction also wasn’t extended, while the mortgage insurance premium deduction expired.
Tax refunds play a big role in taxpayers' financial well-being. The majority of Americans rely on them to catch up or get a boost during tax season, according to Christopher Manderfield, Keybank's executive vice president.
"Somewhere around a quarter of consumers are actually going to save their tax refunds," Manderfield said. "Another roughly 20% are going to use it to pay household bills, and another 20% were actually going to pay off debt." So, those smaller refunds mean bigger money woes, especially as inflation, in particular, remains a stubborn financial obstacle for everyone.
"Housing, food, services, goods, durable or otherwise just cost more." Manderfield said. "So I don't think the consumer was positioned for that hard of a pivot coming from 2021 to 2022."
Inflation ranked as the top financial concern for most Americans in 2023. And a big part of that is because wage growth remains behind for most. One expert said that because people are paying more for the very basic needs, they have to reduce their savings, retirement plans, and charitable giving to make ends meet.
"The prices of goods and services are rising and people's incomes aren't necessarily rising to match," Akeiva Ellis, a certified financial planner, said. "So naturally, one of [the outcomes is] less savings."
Recent research shows that only 40% of Americans are confident they could come up with $2,000 during an emergency in 2022, an 11 percentage point drop from the prior year, according to a study published by KeyBank, a bank-based financial service company. The decline “was significant, it was statistically significant,” Manderfield said. “And [it was] the lowest percent that we have seen since 2019.”
Published: 3-25-2023, by King Tax Services. Source Yahoo Finance
Indiana assessing Underpayment Penalties on taxes due exceeding $1000
If you received a letter from the State of Indiana then you might be wondering why they are charging you an Underpayment Penalty in addition to the amount you already owed and paid. Here is an explanation.
You might owe a penalty for the underpayment of estimated tax if you did not have taxes withheld from your income and/or you did not pay enough estimated tax throughout the year. Not properly paying estimated taxes is one of the most common errors made in filing Indiana tax returns.
Estimated taxes have become more of a hot button for both Federal and State taxes. The reason is that they want their money to use during the year and expect you to 'bank' against what you may owe at the end of the year. The reasons you may owe could include capital gains on investments, not having enough state tax withheld from your paycheck, or in the event, you sell off property for a gain and did not pay tax ahead against the gain. In any of these cases, you are fine if you owe less than $1000. Go over, and you will be assessed a penalty.
If you are invested with a broker - IRA, ROTH, Stocks/Bonds etcetera; then it is important to keep in touch with your broker to stay on top of how your investments are performing. Capital gains and dividends are a common 'surprise' come tax time and can cause you to owe. If you find you are doing very well, then you will want to consider making estimated payments against the impending gains.
A taxpayer that fails to make timely payments of the full amount of tax due is subject to a uniform penalty. The penalty is 10% of the amount of tax not paid.
Generally, if you owe $1,000 or more in state and county tax for the year that's not covered by withholding taxes, you need to be making estimated tax payments.
So, how can you avoid paying the underpayment penalty?
You may avoid the Underpayment of Estimated Tax by Individuals Penalty if: Your filed tax return shows you owe less than $1,000 or You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less.
Paying Estimated Taxes
An individual may make estimated tax payments to reduce the amount that will be due when filing an income tax return. Certain individuals are required to make estimated income tax payments. The most common estimated taxes are paid by small business owners and self-employed individuals, however; are now expected by individuals who can anticipate owing more than $1000 at tax time.
Payment of estimated taxes is due in installments. Due dates are mid-April, June, September, and January following the last month of the calendar year - Usually on or before the 15th.
King Tax Services recommends that you make your last payment by the end of December to avoid confusion on which tax year it is to be applied. Miss the deadline by even one day, and the estimated tax may be applied to the next tax year. If the due date falls on a national or state holiday, Saturday or Sunday, payment postmarked by the day following that holiday or Sunday is considered on time. Keep in mind, that any amounts paid ahead and not needed come tax time can be forwarded to the next year or included in your refund.
Estimated payments can be made by one of the following methods:
Published: June 18, 2022, by King Tax Services.
You might owe a penalty for the underpayment of estimated tax if you did not have taxes withheld from your income and/or you did not pay enough estimated tax throughout the year. Not properly paying estimated taxes is one of the most common errors made in filing Indiana tax returns.
Estimated taxes have become more of a hot button for both Federal and State taxes. The reason is that they want their money to use during the year and expect you to 'bank' against what you may owe at the end of the year. The reasons you may owe could include capital gains on investments, not having enough state tax withheld from your paycheck, or in the event, you sell off property for a gain and did not pay tax ahead against the gain. In any of these cases, you are fine if you owe less than $1000. Go over, and you will be assessed a penalty.
If you are invested with a broker - IRA, ROTH, Stocks/Bonds etcetera; then it is important to keep in touch with your broker to stay on top of how your investments are performing. Capital gains and dividends are a common 'surprise' come tax time and can cause you to owe. If you find you are doing very well, then you will want to consider making estimated payments against the impending gains.
A taxpayer that fails to make timely payments of the full amount of tax due is subject to a uniform penalty. The penalty is 10% of the amount of tax not paid.
Generally, if you owe $1,000 or more in state and county tax for the year that's not covered by withholding taxes, you need to be making estimated tax payments.
So, how can you avoid paying the underpayment penalty?
You may avoid the Underpayment of Estimated Tax by Individuals Penalty if: Your filed tax return shows you owe less than $1,000 or You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less.
Paying Estimated Taxes
An individual may make estimated tax payments to reduce the amount that will be due when filing an income tax return. Certain individuals are required to make estimated income tax payments. The most common estimated taxes are paid by small business owners and self-employed individuals, however; are now expected by individuals who can anticipate owing more than $1000 at tax time.
Payment of estimated taxes is due in installments. Due dates are mid-April, June, September, and January following the last month of the calendar year - Usually on or before the 15th.
King Tax Services recommends that you make your last payment by the end of December to avoid confusion on which tax year it is to be applied. Miss the deadline by even one day, and the estimated tax may be applied to the next tax year. If the due date falls on a national or state holiday, Saturday or Sunday, payment postmarked by the day following that holiday or Sunday is considered on time. Keep in mind, that any amounts paid ahead and not needed come tax time can be forwarded to the next year or included in your refund.
Estimated payments can be made by one of the following methods:
- Using pre-printed estimated tax vouchers. These can be obtained at the time you have your taxes completed or downloaded from the INDOR website.
- Paying online. You can follow this LINK to pay your estimated taxes online via King Tax Services website. Click the link and go to the bottom of the page for due dates, Federal and State links to pay. Make sure you are applying the amount to the correct tax year! If you pay by ACH transfer from your checking account there will not be a transaction fee assessed.
Published: June 18, 2022, by King Tax Services.
Get Ready for Taxes: Important things to know about tax credits
WASHINGTON – With the tax filing season quickly approaching, the Internal Revenue Service recommends taxpayers take time now to determine if they are eligible for important tax credits.
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for working people with low to moderate incomes who meet certain eligibility requirements. Because it's a refundable credit, those who qualify and claim EITC pay less federal tax, pay no tax or may even get a tax refund. EITC can mean a credit of up to $6,557 for working families with three or more qualifying children. Workers without a qualifying child may be eligible for a credit up to $529.
To get the credit, people must have earned income and file a federal tax return — even if they don't owe any tax, or aren't otherwise required to file.
Child Tax Credit
Taxpayers can claim the Child Tax Credit if they have a qualifying child under the age of 17 and meet other qualifications. The maximum amount per qualifying child is $2,000. Up to $1,400 of that amount can be refundable for each qualifying child. So, like the EITC, the Child Tax Credit can give a taxpayer a refund even if they owe no tax.
The qualifying child must have a valid Social Security number issued before the due date of the tax return, including extensions. For tax year 2019, this means April 15, 2020.
The amount of the Child Tax Credit begins to reduce or phase out at $200,000 of modified adjusted gross income, or $400,000 for married couples filing jointly.
Credit for Other Dependents
This credit is available to taxpayers with dependents for whom they cannot claim the Child Tax Credit. These include dependent children who are age 17 or older at the end of 2019 or parents or other qualifying individuals supported by the taxpayer.
Education Credits
Two credits can help taxpayers paying higher education costs for themselves, a spouse or dependent. The American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) are available for the Education Credits. The AOTC is partly refundable.
To get either credit, the taxpayer or student usually must receive Form 1098-T, Tuition Statement, from the school attended.
For a complete checklist to help you be ready for your tax appointment, click HERE.
Interactive Tax Assistant
The IRS urges taxpayers to use the agency's Interactive Tax Assistant (ITA) to help determine if they can claim any of these credits. The ITA also provides answers to general questions on filing status, claiming dependents, filing requirements and other topics.
Published: November 2019 by King Tax Services.
Source: IRS.gov (Washington)
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for working people with low to moderate incomes who meet certain eligibility requirements. Because it's a refundable credit, those who qualify and claim EITC pay less federal tax, pay no tax or may even get a tax refund. EITC can mean a credit of up to $6,557 for working families with three or more qualifying children. Workers without a qualifying child may be eligible for a credit up to $529.
To get the credit, people must have earned income and file a federal tax return — even if they don't owe any tax, or aren't otherwise required to file.
Child Tax Credit
Taxpayers can claim the Child Tax Credit if they have a qualifying child under the age of 17 and meet other qualifications. The maximum amount per qualifying child is $2,000. Up to $1,400 of that amount can be refundable for each qualifying child. So, like the EITC, the Child Tax Credit can give a taxpayer a refund even if they owe no tax.
The qualifying child must have a valid Social Security number issued before the due date of the tax return, including extensions. For tax year 2019, this means April 15, 2020.
The amount of the Child Tax Credit begins to reduce or phase out at $200,000 of modified adjusted gross income, or $400,000 for married couples filing jointly.
Credit for Other Dependents
This credit is available to taxpayers with dependents for whom they cannot claim the Child Tax Credit. These include dependent children who are age 17 or older at the end of 2019 or parents or other qualifying individuals supported by the taxpayer.
Education Credits
Two credits can help taxpayers paying higher education costs for themselves, a spouse or dependent. The American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) are available for the Education Credits. The AOTC is partly refundable.
To get either credit, the taxpayer or student usually must receive Form 1098-T, Tuition Statement, from the school attended.
For a complete checklist to help you be ready for your tax appointment, click HERE.
Interactive Tax Assistant
The IRS urges taxpayers to use the agency's Interactive Tax Assistant (ITA) to help determine if they can claim any of these credits. The ITA also provides answers to general questions on filing status, claiming dependents, filing requirements and other topics.
Published: November 2019 by King Tax Services.
Source: IRS.gov (Washington)
IRS warns of new 'IRS' impersonation email scam; reminds taxpayers the IRS does not send unsolicited emails
WASHINGTON — The Internal Revenue Service and its Security Summit partners have warned taxpayers and tax professionals about a new IRS impersonation scam campaign spreading nationally on email. Remember: the IRS does not send unsolicited emails and never emails taxpayers about the status of refunds.
The IRS detected this new scam as taxpayers began notifying [email protected]about unsolicited emails from IRS imposters. The email subject line may vary, but recent examples use the phrase “Automatic Income Tax Reminder” or “Electronic Tax Return Reminder.”
The emails have links that show an IRS.gov-like website with details pretending to be about the taxpayer’s refund, electronic return or tax account. The emails contain a "temporary password" or "one-time password" to "access" the files to submit the refund. But when taxpayers try to access these, it turns out to be a malicious file.
“The IRS does not send emails about your tax refund or sensitive financial information,” said IRS Commissioner Chuck Rettig. “This latest scheme is yet another reminder that tax scams are a year-round business for thieves. We urge you to be on-guard at all times.”
This new scam uses dozens of compromised websites and web addresses that pose as IRS.gov, making it a challenge to shut down. By infecting computers with malware, these imposters may gain control of the taxpayer’s computer or secretly download software that tracks every keystroke, eventually giving them passwords to sensitive accounts, such as financial accounts.
The IRS, state tax agencies and the tax industry, which work together in the Security Summit effort, have made progress in their efforts to fight stolen identity refund fraud. But people remain vulnerable to scams by IRS imposters sending fake emails or harassing phone calls.
The IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. This includes requests for PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts.
The IRS also doesn’t call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes. Remember - the IRS will NOT call you, and will NOT email you. If you are concerned or have a tax question, you can contact the IRS at 1-800-829-1040.
Published: August 2019 by King Tax Services
Source: IRS.gov - (Washington)
The IRS detected this new scam as taxpayers began notifying [email protected]about unsolicited emails from IRS imposters. The email subject line may vary, but recent examples use the phrase “Automatic Income Tax Reminder” or “Electronic Tax Return Reminder.”
The emails have links that show an IRS.gov-like website with details pretending to be about the taxpayer’s refund, electronic return or tax account. The emails contain a "temporary password" or "one-time password" to "access" the files to submit the refund. But when taxpayers try to access these, it turns out to be a malicious file.
“The IRS does not send emails about your tax refund or sensitive financial information,” said IRS Commissioner Chuck Rettig. “This latest scheme is yet another reminder that tax scams are a year-round business for thieves. We urge you to be on-guard at all times.”
This new scam uses dozens of compromised websites and web addresses that pose as IRS.gov, making it a challenge to shut down. By infecting computers with malware, these imposters may gain control of the taxpayer’s computer or secretly download software that tracks every keystroke, eventually giving them passwords to sensitive accounts, such as financial accounts.
The IRS, state tax agencies and the tax industry, which work together in the Security Summit effort, have made progress in their efforts to fight stolen identity refund fraud. But people remain vulnerable to scams by IRS imposters sending fake emails or harassing phone calls.
The IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. This includes requests for PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts.
The IRS also doesn’t call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes. Remember - the IRS will NOT call you, and will NOT email you. If you are concerned or have a tax question, you can contact the IRS at 1-800-829-1040.
Published: August 2019 by King Tax Services
Source: IRS.gov - (Washington)
Eight Tax Benefits for Parents
Your children may help you qualify for valuable tax benefits, such as certain credits and deductions. If you are a parent, here are eight benefits you shouldn’t miss when filing taxes this year.
1. Dependents. In most cases, you can claim a child as a dependent even if your child was born anytime in 2012
2. Child Tax Credit. You may be able to claim the Child Tax Credit for each of your children that were under age 17 at the end of 2012. If you do not benefit from the full amount of the credit, you may be eligible for the Additional Child Tax Credit.
3. Child and Dependent Care Credit. You may be able to claim this credit if you paid someone to care for your child or children under age 13, so that you could work or look for work.
4. Earned Income Tax Credit. If you worked but earned less than $50,270 last year, you may qualify for EITC. If you have qualifying children, you may get up to $5,891 dollars extra back when you file a return and claim it.
5. Adoption Credit. You may be able to take a tax credit for certain expenses you incurred to adopt a child.
6. Higher education credits. If you paid higher education costs for yourself or another student who is an immediate family member, you may qualify for either the American Opportunity Credit or the Lifetime Learning Credit. Both credits may reduce the amount of tax you owe. If the American Opportunity Credit is more than the tax you owe, you could be eligible for a refund of up to $1,000.
7. Student loan interest. You may be able to deduct interest you paid on a qualified student loan, even if you do not itemize your deductions.
8. Self-employed health insurance deduction - If you were self-employed and paid for health insurance, you may be able to deduct premiums you paid to cover your child. It applies to children under age 27 at the end of the year, even if not your dependent.
1. Dependents. In most cases, you can claim a child as a dependent even if your child was born anytime in 2012
2. Child Tax Credit. You may be able to claim the Child Tax Credit for each of your children that were under age 17 at the end of 2012. If you do not benefit from the full amount of the credit, you may be eligible for the Additional Child Tax Credit.
3. Child and Dependent Care Credit. You may be able to claim this credit if you paid someone to care for your child or children under age 13, so that you could work or look for work.
4. Earned Income Tax Credit. If you worked but earned less than $50,270 last year, you may qualify for EITC. If you have qualifying children, you may get up to $5,891 dollars extra back when you file a return and claim it.
5. Adoption Credit. You may be able to take a tax credit for certain expenses you incurred to adopt a child.
6. Higher education credits. If you paid higher education costs for yourself or another student who is an immediate family member, you may qualify for either the American Opportunity Credit or the Lifetime Learning Credit. Both credits may reduce the amount of tax you owe. If the American Opportunity Credit is more than the tax you owe, you could be eligible for a refund of up to $1,000.
7. Student loan interest. You may be able to deduct interest you paid on a qualified student loan, even if you do not itemize your deductions.
8. Self-employed health insurance deduction - If you were self-employed and paid for health insurance, you may be able to deduct premiums you paid to cover your child. It applies to children under age 27 at the end of the year, even if not your dependent.