Maximize Your Tax Returns by Saving Your Receipts

Spring Cleaning? Maximize Your Tax Returns by Saving Your Work-Related Receipts and Documents

If you hate clutter, throwing away your receipts seems like the natural thing to do. Even people who aren’t as concerned with tidiness often toss their receipts in the nearest wastebasket as a matter of habit. And if you’re in the mood for spring cleaning, it’s easy to trash receipts and documents without examining them carefully or considering their importance.

Unfortunately, this practice can have negative consequences when it comes time to file your taxes. An organized and complete paper trail of your expenses can ensure that your tax return is accurate, and you get the refund you deserve. As you go about your spring cleaning this year, be sure to gather all of your receipts and review them fully.

Keep reading to learn why saving your receipts is so important and how a neat and orderly accounting of your payments can maximize your tax returns.
Read more

IRS enforcement

IRS Going After Wealthier Non-Filers In New Enforcement Campaign

The IRS just announced a new enforcement effort to go after business and individuals who have not filed required tax returns.

This effort was hinted at by high-level officials of the Small Business/Self-Employed divisions of the IRS, who are responsible for most IRS audits and collections. In a January conference call, attended by our own Eric Bielitz, they discussed that recent hiring of some 2,000 new personnel and improvements to their computer systems would enable them to make new efforts to enforce the tax code that wasn’t possible before.

Read more

tax identity theft

What You Need to Know About Data Breaches and Tax Identity Theft

While everyone loves the convenience that technology provides, but there are many risks when companies store our personal information online or on the cloud. Almost every day, scammers are stealing Social Security numbers, credit card numbers, and other sensitive personal data. At S.H. Block Tax Services, we’re painfully aware that tax identity theft still poses a huge threat.

In this article, we discuss the troubling increase we’re seeing in data breaches and what you can do to protect your tax refund and privacy.

Read more

bank secrecy act

The Bank Secrecy Act of 1970: What You Need to Know

In addition to the Tax Code, the IRS is charged with enforcing several other laws, including the Bank Secrecy Act of 1970 (The BSA). For most of its history, the BSA was a relatively obscure law that only impacted banks; it required banks to develop anti-money laundering internal controls. However, there are two provisions that significantly affect individuals and small businesses: offshore account disclosure and structuring.

Read more

Get Ready to File Your 2019 Tax Return With These Simple Tips

Now that the 2019 tax year is over, we’re entering the busy 2020 tax season. However, before you file your 2019 tax return, it’s a good idea to reacquaint yourself with U.S. tax laws. This is especially true this year, since the IRS announced some big changes.

Keep reading to learn how tax filing has changed for the 2019 tax year and tips for confusion-free filing.

 

Read more

Do I Need to Pay Self-employment Taxes

Do I Need to Pay Taxes If I’m Self-Employed? Short Answer, Yes. Here’s How

There are many perks to being self-employed. Keeping your own hours, not needing budget approval, and being your own boss — to name just a few. Unfortunately, not having to pay taxes isn’t on that list.

If you are self-employed, the government requires you to report your income and pay both self-employment and income taxes. So, you shouldn’t be asking yourself if you have to pay taxes, but how you should pay them.

 

Read more

How to Report Virtual Currency on Your Taxes

How to Report Virtual Currency on Your Taxes and Stay on the IRS’ Good Side

In the summer of 2019, the IRS mailed a series of notification letters to taxpayers who owned virtual currency. These letters informed taxpayers that the IRS was aware of their virtual transactions and expected them to submit amended tax returns if they had not included virtual income and transactions on their 2018 returns.  

Previously, the IRS was unable to track virtual currency transactions, so these letters came as a surprise to many taxpayers. If you received one of these letters or are new to virtual currency, please keep reading to learn how this might affect your taxes. 

 

Read more

tax schemes 2019

Watch Out for These Top Tax Scams During Tax Season 2020

Tax season is nearly here, which means it’s time to gather all your returns, find your receipts, tally up your donations, and figure out all your write-offs from 2019. It’s also time to educate yourself about some of the top tax scams that make the rounds every year.

Unfortunately, there are a lot of unsavory people out there looking to rip you off. During tax time, these people will attempt to steal your identity, drain your bank account, and take your tax refund. No matter who you are, you need to watch out for these tax fraudsters.

Let’s take a look at some of the top tax schemes to be aware of this year and find out how you can protect yourself in 2020 and beyond.
Read more

Easily Missed Tax Deductions

Home Office Expenses and Other Tax Deductions You Won’t Want to Miss

Many taxpayers wince when they think about paying and filing their taxes, but there’s one area of taxes that won’t make you cringe: deductions! Most of us would like to pay less in taxes, and claiming deductions is one way to do just that.

Let’s examine some of the most easily missed tax deductions and how you can use them to your benefit during tax season and all year ‘round. Read more

What Is Assignment of Income

FAQ: What Is the Assignment of Income?

Assignment of income allows you to assign part of your income directly to another person. While there are several valid reasons to assign your income to someone else, many taxpayers mistakenly believe that it can help lower their taxable income. While assignment of income allows you to divert income, you cannot divert taxes.

In this article, we’ll provide some examples of failed attempts at avoiding income taxes through the assignment of income and the valid reasons someone might want to assign income to someone else. Read more