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IRS TAX INFORMATION
 

Let the professionals at Joy’s Tax Services be your main resource for your specific tax issues and IRS tax information. Don’t give the IRS more than their fair share. Take advantage of Joy’s tax preparer's experience.

Dependents
A dependent must be either a "qualifying child" or a "qualifying relative." You are allowed one exemption for each person you can claim as a dependent.

Filing Status
Single, married filing jointly, married filing separately, head of household…all these and more explained.

Individual Retirement Arrangement (IRA)
No contributions are allowed to a traditional IRA in and after the year you turn age 70 1/2. At that age, there is a required minimum distribution (RMD) that must be withdrawn each year.

Life changes have tax consequences, from birth through death

  • During your lifetime, you may get a job, go to school, get married, start a business, change jobs, have children, send children to college, buy and/or sell a home, get divorced, contribute to a retirement plan, or draw money out of a retirement plan.
  • New Marriages - If you are married as of December 31st of a year, you are considered married for the whole year. Your filing status depends on your marital status.
  • Births - Your child born on December 31 is assumed, for tax purposes, to have lived with you the entire year. For each qualifying child, you can claim a dependent's exemption of $3,650.
  • Deaths - The same filing requirements that apply to individuals determine if a final income tax return must be filed for the decedent.
  • Divorce - If you are divorced or legally separated as of December 31, for tax purposes you are considered to be unmarried for the entire year.
  • College Attendance - You may be able to claim the American Opportunity credit of up to $2,500 for qualified tuition and related expenses for each eligible student in the first 4 years of postsecondary education at a qualified institution. Lifetime Learning credit is available for an unlimited number of years for both undergrad and graduate level courses as well for continuing professional education used to acquire or improve job skills.
  • New Job - If job expenses are incurred and not reimbursed by your employer, you may be able to claim them as employee business expenses.
  • Retirement - Pensions and annuities are generally taxable when distributed. You must start withdrawing from a traditional IRA by April 1 of the year following the year you reach age 70 1/2.
  • Owning A Home - Points paid when you purchase your home are generally deductible in that year. Mortgage interest and real estate taxes paid on your home are deductible.

Rental Income & Expenses
Owning rental property is often a good way to increase your net worth.

Taxable VS Nontaxable Income
Knowing how to report it properly helps reduce the tax liability.

Earned Income Credit
The Earned Income Credit (EIC) is a tax credit for certain people who work and have less than $43,352 of earned income.

Avoid Common Problems
Mathematical errors, forgetting to sign your return and more.

Mileage Deductions

Keep track of your deductible (business or unreimbursed employee) mileage on your vehicle and you could see big savings on your tax return. Remember that you MUST keep accurate records in order for the deductions to be allowed.

What Should You Bring To Your Tax Interview?

Personal information for each family member, income and tax information, deductions and credits.

Deductions
Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions.
Avoid paying more tax than necessary. Your Tax professional will probe to make sure that you claim all the tax deductions that you are eligible to claim.

Tax Due Dates
If a due date falls on a Saturday, Sunday or legal holiday, the next business day becomes the due date.

Individual Income Taxes . . .
Tax deposits are due on April 15, June 15, September 15, and January 15. State Income Tax deposits are due on the 15th of April, June, September and December.

Corporate Income Taxes . . . Tax deposits are due on the 15th day of the 4th, 6th, 9th, and 12th month of the fiscal year.

Payroll Tax Deposits . . . Deposits are made on either a monthly or semi-weekly basis. The determination of which deposit schedule applies will be made for the calendar year by looking back at the employment taxes reported for the 4 quarters ending the previous June 30 of the calendar year.

Employers who reported $50,000 or less will deposit monthly by the 15th day of the following month.
Those reporting more than $50,000 must deposit semi-weekly. For paydays on Wednesday, Thursday, or Friday, the deposit is due the Wednesday after the payday. For all other paydays, the deposit is due by the Friday following payday.

All new firms will be monthly depositors. Firms amassing $100,000 or more at any time must deposit the funds by the next business day. As part of our Complete Payroll Services, Joy’s Tax Service will calculate your payroll tax deposit amounts and advise you as to when they are due.