Month: April 2017

by La Familia La Familia No Comments

Taxes Filed but Where’s my Money?

 

You have filed your taxes with your accountant and now the waiting game begins, you ask. “When will I receive my refund?”.

Great question! This is the reason we file our taxes, to get a refund check to help out with finances: a new car, a new house, maintenance on your current car or house, or a nice family vacation.

There are two options you have when filing your taxes, the old school paper filing method, or the modern e-filing method. In order to receive your refund as fast as possible the best method is to e-file. This sends your tax information directly to the IRS, no waiting on the mail to arrive, get sorted, opened and processed. This also avoids the possibility of the paperwork being lost.

Once the IRS receives your information, according to their website, processing for e-filing takes on average 21 days to process as long as you have submitted all the required information. Any missing or inaccurate items will cause a delay in your refund.

Additionally, another way to speed up the process of receiving your refund is by signing up to have your refund direct deposited into your bank account. This allows the IRS to electronically deposit the funds into your account so there will be no need to print and mail a paper check to you. Printing and mailing takes additional time, which will delay the time it takes to receive your refund.

The IRS will allow you to split your refund across 3 different accounts. Following are different account types and methods of receiving your refund from the IRS:

  • Direct Deposit into a personal or business, savings or checking account
  • Treasury Direct®,
  • Traditional, Roth, or SEP-IRA
  • Savings Bonds
  • Paper Check

As digital technology continues to advance, the IRS has created some tools available on their website to keep you up to date, and avoid calling and waiting for hours to speak to someone for simple information. Introducing, Where’s my refund?, a new tool on the IRS’s website that allows you to get up to date information regarding your refund. Information becomes available 24 hours after e-filing, and 4 weeks after you mailing your paper return (all the more reason to e-file). You can also download their mobile app IRS2Go to get the information directly on your mobile device. The information is updated once every 24 hours. The information you need from you return to track your information is:

  • Your Social Security number
  • Your filing status
  • Total dollar amount of your refund from the tax return you filed.

In the event you do not have Internet access, you can call 800-829-1954 to receive status information over the phone.

When accessing the Where’s My Refund portal, the tool displays three different stages of processing of your refund:

  • Return Received
  • Return Approved
  • Refund Sent

For more detailed information about your Tax Refund please speak to our tax specialists by calling 305-762-1818.

 

by La Familia La Familia No Comments

What to do if You Can’t Pay Your Tax Liability

You have filed your taxes for the year and instead of receiving a refund you owe the IRS tax money but cannot pay it back. This is a very unfortunate situation but one that is not uncommon. Don’t panic the IRS has a couple of different options to assist you in paying your taxes.

1.Request an Extension of Time to Pay

Contact the IRS to request an extension of time to pay the tax. If granted, the IRS will give you 120 days to make a payment with no additional fees, however, interests and penalties will apply to the full amount of the tax liability until it is paid in full. This is the quickest and least costly option the IRS will provide. You can also file for an extension through FORM 1127 but your taxes must be filed on time.

2. Request an Installment Agreement

Another option offered to you by the IRS to assist your in paying back your taxes is through an installment agreement. This give you the ability to pay the debt back over 6 years, which gives you a lot more time than an extension of time to pay. FORM 9465 needs to be submitted when you file your taxes to request the installment agreement. You should receive a response within 30 days of filing your application. You can make payments by:

  • Direct debit from a bank account
  • Payroll deduction from your employer
  • Via check or money order
  • Through the Electronic Federal Tax Payment System
  • Via Credit card by phone or internet
  • Via Online Payment Agreement

The fees associated with the Installment agreement are: A one time installment fee of $225 or $31 if debited from your bank account. To restructure or reinstate an existing installment agreement, the fee is $89. You are able to set the amount, dates, and frequency of the payment but we advise you to plan accordingly so you will not default on the agreement.

3. Offer in Compromise

If you are unable to pay your taxes because of losing your job or your business is failing the final option is to request an Offer in Compromise from the IRS. This is only if you will not have the ability to pay the tax liability within the foreseeable future or based on the timelines in the options listed above. The OIC will allow you to pay a reduced amount of what you owe that they agree to as full payment of your tax liability. Qualification for the OIC require you to have all filing and payment requirements current and not participating in any bankruptcy proceedings.

Please contact us today for help with repaying your tax liability at 305-392-0339.

by La Familia La Familia No Comments

Do you qualify for any Tax Credits?

Tax credits are great! They reduce the amount of tax liability on your refund allowing you to receive a higher refund or pay a lesser amount of tax. There are seven types of tax credits available as follows:

  • Earned Income Credit
  • Child and Dependent Care Credit
  • Adoption Credit and Adoption Assistance Programs
  • Excess Social Security and RRTA Tax Withheld
  • Retirement Savings Contributions Credit
  • First-Time Homebuyer Credit
  • The Premium Tax Credit

Earned Income Credit is a refundable tax credit for individuals who worked the  previous year for a low or moderate income below $53,505. For the full details regarding eligibility for the EIC Tax credit please contact us directly.

Child and Dependent Care Credit is a tax credit provided if you paid expenses for child care to allow you and/or your spouse to work/look for work. The credit is a percentage of work-related expenses paid to the provider for the care of your child/children.

Adoption Credit and Adoption Assistance Programs provide a tax credit for qualified adoption expenses for the child/children and exclusion on income from employer assistance.  Qualified adoption expenses include:

  • Reasonable and necessary adoption fees
  • Court costs and attorney fees
  • Traveling expenses
  • Other expenses directly related to the legal adoption of the child/children

The maximum amount for the 2016-year per child is $13,460.

Excess Social Security and RRTA Tax Withheld This is a rare instance when your employer withholds too much Social Security Tax or your Railroad employer withholds too much RRTA tax. In the event this has happened contact your employer to have them adjust the tax for you. If they are unable to do so please contact us to assist you.

Retirement Savings Contributions Credit Contributions that you make to an eligible retirement fund may qualify you for a tax credit.  Tax credits vary depending on filing status and adjusted gross income, to see if your contributions qualify please contact us directly.

First-Time Homebuyer Credit You may be eligible for a tax credit for purchase on a home that is considered your primary residence from years 2008-2011. Eligibility depends on the year in which the home was purchased. Federal employees and members of the military are eligible for specific benefits upon eligibility of the credit. Please contact us to see if you qualify.

The Premium Tax Credit offers a tax credit to low to moderate-income families who purchase health insurance within the marketplace. This tax credit is refundable and has the ability to make premium payments directly to the health insurance provider. Please contact us directly to inquire about your eligibility.

If you feel that any of the above tax credits apply to you please don’t hesitate to call us at 305-400-8237 to determine your eligibility as well as help with ALL of your tax needs.

by La Familia La Familia No Comments

10 Tips to do Today to Increase your Refund for Next Year

 

  1. Change your tax status at work. W-2 employees should review your allowances that you claim at work on the W-4 form you fill out during the hiring process. The higher the number the less tax is taken out. This also means your refund will be  smaller. Reducing the number will cause more tax to be taken out but will lead to a larger refund at the end of the year.
  2. Track all of your deductions.  Keep track of everything that is tax deductible over the course of the year. There are several smart phone apps on the market that will make it easier and less amount of paper work to track your deductions but its still a good idea to keep a folder over the course of the year and refresh it every tax season.
  3. Find a better paying job. A higher income will increase your refund at the end of the year but here is the tip. You may be able to deduct expenses related to job seeking such as travel, meals, resume preparation, and career counseling service if they exceed two percent of your income.
  4. Learn new skills. The costs of any classes at the college level are eligible for tax credits of 20% of the cost of tuition. Why not take some time to learn new skills you have always wanted: carpentry, welding, or even a foreign language.
  5. Donate. Tax season is over and spring-cleaning has arrived. Get rid of old items you don’t use anymore by donating to charities. These acts of kindness are tax deductible, which will allow for a larger refund next year.
  6. Buy Property. Property investments are beneficial from a tax perspective as the mortgage interest and property tax deductions will increase your refund.
  7. Switch to Solar Energy. Solar energy is extremely helpful to the environment as you harness energy naturally from the sun. The government is now giving tax credits up to 30% of the cost of solar energy equipment. No better time to switch than now.
  8. Fund your retirement account.  Contributing to your retirement account is another opportunity at increasing your tax deductions, which will lead to a higher
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