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.

Student loan forgiveness could help millions of people who are paying back student loans. If that’s you, thousands of dollars you owe could disappear overnight. What will that mean for you and your income taxes? Here’s what you need to know.  

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:

Life gets busy and things can be forgotten, even important things like filing federal income tax returns. There is a positive side: the federal government allows taxpayers up to three years to file their taxes and still receive a refund, if they are eligible for one. Our Tax Pros at Jackson Hewitt can help you if you’re in this situation.

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.

We all know how important it is to save for retirement; and many of us work hard to contribute as much as we can. The inflation has left many strapped for cash and you may be tempted to reduce the amount of your contribution. But if you can hold on, You will be able to ride through this and continue growing your account.

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.

As a result of the 2021 winter storms in Texas, Oklahoma, and Louisiana and the resulting FEMA Disaster Area declaration, tax filers in these states will have until June 15, 2021 to file their 2020 federal tax returns. Read on to learn more about the new filing deadline and what to do if you received a late payment notice and live in Texas, Oklahoma, or Louisiana.

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.

Is the stimulus check taxable? Do you have to pay it back? All your questions about the recent EIP answered.

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.

The much-anticipated emergency COVID-19 economic relief package was signed into law on December 27, 2020, after leaders of both parties in the U.S. Congress, along with the White House, reached an agreement on several pro-taxpayer provisions of the omnibus package.

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.

Tax filing can be scary, especially if you are a first-time filer or have had a recent life change that may affect your filing status. Here is a step-by-step guide on how to file your taxes to help avoid mistakes and save you more of your hard-earned money.

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 72 (after December 31, 2019).

Shutting down nonessential businesses may have been necessary to slow the coronavirus, but it’s nonetheless leaving staggering economic hardship in its wake. Recognizing the impending financial crisis, especially to small businesses, Congress passed two important bills to provide economic relief. The first was the CARES Act in March 2020. The second was the Paycheck Protection Program and Health Care Enhancement (PPPHCE) Act on April 21.

In late December 2020, Congress passed the Omnibus Spending Bill which included the COVID Tax Reform Act of 2020 (COVIDTRA 2020). It’s an extension to the CARES Act  designed to provide additional help to protect businesses and individuals from the economic effects of the Coronavirus.

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.

Though the Treasury Department and IRS recently deferred the national tax deadline from April 15, 2021 to May 17, 2021, Jackson Hewitt and its franchisees continue to create safe and easy ways to file for our customers.

The IRS will be depositing the second round of stimulus checks for all Americans receiving Social Security, Railroad Retirement, and Veteran’s Administration benefits into the same accounts as their benefit payments. This is the same process used for the first stimulus payment.

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.

UPDATED ON: March 24, 2021

With the Federal Government’s national recommendation to stay at home affecting businesses across the country, it may be time to file your taxes if you haven’t already done so. Remember, the majority of Americans filing taxes receive refunds, and additional funding during this time of uncertainty could provide you and your family with greater peace of mind.

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.

Why fear an audit? When you could help prevent it. The thought of the IRS combing through years of back tax returns is enough to send a shudder down anyone’s spine. And you try not to think about what might happen if they find a mistake. But there are steps you can take to help keep it from happening.

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.

The number of self-employed workers in the U.S. today has outpaced Bureau of Labor Statistics (BLS) projections.

For years the Internal Revenue Service has been cutting back on audits due to a multitude of economic and technological reasons. And for a long time, the average taxpayer has been more than happy to live with that. But that is about to change.

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.

Another year is almost over. That means the holiday season and family gatherings - which leave little time to change things that could help your 2022 taxes. So before ringing in the New Year, here are some things you can do that will make filing your taxes easier and help you get the most out of your return.

Ever since you started working, you could count on one thing: Sitting down once a year to fill out your 1040 and file your taxes. Well, now the venerable old 1040 you know so well is changing. The good news? It’s never been so simple.

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?

It's a terrible feeling. You've completed your annual income tax return and find that you owe the IRS—and not just a little, but more than you can afford to pay.

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.

If you’ve received a notice from the IRS about a tax audit, you’re probably feeling a bit dizzy right now. First, don’t panic – most audits are done by mail, and there are some immediate steps you can take to improve your situation. Instead, do get organized. You can ace this audit if you do the following five things.

Paycheck withholdings represent a huge part of how most American workers pay income tax and can help determine an employee’s tax liability each year. If you’re currently working through your taxes, you might be wondering: how much should I be withholding?

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.

Have you ever dreamt that you found an unexpected source of cash only to wake up and find it was all an illusion? Well, if you’re one of the many individuals that did not file their 2019 federal income tax returns, it could mean a dream true.

After a 35-day shutdown, the government has been reopened until February 15. Tax season is here and the IRS is accepting returns. We know that you have questions about how the shutdown will impact the processing of your return and refund. Below are answers to common questions. We’re here to help.

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. 

For many Americans, getting a long-awaited tax refund can be the biggest, most significant financial transaction of the year – and many taxpayers plan on putting theirs to good use. According to a recent survey, a sizable portion of taxpayers are planning on using their tax refunds to pay off holiday bills. 

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. 

In 2021, the average amount of Earned Income Tax Credit received per tax return nationwide was nearly $2,400. Imagine not cashing a check for that much! That’s essentially what taxpayers who don’t claim an EITC are doing — not getting all the money they have earned for their hard work.

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.

Many of the changes to the tax code from the recently passed Tax Cuts and Jobs Act (TCJA) are taking effect in 2018 – which could impact your finances in a big way. Maybe you’ve already noticed a change in your take-home pay, or maybe you’ve heard about how the standard deduction has nearly doubled. The TCJA is the biggest change to the American tax code in 30 years – and its purpose is to benefit the majority of hardworking Americans.

A major promise around the passage of the Tax Cuts and Jobs Act last December involved making filing taxes simpler for American taxpayers. However, despite what you may have heard, most Americans are unlikely to be submitting their tax returns on a lone postcard any time soon.

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. 

Receiving any correspondence from the IRS can instantly strike fear in the heart of most. You have to admit that one would naturally get a little nervous when you see that the Treasury department wants to have a word with you. In this moment you don’t want to become overcome with panic, you want to prepare! Millions of taxpayers get IRS notices saying there may be an issue or error and you may owe additional tax, including penalties and interest. Just because you get a notice doesn’t mean that it’s correct.

You started the year determined to get your tax return completed way before the deadline. Then life happened and filing your taxes almost became an after-thought. Even though we’re a few weeks away from Tax Day which might sound like a lot of time, it’ll be here before you know it. The sooner you get started on that return, the more options you'll have for getting it done smoothly.

Recovering from Mother Nature’s catastrophes is never easy. With a number of federal declared disasters from hurricanes and tornadoes, to severe storms and flooding, and wildfires, loss victims could use their tax returns to obtain much-needed cash. Millions of Americans who have been affected by natural disasters should be sure they are getting the most from their tax return.

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 in 2022, 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.

The 2017 Tax Cuts and Jobs Act is the most extensive update to the US tax code in more than 30 years. The bill made major changes to the tax code for individuals and businesses and provides sweeping tax changes along all social and economic lines.

It’s your money. It’s your hard-earned, pretax dollars sitting in an account. It’s yours… but only for a limited amount of time. That’s the gift and the curse of a Flexible Spending Account (FSA). In most cases, your time is up at the end of the calendar year and your contributed dollars are gone – just like that. (No, you do not get it back!)

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.