Red flags to look for amid tax scam season
According to the Better Business Bureau, tax scams are still a problem this year. If you haven’t filed your taxes yet this season, don’t put it off any longer! The IRS discovers cases of identity theft because personal information is stolen and a fake claim for a refund is filed. “The IRS is not going to contact you and give you those high pressure tactics,” Blankenship said. “There are unfortunately people out there that they’re banking on the fact that you’re not going to look into them any further, especially if they look professional,” Blankenship said.
Tax season: Can you write off your home office if you are temporarily working from home?
That shift to working from home could have a big impact on your income taxes. If you are a 1099 employee then you can take a home office deduction. “A lot of people were expecting to be able to write off their home office when in fact they can’t,” Luis Garcia with the IRS said. If you’re a gig worker, sub contractor of self employed -- or have a side hustle -- and use your home office only for that business then you can get the home office deduction. It’s important to note that if you’re thinking of selling your home in the near future then you’re going to have to give back the deduction you receive now.
The IRS has started accepting 2020 tax returns: What to know
DETROIT – Friday is the first day you can submit your tax information to the IRS. Financial expert Tom Hakim said you should do a review of last year, get all your paperwork together. When you file make sure you update your personal information and banking information -- that way if another stimulus check is issued you will get it without delay. AdThe IRS has made changes to the tax bracket -- here’s what it will mean for youEarlier this week, the IRS announced the 2021 tax year annual inflation adjustments for more than 60 tax previsions. Those include tax rate schedules and other tax changes.
Michigan to begin processing individual income tax returns mid-Feb.
Business men work with calculator and laptop on the white table at officeThe state of Michigan will process individual income tax returns beginning Friday, Feb. 12, officials announced Wednesday. The Michigan Department of Treasury says it will begin processing state income tax returns at the same time the IRS does -- on Feb. 12. “We coordinate with the IRS to process tax returns and issue refunds,” said State Treasurer Rachael Eubanks. Michigan income tax returns and payments of taxes owed must be received by the state by April 15, 2021. You can learn more about individual income tax in Michigan at the treasury’s website here.
Financial expert offers advice on navigating unique tax season during pandemic
DETROIT – As with so many things during the pandemic filing your taxes this year is very different. There is a whole new list of challenges for many who may have collected unemployment or suffered job loss. This year here is what you need to know if you collected unemployment or a stimulus check. “I just think it is the craziest year because there are so many moving parts,” said financial expert, Tom Hakim. AdFor those of you who have collected unemployment or received stimulus checks, you need to know how this could affect your taxes.
Finished your taxes? Take these steps to get ahead for next year
When all that hard work is finished and your return is finally filed, the last thing you want to think about is your taxes. Keep in mind that your big tax refund was actually a year-long interest-free loan to the government. Boost your 401(k) contributionTax filing season is the perfect time to revisit your 401(k) contribution, especially if you have not done so for a while. Invest your tax refund in an IRAIf you are in line for a big tax refund, why not make it work as hard as you do? If you already adjusted your 401(k) contribution, you will be that much closer to the new limit.
For some, credit cards are a major part of tax season, survey finds
Tax season and credit cards seem to go hand-in-hand like peanut butter and jelly, at least if you believe the findings of a recent study conducted by Credit Card Insider. Using SurveyMonkey to conduct an online survey of 3,114 adults from Feb. 3-5, Credit Card Insider found out the following information when it comes to how important credit cards are for people during tax season. 14% of respondents who expected to owe this year planned on using a credit card to pay their taxes. Of those expecting a tax refund, 40% had credit card debt. 75% of those with debt plan to use their tax refund toward paying it off.
Struggling to file your taxes? Get your questions answered
DETROIT – Tax season is underway. If you’re struggling to start filing your taxes because you have questions there is help. Experts with the Michigan Association of Certified Public Accountants are here to answer questions. Call 313-298-WDIV with questions -- Phone line remains open until 6:30 p.m.
Tax Season 2020: Breakdown of new tax brackets, other changes to know
The IRS has made inflation adjustments to a range of key figures, from the amount you can put in a 401(k) retirement plan to the individual income tax brackets that help you determine your tax rate. Here are your new tax brackets in 2020:2020 Tax Brackets. (IRS)The IRS has also increased standard deduction for the 2020 tax year, which could reduce your taxable income. IRS retirement savings contribution limits. For 2020, the lifetime gift and estate tax exemption has increased again.