This Is How We Saved Our Tax Client From Owing Taxes On TurboTax

One of our clients, Crystal, decided to go online and try filing her taxes herself.

I mean its FREE right, why not?! 

And even if she didn’t know what she was doing.

She would still give it a shot and hope for the best.

What’s the worst that could happen?

What Crystal didn’t realize (as for a lot of Americans). A high percentage of people who do their taxes online, are doing them inaccurately. 

How do we know? 

Because TurboTax will purposely offer you to upgrade, just so you can do it “accurately.” But for a FEE of course. 

Crystal ended up putting in all her information that she could remember off of the top of her head into TurboTax…

When she got to the final page to see how much money she would get back….

Crystal ended up owing $1347!

But how could she owe? She paid her fair share in taxes..

Confused by the amount, she did some research and came across @Ingramtaxes on Tiktok, and InstagramShe wanted to get some sort of second opinion.

Crystal ended up getting a free estimate with ingramtaxes.com

And low and behold, we realized she was leaving a bunch of MONEY on the table.

Crystal went to college and paid her tuition in 2021! The interest on her college tuition paid, is totally deductible.

As soon as we entered in her new numbers… Her refund went from her owing $1347 to her getting back $4690. All because she did her due diligence and received a free tax refund estimate.

Click here to receive your free tax refund estimate.

What to Know About Filing Taxes

Filing taxes last year was complicated and filled with last-minute changes. This year’s tax-filing season should be easier, but there are still plenty of new issues to deal with if you lost your job, started a new job or freelance work, collected unemployment benefits, had a baby or other life changes in 2021. You may also need to take extra steps when you file your income tax return if you were eligible for extra stimulus funds or advance child tax credits. You may have special issues to deal with this year, even if your taxes are usually simple. However, there were still some other COVID-related benefits that did not continue into 2021. For example, there is currently no tax break on unemployment benefits received in 2021, but we can’t rule out Congress passing a last-minute tax break like they did last year. Meanwhile, some new laws will help filers this year. Among them is the expanded $600 charitable deduction for married couples who don’t itemize and a larger break for child and dependent care expenses.

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There are also some tax benefits to consider when it comes to saving for college, paying for medical care and supporting your local economy. Here’s what you need to know about filing your taxes and making the most of your benefits. How to File Taxes? There are several options for filing your taxes. You can do them yourself, use tax software, go to a tax preparer in person or virtually, or help from a CPA or enrolled agent. There are different levels of support and costs depending on the complexity of your situation. You may be able to file your taxes for free through IRS Free File if your income was below $73,000 in 2021. With this program, several online tax preparation companies partner with the IRS to offer free tax-filing services. See the IRS’ Free File page for more information. Free File opens on Jan. 14, and returns will be submitted to the IRS starting on Jan. 24. When to File Taxes Whether you’re due a refund or owe money to the IRS, you need to make sure you file your taxes before the deadline. It can be challenging to catch up, but there are a few key dates to know for filing your 2020 taxes. The IRS will begin accepting 2021 returns on Jan. 24, 2022. You should wait until you receive your key forms to file, such as your W-2 from your employer and any 1099 forms reporting earnings from other sources, such as interest, dividends, self-employment and unemployment compensation.

Most of these forms must be sent by Jan. 31, although brokerage firms have until Feb. 15 to send some 1099s. You can import your W-2s and 1099s into your tax preparation software if you work with a tax filing service such as TurboTax. Be on the lookout for a letter from the IRS this year reporting how much you were due in the advance payment of the child tax credit and how many qualifying children were used to calculate that payment. This information will help you reconcile the amount of tax credit you received with what you were eligible for. The IRS will send letter 6475 to everyone who received the third round of economic impact payments. This letter is used to help you determine whether you are eligible for a refund of any stimulus money you received. If you did not get all of the third stimulus payment or you had a baby, you may be eligible for more stimulus in the form of a recovery rebate credit, but you’ll need this letter to correctly report the amount of the third stimulus that the IRS issued in 2021 to be able to claim a recovery rebate credit.

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When are Taxes due? If you’re an American citizen living in Massachusetts, Connecticut, Florida, Georgia, Maryland, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas or Virginia, your federal income taxes are due on April 18, 2020. However, you may not need to file until April 19 if you’re also a resident of Maine or Massachusetts. For example, the due date for federal income tax returns is May 16 for residents of certain areas of Colorado affected by the December wildfires. The due date was also extended to May 16 for Kentucky, Illinois and Tennessee residents whose addresses are within the FEMA-declared disaster zone from the tornadoes. “States have the option to choose whether to conform to federal due dates,” he says. The earlier you file, the sooner you can get your refund and the less likely that an identity thief will claim it before you do. Most people get their refunds quickly, even if you owe money, but the IRS can’t give you a refund involving the earned income tax credit or additional child tax credit until mid-February.

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The quickest way to get your refund is to file electronically and have your refund deposited directly into your bank account. “Returns should be e-filed whenever possible and payments can be made at irs.gov/payments. We’re currently seeing responses 20 months or more on items mailed to the IRS. Tax season is upon us, and tax filing should be done timely and efficiently. Hiring a professional is one efficient way to file your taxes and learn everything about taxes. It can help save time and money, while also ensuring that your taxes are filed correctly. If you would like more information on this subject or any other business consulting services we offer, please get in touch today by calling/texting us us at +1 866-824-1440 or email us at info@ingramtaxes.com. We look forward to helping you get set up and ready to pay taxes this year!

Tax Credits You May Qualify for This Year | Ingramtaxes.com

A tax credit is not the same as a tax deduction. Tax credits are used to offset taxes owed and can be applied to reduce how much you owe in taxes. A deduction reduces how much of your income is taxed and is often higher in value than a tax credit. Some credits are refundable, which means they will result in a refund if the amount of the credit exceeds the amount of taxes owed. Other credits are nonrefundable and can wipe out a taxpayer’s bill but won’t result in a tax refund. Because credits are so valuable, the government usually places income limits or other restrictions on who can claim them. These restrictions can vary for each credit. What’s more, both states and the federal government may offer credits for similar expenses, but each has its own eligibility criteria. The best way to make sure that your business is as financially viable as possible is to do your homework and know exactly what it is that you are getting into. Make sure you have a full understanding of the costs, the benefits, and the responsibilities. The IRS offers many credits, such as moving expenses and education credits, to help reduce your tax bill. However, some of these credits are nonrefundable and can be used to wipe out your tax bill. Some credits are limited to specific taxpayers, so you should know whether you qualify before you file.

In general, most people who do the credit math come up with a negative number. They’re not wrong – it’s just that there are two sides to every story. Here’s the reality: If you have a big refund coming your way, it could be the result of one of the following.

If you get a $600 refund, you may be eligible for:

• American opportunity credit

• a lifetime learning credit

• a child tax credit

• a dependent care tax credit

• an investment tax credit

If you get a $1,000 refund, you may be eligible for:

• the American opportunity credit

• The lifetime learning credit

• a child tax credit

• a dependent care tax credit or an investment tax credit

• The Adoption Credit

• The Earned Income Credit

• The Premium Tax Credit

• The Recovery Rebate Credit Tax Credits for College Tax Credits for college, Bump-up to a bigger credit:

If you don’t get the full amount with the American opportunity tax credit, you can apply it towards your taxes if you earn up to $100,000 a year. The same is true for parents of dependent students. As with the American opportunity tax credit, they’re eligible for a $2,500 per student credit for the first four years of undergraduate education. Of that, up to $1,000 is refundable. Eligible expenses include tuition, fees and expenses that are required for attendance in class, such as books. The other option is the Hope scholarship. “To claim the credit, students must be enrolled at least half time for one academic period, be pursuing a degree or other recognized education credential and not have previously claimed an American opportunity credit or the former Hope credit for more than four tax years. Eligible expenses include tuition, fees and expenses that are required for attendance in class, such as books.” This is a good example of how a simple phrase can become very confusing to someone who doesn’t know what they’re reading about.

In this case, the confusion comes from the words “phased out” which means that the credit is only available for students with incomes up to $31,500. You may only claim the lifetime learning credit if your modified adjusted gross income is below a certain amount for each filing status (married filing joint: $138,000; married filing separate: $69,000; single: $69,000. The credit is limited to the total of $2,000 you have claimed for the year. If you enroll in an Amazon University course that lasts for one or more years, you can receive a lifetime learning credit, regardless of your age or where you enroll. You don’t need to complete a degree program to enroll in a class. Tax Credits for Families There are some other new tax credits for families in place, like the Child Tax Credit and Earned Income Tax Credit, which is designed to provide financial relief to lower-income individuals and families.

The earned income tax credit is a refundable tax credit for individuals and couples with income below a certain level. It provides money back in the form of a monthly payment, and it can be used for almost any purpose, such as paying down debt or making home repairs. The amount you can claim is based on your age and number of children. Parents who received advance payments in 2021 will need to file a tax return to reconcile the payments they received with the amount they are owed. Those who are eligible for the full credit will have the remainder applied to their tax return. If someone received advance payments and is not actually eligible for the credit, they may be able to keep the money depending on their income.

For 2022, the child tax credit reverts to its previous level of $2,000 for each child younger than age 17 who lives with a taxpayer for more than half the year. Marriages between two individuals who are either married to each other or live together and file jointly generally result in higher income than a single taxpayer or one person living alone. Child and dependent care tax credit. The child and dependent care tax credit is another tax credit that got a boost in 2021. Normally, the maximum credit that can be received is 35% of $3,000 in allowable expenses for a single child or $6,000 in allowable expenses for two or more children. However, for 2021 only, the credit can be claimed on up to $8,000 of qualifying expenses for one child and $16,000 of expenses for two or more children. This credit is available to those who pay for childcare so they can work. However, the credit and the exclusion can’t be for the same adoption costs. Qualifying expenses include care for children younger than age 13, spouses who are physically or mentally incapable of self-care or other qualifying individuals who are incapable of self-care. In all cases, the person receiving care must live with the taxpayer for more than half the year. Adoption credit. This credit can help reimburse parents for their legal fees and other costs associated with adoption.

In addition to a credit of $14,400 for a qualified adoption, taxpayers may be able to exclude $14,400 from their income in 2021 if an employer pays for qualifying expenses. If you’ve been thinking about starting a side business, this is a great place to get started. It walks you through the basic steps of how to begin, what to expect when you’re ready to launch your side business, how to market your business, and what type of products or services you should consider offering. Tax Credits for Income-Eligible Households The Earned Income Tax Credit (EITC) is available for families who qualify, and it can be lucrative if you qualify. It’s also one of the most overlooked tax credits, but if you’re eligible, you may be able to claim the full amount. The maximum credit is $6,728 for a family with three or more children, and it varies based on household income and number of children.

Income limits for dependents who are eligible to claim the earned income tax credit range from $12,600 for a single taxpayer with no children to $31,700 for a married couple filing jointly with three or more children. Taxpayers may claim this refundable credit only if their modified adjusted gross income (AGI) is below the threshold, and not above a phaseout threshold. The Affordable Care Act includes the Premium Tax Credit. It is available to any income-eligible household that buys health insurance through the government’s health insurance marketplace. The amount each eligible household receives depends on the price of health insurance and income in their area. At tax time, people need to file a return and include the amount they received in subsidies. A significant increase in an individual’s income means they might have to pay back some or all the credit. Recovery rebate credit.

The government sent out several rounds of stimulus checks – also known as economic impact payments – to help American households during the COVID-19 pandemic. Those who were eligible but didn’t get a payment can claim a recovery rebate credit on their 2021 tax return. If you missed your first or second stimulus payment, you’ll need to file or amend a 2020 tax return. Your eligibility for the third stimulus payment was limited to those with incomes of less than $160,000 for those who are married and filing jointly. The income limit for heads of household is $120,000, and it is $80,000 for other tax filing statuses. Tax Credits for Investments Foreign tax credit. If you have paid foreign taxes on dividends you have earned from certain investments, you may be able to get a credit for them when you file your taxes. This credit is available even to middle-class taxpayers. It can be worth thousands of dollars for a family with investments in a foreign fund. Retirement savings contributions credit. This credit is available to individuals who are 18 years or older but not full-time students. It provides a tax credit of 10%, 20% or 50% of contributions to an IRA, employer-sponsored retirement plan or ABLE account. “It’s worth contributing to these accounts to get the tax benefits,” says Susan Schwartz, CPA and managing director at Avera McKennan’s Accounting and Business Advisory Services. “Income limits are higher for the tax credits on retirement savings accounts versus the standard income deduction.” Married couples filing jointly can’t have an adjusted gross income of more than $57,500 in 2021. You’ll get 20% of your credit score if you earn between $39,501 and $43,000 and 10% if you earn between $43,001 and $66,000.

Whether you’re trying to get the most bang for your buck, you need to understand which tax credits you can claim. Each credit has its own threshold, and some credits are better than others. This article helps you understand how tax credits differ from deductions and which federal tax credits apply to your situation. Conclusion: Tax season is upon us, and if you want to reduce how much you pay the government, you should learn about tax credits. They are an efficient way to lower a tax bill, but there are some that are confusing and others that only apply to certain situations. If you would like more information on this subject or any other business consulting services we offer, please get in touch today by calling us at +1 866-824-1440 or email us at info@ingramtaxes.com. We look forward to helping you get set up and ready to pay taxes this year!

What Are Tax Professionals and Why You Should Hire One.

If you’re like most Americans, you procrastinate about your taxes until the day before they are due. And if you have a lot of deductions and credits that require itemizing your tax return, it’s likely even worse: You probably put it off until April 15th.

Tax season is upon us. That means one thing for most of us: stress. One of the most stressful parts of tax season is filing your taxes. We don’t know why it’s so hard to file our taxes, but it is. It takes a lot of time, and we must fill out a lot of complicated forms (which can be confusing). When you work for yourself, you must deal with a lot of taxes. If that isn’t something you want to deal with, it’s the time to hire freelance personal tax professionals. A tax professional will be able to give you peace of mind, save you time and get you the most money possible.

 Nothing is more important than protecting your business, yet many small companies and self-employed individuals struggle with the complexity of tax regulations and are unsure of where to turn for help.

However, the good news is that there are professionals who specialize in tax advice for businesses. Hiring a Tax Advisor will save you hours – even days – of frustrating research. When you hire an accountant, they give you peace of mind that you are complying with federal and state laws, and they’ll save you time filling out those complicated forms. You’re going to need someone who is not just a tax professional, but also has experience with small businesses and freelancers. That way they know exactly how to get your taxes done right and in a timely manner. They should be able to give you great advice and specialize in areas relevant to your business.

Tax preparation for individuals and businesses is a complex and confusing task. For most people, it’s something they don’t want to deal with and leave to the professionals. There are many benefits of hiring a tax professional:

– Hiring a professional can save you time filling out all those complicated tax forms

– Hiring a professional will ensure that you’re complying with federal and state laws

– Hiring a professional can reduce errors on your return or filing

– Hiring a professional may improve your chances of getting the most generous refund possible

 With all these reasons, it’s clear why you should hire a tax professional. Don’t let the IRS intimidate you. Hire a tax professional to help you with your taxes. It can be hard to fill out your taxes without help, especially if the instructions are unclear. That’s why many people hire tax professionals to help them file their taxes.

Conclusion: As you can see, there are many benefits to hiring a tax professional. When you’re done filing your own taxes, you may find yourself making the same mistakes year after year. Hiring a professional can help save time and money, while also ensuring that your taxes are filed correctly. Here at IngramTaxes.com, we’re dedicated to helping all our clients receive the best possible results when it comes to tax preparation and filing. Contact us today for more information about how we can help you! If you are looking for the best tax filing services, we can help. Please get in touch today by texting/calling us at +1 866-824-1440 or email us at info@ingramtaxes.com. Our professional team is available to take care of your needs and make sure you get what is rightfully yours.