Tag: tax refund

Posts Tagged ‘tax refund’

FAQ for Child Tax Credit and Other Tips on Tax Filing

Posted by admin on June 16, 2022
Last modified: June 16, 2022

Each year, you are required to file a Federal Income Tax Return for the prior calendar year on or before Tax Day. Whether you are required to file certain tax will depend on a number of factors, including your total income, filing status, age, child tax credit and whether or not you are dependent on another person’s federal income tax return. We’ve prepared a list of answers for commonly asked questions. PriorTax is the best place for easy and simple filing with our e-filing available with the help of our tax experts always standing by to assist you on the other line.

Who can you claim as a dependent and how to claim child tax credit on your taxes? 

If they meet certain criteria, you may be able to claim a dependent on your taxes for child tax credit. This might include a family member, a foster child, or an adopted child. Generally, the dependent must be a United States citizen, resident, or national. They must also be single or married, filing separately. Additionally, you must be the only one claiming for them for the child tax credit on your return.

In general, you will not have to file a tax return unless you earn income from sources inside the U.S. For the U.S., you typically do not have to file a return if you make less than $12,000 a year unless you paid a portion of the state’s income taxes upfront and wish to claim the refund.

Yes, the Federal Government requires every NRA that earns U.S.-source income to file U.S. tax returns, no matter how much revenue is earned or how much liability there is. Any income is taxable unless the law specifically exempts it, and any taxable income must be reported on the tax return. When you itemize, you reduce taxable income by the cost of certain expenses deductible under U.S. tax law. Tax credits reduce tax liabilities by one factor, and tax deductions lower your taxable income.

To get more taxes taken out over the course of a year so that you owe less when you file, you may want to lower your exemption. In addition, you can deduct interest on your student loans, as long as you fit specific income criteria, along with interest on a home mortgage, state and local taxes, and others.

Again when claiming Child Tax Credit on on your taxes, dependents are typically family members, but could also include foster children or adopted children. To claim someone as a dependent for child tax credit, they must be a United States citizen, resident, or national. You must also be the only one claiming them on your return.

child tax credit
child tax credit

Besides about Child Tax Credit.. If you’re wondering which tax form to use, read on for a brief guide.

Depending on your situation, you may need to file IRS Form 1040, Schedule C, Schedule B, or Schedule SE.

Form 1040 is individuals’ standard income tax form to report their income and expenses. You’ll need to use Schedule C to report your business income and expenses if you’re a freelancer, contractor, or self-employed person. Meanwhile, Schedule B is used to report interest and dividends of $1,500 or more; any amount less than $1,500 can be reported on Form 1040. Finally, if you pay self-employment taxes, you’ll need to fill out Schedule SE in order to calculate how much tax you owe.

What is a 1099? 

1099 forms are used to report income from sources other than employment. This includes income from self-employment, interest, dividends, rents, royalties, and other miscellaneous sources. You will receive a 1099 statement in the mail, just as a W-2 form for employment income.

How does Short-term disability benefits work?

Short-term disability benefits are taxable and subject to earned income, Social Security, and Medicare taxes. Amounts of commuter benefits A commuter benefit is not subject to income, Social Security, Medicare, state, and city taxes. Pension contributions are not subject to federal income taxes but state, city, Social Security, and Medicare taxes.

How to File Taxes on Earned Income such as W-2

Earned income, such as your wages, is taxed differently since you pay Social Security taxes, Medicare taxes, and state and federal income taxes on earned income. You file federal, state, and city income taxes on the lowest wage amount reported on your W-2, which is shown in boxes 1, 16, and 18. As an example, the New York state income tax instructions instruct an income tax payer to report wages as they appear on their W-2 in Box 1 and then add the amounts together to come up with their taxable wage amount for the New York State/City.

If you are an employee and receive wages subject to U.S. income tax withholding, you must usually file on or before the 15th day of the 4th month following the tax year. A real estate owner or the owner’s authorized agent must file necessary applications before May 1 of the tax year. State law automatically places a tax lien on all taxed properties on January 1 each year to assure payment of taxes.

How Do I Report Taxes on Tip Income for my Tax Return?

Posted by admin on June 9, 2022
Last modified: June 16, 2022

If you are a server, barista, or another staff member making tips, you need to know how these tips will factor into your taxes. In short, you report and pay taxes on tip just like you report and pay taxes on the rest of your income from your W-2 job. Your employer will use your monthly reports to determine how much money your employer needs to take from your paycheck to cover the payroll taxes and fees for tips. Estimate your return with our powerful tax calculator for current year or prior year taxes on tip.

So, do I have to report my tips?

As a worker in the food and beverage industry, you may be wondering if you need to report your tips to the IRS. The answer is yes – the IRS assumes that you will earn tips at an average of 8%. If you regularly report tips under this amount or don’t report any tips, the IRS may investigate.

So what exactly should you include taxes on tip income for your taxes

Tips are usually paid through credit/debit card or with cash, but there are other ways to receive a gratuity. Sometimes people who know you well might leave other perks as a tip.

These can include:

-Gift cards

-Free meals or drinks

-Tickets to events

If you receive any of these non-cash items as a tip, make sure to keep track of their fair market value so you can properly report them come tax time.

How do I report my taxes on tip to the employer and to the IRS?

Are you a server who needs to know how to report your tips? You’ve come to the right place. Keep reading to find out everything you need to know about reporting your tips to your employer and the IRS.

First, let’s start with reporting tips to your employer. You can use Form 4070A to keep a record of your tips as you earn them. Then, use Form 4070 to report them to your employer by the 10th day of the following month. So, if you earned tips in January, you would need to turn in your Form 4070 by February 10th.

Your employer will report your numbers to the IRS, and it will withhold money from your salary to cover tips. Reporting tips to your employer helps your employer keep enough money in your wages to cover taxes on tip. You must withhold income and FICA taxes on tip and taxes on every paycheck, and you must report every employee’s tip to the IRS. If you are not earning enough from wages and tips, your employer pays you directly to cover the taxes that were withheld; your W-2 shows you how much you owe.

Now let’s talk about reporting taxes on tip to the IRS.

If you make less than $20 in tips in a month, you can report them directly to the IRS using Form 4137. But if you earn tips from more than one job, you’ll need to treat each one separately. That is, you won’t add up your tips from different jobs – you will report your gratuity for each job individually.

At the end of every shift, your employer will give you a W-2 form reflecting the wages you earned and tips that you reported; one copy goes to the IRS. The IRS requires that you report the total monthly tips you make to your employer before the 10th of the following month. While the IRS requires that tipping employees file tip reports once per month, you need a report every paycheck period, or else you cannot properly report your employees’ total wages or keep proper taxes on file (and pay your share of the FICA taxes). In addition, employers are required to pay their employers’ share of Social Security and Medicare taxes, which are based on total wages paid to tipped employees and reported tips revenue.

All cash tips received by employees during a given calendar month are subject to the social security and Medicare taxes and must be reported to the employer. All tips, including cash, collected tips, your share of the tip pool, and non-cash items such as tickets and passes, are considered income and are subject to income, Social Security, and Medicare taxes. Therefore, when you accept non-cash tips, like tickets, collectibles, passes, or other items with value, the non-cash tips must be reported as income. These are not required to be reported as cash tips, but you are still responsible for reporting the non-cash tips to IRS as their fair market value.

taxes on tip
taxes on tip

When you accept a good for a tip, you must report that item’s fair market value as income. You do not have to report any non-cash tips, like passes or tickets, but you must report the cash value of the non-cash tips on your taxes on tip return. Tips that add up to less than $20 per month do not have to be reported to the employer, but they do have to be included with your wages on your tax return. If the total tips received by an employee in a single calendar month from a single employer are less than $20, those tips are not required to be reported, and no taxes are required to be withheld.

If you receive more than $20 of tips, both in cash and not cash, in any one month, you must report all tips you make for that month to your employer. If you earn cash tips during your work, you are required by the Internal Revenue Service to report them, whether you received them from a customer, another employee, your employer, or a pooled cash tip. Servers who receive tips as part of their jobs are required to report the totals to their employers and the IRS on their annual income tax returns. In addition, once a month, all employees who receive tips are required to provide the employer with a summary of their tip revenue on Form 4070, Employees Tips Report to Employer.

The employer has several obligations regarding the employees’ tips income, including responsibility for record keeping and reporting, collecting taxes on tip, filing specific forms, and paying or depositing taxes. The employer is required to only keep as much as the employer is allowed to collect on income taxes, any time up until the end of the year, and only when employee Social Security taxes, Medicare taxes, and any additional Medicare taxes collected from tips are deducted first and fully by those sources. The employee must use Form 4137, “Social Security and Medicare Taxes on Unreported Tips Income,” to report the amount of any unreported tips income to be included as an additional wage payment on his or her Form 1040 or Form 1040-SRR, the United States. The amount taken out of your paycheck is based on your total wages, plus any tips income you report, even if you received tips directly from customers as cash.

Because the customer does not opt into the extra charge or select a dollar amount, it is not considered tipped income and thus is not reported by you, as an employee, to your employer. However, if your income is mostly made up of tips, like in a food services job, you might have a right to extra tips income, which your employer would report to the W-2.

You should include:

– All cash tips that you get directly from customers.

– Tips added on credit cards.

– Your share of any tips you get through a tips-splitting arrangement with your co-workers as part of your total income.

Tips are typically reported on your Form W-2 if you primarily receive paychecks as a waiter, customer-service worker, or another occupation that regularly receives tips.

Your employer typically tracks all of the tips you collect, but you should add these to a daily tips journal to ensure that all of your tips are reported. The point is that restaurant employees must report and pay taxes on tip and all of their wages, including tips. An employer that operates a primary food or beverage establishment is required to file Form 8027, Annual Report on Employers Reports of Tip Income and Allocated Tips, to make annual reports to the Internal Revenue Service regarding the income they receive for food and beverages, as well as tips that employees report back to their employers. The employer reports to the Internal Revenue Service the difference between tips and an 8% fee allocated to its employees.

Finally, it’s important to remember that all tips should be included in your taxable income, regardless of who you report them.

We hope this article helped understand how to report your tips. Happy serving!

File My 2019 Taxes Electronically

Posted by admin on November 9, 2021
Last modified: November 16, 2021

Did you know that the income threshold is different if you are self-employed? You needed to file your 2019 taxes if you had at least $400 of net earnings from self-employment. You can still file your 2019 taxes if this applies to you and you did not fulfill your filing requirements in 2020.

If You are Expecting a Tax Refund

If you are expecting a tax refund, you have three years to file your prior year’s taxes. That means that April 15, 2023 is the deadline to submit your 2019 tax return and claim your 2019 tax refund.

After that date, the amount the IRS owes you is retained by the government and goes to the U.S. Treasury. After that date, you will also be unable to apply any excess tax paid toward another tax year where you owe income tax.

You may also be owed money by the IRS even if you earned less than the minimum gross income and weren’t required to file your 2019 taxes. Your employer may have withheld income tax for you throughout 2019 that you can claim back. 

You aren’t able to get any of your money owed back until you file. So, if you haven’t yet filed your 2019 taxes you should file as soon as possible to get your money as soon as possible.

file my 2019 taxes electronically
file my 2019 taxes electronically

If You Owe Taxes

If you owe taxes, it will often be a good idea to file your prior year’s taxes, even if you are not currently able to pay your unpaid tax bill in full. Although you can face tax penalties filing your 2019 taxes after the deadline, you can reduce these the earlier you file.

The IRS has both late filing and late payment penalties. However, the late filing penalty will usually work to be more expensive than the late payment penalty. This is why you can generally benefit from filing even if you are unable to pay your full unpaid tax bill.

This advice remains true even if you owe a significant amount to the IRS but cannot pay your full tax bill for 2019. After filing your 2019 taxes, you can then benefit from working out a tax payment plan with the IRS. This has a few benefits:

  • By filing your 2019 tax return, you can put a stop to the more considerable late filing penalties. Remember that letting IRS late filing penalties will usually end up being much more costly than the equivalent late payment penalties.
  • Contacting the IRS to be put on a payment plan means that you can pay off your tax bill according to what you are able to afford.
  • A payment plan in place to pay your outstanding tax bill means that you can avoid more severe forms of collection enforcement for that bill.

And, can I still file my 2019 taxes electronically?

No. Unfortunately, you cannot still file your 2019 taxes electronically. The deadline to file your 2019 taxes electronically was October 15, 2020. However, there are options available so that you can put together the paperwork for your 2019 taxes electronically. Once the documents for your 2019 tax return are completed, you can print and mail them to the IRS and/or the relevant state tax agencies.

Free tax transcripts from the IRS are available for the current tax year at RapidTax.com and the past three years at PriorTax.com, so, you have until 2023 to request a free tax transcript for the 2019 tax year. 

PriorTax.com can help you file your prior tax returns and answer any questions you may have during the process. We can review and prep your documents for you to download, print, sign, and mail off.

Is your 2020 tax refund still processing with the IRS?

Posted by Manisha Hansraj on June 10, 2021
Last modified: June 10, 2021
tax refund delay 2021

Like many taxpayers, your tax refund may be delayed.

The COVID-19 pandemic hit the world by storm. From stimulus payments, tax changes and extending the tax deadline, your refund may be taking longer than expected.

If you noticed that your tax refund is stuck on the “processing” status when checking the IRS Where’s My Refund Tool, you may need to allow some more time for the IRS to disburse your refund. Instead of taxpayers receiving their tax refund within two to three weeks, taxpayers are waiting from six to eight weeks to get their refund.

Here’s why your refund may still be delayed with the IRS.

Recovery Rebate Credit

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When does the additional $300 unemployment benefit begin?

Posted by Manisha Hansraj on August 25, 2020
Last modified: August 25, 2020
$300 unemployment benefit

Jobless Americans are worrying about their unemployment benefits.

Since the extra $600 weekly benefit disappeared, their income is significantly less. Those who are out of work depend on their unemployment income to pay their bills.

Recently, President Donald Trump issued a measure for $400 per week to aid Americans.

However, instead, it’s an additional $300 unemployment benefit. States should provide the extra $100, but it’s up to them to distribute this.

Eligibility

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10 Reasons to File Your Prior Year Tax Return Now

Posted by Manisha Hansraj on December 3, 2019
Last modified: December 5, 2019
prior year tax return

It’s not too late to file your taxes.

Life is never put on hold, even for tax season. Before you know it, the April and even October deadline fly right by. Then, you forget to file it next tax season and then the season after that.

However, although the deadlines go by, you should still file your prior year tax return. Here are some reasons why.

1. You’re getting a refund

One of the most important things to remember is that the IRS does not wait for anyone. According to the IRS, you have a three-year statute of limitations for refunds; meaning you can only claim tax refunds going back three tax years within the original April due date.

For example, if you want to claim a 2016 tax refund, your last chance to claim it is April 15, 2020. This means you must file by that date to get your refund. Therefore, any tax years going back from 2016 cannot be claimed.

Check out our helpful tax calculators to determine your refund for relevant tax years.

2. The IRS can hold your current year refund

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Did You Miss The 2018 Tax Deadline?

Posted by Manisha Hansraj on October 14, 2019
Last modified: October 23, 2019
missed 2018 tax deadline

Time waits for no one, especially the tax season.

With the year ending soon, another tax season is on the way. If you’re stuck trying to figure out what the next steps are for the missed 2018 tax deadline, keep reading.

Can you still e-file your 2018 tax return?

Although April 15, 2019, was the original tax deadline, you can still e-file your tax return until October 15, 2019. After this date, you will be required to paper-file your tax return. This means that you must to print, sign, and mail your tax return to the IRS and your state department of revenue.

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How to File Your 2017 Taxes

Posted by Manisha Hansraj on May 31, 2019
Last modified: July 27, 2020

2017 taxes

Did you miss the tax deadline for your 2017 taxes?

Although you’re late, you can still file your late 2017 taxes. However, you won’t be able to e-file your tax return.

Dates to remember

The 2018 tax season ran from January 29, 2018, to October 15, 2018. The official tax deadline was April 17, 2018, due to April 15 falling on a weekend and Emancipation Day following after. The e-file and extension deadline was October 15, 2018; therefore, you are now required to mail your return to the IRS.

Can I still claim a refund?

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April 15, 2020 is the Last Chance to Claim Your 2016 Refund!

Posted by Manisha Hansraj on May 6, 2019
Last modified: May 9, 2019

2016 refund

Set an alarm on your phone, write on your notepad or put an “x” on your calendar.

Like most taxpayers, you may be rushing to claim your prior year refunds. If you remember that you have a 2016 refund waiting for you, you’re not too late.

Read below to find out if you can still claim your refund.

Can I still claim my refund?

Luckily, because of the IRS Statute of Limitations for prior year refunds. You have three years from the original tax deadline of your return to claim your refund. Otherwise, your refund expires and goes straight to the IRS. That being said, the original tax deadline for 2016 taxes was April 18, 2017, due to April 15th falling on the weekend and Emancipation Day right after.

Deadline to claim your refund

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Tax Deadlines for the 2019 Tax Season!

Posted by Manisha Hansraj on April 12, 2019
Last modified: April 12, 2019

2019 tax deadlines

Important upcoming deadlines you need to know.

Tax season is a stressful time for some taxpayers. However, knowing each tax deadline will give you a heads up so you know how to stay on top of your game.

For all the 2019 tax deadlines that are left, take a look at the list of due dates below.

April 15, 2019

  • Individual Income Taxes deadline
  • Last day to file and pay if you owe taxes to the IRS without accumulating penalties
  • Final day to file a tax extension to the IRS
  • First Estimated Quarterly Tax Payment due
  • Sole proprietor, LLC, and corporation taxes due
  • IRA contribution deadline
  • Last day to postmark, paper-file and claim your 2015 refund

April 17, 2019

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