AJ Tax Service, LLC.

10/21/2023

Preparing for year 2023 tax season

04/01/2022

I am still accepting new clients.

06/15/2021

CHILD TAX CREDIT:
Families who don’t file tax returns can now register for the monthly Child Tax Credit (CTC) payments through the Internal Revenue Service's online portal.
The tool allows Americans to provide information on themselves and their qualifying children along with entering their direct deposit information where those monthly deposits can be made. Eligible individuals who didn’t file their 2019 or 2020 tax returns or didn’t use the IRS Non-filers tool for stimulus checks should use the tool.

If you are aren’t required to file a tax return, give us some basic information for the advance Child Tax Credit.

06/08/2021

Expanded Child Tax Credit:

The Internal Revenue Service said Monday it has begun sending letters to more than 36 million families likely eligible to receive payments starting in July under the newly expanded Child Tax Credit—one of the major antipoverty initiatives in President Biden’s stimulus plan—and announced the dates those payments are expected to hit bank accounts.

Biden’s $1.9 trillion American Rescue Plan significantly expanded the Child Tax Credit for the 2021 tax year: It will now provide eligible parents with a $3,000 credit for every child aged 6 to 17 and $3,600 for every child under age 6 (up from $2,000 per dependent child up to age 16).

Individuals earning up to $75,000 a year, heads of household up to $112,500 a year, and joint filers up to $150,000 a year are eligible to receive the full amount of the credit.

The amount of the payments will phase out by $50 for every $1,000 in adjusted gross income above those thresholds.

The IRS will use information from 2019 or 2020 tax returns or the agency’s online Non-Filers tool to determine eligibility.

Some of that money will come in the form of advance payments, via either direct deposit or paper check, of up to $300 per month per qualifying child on July 15, August 13, September 15, October 15, November 15 and December 15, the IRS said Monday.

Families can claim the remainder of the credit on the 2021 tax returns they file next spring.

06/04/2021

The IRS refunds delayed!
If you've not received your income tax refund from the IRS yet, you're not alone. This year, the IRS is experiencing more refund delays than normal for several reasons -- from sending out weekly batches of stimulus payments to recalculating taxes paid on unemployment benefits.

Because of the pandemic, the IRS ran at limited capacity in 2020, which put a strain on its ability to process tax returns and send out stimulus checks. The IRS is now open again and processing mail, tax returns, payments, refunds and correspondence, the agency said, but the pandemic continues to cause delays in some services.

The IRS said it's issuing most refunds in less than 21 days right now but some are taking longer, including for mailed paper tax returns. The IRS said it's also taking longer than 21 days to issue refunds for some 2020 tax returns that require review, such as determining recovery rebate credit amounts for the first and second stimulus checks or figuring earned income tax credit and additional child tax credit amounts.

05/30/2021

Dozens of people said they filed their taxes months ago, but haven't received their refunds.

IRS spokesperson Luis Garcia admitted the agency is swamped because of stimulus payments and COVID-19 challenges.

"Remember, we're operating under the same COVID restrictions in 50 states just like everyone else and some of our processing centers have to follow a health and safety protocol to ensure the health and safety of our workers," he said. "There's a lot of tax law changes that have come through, there's the stimulus payments that have to be processed in a way that is efficient and avoids fraud and we've had 10 straight years of budget cuts so that may have something to do with it as well."

02/13/2021

What is an IP PIN and Do You Need One?

The Internal Revenue Service (IRS) created an Identity Protection Personal Identification Number (IP PIN) Opt-In Program to protect taxpayers whose identities had been stolen. Although the program was initially for victims of identity theft, it is being expanded in phases to all taxpayers. The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security number on fraudulent federal income tax returns. An IP PIN is used only on Forms 1040, 1040PR and 1040SS.

The IP PIN offers a greater level of security when it comes to protecting people from tax-related crimes. The IP PIN is an important tool as it will thwart tax-related identity theft, preventing many of the problems that come with identity theft. If your identity is stolen, the IRS flags your account for the next three years, resulting in slower processing of your tax return and a delayed refund if one is due.

Without a new IP PIN, taxpayers will have issues filing their federal tax return. They will have to file their tax return on paper, by mail, as the IRS will reject any electronic version submitted without the proper IP PIN.

To sign up, use the online Get an IP PIN tool, which became available mid-January. If you do not already have an account on IRS.gov, you will first have to register in order to validate your identity.

02/10/2021

Why it might be a 'mistake' to file your 2020 taxes now

Tax season officially starts Feb. 12 and you have until April 15 to file and pay taxes owed.

But there’s a wrinkle this year and it has to do with coming stimulus payments.

Lawmakers are still negotiating the details of a third stimulus plan, including how much Americans should get in this round.

One proposal would send $1,400 payments to individuals earning up to $75,000 a year and couples earning $150,000 a year. Another proposal aimed to slash that benefit to $50,000 for individuals and $100,000 for married couples.

Whatever the final number ends up being, the government will determine whether you get a check based on your adjusted gross income — from the 2019 or 2020 tax year. If you haven’t yet filed your 2020 taxes, the government will use your 2019 income to determine your eligibility to get a stimulus payment. For people who had a worse 2020 than 2019 — a job loss or hit to income — filing a 2020 return quickly would be a good idea. If the government has your 2019 return, it might miss the fact that you’ve been struggling and are eligible for stimulus.

People should be determining whether they should file or not,

It would be a mistake for any person to file their 2020 tax return at this time if their 2020 income is higher than 2019. Since so many people rely on tax refunds to cover living expenses, it will be hard on them not to file and most may go forward and file and lose out on part of their third stimulus.

01/12/2021

It's Tax Time!

Once again, it is time to begin the process of collecting information for the preparation of your individual income tax returns.

There are many changes that will impact the preparation of your 2020 individual tax return, including special steps related to the Economic Impact Payments. Please include Notice 1444- Your Economic Tax Payment with your tax records.

We are here to assist you and provide you with optimal income tax solutions. If at any time you require further information concerning what should be collected to send us, please do not hesitate to call us.