by Fresh Start Tax | Aug 6, 2013 | Tax Help
The IRS alerted taxpayers and the tax community it is experiencing high traffic on “Where’s My Refund?” as more tax returns come in.
The heavy volume of refund inquiries means that the IRS anticipates both “Where’s My Refund?” on IRS.gov and the refund feature on the IRS2go phone app will have limited availability during busier periods.
Due to the large number of inquiries and to avoid service disruptions, the IRS strongly urges taxpayers to only check on their refunds once a day.
IRS systems are only updated once a day, usually overnight, and the same information is available whether on the Internet, IRS2go smartphone app or on IRS toll-free lines.
While “Where’s My Refund?” is updated nightly, your account will not change that frequently.
The IRS is seeing a good start to the filing season, and tax refunds are being issued timely. Nine out of 10 taxpayers typically receive refunds in less than 21 days when they use e-file with direct deposit.
The IRS expects to see the number of tax returns — and related refund inquiries — steadily increase around the President’s Day holiday week.
Here are some tips to help taxpayers with their refund questions:
Have the right tax information ready before using any of the IRS refund tools.
This includes Social Security number, filing status and refund amount.
You don’t need to check “Where’s My Refund?” more than once a day as your information will not change.
Save some time: To avoid system delays, the best time to check on refunds is evening and weekends.
There is no need to call the IRS about your refund; the telephone service has the same information that is available on “Where’s My Refund?”.
by Fresh Start Tax | Aug 6, 2013 | Tax Help
Resident Alien Income – Tax Preparation Help, Tax Representation
A resident alien’s income is generally subject to tax in the same manner as a U.S. citizen.
If you are a resident alien, you must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on your U.S. tax return.
You must report these amounts whether from sources within or outside the United States.
Tax
Important – Resident aliens are generally taxed in the same way as U.S. citizens.
This means that their worldwide income is subject to U.S. tax and must be reported on their U.S. tax return.
Income of resident aliens is subject to the graduated tax rates that apply to U.S. citizens. Resident aliens use the Tax Table and Tax Rate Schedules which apply to U.S. citizens found in the instructions for Forms 1040 (PDF), 1040A (PDF), or 1040EZ (PDF).
Filing Status
Resident aliens can use the same filing statuses available to U.S. citizens.
You can claim the same deductions allowed to U.S. citizens if you are a resident alien for the entire tax year.
You should get Form 1040 and its instructions for more information on how to claim your allowable deductions.
Claiming Exemptions
- You can claim personal exemptions and exemptions for dependents according to the dependency rules for U.S. citizens.
- You can claim an exemption for your spouse on a Married Filing Separate return if your spouse had no gross income for U.S. tax purposes and was not the dependent of another taxpayer.
- You can claim this exemption even if your spouse has not been a resident alien for a full tax year or is an alien who has not come to the United States.
- You can claim an exemption for each person who qualifies as a dependent according to the rules for U.S. citizens. The dependent must be a citizen or national of the United States or be a resident of the United States, Canada, or Mexico for some part of the calendar year in which your tax year begin.
BEWARE : Your spouse and each dependent must have either a Social Security Number or an Individual Taxpayer Identification Number in order to be claimed as an exemption or a dependent.
Tax Deductions
Resident aliens can claim the same itemized deductions as U.S. citizens, using Schedule A of Form 1040. These deductions include certain medical and dental expenses, state and local income taxes, real estate taxes, interest you paid on a home mortgage, charitable contributions, casualty and theft losses, and miscellaneous deductions.
If you do not itemize your deductions, you can claim the standard deduction for your particular filing status. For further information, see Form 1040 and its instructions.
Tax Credits
Resident aliens generally claim tax credits and report tax payments, including withholding, using the same rules that apply to U.S. citizens.
The following items are some of the credits you may be able to claim:
- child and dependent care credit,
- credit for the elderly and disabled,
- child tax credit,
- education credits,
- foreign tax credit,
- earned income credit, and
- adoption credit.
Forms and Due Dates
Resident aliens should file Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents (PDF), Form 1040A, U.S. Individual Income Tax Return (PDF) or Form 1040, U.S. Individual Income Tax Return (PDF) at the address shown in the instructions for those forms.
Due DATES
The due date for filing the return and paying any tax due is April 15 of the year following the year for which you are filing a return.
You are allowed an automatic extension to June 15 to file if your main place of business and the home you live in are outside the United States and Puerto Rico on April 15.
You can get an automatic extension of time to file until October15 by filing Form 4868 (PDF) on or before April 15 (June 15 if you qualify for the June 15 extension). See the instructions for the form you are filing for more information.
If you are a resident alien and have questions about your income or your filing status call us today and we can offer free tax advice to you.
We can prepare your tax return and provide competent and expert tax representation help.
Resident Alien Income – Tax Preparation Help, Tax Representation
by Fresh Start Tax | Aug 6, 2013 | Tax Help
Very few taxpayers are aware that IRS offers fast-track mediation for those who want to get their tax audit behind them. The truth be told fast track mediation is known mostly in the professional community and the professional ranks.
The IRS has set this IRS audit help fast-track mediation to help taxpayers deal with their tax audit issues.
What is unique about this program is that it provides an independent appeals review of the dispute in an environment where all parties get to voice their differences in a dispute resolution forum.
This process is not binding, it just allows for a third-party to hear both sides and make recommendations.
Most tax professional to use this IRS audit help technique, Fast Track Mediation to understand the IRS position. This technique can be used to evaluate both your position and the position of the Internal Revenue Service because as a general rule all cards are laid at the table. Also for those taxpayers that may move forward to tax court it is easier to evaluate the hazards of litigation.
Should you have any questions regarding this process or how it can help you contact us today for a free initial tax consultation
Here’s how the process works
The joint Large Business and International (LB&I) Division/Appeals Fast Track Settlement program (FTS) offers a customer-driven approach to resolving tax disputes at the earliest possible stage in the examination process.
This program is designed to:
- Provide an independent Appeals review of the dispute in an environment where all parties to the dispute have a “voice” in the dispute resolution process,
- Utilize the mediation skills and delegated settlement authority of Appeals, and
- Reduce the length of a taxpayer’s overall IRS experience.
Applying
Applying for Fast Track Settlement is quick and easy – simply complete a one-page application. A formal written protest is not required.
Once the case is accepted into the FTS program, an Appeals official will serve as a facilitator to arrive at and execute a resolution or settlement that is mutually agreeable to all parties.
The form 14017 is used for FTM. It can be found on our website.
IRS Tax Audit Help – Try Fast Track Mediation, it can really HELP YOU
by Fresh Start Tax | Aug 5, 2013 | Tax Help
Question: How do I know if I have to file quarterly individual estimated tax payments?
Answer:
You must make estimated tax payments for the current tax year if both of the following apply:
- You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- You expect your withholding and credits to be less than the smaller of:
- 90% of the tax to be shown on your current year’s tax return, or
- 100% of the tax shown on your prior year’s tax return. Your prior year tax return must cover all 12 months.
There are special rules for:
1. Higher income taxpayers,
2. Farmers and fishermen,
3. Nonresident aliens,
4. Estates and trusts,
Contact us today to learn more if you fall in one of the special rule categories.
When To Pay Estimated Tax
For estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date.
If you do not pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return.
If a payment is mailed, the date of the U.S. postmark is considered the date of payment. The payment periods and due dates for estimated tax payments are shown next.
For exceptions to the dates listed, see Saturday, Sunday, holiday rule below.
For the period: Due date:
Jan. 11 – March 31 April 15
April 1 – May 31 June 15
June 1 – August 31 September 15
Sept. 1 – Dec. 31 January 15
next year 2
Estimate Tax Payments – When and Who – What you need to KNOW
by Fresh Start Tax | Aug 5, 2013 | Tax Help
A question that we get all the time is the following:
I retired last year, and started receiving social security payments. Do I have to pay taxes on my social security benefits?
Answer:
Social security benefits include monthly retirement, survivor, and disability benefits.
They do not include supplemental security income (SSI) payments, which are not taxable. The amount of social security benefits that must be included on your income tax return and used to calculate your income tax liability depends on the total amount of your income and benefits for the taxable year.
To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of:
One-half of your benefits.
All of your other income, including tax-exempt interest.
The base amount for your filing status is shown next:
- $25,000 if you are single, head of household, or qualifying widow(er),
- $25,000 if you are married filing separately and lived apart from your spouse for the entire year,
- $32,000 if you are married filing jointly.
- $-0- if you are married filing separately and live with your spouse at any time during the tax year.
If you are married and file a joint return, you and your spouse must combine your incomes and social security benefits when figuring the taxable portion of your benefits.
Even if your spouse did not receive any benefits, you must add your spouse’s income to yours when figuring if any of your benefits are taxable, if you file a joint return.
The taxable amount of the benefits can be figured on a worksheet in the Instructions for Form 1040 or Instructions for Form 1040A, or in Publication 915, Social Security and Equivalent Railroad Retirement Benefits.
Social Security Benefits, Do you pay TAX on Benefits – MAYBE
