Tax Tips Archives • Page 5 of 5 • Financially Simple

August 1, 2017

August 1, 2017

How to Get Tax Transcripts and Copies of Tax Returns from the IRS

Taxpayers should keep copies of their tax returns for at least three years. Those who need a copy of their tax return should check with their software provider or tax preparer. If all else fails though, here how getting tax transcripts and copies of returns from the IRS works. Tax Transcripts A transcript summarizes return information and includes Adjusted Gross Income (AGI). They are available for the most current tax year after the IRS has processed the return. People can also get them for the past three years. When applying for home mortgages or college financial aid, transcripts are often necessary. Mortgage companies, however, normally arrange to get one for a homeowner or potential homeowner. For people applying for college financial aid, see IRS Offers Help to Students, Families to Get Tax Information for Student Financial Aid Applications on IRS website for the latest options. Taxpayers can get two types […]

May 2, 2017

Employee or Independent Contractor? Know the Rules

Employee or Independent Contractor? Know the Rules The IRS encourages all businesses and business owners to know the rules when it comes to classifying a worker as an employee or an independent contractor. An employer must withhold income taxes and pay Social Security, Medicare taxes and unemployment tax on wages paid to an employee. Employers normally do not have to withhold or pay any taxes on payments to independent contractors. How to Classify Workers Here are two key points for small business owners to keep in mind when it comes to classifying workers: 1. Control. The relationship between a worker and a business is important. If the business controls what work is accomplished and directs how it is done, it exerts behavioral control. If the business directs or controls financial and certain relevant aspects of a worker’s job, it exercises financial control. This includes: The extent of the worker’s investment […]

April 18, 2017

What to Do When an IRS Letter Arrives in the Mail

It’s Tax Day! Whether you filed on time or early, you may still get an IRS letter in the mail. What should you do if you are one of the ones that get something? First, know that the IRS mails millions of pieces of correspondence every year to taxpayers for a variety of reasons. What to Do When an IRS Letter Arrives in the Mail Below are some suggestions on how to best handle a letter or notice from the IRS: Do not panic. Simply responding will take care of most IRS letters and notices. Most IRS notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and provides specific instructions on what to do. Careful reading is essential. A notice may likely be about changes to a taxpayers’ account, taxes owed or a payment request. Sometimes a notice may ask for more information […]

April 11, 2017

April 11, 2017

Tips to Know about the Home Office Deduction

Taxpayers who use their home for business may be able to deduct expenses for the business use of it. Qualified persons can claim the deduction whether they rent or own their home. Use the simplified method or the regular method to claim a deduction. Here are six tips to keep in mind when taking the home office deduction:

March 7, 2017

Nine Common Filing Errors to Avoid

The IRS encourages taxpayers to file an accurate tax return. If a taxpayer makes an error on their return, it will likely take longer for the IRS to process it. This could delay a refund. Avoid many common errors by filing electronically. IRS e-file is the most accurate way to file a tax return. All taxpayers can use IRS Free File at no cost. Here are nine common errors to avoid when preparing a tax return: Missing or Inaccurate Social Security Numbers. Be sure to enter each SSN on a tax return exactly as printed on the Social Security card. Misspelled Names. Spell all names listed on a tax return exactly as listed on that individual’s Social Security card. Filing Status Errors. Some people claim the wrong filing status, such as Head of Household instead of Single. The Interactive Tax Assistant on IRS.gov can help taxpayers choose the correct status. […]

How to Get Tax Transcripts and Copies of Tax Returns from the IRS

Employee or Independent Contractor? Know the Rules

What to Do When an IRS Letter Arrives in the Mail

Tips to Know about the Home Office Deduction

Nine Common Filing Errors to Avoid

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