Category: INDIVIDUALS

February 13th, 2020 by Oscar

Es una buena idea que las personas averigüen si deben presentar la declaración con la deducción estándar o detallar sus deducciones. Las deducciones reducen la cantidad de ingresos sujetos a impuestos al presentar una declaración de impuestos federales. En otras palabras, pueden reducir la cantidad de impuestos que adeudan.

Las personas deben entender que tienen la opción de tomar una deducción estándar o detallar sus deducciones. Los contribuyentes pueden usar el método que les permite pagar menos impuestos. De acuerdo a los cambios de la ley tributaria en los últimos dos años, es posible que las personas que detallaron en el pasado no tengan que continuar haciéndolo, por lo que es importante que todos los contribuyentes analicen cual de las dos deducciones les beneficia más.

Aquí hay algunos detalles acerca de los dos métodos para ayudar a las personas a entender cuál de ellos deben usar:

Deducción estándar

El monto de la deducción estándar se ajusta cada año y puede variar según el estado civil. El monto de la deducción estándar depende del estado civil del contribuyente, si son mayores de 65 años o ciegos, y si otro contribuyente puede reclamarlos como dependientes. Los contribuyentes que tienen 65 años o más el último día del año y no detallan las deducciones tienen derecho a una deducción estándar más alta.

La mayoría de los contribuyentes que usan el Formulario 1040 o el Formulario 1040-SR, Declaración de Impuestos de los Estados Unidos para personas mayores, pueden encontrar en la primera página su deducción estándar.

Los contribuyentes que no pueden usar la deducción estándar incluyen:

  1. Una persona casada que presenta una declaración como casada que presenta una declaración por separadcuyo cónyuge detalla las deducciones.
  2. Una persona que presenta una declaración de impuestos por un período de menos de 12 meses. Esto podría deberse a un cambio en su período contable annual.
  3. Una persona que fue un extranjero no residente con doble estatus durante el año. Sin embargo, los extranjeros no residentes que están casados ​​con un ciudadano estadounidense o extranjero residente pueden tomar la deducción estándar en ciertas situaciones.

Deducciones detalladas

Los contribuyentes tendrían que detallar las deducciones porque no pueden usar la deducción estándar. También pueden detallar las deducciones cuando esta cantidad es mayor que su deducción estándar.

Los contribuyentes que detallan el Anexo A, Formulario 1040, Deducciones detalladas o el Formulario 1040-SR, Declaración de Impuestos de los EE. UU. para personas mayores.

Un contribuyente puede beneficiarse al detallar deducciones por cosas que incluyen:

  1. Impuestos estatales y locales sobre ingresos o las ventas
  2. Impuestos de bienes raices y bienes personales
  3. Intereses hipotecarios
  4. Primas de seguro hipotecario
  5. Pérdidas fortuitas y robo de un desastre declarado a nivel federal
  6. Donativos a una organización benéfica calificada
  7. Gastos médicos y dentales no reembolsados ​​que exceden el 7.5% del ingreso bruto ajustado

Las deducciones detalladas individuales pueden ser limitadas. Las instrucciones del Formulario 1040, del Anexo A pueden ayudar a determinar qué limites aplican.

Posted in INDIVIDUALS

February 6th, 2020 by Oscar

The Internal Revenue Service wants seniors to know about the availability of a new tax form, Form 1040-SR, featuring larger print and a standard deduction chart with a goal of making it easier for older Americans to read and use.

The Bipartisan Budget Act of 2018 required the IRS to create a tax form for seniors. Taxpayers age 65 or older now have the option to use Form 1040-SR, U.S. Tax Return for Seniors. Form 1040-SR, when printed, features larger font and better readability.

Taxpayers who electronically file Form 1040-SR may notice the change when they print their return. More than 90% of taxpayers now use tax software to prepare and file their tax return.

Taxpayers born before Jan. 2, 1955, have the option to file Form 1040-SR whether they are working, not working or retired. The form allows income reporting from other sources common to seniors such as investment income, Social Security and distributions from qualified retirement plans, annuities or similar deferred-payment arrangements.

Seniors can use Form 1040-SR to file their 2019 federal income tax return, which is due April 15, 2020. All lines and checkboxes on Form 1040-SR mirror the Form 1040, and both forms use all the same attached schedules and forms. The revised 2019 Instructions cover both Forms 1040 and 1040-SR.

Eligible taxpayers can use Form 1040-SR whether they plan to itemize or take the standard deduction. Taxpayers who itemize deductions can file Form 1040-SR and attach Schedule A, Itemized Deductions, when filing a paper return. For those taking the standard deduction, Form 1040-SR includes a chart listing the standard deduction amounts, making it easier to calculate. It also ensures seniors are aware of the increased standard deduction for taxpayers age 65 and older.

Married people filing a joint return can use the Form 1040-SR regardless of whether one or both spouses are age 65 or older or retired. 

Both the 1040 and the 1040-SR use the same “building block” approach introduced last year that can be supplemented with additional Schedules 1, 2 and 3 as needed. Many taxpayers with basic tax situations can file Form 1040 or 1040-SR with no additional schedules.

Posted in INDIVIDUALS

January 30th, 2020 by Oscar

Some businesses and other payers take out backup withholding from payments they make to certain people. These entities should remember their upcoming filing deadlines.

Description of backup withholding
The person or business paying the taxpayer doesn’t generally withhold taxes from certain payments. They don’t do this because it’s assumed the taxpayer will report and pay taxes on this income when they file their federal tax return. There are, however, situations when the payer is required to withhold a certain percentage of tax to make sure the IRS receives the tax due on this income. This is what’s known as backup withholding. If a payer does backup withholding, they are required to deposit that withholding on those payments with the IRS.

Form 945, Annual Return of Withheld Federal Income Tax
Businesses and other payers must report backup withholding and any other federal income tax withheld from nonpayroll payments on Form 945. The deadline for filing Form 945 for tax year 2019 is Friday, January 31, 2020. However, if the payer made deposits on time and in full, the deadline is Monday, February 10, 2020.  

Information Returns
The information returns listed below are used to report backup withholding for tax year 2019. They’re generally due to the IRS on Friday, February 28, 2020, for paper filers and Tuesday, March 31, 2020, for electronic filers. 

These information returns are 
Form 1099-B, Proceeds from Broker and Barter Exchange Transactions.
Form 1099-DIV, Dividends and Distributions
Form 1099-G, Certain Government Payment
Form 1099-INT, Interest Income
Form 1099-K, Payment Card and Third-Party Network Transactions
Form 1099-MISC, Miscellaneous Income
Form 1099-OID, Original Issue Discount
Form 1099-PATR, Taxable Distributions Received from Cooperatives
Form W-2G, Certain Gambling Winnings

1099-MISC and nonemployee compensation
There’s a different filing due date for Form 1099-MISC when reporting nonemployee compensation. When this form is used to report this in box 7 of the 1099-MISC, it’s due to the IRS by January 31. This due date applies whether the payer is submitting the form on paper or electronically.

Because of this, it’s important for people to remember a Form 1099-MISC has two possible due dates when filed electronically:

Friday, January 31 to report nonemployee compensation payments
Tuesday, March 31 to report all other payments

When filing 1099-MISC, the payer should separate the transmission of nonemployee compensation from other payments.

Information return filing extensions
A payer can request a 30-day extension to file any of the information returns listed above by filing Form 8809, Application for Extension of Time to File Information Returns. An extension is usually granted automatically.

However, the IRS does not automatically grant an extension for someone filing Form 1099-MISC reporting nonemployee compensation payments. Payers who need a 30-day extension to file this form must meet one of the criteria listed on line 7 of Form 8809.

Posted in INDIVIDUALS, NEWS, SMALL BUSINESSES

January 23rd, 2020 by Oscar

Taxpayers who work in the gig economy need to understand how their work affects their taxes. A little pre-planning can help make sure gig economy workers are prepared when it’s time to file their tax return.

First things first, here’s a quick overview of the gig economy:

The gig economy is also referred to as the on-demand, sharing or access economy. People involved in the gig economy earn income as a freelancer, independent worker or employee. They use technology to provide goods or services. This includes things like renting out a home or spare bedroom and providing car rides.

Here are some things taxpayers should know about the gig economy and taxes:

  1. Money earned through this work is usually taxable.
  2. There are tax implications for both the company providing the platform and the individual performing the services.
  3. This income is usually taxable even if the taxpayer providing the service doesn’t receive an information return, like a Form 1099-MISC, Form 1099-K,  or Form W-2; the activity is only part-time or side work or the taxpayer is paid in cash.
  4. People working in the gig economy are generally required to pay income taxes; Federal Insurance Contribution Act or Self-employment Contribution Act tax and Additional Medicare taxes.
  5. Independent contractors may be able to deduct business expenses. These taxpayers should double check the rules around deducting expenses related to use of things like their car or house. They should remember to keep records of their business expenses.
  6. Special rules usually apply to rental property also used as a residence during the tax year. Taxpayers should remember that rental income is generally fully taxable.
  7. Workers who do not have taxes withheld from their pay have two ways to pay their taxes in advance. Here are these two options: (a) Gig economy workers who have another job where their employer withholds taxes from their paycheck can fill out and submit a new Form W-4. The employee does this to request that the other employer withholds additional taxes from their paycheck. This additional withholding can help cover the taxes owed from their gig economy work. (b) The gig economy worker can make quarterly estimated tax payments. They do this to pay their taxes and any self-employment taxes owed throughout the year.

Posted in INDIVIDUALS

January 16th, 2020 by Oscar

While many people are required to file a tax return, it’s a good idea for everyone to determine if they should file. Some people with low income are not required to file, but will need to do so if they can get a tax refund.

Here are five tips for taxpayers who are deciding whether to file a tax return:

Find out the general reasons to file
In most cases, income, filing status and age determine if a taxpayer must file a tax return. Other rules may apply if the taxpayer is self-employed or can be claimed as a dependent of someone else. There are other reasons when a taxpayer must file.

Look at tax withheld or paid
Here are a few questions for taxpayers to ask themselves:

  1. Did the taxpayer’s employer withhold federal income tax from their pay?
  2. Did the taxpayer make estimated tax payments?
  3. Did they overpay last year and have it applied to this year’s tax?

If the answer is “yes” to any of these questions, they could be due a refund. They must file a tax return to get their money.

Look into whether they can claim the earned income tax credit
A working taxpayer who earned less than $55,592 last year could receive the EITC as a tax refund. They must qualify and may do so with or without a qualifying child. Taxpayers need to file a tax return to claim the EITC.
 
Child tax credit or credit for other dependents
Taxpayers can claim the child tax credit if they have a qualifying child under the age of 17 and meet other qualifications. Other taxpayers may be eligible for the credit for other dependents. This includes people who have:

  1. Dependent children who are age 17 or older at the end of 2019
  2. Parents or other qualifying individuals they support

Education credits
There are two higher education credits that reduce the amount of tax someone owes on their tax return. One is the American opportunity tax credit and the other is the lifetime learning credit. The taxpayer, their spouse or their dependent must have been a student enrolled at least half time for one academic period to qualify. The taxpayer may qualify for one of these credits even if they don’t owe any taxes. Form 8863, Education Credits is used to claim the credit when filing the tax return.

Posted in INDIVIDUALS

January 9th, 2020 by Oscar

El Servicio de Impuestos Internos confirmó que la temporada de impuestos de la nación comenzará para los contribuyentes individuales el lunes 27 de enero de 2020, cuando la agencia tributaria comenzará a aceptar y procesar las declaraciones del año tributario 2019.

La fecha límite para presentar las declaraciones de impuestos de 2019 y pagar cualquier impuesto adeudado es el miércoles, 15 de abril de 2020. Se espera que se presenten más de 150 millones de declaraciones de impuestos individuales para el año tributario 2019, y la gran mayoría se presentará antes de la fecha límite tradicional de abril.

El IRS fijó la fecha de apertura del 27 de enero para garantizar la seguridad y la preparación de los sistemas clave de procesamiento de impuestos y para abordar el impacto potencial de la legislación tributaria reciente en las declaraciones de impuestos de 2019.

El IRS alienta a todos los contribuyentes a considerar la presentación electrónica y la elección del depósito directo: es rápido, preciso y la mejor manera de obtener su reembolso lo más rápido posible.

Posted in INDIVIDUALS

January 2nd, 2020 by Oscar

The Internal Revenue Service today issued the 2020 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019; 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and 14 cents per mile driven in service of charitable organizations.

The business mileage rate decreased one half of a cent for business travel driven and three cents for medical and certain moving expense from the rates for 2019. The charitable rate is set by statute and remains unchanged.

It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station.

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than five vehicles used simultaneously.

Posted in INDIVIDUALS, NEWS

December 19th, 2019 by Oscar

Después de presentar su declaración de impuestos, un contribuyente sabe si recibirá un reembolso. A veces, sin embargo, el reembolso de un contribuyente será por una cantidad diferente de la que espera. Estas son algunas de las razones por las que el reembolso de un contribuyente podría ser menor de lo esperado.

Las transacciones financieras que ocurren a finales de año pueden tener un impacto tributario inesperado si la retención del impuesto federal de 2019 de un contribuyente es menor que su responsabilidad tributaria para el año. Ciertas transacciones pueden afectar la retención de impuestos de 2019 y afectar el reembolso anticipado del contribuyente el próximo año. Esto incluye cosas como bonos de fin de año y vacaciones; dividendos de acciones; distribuciones de ganancias de capital de fondos mutuos y acciones; bienes raíces u otras propiedades vendidas con ganancias. Si esto sucede, los contribuyentes todavía pueden hacer un pago de impuestos estimados trimestralmente directamente al IRS para el año tributario 2019. La fecha límite para realizar un pago para el cuarto trimestre de 2019 es el miércoles, 15 de enero de 2020.

El reembolso de un contribuyente se puede usar para pagar otras deudas que un contribuyente debe. Todo o parte de un reembolso puede ir para cubrir una deuda de un contribuyente: impuesto federal vencido; impuesto estatal; deudas estatales de compensación por desempleo; manutención infantil y manutención conyugal; otras deudas federales no tributarias, como préstamos estudiantiles. Un contribuyente recibe un aviso si su deuda cumple con los criterios contra una cantidad adeudada. El IRS emite cualquier reembolso restante en un cheque o depósito directo como el contribuyente solicitó originalmente en la declaración.

Posted in INDIVIDUALS, NEWS

November 29th, 2019 by Oscar

Hay pasos que las personas pueden tomar ahora para asegurarse de que su experiencia de presentación de impuestos transcurra sin problemas el próximo año.

Estas son algunas otras cosas que la gente puede hacer ahora:

Revise su retención y realice cualquier ajuste pronto

Ya que típicamente a los empleados sólo les quedan una o dos fechas de pago este año, es especialmente importante revisar su retención pronto. Es aún más importante para aquellos que:

  1. Recibieron un reembolso menor de lo esperado después de presentar sus impuestos de 2018 este año.
  2. Adeudaron una factura de impuestos inesperada el año pasado.
  3. Experimentaron cambios personales o financieros que podrían cambiar su responsabilidad tributaria.

Algunos pueden incluso recibir una cuenta inesperada de impuestos cuando presenten su declaración de impuestos de 2019 el próximo año. Para evitar este tipo de sorpresas, los contribuyentes deben usar el Estimador de Retención de Impuestos para realizar una revisión de su cheque de pago o de ingresos de pensión. Hacer esto les ayuda a decidir si necesitan ajustar sus retenciones o hacer pagos de impuestos estimados o adicionales ahora.

Reunir documentos

Todos deberían tener un sistema de mantenimiento de archivos. Ya sea electrónico o en papel, deben usar un sistema para mantener la información importante en un solo lugar. Tener todos los documentos necesarios antes de preparar su declaración les ayuda a presentar una declaración de impuestos completa y precisa. Esto incluye:

  1. Declaración de impuestos de 2018
  2. Formularios W-2 de los empleadores
  3. Formularios 1099 de bancos y otros pagadores.
  4. Formularios 1095-A del Mercado para aquellos que reclaman el Crédito Tributario de Prima.

Confirmar dirección postal y de correo electrónico

Para asegurarse de que estos formularios lleguen al contribuyente a tiempo, las personas deben confirmar ahora que cada empleador, banco y otro pagador tiene la dirección postal o dirección de correo electrónico actual del contribuyente. Por lo general, los formularios comienzan a llegar por correo o están disponibles en línea en enero.

Las personas deben guardar copias de las declaraciones de impuestos y todos los documentos justificativos durante al menos tres años. Además, los contribuyentes que usan un producto de software por primera vez pueden necesitar el monto de ingresos brutos ajustado de su declaración de 2018 para validar su declaración de 2019 presentada electrónicamente.

Elija la presentación electrónica y el depósito directo para un reembolso más rápido

Los errores retrasan los reembolsos. La manera más fácil de evitar los errores y una demora de su reembolso es con la presentación electrónica.

Otra forma de acelerar las cosas es usar el depósito directo. Combinando el depósito directo con la presentación electrónica es la forma más rápida para que un contribuyente obtenga su reembolso. Con depósito directo, un reembolso va directamente a la cuenta bancaria de un contribuyente. No tienen que preocuparse por un cheque de reembolso perdido, robado o no entregado.

Posted in INDIVIDUALS

November 21st, 2019 by Oscar

With health care open season now under way at many workplaces, the Internal Revenue Service today reminded workers they may be eligible to use tax-free dollars to pay medical expenses not covered by other health plans.

Eligible employees of companies that offer a health flexible spending arrangement (FSA) need to act before their medical plan year begins to take
advantage of an FSA during 2020. Self-employed individuals are not eligible.

An employee who chooses to participate can contribute up to $2,750 through payroll deductions during the 2020 plan year. Amounts contributed
are not subject to federal income tax, Social Security tax or Medicare tax.
If the plan allows, the employer may also contribute to an employee’s FSA.

Throughout the year, employees can use FSA funds for qualified medical expenses not covered by their health plan. These can include co-pays, deductibles and a variety of medical products. Also covered are services ranging from dental and vision care to eyeglasses and hearing aids. Interested employees should check with their employer for details on eligible expenses and claim procedures.

Under the FSA use-or-lose provision, participating employees normally must incur eligible expenses by the end of the plan year or forfeit any unspent amounts. However, employers can, if they choose to, offer an option for participating employees to have more time to use FSA money.

  1. Under the carryover option, an employee can carry over up to $500 of unused funds to the following plan year. For example, an employee with unspent funds at the end of 2019 would still have those funds available to use in 2020.
  2. Under the grace period option, an employee has until two and a half months after the end of the plan year to incur eligible expenses. For example, March 15, 2020, for a plan year ending on Dec. 31, 2019.
  3. Employers can offer either option (not both) or no option.

Employers are not required to offer FSAs. Interested employees should check with their employer to see if they offer an FSA.

Posted in INDIVIDUALS, SMALL BUSINESSES