Tax talk

365 days, thousands of conversations, and hundreds of car washes. Yes, it’s been a full year of making your own hours and helping others with theirs as a rideshare driver. 

Life changes like getting married or divorced, having or adopting children, and buying or selling a house have traditionally had an impact on your federal tax return. However, the 2023 tax season will likely throw surprises at taxpayers who don’t plan ahead. It's important to be prepared so you're not shocked by the result when you file your income taxes. 

Tax season can be a stressful time of year. However, if you qualify for a tax refund, it can be used to pay off bills and debt or add to your savings for a rainy day.

A lot has changed for 2022 tax returns, which might cause refund shock if you’re not prepared for it, because you might get a smaller tax refund than you did last year. In fact, you could even owe the IRS.

2022 has been a very interesting year for taxpayers. Tax Day will likely look different for many of us, which is why smart tax planning and thinking ahead could really pay off.

The good news is, there are thousands of dollars’ worth of tax credits this year for eligible taxpayers. The bad news is, if you don’t file your returns correctly, the IRS could delay your refund. That’s why it’s important to watch for these documents in the mail.If the numbers on your return don't match the amounts reported on these documents, it could delay your refund by weeks, even months. Here's what you need to know.

Did you know the IRS recognizes veterans’ deep sacrifice and commitment to our country with numerous tax breaks?

In October 2021, one lucky Powerball winner took home nearly $700 million—and a big tax bill too. And so will you, if you win the lottery, win at the casino or racetrack, get lucky on sports betting apps, or take home gambling winnings in other ways.

Just in time for Halloween, frightening things you need to pay taxes on.

The Child Tax Credit (CTC) for 2021 has some important changes stemming from the American Rescue Plan (ARP). Learn what the changes are, who qualifies, payment amounts, and when those payments will be issued. Additional information about the IRS portal allowing you to follow, update, or even opt-out of the new payments will also be provided.

Are there any tax credits or deductions available to families impacted by Covid-19? What must be done to claim these benefits? We’ll discuss each of the benefits included in the American Recovery Plan Act, which is still in the process of being approved by Congress.

Moms, we know you’ve really been stretched to the limit this past year. Working from home while balancing duties as a schoolteacher, nurse, cook, playmate, and more is no easy feat. So stop, take a deep breath, and exhale. This Mother’s Day, we celebrate you - all the hardworking moms and moms-to-be with a handy list of tax-related benefits for your 2022 tax return, along with some commonly overlooked tips, that come with being a mom:

Most individuals have received all three of their Economic Impact Payments, better known as stimulus checks, by now. However, some taxpayers may not have received one or more of their stimulus checks, or didn’t receive the full amount.

In March, President Biden signed an emergency relief plan, the American Rescue Plan Act of 2021, that expanded and enhanced the Earned Income Tax Credit (EITC) for over 17 million working adults without children by nearly tripling the maximum credit and extending eligibility. This was the largest expansion to the EITC since 2009.

There are many changes taxpayers may have experienced over the past year, not just because of the pandemic but also due to normal life changes like getting married or divorced, having or adopting a new child, receiving stimulus payments, or employment changes. All of which can change a taxpayer’s tax situation.

Were you unemployed in 2020? These tax opportunities may help reduce your tax burden or increase your refund.

There’s nothing like the start of baseball season to give grownups a chance to feel like kids again. But for the players? It’s serious business. Another season means staying healthy, negotiating the best possible contract, and keeping on top of their taxes. Yes, taxes. Because if you think throwing a perfect game is difficult, you should see a ballplayer’s tax return.

On March 17, 2021, the U.S. Treasury Department and the Internal Revenue Service (IRS) announced that the federal income tax filing date for individuals has been extended from April 15, 2021 to May 17, 2021.

A new COVID-19 economic relief package, named the American Rescue Plan Act of 2021 (ARPA)  includes a third round of Economic Impact Payments (EIP), or stimulus, as well as changes to unemployment insurance and more. Below is what taxpayers need to know.

A sweeping new COVID-19 economic relief package was signed into law by President Biden on March 11, 2021.

Year after year, natural disasters plague our nation and leave behind damaged or lost property. The federal government will designate certain areas affected by tornados, snowstorms, droughts, earthquakes, and hurricanes as federally declared disaster areas. The IRS attempts to ease the financial burden on taxpayers residing in these regions by providing disaster tax relief.

After a difficult year, many taxpayers could fall for common tax myths. Tax rumors, tax misinformation, and various myths are much more common than you may think. These can lead to costly errors for taxpayers who file their taxes incorrectly as a result. Bad advice can lead to big expenses, big tax bills, or even an IRS audit.

State and federal income taxes vary greatly from each other. Read on to learn about the difference and how it impacts you.

Multi-State taxes often appear complex. Working in different states leaves more room for error when filing state taxes. Whether taxpayers worked in one state and lived in another, lived in multiple states during the year, traveled to and worked in multiple states, they will likely have more complicated state tax returns.

You may have heard rumors that federal government employees don’t pay the same taxes as other Americans. However, that is simply not true.  While some of their pension and retirement plans are different than non-federal employees, they still pay taxes and are impacted by the same tax code as non-federal employees.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was created in response to the COVID-19 pandemic to provide aid, relief, and increased economic security to affected individuals. The Act provided specific aid and tax benefits for taxpayers who needed to withdraw more money than usual from their retirement and 401(k) plans during the pandemic.

The year 2020 was one for the history books in many ways, and it’s not done delivering surprises even as tax season is under way in 2021. One pleasant surprise could be in store for many taxpayers who may qualify for the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) under the tax law that went into effect in December 2020.

Lottery winners look happy and a bit dazed when they appear in the news, holding a big cardboard check scrawled with their winnings. Many say they can’t believe their good fortune. After all, they just received one of the biggest payouts of their lives. When they get the actual check, 24% is withheld to cover federal taxes and it often isn’t enough. Especially since state taxes come into play if you are in a state that taxes lottery winnings.  

It is a federal crime to commit tax fraud and you can be fined substantial penalties and face jail time. Lying on your tax return means you committed tax fraud.

You may think Tax Day is months away and you don’t need to start planning, but we actually recommend you start preparation now. Not only will this avoid potential refund shock, you’ll also have a better understanding of your financial situation and what you’ll need to bring to your first appointment with your Tax Pro.

An emergency COVID-19 economic relief bill was signed into law on December 27, 2020. Here’s what taxpayers need to know about the new law.

Going through a divorce brings many challenges, including changes to your tax filing status and tax situation. The National Law Review reports that during the current COVID-19 pandemic, divorce activity is up nearly 34% for the year.

Filing your taxes might not be the first thing that comes to mind after getting married, but couples should know that marriage has an impact on your filing status options and how your income taxes are calculated. 

The holidays may look different this year, but they are right around the corner, and many Americans are beginning to look for seasonal work because of the pandemic's economic impact.

Doing your taxes for the first time may feel a little overwhelming, but we’ve got you covered. Read more to find out how we can help you decide what documents you will need, when the tax filing deadlines are, what tax forms you may use, why filing your taxes is important, and more.

The pandemic has left many people jobless, furloughed, and uncertain on where their next paycheck would come from. Unemployment benefits have been claimed at a record high, which has helped support those hit hardest during the pandemic. But what does this mean for these taxpayers? Anyone who received unemployment benefits will have to pay taxes on the benefits they received. 

Traditionally, freelancers and gig workers have been unable to claim unemployment benefits. Independent contractors and their clients don't pay into state unemployment funds by default. However, with the unprecedented situation that the COVID-19 pandemic created, self-employed workers who otherwise wouldn't normally qualify for unemployment were eligible for payments.

Did you file a federal return in 2016? If not, you could be at risk of forfeiting your share of more than $1.5 billion in possible refund dollars. $1.5 billion is a LOT of money and the IRS is urging taxpayers who have not yet claimed their 2016 refund to do so before July 15, 2020, without penalty. While there isn’t penalty for filing a late return when a refund is involved, you are subject to an assessed a penalty if you owe taxes and have not paid them.

Dads wear a lot of hats these days – businessman, teacher, cook, playmate and more. No one works harder to keep things fun and interesting as we shelter in place. This Father’s Day, we celebrate all the great dads and dads-to-be with a list of handy tax-related benefits, along with some commonly overlooked tips, that come with being a dad:

Normally, taxpayers are required to withdraw an annual minimum distribution amount from their IRAs or certain pension plans once they reach age 73 (after December 31, 2022).

Taxpayers are anxiously awaiting stimulus money from the IRS. During these unprecedented times, we know taxpayers could really use stimulus money to offset the economic hardship caused by the Coronavirus. While many details are still unknown, and conflicting information has been circulating and causing confusion, we are committed to providing you with the latest updates to some of the frequently asked questions.

It’s easy to get lost in the growing sea of information regarding the fight against COVID-19 (Coronavirus). Here at Jackson Hewitt, one of our priorities is communicating clearly and openly about our response to this crisis, and how that response affects you: Our most important concern.

As the federal government manages its on-going and rapidly evolving response to the coronavirus epidemic, a variety of solutions including an additional $300 unemployment per week, an extension to March 12, 2021 for self-employed taxpayers to collect unemployment, and extension implementing paid leave for some workers and tax credits for small businesses, and an additional $900 billion stimulus plan to continue to bolster the U.S. economy has been passed as part of the 2021 budget. As a part of the recently passed COVID-Related Tax Relief Act of 2020 (COVIDTRA 2020), qualifying taxpayers should receive a second stimulus check in the near future.

2020 is Bringing Some Much-Needed Updates to Education Savings Plans, Like Your 529 savings account.

Good news. You now have three more years to claim these popular deductions. At the end of December 2019, several very popular tax provisions were resurrected when the president signed the “Taxpayer Certainty and Disaster Relief Bill.” It extended a handful of mortgage, health, and tuition deductions for 2019, retroactively to 2018, and ahead through the end of 2020.

A recent survey by the American Pet Products Association has revealed that owners of pets in the United States spent over $109.6 billion on their animals in 2021, a significant portion of which was related to food, followed by veterinarian costs. While it may not be possible to put a value on the importance of having a pet in your life, there are definitely ways to recover the costs of their maintenance to some extent.

Yes, it’s true. Don’t abbreviate “2020” when writing the date. The new decade has barely begun and already we’re facing a new way to get scammed. The good news is that protecting yourself, your tax return and other finances from this one is as easy as writing out the entire year “2020,” rather than shortening it to just “20.”

A recent survey by the American Pet Products Association has revealed that owners of pets in the United States spent over $109.6 billion on their animals in 2021, a significant portion of which was related to food, followed by veterinarian costs. While it may not be possible to put a value on the importance of having a pet in your life, there are definitely ways to recover the costs of their maintenance to some extent.

Complaining about taxes is as American as apple pie and goes all the way back to colonial days. So, this President’s Day, let’s take a look at our long and fascinating history with taxes.

With more people than ever becoming entrepreneurs, joining the gig economy, or starting a small business, it could pay to know how self-employment can impact your taxes. Running your own business poses potential risks. There are certain IRS deductions that may help you keep more of your hard-earned money.

As you go through life the only thing that remains constant is change. No one stays the same forever. You grow in age, responsibility, and financial stability – which means that with every life change you should evaluate how that particular event is going to affect your taxes and plans for the future.

Owning a home is part of the American Dream, isn’t it? Even with mortgage interest rates rising,high home prices and rising inflation, many people are pursuing homeownership. With all this going on, you may be torn between buying and renting. Knowing the tax implications of buying a home versus renting one might help you make a better, more informed decision.

Don’t make the big mistake of dismissing the W-4 form as just “new-job paperwork.” Based on annual life and tax changes you should review  your Form W-4 each year and update when necessary. Keeping your W-4 current and accurate could keep you from a surprise tax bill when you file. Here’s what you need to know to get it right.

Back in 2017, when the Tax Cuts and Jobs Act (TCJA) was passed, it included a largely overlooked provision. But that provision has huge implications for parents of all school-age children.

Happy Labor Day – a day when (most) hardworking Americans get the chance to kick back, relax, and – hopefully – forget about the rigors of the working world for just a little bit. Maybe you’re hitting the beach this weekend. Maybe you’re ready to fire up the grill. Or maybe you’re just hanging out and having a blessedly plain, boring day.

Fall is a great time of year to get organized and accomplish some deep cleaning. School has started, the weather’s lovely – what better time to get organized and, in doing so, potentially save a few bucks on your tax bill?

What are back taxes?

If you owe taxes and don’t pay them, you could face IRS collection, including liens, levies, and even passport restrictions, depending on your tax debt situation.

The amount that the IRS says I owe on my taxes is wrong, what should I do?

The good news? Tax debt relief is possible. The not-so-good news? Not everyone qualifies for a settlement, but there are several options to explore and consider. The IRS offers a variety of tax debt relief programs and a lot of online tools and forms to make it easier to apply for them. If you are overwhelmed by the complexity of your situation, consult a professional. Either way, it’s best to deal with tax debt as soon as possible.

Warm weather, sunny days, and more daylight can make summer a great time to earn extra money. Summer jobs can range from driving for a rideshare service to working shifts at your local restaurant or retail store. Whether you are a teacher who is off for the summer, a college student looking for extra cash, or someone who just wants some additional income, don’t forget Uncle Sam at tax time.

Social media is full of gorgeous men and women whose looks we want to emulate. So, we turn to you, our local hairstylist, barber or cosmetologist to magically transform us. And you go to work – washing, plucking, trimming and polishing to bring out our natural best. We know we can count on you. You are both beautifier and confidante – only you know our real hair color!
This National Beautician’s Day we thank you for glowing skin, fabulous hair and fierce nails as we offer tips on how to take care of your taxes.

In honor of National Doughnut Day, we’re talking tips and taxes – so let’s jump in and walk you through how to keep track of, claim, and report tip income.

Chances are, the Westeros Revenue Service (WRS) has its eye on that dagger, Catspaw, for gift taxes; and what with all the deaths that have occurred, don't get us started on estate taxes.

The process of filing taxes every year takes plenty of time and effort even if everything goes perfectly. Add to that the worry about tax return identity theft, and your stress levels are bound to skyrocket. Knowing the signs to watch out for and keeping a close watch on the status of your tax return can help you stay safe and minimize risks of falling victim to scammers.

Tax law is constantly evolving and, for the most part, that’s a good thing! However, keeping up with the changes from year to year can be quite a headache, especially when you were counting on a deduction that you suddenly find out no longer exists. 

While tax scams are prevalent throughout the year, their frequency picks up steam in the late winter and early spring – the months leading up to tax-filing deadlines. With filing season just around the corner, now is a great time to brush up on the basics of avoiding tax scams.

As the end of the year approaches, many American taxpayers are doing what they can to ensure they’ll see the biggest refund possible when they file their taxes in 2019. For some, this means maxing out their contributions to IRAs and other retirement accounts. 

Have you wondered how much you’ve overpaid in taxes this year? If so, you likely want to do all you can to get as big a refund (or pay as little) as possible. As we inch closer to the end of 2018, now is the time to review what moves can and should be made during the last few weeks of the year. It’s not too late to make financial moves that can increase your refund! Take control and be proactive with this list of eight tax tips for your 2018 tax return.

As summer draws to a close and the school year looms, parents everywhere are gearing up to send their kids back to school. But as you’re watching supplies flying off the shelves while parents scuffle amongst themselves over laying claim to that last Wonder Woman backpack, you should also be thinking about how the upcoming school year is going to impact your finances. With tax reform, getting ready to send your child(ren) or dependent(s) back to school can pose new challenges – ones that may very well end up affecting the size of your tax refund.

Although April 17 has come and gone, it’s a great time to go through a Spring Tax Checklist to keep you, and your small business, on track while avoiding compounding penalties. Breaking up your business tax preparation into smaller steps helps you conquer the job. Here are four things you can do to have a productive mid-year and prepare for a smooth tax season next year. 

Tax Day is just a few weeks away, but you still have a little time left to get your return filed to Uncle Sam. Some people say they work best under pressure and choose to procrastinate; don’t ignore, avoid, or think you'll get back to it later. The IRS can come back to bite procrastinators in two ways: with a failure-to-file penalty and a failure-to-pay penalty.

If you would rather spend your weekends researching travel destinations than IRA options, you aren't alone. According to research, most people spend more time planning where to go on vacation or which car to purchase, than they do retirement planning. Saving for retirement can be a challenge for many households in America, especially while balancing other responsibilities. Why should this be a priority? Retirement contributions are a future source of income, and contributing to these plans can often give you tax benefits now!

Understandably, the most common question taxpayers have is: “Where’s my refund?” If you are due a refund from your federal or state taxes, you'll want to know when you can expect that direct deposit to hit your account or your refund check to arrive. But waiting can be nerve-wracking, especially when you plan to use the funds to improve your personal finances, pay down holiday debt, finally make a major purchase, or treat yourself to a much-needed vacation.

What may be your biggest paycheck of the year is on the horizon! Tax season officially begins in Jan, when the IRS started accepting returns for the 2022 tax year. By taking advantage of every possible tax break, you can minimize your tax liability and potentially net yourself a larger tax refund. 

The sharing economy can be lucrative! More and more people are entering the sharing economy at a record pace. Whether ridesharing such as Uber or Lyft, apartment- or house-renting using Airbnb, crowdfunding with Kickstarter, knowledge-sharing through TaskRabbit, or even your online store through Etsy, the funds you receive are income. The more profitable your activities were, the more of an impact they may have on your tax return - it’s all good until you receive an unexpected tax bill.

You may be missing out on thousands of dollars in tax credits without even knowing it. According to the IRS, one in five eligible people miss out on claiming the Earned Income Tax Credit (EITC) each year. Many of the people who could use that extra money the most are the ones missing out on a tax credit worth up to $6,935. And that could be a big miss!

While you’re thinking about resolutions to improve your health, or making professional strides for the New Year, don’t forget about your financial well-being. It’s time to start getting organized and focused on your taxes for 2022 and planning for 2023. Here are some tips on getting ready to file, seeing the biggest refund you deserve, and protecting yourself – all at the same time.

“Hire a professional,” is great advice that applies to your taxes, too. Jackson Hewitt Tax Pros know the ins and outs of the tax code, so they can catch missed deductions or credits that put your money back where it belongs—in your wallet, so you leave no cash on the table. You might even get more money than you realize is possible.

Well, maybe not only you, but a large part of the prevention starts with you. We live in an increasingly digital world, and there is no turning back – not that we’d want to, anyway; everyday tasks are made easier through new technology. Ideally, the benefits of technology far outweigh the risks, consequences, and inconveniences.