Grandfield Tax & Business Services, Inc

Claiming the Recovery Rebate Credit Did You Know? With the May 17 deadline to file 2020 federal tax returns rapidly approaching, many eligible Americans who don't file may risk losing out on a crucial tax credit. The Recovery Rebate Credit is offered to all taxpayers who file their 2020 returns and were underpaid when the IRS distributed 2020 Economic Impact Payments (EIPs, also called stimulus payments). For a variety of reasons, some taxpayers may not have received the EI...Ps that they qualified for in 2020. Others received EIPs, but in smaller amounts than they deserved. Often, this problem occurred because the IRS had outdated information about the person's income or family size. For example, if a child was born or adopted into your family in 2020, the IRS likely did not have this information when calculating EIP amounts. The first round of stimulus payments, called EIP1, included payments of up to $1,200 per individual and $500 per qualifying child. The IRS began sending these payments in spring 2020 and continued sending them throughout the year. The second round (EIP2) included payments of up to $600 per individual and $600 per qualifying child. Most recipients got their EIP2s in January 2021. If the IRS underpaid you during either 2020 EIP round, the Recovery Rebate Credit enables you to receive the balance that you are owed as an IRS refund. However, you can only claim the credit by filing a 2020 tax return, even if you owe no tax and are not usually required to file. A tax professional can help you prepare and file your return electronically so you receive your payment as quickly as possible. You will need to know the amounts of any EIPs you received, which you can get from IRS Notice 1444 (1444-A or 1444-B), or by setting up an online IRS account (link below). Create an online IRS account: https://www.irs.gov/payments/view-your-tax-account.

Refund Amounts - Did You Know? If your refund amount is different than stated on the filed tax return, part or all of your refund may have been used to pay off (offset) past-due federal tax, student loans, state income tax or other past-due debts. You'll receive a notice from the IRS if such an offset occurs that will show the original tax refund amount, the offset amount, as well as the name, address and telephone number of the agency receiving the payment.... If you haven't received your refund yet, you may be able to check the status using the IRS' "Where's my Refund?" tool: https://www.irs.gov/refunds.

Unclaimed 2017 IRS Refunds Deadline Did You Know? The IRS has issued a reminder that time is running out to claim your 2017 tax refund if you did not file a 2017 federal return. The deadline to file a 2017 IRS return and claim your refund is May 17, 2021 After that date, unclaimed 2017 federal tax refunds will become the property of the U.S. Treasury. If you have not yet filed your 2017 return, file today to claim your refund before it's too late.

COVID-Related Emergency Student Aid Not Taxable Did You Know? During 2020, many higher education institutions and other agencies provided emergency financial aid grants to students affected by the coronavirus pandemic. The grants helped students with costs resulting from disruptions of school operations, including expenses for housing, food, remote learning course supplies, and health and child care. These emergency grants are NOT taxable income. Students who received them ...should not include the funds in their gross income on their 2020 federal tax returns. This tax exemption applies to all emergency financial aid grants that students received in 2020 from federal and state agencies, higher education institutions and other scholarship-granting organizations, including Native American tribal authorities and agencies. These grants also do not affect a student's eligibility for the American Opportunity Tax Credit (AOTC), Lifetime Learning Credit (LLC) or education expense tax deduction. If you are a student and paid qualified tuition and school fees in 2020, you may be able to claim a credit or deduction even if you used an emergency grant to pay these expenses. Qualified students do not have to reduce their credit or deduction amount by the amount of their emergency grants. A tax pro can help you determine whether financial aid you received in 2020 qualifies for this tax exemption, and whether you are eligible to claim an education credit or deduction.

Great times with our team yesterday, first an escape room and then axe throwing. Fun way to wind down the season (yes we know it isn't over until May 17, but we're not going to let that ruin our fun! )

Where's My Refund? - Did You Know? You can use the IRS 'Where's my Refund' (https://www.irs.gov/refunds) tool to check the status of your refund. The 'Where's my Refund' tool is updated once daily, usually overnight. Your status is generally available within 24 hours upon the IRS receiving your e-filed return. If you have filed a paper return, the IRS is currently experiencing processing delays for paper filed returns, but will process them in the order received.

IRS Gives Details on Tax Waiver for 2020 Unemployment Benefits Did You Know? The American Rescue Plan Act allows many Americans to exclude some or all of their 2020 unemployment insurance (UI) benefits from their taxable income. This exclusion is available to taxpayers with a modified adjusted gross income (MAGI) of less than $150,000 for 2020. The IRS recently explained how eligible taxpayers may claim the exclusion. Eligible single taxpayers may exclude up to $10,200 of U...I benefits that they received in 2020, which could significantly reduce their tax. Eligible married couples who file jointly may exclude up to $10,200 of UI benefits per spouse, for a total exclusion of up to $20,400. If you qualify for the exclusion and have not yet filed your 2020 tax return, you can claim the exclusion when you file. You will need to report the full amount of UI benefits you received in 2020, and then use the new Unemployment Compensation Exclusion Worksheet to figure the amount of your exclusion. A tax professional can help you prepare and file the necessary forms. In general, if you qualify for the UI benefits exclusion but already filed your 2020 tax return, you do NOT have to file an amended return. The IRS will automatically recalculate your taxable income, and issue a special refund if the exclusion lowers your tax. The special refund will be sent separately from any refund you already claimed on your return. The IRS expects to begin sending these special refunds in May, continuing into the summer. There is one case when filing an amended return may benefit a taxpayer, however. The income exclusion may make some taxpayers eligible for credits that they did not originally qualify for, such as the Earned Income Tax Credit (EITC). A tax advisor can help you determine whether the exclusion qualifies you for a new credit, and if so, help you file an amended return to claim it.

Watch Out for Disaster-Related Charity and Tax Scams Did You Know? The IRS has warned taxpayers about new and ongoing scams targeting both people affected by natural disasters and those seeking to help disaster victims. In many of these fraudulent schemes, the scammers impersonate IRS representatives or charitable organizations. SCAMS INVOLVING BOGUS OFFERS OF TAX ASSISTANCE... Taxpayers impacted by federally declared disasters like hurricanes and wildfires may qualify for various forms of tax relief, such as deductions for casualty losses. Knowing this, some scammers are calling taxpayers in disaster-affected areas, claiming to represent the IRS. They may say that they can help people get tax refunds or file claims for their losses. DO NOT give any money or personal or financial information to these scam callers. The IRS generally does not call taxpayers out of the blue about tax relief programs. Hang up on any unknown callers who say they can offer you disaster-related tax assistance. What to DO: To learn whether you qualify for tax relief or to seek help with other disaster-related tax issues like reconstructing lost records, call the IRS disaster assistance line directly at 866-562-5227. SCAMS INVOLVING BOGUS CHARITIES Unfortunately, many scammers try to prey upon generosity by posing as representatives of charitable organizations that help people affected by disasters. These fake charities may have official-looking websites with names similar to legitimate charities, making it difficult for consumers to spot the scam. DO NOT make an over-the-phone contribution without first making sure that the charity is legitimate. Also do not donate using forms of payment that cannot be tracked, such as wire transfers, gift cards or signing over a tax refund or stimulus check. Most importantly, do not give out personal information like your Social Security Number (SSN) or bank account numbers. What to DO: Ask for more information so you can check up on the supposed charity. One of the best ways to determine whether the caller is a scammer is to ask for the charity's Employer Identification Number (EIN). You can then search IRS records of reputable charities by entering the EIN into the Tax Exempt Organization Search Tool (link below). If you determine that it is safe to donate, pay by check or credit card so you will have a record of the payment. You may also wish to ask the caller to direct you to the charity's website, so that you can donate through a secure online portal rather than over the phone. IRS Tax Exempt Organization Search Tool: https://apps.irs.gov/app/eos/.

Watch out for Scams!

Social Security Tax Deferral May Change Your Withholding Did You Know? An Executive Order issued in August allows U.S. employers the option to defer collection of the employee's share of Social Security tax between September 1, 2020 and December 31, 2020. The employee's share of this tax makes up the majority of paycheck withholding labeled as FICA on most worker pay stubs. Importantly, the Executive Order only authorizes DELAYED collection, rather than an actual reduction ...or temporary elimination of the tax. Most employers that choose not to withhold Social Security tax during the specified four-month period will need to collect the deferred tax through extra withholding after January 1, 2021. In other words, employees of these companies will have less money withheld from their paychecks this fall (resulting in increased net pay), but their net pay may decrease for several months after January 1 due to makeup withholding. For this reason, many employers have opted to continue withholding all FICA taxes as usual. The simplest way to determine whether your employer might be deferring Social Security tax collection is to save your pay stubs from August, and compare them to your pay stubs during the fall. If you see no significant change in your FICA withholding and net pay, then your employer has most likely opted out of delayed withholding. On the other hand, a decrease in the withholding amount and increase in your net pay may indicate that Social Security tax has not been withheld. You can check with your company's payroll department to make sure. Some companies may offer employees the choice to individually opt out of deferred withholding. However, under the Executive Order, deferred withholding may be mandatory for military and federal government employees with incomes below specified limits. If your Social Security tax withholding is delayed under this program, you may wish to take steps now to prepare for a potential increase in withholding and decrease in net pay during early 2021. For example, you could set aside the extra money you receive each pay period this fall as savings. A professional tax and financial advisor can help you explore other options to ensure that you are prepared for any possible upcoming changes to your net pay.

Strategic Assist the Office Coordinator and tax department with the processing and mailing of multi-state income tax returns, extensions, and various other forms with the tax authorities. Assist Office Coordinator in the processing and coordination of the email transmission of tax documents, and tax returns between the Tax Department and external entities. Assist Office Coordinator in the updating of the database tracking for the receipt and mailing of tax returns, tax, and v...arious tax-related documents. Assist Office Coordinator in the updating of the network folders for saving tax returns, tax-related documents, and other papers. Support the Office Coordinator and tax department with other various projects and administrative duties including generating correspondence, reading documents, gathering data, database input, scanning, copying, faxing, emailing, and distribution. Adapt to scheduling meetings, organizing and maintaining calendars, and managing conflicts. Understand polices and network, and know-how to connect throughout the organization. Maintain an awareness of the business and forecast potential problems on the horizon before the issue has turned into a problem and a crisis. Tactical Greet and direct clients/visitors Multitask in a busy corporate office environment Answer and screen incoming calls as well as Outlook emails in a professional manner, obtaining complete and accurate information and follow through on message delivery. Handle sensitive and confidential information with maximum discretion. Manage and coordinate special projects as needed - assisting with projects requiring analytical and organizational capabilities. Anticipate problems and act accordingly. Know tax & business systems and understand the business needs of the function supported. Display an appropriate sense of urgency including when scanning and filing. Provide back-up support to other administrative team members during absences or high volume workload periods. Work as an effective team member, sharing information and knowledge. Listen to each employee's suggestions, evaluate, and then recommend the best solution to the problems. Perform in a unique and changing environment by responding effectively to changes and deadlines Establish and maintain effective working relationships with staff, partners, the public, and PYCT staff. Proactively anticipate and manage clients' calendars, meetings, and travel. https://app.trinethire.com//30730-temporary-tax-office-ass ***There are 2 positions available, one primarily in the day and the other in the evenings. Monday-Friday, Saturdays may be needed.

Lifetime Learning Credit Did You Know? The IRS Lifetime Learning Credit (LLC) can offer substantial tax savings for students or their parents, especially for students who have previously completed four years of higher education. If you paid tuition and school fees in 2020 for yourself, your spouse or a dependent, you may be able to claim an LLC of up to $2,000 on your 2020 tax return. Generally, you may only claim the credit for one member of your household per year. Studen...ts currently taking post-secondary education classes at eligible higher learning institutions may qualify for this credit by meeting BOTH of the following criteria: - They are or were enrolled in higher (post-secondary) education classes for at least one 2020 academic period. An academic period can be a semester, quarter, trimester, summer session, or any other coursework session defined by the school. - The student is taking these higher education classes in pursuit of a degree or other recognized certification, or to acquire or improve job skills. In addition, the taxpayer claiming the credit (usually the student or the student's parent or guardian) must meet the program's income restrictions. Taxpayers with a modified adjusted gross income (MAGI) of $58,000 or less ($116,000 or less for joint filers) generally qualify to claim the full credit. Taxpayers with a MAGI between $58,000 and $68,000 ($116,000 and $136,000 for joint filers) may receive a reduced credit; those with higher incomes cannot claim the LLC. Although the LLC may only be claimed once per tax return, there is no limit to how many times students can qualify for the credit during their lifetimes. Before claiming the LLC for a student in your household, however, check whether the student qualifies for the American Opportunity Tax Credit (AOTC). The AOTC has higher income limits and a higher maximum credit amount ($2,500). In addition, unlike the LLC, the AOTC may be partially refundable if your tax is reduced to less than zero. For students who do not qualify for either the AOTC or LLC, it may still be possible to claim an above-the-line income deduction for tuition and fees. A professional tax advisor can help you determine your eligibility for these valuable education tax credits and deductions.

Enjoying Networking at Noon with the best chamber around Placentia Chamber of Commerce!

IRS Extends Deadline to Register for Stimulus Payments Did You Know? The IRS has extended the deadline for some Americans to register to receive their 2020 coronavirus Economic Impact Payments (EIPs, also called stimulus payments). The new deadline of midnight on November 21, 2020 primarily applies to those who are not required to file federal income tax returns, and also have not yet registered for or received their EIPs. Those who meet these criteria are urged to use the ...IRS online non-filers registration tool (link below) to submit their information and receive their EIPs as soon as possible. Choosing the direct deposit option will speed up the payment process. Generally, those who do not provide banking information for direct deposit will receive their stimulus payments by check. Note that for most people who are required to file a 2019 tax return but requested an extension, the deadline to file remains October 15. Federal return filers who qualify for EIPs generally receive their payments automatically; no separate registration is required. Beginning two weeks after they register to receive a payment, those who qualify for EIPs can track the status of their payments by using the online Get My Payment tool (link below). IRS EIP Registration Tool for Non-Filers: https://www.irs.gov/coro/non-filers-enter-payment-info-here IRS Get My Payment EIP Tracking Tool: https://www.irs.gov/coronavirus/get-my-payment

Enjoying lunch at one of our favorite restaurants and a fellow member of the greatest Chamber arounda Placentia Chamber of Commerce

Extensions and FBAR Deadline - Did You Know? For taxpayers who requested extensions to file various 2019 returns, the filing due date for those returns is October 15, 2020. This deadline applies to multiple filings that were originally due on April 15, 2020. (For most of these forms, the filing due date without an extension was subsequently changed to July 15, 2020 by the IRS due to the COVID-19 pandemic.) The October 15 deadline to file under an extension applies to several ...common returns, including: 2019 INDIVIDUAL INCOME TAXES: Most individual taxpayers who requested an automatic extension to file their 2019 federal tax returns must file by October 15. However, additional extensions may be available to some taxpayers affected by recent disasters, including hurricanes and western wildfires. 2019 CORPORATE INCOME TAXES: The October 15 deadline also applies to C corporations that requested an extension to file their 2019 corporate income tax returns (Form 1120). FOREIGN BANK ACCOUNT REPORT (FBAR): Many U.S. taxpayers, including individuals and businesses, must file an annual report of their foreign bank and other financial accounts, called an FBAR. Typically, filing an FBAR is necessary if the total value of a taxpayer's foreign accounts exceeds $10,000 at any time during the calendar year. However, certain accounts, such as those held within a qualified IRA or other retirement plan, may not need to be reported. Most taxpayers who are required to file a 2019 FBAR and have not yet done so must file by October 15. Remember that in general, an extension to file tax returns is NOT an extension to pay any tax due. Therefore, those who have not yet filed but expect to owe 2019 tax should estimate the amount they owe and pay that amount as soon as possible, even if they will not file their returns until October 15. Immediate payment will minimize any interest charges and late payment penalties. A tax professional can help you determine how much to pay and/or if an FBAR is required.

AOTC Tuition Credit Offers Tax Savings for Students or Parents Did You Know? If you, your spouse or any of your dependents are currently enrolled in a higher education program, or were enrolled for a previous academic period in 2020, you may qualify for the American Opportunity Tax Credit (AOTC). The AOTC program allows eligible taxpayers to claim a credit for tuition costs and certain school fees. To qualify for the credit, a student must be taking post-secondary classes ...at an eligible higher learning institution, in pursuit of a degree or other recognized certification or credential. In addition, students must meet ALL of the following eligibility requirements: - They are or were enrolled at least half time for at least one academic period (as defined by the school) in 2020. - They had not completed their first four years of higher education as of January 1, 2020. - Neither the AOTC nor its predecessor, the Hope credit, has been claimed more than four times total for the student, including the current year. - The student and the person claiming the credit (if different from the student) must have a valid taxpayer identification number (TIN) before the due date for the tax return. Additional eligibility criteria may apply to both the student and the educational institution. To claim the full credit, taxpayers must have a modified adjusted gross income (MAGI) of $80,000 or less for individuals, or $160,000 or less for couples filing jointly. A reduced credit may be available for individual taxpayers with a MAGI between $80,000 and $90,000 (between $160,000 and $180,000 for joint filers). Those with higher incomes may not claim the credit. The maximum allowed credit per eligible student is $2,500, up to $1,000 of which may be refundable. You may claim the credit for multiple students in your household if they all meet the eligibility standards. For students who do not qualify, you may still be able to claim either the Lifetime Learning Credit or an above-the-line income deduction for tuition and fees. A tax professional can help you determine which credits and/or deductions provide the greatest tax benefit for you.

Educator Expense Deduction Did You Know? If you are a teacher, principal, counselor, or classroom aide who works at least 900 hours a year in a state-accredited school (grades K-12), you may qualify for the Educator Expense Deduction. This IRS rule allows you to deduct up to $250 on your tax forms ($500 for joint filers who are both educators, but not more than $250 each) for classroom supplies that you purchase at your own expense. Allowed expenses include traditional sch...ool supplies like rulers and markers, computer equipment and software, along with specialty items like athletic gear for physical education classes. A qualified tax advisor can help you determine which of your expenses qualify for the deduction. You may not have to itemize deductions in order to claim the Educator Expense Deduction, but the IRS does require that you have written evidence for every expense. During this hectic back-to-school period when classroom expenses are most likely to occur, it is important to remember to save your receipts.