As tax time fast approaches you may have realized that your tax withholding was either too much or not enough. What are the best ways to assure this number is correct for future years? Visit irs.gov/witholding to learn more or watch this short video to get started.
Tag: IRS
IRS Free File
The IRS is again partnering with Free File to offer millions of taxpayers online access to file their taxes at no cost. Want to know if you qualify and how to use this service? Visit IRS.gov/freefile and follow these instructions, listed on the IRS Website.
To find the right IRS Free File product, taxpayers can:
- Go to IRS.gov/freefile,
- Click on Explore Free Guided Tax Software button. Then select the Find Your Trusted Partner tool for help in finding the right product, or
- Use the Browse All Trusted Partners tool to review each offer,
- Select the desired product , and
- Follow the links to the trusted partner’s website to begin their tax return.
Safe Donations
The convenience of online donations makes it simple to give, but also opens the door to criminals hoping to make money using bogus charities. The IRS Newswire recommends using the TEOS to check the legitimacy of any charity you are considering.
From the October, 2023 edition, “Those who wish to make donations should use the Tax-Exempt Organization Search (TEOS) tool on IRS.gov to help find or verify qualified, legitimate charities.
With the TEOS, people can:
- Verify the legitimacy of a charity
- Check its eligibility to receive tax-deductible charitable contributions
- Search for information about an organization’s tax-exempt status and filings”
Sharing your wealth is a great practice, just make sure you are working with reputable groups who are using the money to help those in need.
Unannounced IRS Visits
The IRS announced in July of 2023 that they would suspend all unannounced visits to taxpayer’s homes and places of business. This decision was made as part of the new IRS Strategic Operating Plan. IRS Commissioner Danny Werfel was quoted about this change, “We are taking a fresh look at how the IRS operates to better serve taxpayers and the nation, and making this change is a common-sense step,” Werfel said. “Changing this long-standing procedure will increase confidence in our tax administration work and improve overall safety for taxpayers and IRS employees.” Read more about this update HERE.
IRS Offers Extra Level of Security with IP PIN
The IRS is offering consumers another way to help protect themselves against fraudulent tax claims and those hoping to steal refund checks. With the IP PIN program, taxpayers may apply for a special code to add second level security to their account. The IP PIN is available to anyone with a SSN or an ITIN (Individual Taxpayer Identification Number). To apply, complete the process below:
The IP PIN process
Here’s how the IP PIN process works:
- Taxpayers wanting to get an IP PIN should go to IRS.gov/ippin.
- Once an individual creates an account and completes the prompted steps the IP PIN will be revealed to them.
- Taxpayers should keep in mind that the IP PIN is only valid for one calendar year. Participating taxpayers must acquire a newly generated IP PIN each January.
Read the full article here: National Tax Security Awareness Week, Day 3: IRS Identity Protection PIN can help avoid fraud and tax-related identity theft
Art Deductions
A new scam aimed at art collectors promises tax deductions and discounted art prices along with special services provided by the dealer. Collectors should beware of aggressive promotions that seem too-good-to-be-true where tax deductions are involved. The IRS has multiple, current investigations involving these high dollar art sales businesses. Read more about claiming donated assets here: Publication 561, Determining the Value of Donated Propertyhttps://www.irs.gov/pub/irs-pdf/p561.pdf#_blank
Gig Economy Tax Questions?
Many who have jobs as part of the gig economy do not realize that all the money they earn is taxable. Even without the official tax forms issued to them. Want to know more and better understand how your side-hustles or part time work, paid in any way, are taxable? Visit the IRS Gig Economy Tax Center and find answers to all of your tax related questions.
Small Business Owner, Have Tax Questions?
Are you a small business owner with tax questions? The IRS offers a great resource to answer all of your inquires and help take the confusion out of starting a business, filing your taxes, adding employees, and much more. They even offer webinars on a variety of business related topics. Check it out today here: Small Business and Self-Employed Tax Center
Gig Economy Tax Need to Know
What is the definition of gig economy work?
“The term “gig” is a slang word for a job that lasts a specified period of time.” Even though your income is from many smaller jobs, this work is taxable and you should be aware of what you owe at tax time. For more information, reference this article from the IRS website, Gig Economy Tax Center.
Tax Planning Year Round
In this blog post, the IRS recommends ways to keep up with your taxes throughout the year so that when tax time approaches you’ll be prepared and not stressed. A few of the suggestions include, organizing tax records, adjusting check withholding, and saving for retirement. Read more here and start planning for next year’s tax season today. Tax planning doesn’t stop after a taxpayer files a tax return