Category: INDIVIDUALS

October 17th, 2019 by Oscar

Los contribuyentes con dependientes pueden calificar para reclamar algunos créditos tributarios diferentes. Uno de ellos es el crédito tributario por hijos que beneficia a las personas cuyo dependiente cumple con una serie de pruebas. Si el dependiente no cumple con esos requisitos, el contribuyente puede reclamar el crédito para otros dependientes.

Aquí hay información acerca del crédito para otros dependientes. Estos detalles pueden ayudar a los contribuyentes a determinar si pueden reclamarlo cuando presenten sus impuestos el próximo año.

Un contribuyente no puede reclamar el crédito para otros dependientes para un niño que califica para el crédito tributario por hijo o el crédito tributario por hijo adicional.

Una persona calificada podría ser un hijo mayor, padre o primo del contribuyente. Incluso podría ser alguien que no está relacionado con el contribuyente. Para calificar, la persona no relacionada debe haber vivido con el contribuyente durante todo el año tributario.  

El monto máximo del crédito es de $500 por dependiente calificado.  

El dependiente debe ser un ciudadano estadounidense, nacional de los Estados Unidos o un extranjero residente de los Estados Unidos.  

Los contribuyentes que son elegibles para reclamar este crédito deben proveer el nombre y el número de seguro social o el número de identificación personal del contribuyente para cada dependiente que reclaman en su declaración de impuestos.  

El crédito comienza a eliminarse gradualmente en $200,000 de ingresos brutos ajustados modificados. Esta cantidad es de $400,000 para parejas casadas que presentan conjuntamente.
 

Posted in INDIVIDUALS

October 10th, 2019 by Oscar

Taxpayers who requested the six-month filing extension should complete their tax returns and file on or before the Oct. 15 deadline.

Filing electronically is easy, safe and the most accurate way to file taxes. There are a variety of electronic filing options. Those options include having tax returns prepared at a Volunteer Income Tax Assistance or Tax Counseling for the Elderly site, purchasing commercial software or choosing a reputable tax professional who is also an authorized e-file provider.

About 15 million taxpayers filed for an extension this year. Although Oct. 15 is the last day for most people to file, some may have more time. They include:

  1. Members of the military and others serving in a combat zone. They typically have 180 days after they leave the combat zone to file returns and pay any taxes due.
  2. Taxpayers in federally-declared disaster areas who already had valid extensions.

Extension filers can file when they are ready and don’t have to wait until Oct. 15 to file. Taxpayers who did not request an extension and have yet to file a 2018 tax return can generally avoid additional penalties and interest by filing the return as soon as possible and paying any taxes owed.

New Form 1040
Form 1040 has been redesigned for tax year 2018. The revised form consolidates Forms 1040, 1040A and 1040-EZ into one form that all individual taxpayers will use to file their 2018 federal income tax return.

The new form uses a “building block” approach that can be supplemented with additional schedules as needed. Taxpayers with straightforward tax situations will only need to file the Form 1040 with no additional schedules. People who use tax software will still follow the steps they’re familiar with from previous years. Since nearly 90 percent of taxpayers now use tax software, the IRS expects the change to Form 1040 and its schedules to be seamless for those who file electronically.

Recordkeeping and adjusted gross income
As a reminder, taxpayers should keep a copy of their tax returns and supporting documents for a minimum of three years. Some taxpayers using a tax-filing software product for the first time may need their adjusted gross income amount from their prior-year tax return to verify their identity.

Taxpayers using the same tax software they used last year will not need to enter their prior year information to electronically sign their 2018 tax return.

Payment options
IRS Direct Pay offers taxpayers a fast way to pay what they owe. Direct Pay is free and allows individuals to securely pay their tax bills or make quarterly estimated tax payments online directly from checking or savings accounts without any fees or pre-registration.

Taxpayers can also pay by debit or credit card. While the IRS does not charge a fee for this service, the payment processer does. Other payment options include the Electronic Federal Tax Payment System (enrollment is required) and electronic funds withdrawal which is available when e-filing. Those choosing to pay by check or money order should make the payment out to the “United States Treasury.”

Eligible taxpayers can set up an online payment agreement in a matter of minutes to pay tax, interest and penalties they may owe. There is no application fee to setup payment plans lasting 120 days or less. In 2019, over 1 million agreements were set up by taxpayers online.

Prepare for next year − Do a ‘Paycheck Checkup’ now
The IRS also urges extension filers to do a “Paycheck Checkup” now. It helps make sure the right amount is being withheld from their checks following tax reform. If a change is needed, there’s still time to adjust withholding during the last quarter of the year.

Taxpayers can use the Tax Withholding Estimator to approximate their 2019 income taxes and proper withholding. The tool compares the estimate to current withholding to help taxpayers decide if they want to change that amount with their employer. Taxpayers should have their 2018 tax return available when using the tool to estimate income, deductions, adjustments and credits for 2019. They will also need their most recent pay stub to compute the amount of withholding so far this year.

Posted in INDIVIDUALS, NEWS

October 3rd, 2019 by Oscar

Taxpayers with dependents may qualify to claim a few different tax credits. One of these is the child tax credit. The child tax credit benefits people whose dependent meets a series of tests. If the dependent doesn’t meet those qualifications, the taxpayer may be able to claim the credit for other dependents.

Here’s some info about the credit for other dependents. These details can help taxpayers find out if they can claim it when they file their taxes next year.

  1. A taxpayer can’t claim the credit for other dependents for a child who qualifies for the child tax credit or the additional child tax credit.
  2. A qualifying individual could be the taxpayer’s older child, parent or cousin. It could even be someone who is not related to the taxpayer. To qualify, the unrelated person must have lived with the taxpayer for the entire tax year.
  3. The maximum amount of the credit is $500 per qualifying dependent.
  4. The dependent must be a U.S. citizen, a U.S. national, or a U.S. resident alien.
  5. Taxpayers who are eligible to claim this credit must list the name and Social Security number or individual taxpayer identification number for each dependent they claim on their tax return.
  6. The credit begins to phase out at $200,000 of modified adjusted gross income. This amount is $400,000 for married couples filing jointly.

Posted in INDIVIDUALS, NEWS

September 26th, 2019 by Oscar

Ya casi está aquí… la fecha límite para los contribuyentes que solicitaron una prórroga para presentar su declaración de impuestos de 2018. La fecha de límite de este año es el martes 15 de octubre.

A pesar de que el tiempo antes de la fecha límite de prórrogas está disminuyendo, todavía hay tiempo para que los contribuyentes presenten una declaración completa y precisa. Los contribuyentes deben recordar que no tienen que esperar hasta el 15 de octubre para presentar. Pueden presentar cuando estén listos.

Los contribuyentes que no solicitaron una prórroga y aún no han presentado una declaración de impuestos de 2018 generalmente pueden evitar multas e intereses adicionales al presentar la declaración tan pronto como sea posible y pagar la cantidad adeudada.

La forma más rápida para que los contribuyentes obtengan su reembolso es presentar electrónicamente y usar  depósito directo.

Los contribuyentes con prórrogas deben presentar sus declaraciones de impuestos antes del 15 de octubre y, si deben, pagar tanto como sea posible para reducir los intereses y multas. Pago Directo del IRS permite a las personas pagar de forma segura desde sus cuentas de cheques o de ahorros. Estos contribuyentes pueden considerar un plan de pagos, que les permite pagar con el tiempo.

Los miembros del ejército y los que sirven en una zona de combate generalmente tienen más tiempo para presentar. Estos contribuyentes tienen típicamente hasta por lo menos 180 días tras salir de la zona de combate para presentar las declaraciones y pagar cualquier impuesto que adeuden.

Las personas que tienen una prórroga válida y están en – o afectados por – un desastre declarado por el gobierno federal se les puede dar más tiempo para presentar.

Los contribuyentes deben guardar copias de las declaraciones de impuestos y todos los documentos de apoyo durante un mínimo de tres años.

Posted in INDIVIDUALS

September 19th, 2019 by Oscar

El Servicio de Impuestos Internos (IRS) anunció hoy procedimientos nuevos que permitirán que ciertas personas que renunciaron a su ciudadanía estadounidense cumplan con sus obligaciones tributarias y de presentación de impuestos estadounidenses y reciban alivio por impuestos atrasados.

Los Procedimientos de Alivio para Ciertos Exciudadanos (en inglés) se aplican solo a las personas que no han presentado declaraciones de impuestos estadounidenses, como ciudadanos o residentes estadounidenses que deben una cantidad limitada de impuestos atrasados ​​a los Estados Unidos y tienen activos netos de menos de $2 millones. Solo los contribuyentes cuyas fallas previas de cumplimiento no fueron voluntarias pueden aprovechar estos nuevos procedimientos. Muchos en este grupo pueden haber vivido fuera de los Estados Unidos la mayor parte de sus vidas y puede que no hayan tenido conocimiento de que tenían obligaciones tributarias en los Estados Unidos.

Las personas elegibles que deseen usar estos procedimientos de alivio deben presentar las declaraciones de impuestos pendientes de los EE. UU., incluidos los anexos requeridos, durante los cinco años anteriores y su año de expatriación. Siempre que la responsabilidad tributaria del contribuyente no exceda un total de $25,000 por los seis años en cuestión, el contribuyente está exonerado de pagar impuestos estadounidenses. El propósito de estos procedimientos es proporcionar alivio a ciertos exciudadanos. A las personas que califican para estos procedimientos no se les aplicarán multas e intereses.

El IRS ofrece estos procedimientos sin una fecha de finalización. El IRS anunciará una fecha de cierre antes de finalizar los procedimientos. Aquellos que renunciaron a su ciudadanía estadounidense en cualquier momento después del 18 de marzo de 2010 son elegibles, siempre que cumplan con los otros criterios de los procedimientos, los cuales solo están disponibles para individuos. Los estados, fideicomisos, corporaciones, sociedades y otras entidades no pueden usar estos procedimientos.

El Servicio de Impuestos Internos organizará un seminario virtual en un futuro cercano que proporcionará información adicional y consejos prácticos para presentar una solicitud a los Procedimientos de Alivio para Ciertos Exciudadanos.

Renunciar a la ciudadanía estadounidense y las consecuencias tributarias que siguen son asuntos serios que involucran decisiones irrevocables. Los contribuyentes que renuncian a la ciudadanía sin cumplir con sus obligaciones tributarias estadounidenses están sujetos a las importantes consecuencias tributarias del régimen tributario de expatriación estadounidense. Los contribuyentes interesados ​​en estos procedimientos deben considerar consultar a un asesor legal antes de tomar cualquier decisión.

Posted in INDIVIDUALS

September 12th, 2019 by Oscar

With major tax reform now in its second year and taxpayers seeing its full effect on 2018 returns, the Internal Revenue Service reminded people who pay estimated tax that their third quarter payment for 2019 is due Monday, Sept. 16.

The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, fundamentally changed the way tax is calculated for most taxpayers, including those with income not subject to withholding. By making quarterly estimated tax payments, however, people can better stay up to date with their taxes throughout the year.

Who need to pay estimated tax?

Most often, self-employed people, including many involved in the sharing economy, need to pay quarterly installments of estimated tax. Similarly, investors, retirees and others often need to make these payments as well. That’s because a substantial portion of their income is not subject to withholding. Other income generally not subject to withholding includes interest, dividends, capital gains, alimony and rental income.

Special rules apply to some groups of taxpayers, such as farmers, fishermen, casualty and disaster victims, those who recently became disabled, recent retirees and those who receive income unevenly during the year.

Taxpayers can avoid an underpayment penalty by owing less than $1,000 at tax time or by paying most of their taxes during the year. Generally, for 2019, that means making payments of at least 90% of the tax expected on their 2019 return. 

Taxes are pay-as-you-go

This means taxpayers need to pay most of their taxes owed during the year as income is received. There are two ways to do that:

  • Withholding from pay, pension or certain government payments such as Social Security; and/or
  • Making quarterly estimated tax payments during the year.

As a result of tax reform or a recent life change such as marriage, many taxpayers may need to raise or lower the amount of tax they pay each quarter through the estimated tax system.

Tax Withholding Estimator

This new and improved tool is now more mobile friendly and replaces the Withholding Calculator on IRS.gov. The new design makes it easier for everyone to do a Paycheck Checkup and have the right amount of tax withheld during the year. The estimator offers workers, as well as retirees, self-employed individuals and other taxpayers a clear, step-by-step method for effectively tailoring the amount of income tax they should have withheld from wages and pension payments.

The IRS urges everyone to use the estimator as soon as possible to make any potential tax withholding adjustments while there is still ample time in 2019. To help people do that most effectively, the IRS is holding a free two-hour webinar on Thursday, Sept. 19 at 2 p.m. Eastern time. Among other things, the webinar will feature step-by-step instructions on how to use the new estimator and a live question-and-answer session.

Posted in INDIVIDUALS

September 5th, 2019 by Oscar

Millions of people have filed their 2018 tax return, making this a prime time to consider whether their tax situation came out as expected. If not, taxpayers can use their  finished 2018 return and, if needed, adjust their withholding. Having their 2018 return handy can make it easier for taxpayers to estimate deductions, credits and other amounts for 2019. Performing a Paycheck Checkup is a good idea for anyone who:

  1. Adjusted their withholding in 2018, especially those who did so later in the year.
  2. Owed additional tax when they filed their tax return this year.
  3. Had a refund that was larger or smaller than expected.
  4. Had life changes such as marriage, childbirth, adoption, buying a home or income changes.

Since most people are affected by the Tax Cuts and Jobs Act all taxpayers should check their withholding. They should do a checkup even if they did one in 2018. This especially includes taxpayers who:

  1. Have children and claim credits such as the Child Tax Credit.
  2. Have older dependents, including children age 17 or older.
  3. Experienced changes to itemized deductions this year.
  4. Itemized deductions in the past.
  5. Are a two-income family.
  6. Have two or more jobs at the same time.
  7. Only work part of the year.
  8. Have high income or a complex tax return.

This Tax Withholding Estimator works for most taxpayers. Those with more complex situations may need to use Tax Withholding and Estimated Tax, instead of the Tax Withholding Estimator. This includes taxpayers who owe alternative minimum tax or certain other taxes, and people with long-term capital gains or qualified dividends.

Taxpayers can use the results from the Tax Withholding Estimator to see if they need to complete a new Form W-4, Employee’s Withholding Allowance Certificate, and submit it to their employer. In some instances, the calculator may recommend they have an additional flat-dollar amount withheld each pay period. Taxpayers give this form to their employer and do not send this form to the IRS.

Posted in INDIVIDUALS, NEWS

August 29th, 2019 by Oscar

Starting a business can be very rewarding. It can also be a little overwhelming. From business plans to market strategies, and even tax responsibilities…there are many things to consider. Here’s what new business owners can do to help get off to a good start.

  • Choose a business structure. The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are:
    • Sole proprietorship: An unincorporated business owned by an individual. There’s no distinction between the taxpayer and their business.
    • Partnership: An unincorporated business with ownership shared between two or more people.
    • Corporation: Also known as a C corporation. It’s a separate entity owned by shareholders.
    • S Corporation: A corporation that elects to pass corporate income, losses, deductions, and credits through to the shareholders.
    • Limited Liability Company: A business structure allowed by state statute.
  • Choose a tax year. A tax year is an annual accounting period for keeping records and reporting income and expenses. A new business owner must choose either:
    • Calendar year: 12 consecutive months beginning January 1 and ending December 31.
    • Fiscal year: 12 consecutive months ending on the last day of any month except December.
  • Apply for an employer identification number. An EIN is also called a federal tax identification number. It’s used to identify a business. Most businesses need an EIN.
  • Have all employees complete these forms:
    • Form I-9, Employment Eligibility Verification
    • Form W-4, Employee’s Withholding Allowance Certificate
  • Pay business taxes. The form of business determines what taxes must be paid and how to pay them.

Each state has additional requirements for starting and operating a business. Prospective business owners should visit their state’s website for info about state requirements.

Posted in INDIVIDUALS, SMALL BUSINESSES

August 22nd, 2019 by Oscar

Contribuyentes con Números de Identificación Personal del Contribuyente que expiran pronto deben renovar su número lo antes posible. Hay casi dos millones de ITINs que están por expirar a fines de 2019. Contribuyentes con un número que expirará deben renovar antes de fin de año. Esto ayudara a evitar retrasos innecesarios relacionados al reembolso tributario del año próximo.

Los ITINs son usados por contribuyentes quienes deben pagar impuestos, pero que no son elegibles para un número de seguro social.

A continuación, información acerca de cuáles ITINs expirarán y cómo los contribuyentes pueden renovarlos.

  1. Los siguientes ITINs expiran el 31 de diciembre de 2019 son aquellos no usados en una declaración federal al menos una vez en los últimos tres años y los números con dígitos medios de 83, 84, 85 ,86 y 87 no renovados previamente.
     
  2. ITINs con dígitos medios 83, 84, 85, 86 y 87 deben renovarse, aunque se hayan usado en los últimos tres años.
     
  3. Contribuyentes cuyos ITINs están por expirar y quienes anticipan tener requisito de presentar en 2020, deben renovar su número. Otros no necesitan tomar ninguna acción.
     
  4. El IRS envía notificaciones a los contribuyentes afectados. Este es el Aviso CP48 que explica los pasos para renovar el ITIN.
     
  5. Contribuyentes quienes reciben el Aviso después de renovar su ITIN, no necesitan tomar acción adicional a no ser que otro miembro de la familia sea afectado.
     
  6. ITINs con dígitos medios de 70 a 82 ya expiraron. Contribuyentes con estos ITINs pueden renovar en cualquier momento, si no la han hecho aún.
     
  7. Aquellos quienes reciben una carta de renovación del IRS pueden renovar los ITINs de la familia a la vez. Pueden hacerlo, aunque miembros de la familia tengan un ITIN con dígitos medios que no estén por expirar. Miembros de la familia incluyen al que presenta los impuestos, su cónyuge y cualquier dependiente.
     
  8. Para renovar un ITIN, un contribuyente debe completar el Formulario W-7 y presentar toda la documentación requerida, No necesitan incluir la declaración de impuestos. Sin embargo, los contribuyentes deben incluir en el W-7 la razón por la cual necesitan un ITIN.
     
  9. Hay tres maneras en que los contribuyentes presentan la solicitud de renovación:
    1. Enviar el formulario a la dirección del IRS señalada en las instrucciones del Formulario W-7
    2. Trabajar con un Agente Tramitador autorizado por el IRS para ayudar a los contribuyentes.
    3. Hacer una cita en un Centro de Asistencia al Contribuyente para que la identidad de cada solicitante sea autenticada en persona.

Posted in INDIVIDUALS

August 16th, 2019 by Oscar

Small business owners, self-employed people, and some wage earners should look into whether they should make estimated tax payments this year. Doing so can help them avoid an unexpected tax bill and possibly a penalty when they file next year.

Everyone must pay tax as they earn income. Taxpayers who earn a paycheck usually have their employer withhold tax from their checks. This helps cover taxes the employee owes. On the other hand, some taxpayers earn income not subject to withholding. For small business owners and self-employed people, that usually means making quarterly estimated tax payments.

Here’s some information about estimated tax payments:

  • Taxpayers generally must make estimated tax payments if they expect to owe $1,000 or more when they file their 2019 tax return.
  • Whether or not they expect to owe next year, taxpayers may have to pay estimated tax for 2019 if their tax was more than zero in 2018.
  • Wage earners who also have business income can often avoid having to pay estimated tax. They can do so by asking their employer to withhold more tax from their paychecks.
  • Aside from business owners and self-employed individuals, people who need to make estimated payments also includes sole proprietors, partners and S corporation shareholders. It also often includes people involved in the sharing economy.
  • Estimated tax requirements are different for farmers and fishermen.
  • Corporations generally must make these payments if they expect to owe $500 or more on their 2019 tax return.
  • Aside from income tax, taxpayers can pay other taxes through estimated tax payments. This includes self-employment tax and the alternative minimum tax.
  • The final two deadlines for paying 2019 estimated payments are Sept. 16, 2019 and Jan. 15, 2020.
  • Taxpayers can check out these forms for details on how to figure their payments:
    • Form 1040-ES, Estimated Tax for Individuals.
    • Form 1120-W, Estimated Tax for Corporations.
  • Taxpayers can visit IRS.gov to find options for paying estimated taxes. These include:
    • Direct Pay from a bank account.
    • Paying by credit or debit card or the Electronic Federal Tax Payment System.
    • Mailing a check or money order to the IRS.
    • Paying cash at a retail partner.
  • Anyone who pays too little tax through withholding, estimated tax payments, or a combination of the two may owe a penalty. In some cases, the penalty may apply if their estimated tax payments are late. The penalty may apply even if the taxpayer is due a refund.
  • For tax year 2019, the penalty generally applies to anyone who pays less than 90 percent of the tax reported on their 2019 tax return.

Posted in INDIVIDUALS, SMALL BUSINESSES