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Category: Tax Tips and Tricks

Taxes are confusing and cause many taxpayers stress come tax season but PriorTax is here to help. Learn the tax tips and tricks to get you through the preparation process. You could be missing out on more money from the IRS which is why we want to help. We’ll let you know about hidden deductions and rare credits to report on your tax return to maximize your refund. Don’t hesitate to leave a comment on our blog if you have a question about your tax situation. Also, check back here for new tips and tricks throughout the tax season because our team is on the lookout!

Archive for the ‘Tax Tips and Tricks’ Category

What do I do if someone else claimed my dependent?

Posted by Manisha Hansraj on October 16, 2018
Last modified: October 19, 2018

someone else claimed my dependent

In the worst case scenario, the IRS rejects your tax return.

Someone else claimed my dependent. What should I do? Luckily, the IRS gives you options in case you’re stuck in this situation.

Unfortunately, the IRS cannot disclose who claimed your dependent. Typically it’s either the other parent, their child claimed themselves as an exemption on their individual tax return, another member of the household such as the grandparent, or any other person that lived with the child for a portion of the year.

What you need to do.

If you’re filing a current year return, you may receive a rejection due to your dependent’s social security number. In this case, you should double-check that you reported their SSN correctly. If it is reported correctly, you will need to paper file your return; meaning you must print, sign and mail your return to the IRS. You cannot e-file it since the IRS will reject it again. (For tax season 2018, the e-file and extension deadline has passed on October 15, 2018. Therefore, you must paper-file your return.)

You may receive a CP87A Notice which notifies each party that if they incorrectly claimed the dependent, they need to file an amended tax form. If you can rightfully claim the dependent, you do not need to respond to this notice. In order to dispute the claim of your dependent, you will need to attach a cover letter (more…)

Can I pay my federal taxes with a credit card?

Posted by Manisha Hansraj on September 10, 2018
Last modified: September 18, 2018

Can you pay federal taxes with credit card

The IRS can’t directly accept credit card payments due to tax laws.

However, they can accept payments through a third-party processor. For example, online tax preparation companies are third-party processors since they are designated by a merchant to handle transactions for merchant acquiring banks. They can then assist you in making your credit card payment towards your tax bill to the IRS.

Here’s what you need to be prepared for when you plan on using the credit route.

There are no flat fees when using your credit card.

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11 Tax Tips For Your Back-to-School Use!

Posted by Manisha Hansraj on August 21, 2018
Last modified: August 24, 2018

tax free week 2018

Education is expensive, so here’s some helpful tips!

Get your tax break from claiming your kids.

  1. Don’t forget to claim up to $1,000 for the Child Tax Credit.
    (Your child must be under 17, live more than half the year with you, a dependent on your tax return, be directly related to you, a U.S. citizen, national or resident alien)
  2. Claim the child and dependent care credit for child care expenses for your child under 13.
  3. You can claim the Earned Income Credit (EIC) depending on your income.
  4. The Adoption Tax Credit reduces your tax for expenses such as Court, attorney fees, travel and meal expenses. (You can also claim the Special Needs Credits for all relating expenses)
  5. Claim the Education Credit for education expenses if you’re paying for your child’s college education.

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What is the Estimated Tax Payment Schedule?

Posted by Manisha Hansraj on August 7, 2018
Last modified: February 22, 2019

tax payment schedule 2018

Do you need to make estimated tax payments?

Typically, if you receive a W-2, your taxes are automatically withheld. However, if you earn money from self-employment, interest, dividends, or rents, you will have to make estimated tax payments. This ensures that you’re paying your taxes.

Read on to find out the estimated tax payment schedule for 2019.

Estimated Tax Payment Due Dates

Generally, taxpayers can figure their estimated taxes and pay four equal portions of it throughout the year. You can also choose to pay your estimated tax by the tax deadline.

For instance, you can pay your estimated tax by April 15, 2019 or the dates below.

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The Child Tax Credit & Additional Child Tax Credit Changes for 2018!

Posted by Manisha Hansraj on July 23, 2018
Last modified: January 23, 2019

child tax credit 2018

Let your kids treat you by giving you the tax break you deserve.

Typically, for the prior tax years, (including the tax year 2017) you can receive up to $1,000 per qualifying child for the Child Tax Credit (CTC). You may even get the Additional Child Tax Credit (ACTC) which is a refundable credit that you may receive if your CTC exceeds the total amount of income taxes you owe. However, you need an income of at least $3,000. It phases out for taxpayers with the AGI of $75,000 or greater and $110,000 for joint filers.

The good news is that the CTC and the ACTC increases for the next tax year.

Read on to find out the changes for 2018.

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April 17th, 2018 is the Last Day to Claim your 2014 Refund!

Posted by Manisha Hansraj on January 16, 2018
Last modified: September 25, 2018


Don’t delay your 2014 refund.

Your 2014 refund is waiting for you. Luckily, the IRS allows you to claim your refund due to their convenient Statute of Limitations. However, you have three years from the original tax deadline date to claim your tax refund. With that in mind, if you wait three years after the filing deadline, your refund will expire. On top of that, if you fail to claim your refund, the IRS will collect it and you will no longer be entitled to your refund.

That sounds like a waste, doesn’t it? Read to find out what you need to do in order to claim your 2014 tax refund.

Can I still E-file?

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Did You Miss The 2016 Tax Deadline?

Posted by admin on December 26, 2017
Last modified: September 14, 2018

Did you miss the 2016 tax deadline?

With the 2018 Tax Season less than a month away, you probably have some catching up to do. Luckily, you can still file your 2016 tax return if you’re one of many taxpayers that are rushing to stay on top of a missed 2016 tax deadline. That being said, start raiding your rooms for all the receipts you need to finish your taxes. If you want to find out if you have a refund coming your way, utilize our 2016 tax calculator.

Read on to find out how to file your 2016 prior year return.

Can I E-file my 2016 Tax Return?

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How do I Qualify for the Child Tax Credit?

Posted by Divya Hansraj on June 16, 2017
Last modified: June 6, 2018

Oh, the joys of having children!

Today, it is difficult for parenthood to have its rewards. Children want us to buy them the most expensive toys and clothing and that spending can sometimes feel fruitless. As with struggling to finish a marathon, we strive, hoping there will be a light at the end of the tunnel. Luckily the IRS understands this struggle and gives parents a little something back. The Child Tax Credit and the Additional Child Tax Credit serve as the cushioned shoe inserts that help us finish.

Child Tax Credit (CTC) Facts:

  • You must have a qualifying child.
  • You must have earned greater than $3000 of Income.
  • Each child can receive up to $1000.

 

What is a qualifying child?

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Unfiled tax returns have you drowning?

Posted by admin on June 6, 2017
Last modified: June 16, 2017

Overwhelmed With Prior Year Unfiled Tax Returns?

While most Americans finish or have finished their current year taxes, others have stacks of unfiled tax returns from previous years. You may feel swamped with the pressures of work and within a blink of an eye, you wake up to find an IRS notice in the mailbox. Let’s face it, life gets busy. Nevertheless, you have forgotten about those prior year tax returns, but the IRS hasn’t. Here are some common questions for those taxpayers who are stuck in the mud with unfiled tax returns:

Should I file my Unfiled tax returns?

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20 Facts About Filing an Amended Prior Year Tax Return

Posted by admin on February 7, 2017
Last modified: February 7, 2017

Did you take the wrong step with your tax return? Don’t be too hard on yourself.

Mistakes happen. If you filed your tax return with incorrect or missing information, the IRS will give you a chance to fix your mishap. Before insisting you 100% need to amend your return, though, take a look at our list of when you should, when you shouldn’t, and other need-to-know info about doing so.

 

What it is and where to file

1.Another name for an amended tax return is 1040X.

2.If you are amending multiple tax returns at once, you will need a prepared 1040X for each one. They will also need to be mailed in separate envelopes to the IRS.

3.You can prepare your amended tax return with PriorTax whether you filed your original return with us or a different tax preparer.

4.The address to mail your amended tax return is:

Department of the Treasury

Internal Revenue Service

Austin, Texas 73301-0215

Or if you are using a private delivery service:

Internal Revenue Service

3651 South I-H 35, Stop 6055 AUSC

Austin, Texas 78741

 

Fixing Information VS. Adding Additional Information

5.You don’t need to file an amended return for calculation mistakes. The IRS has calculators of their own which will update the information automatically on your return. (more…)