Category: Tax Tips and Tricks

Taxes are confusing and cause many taxpayers stress come tax season but PriorTax is here to help. Learn the tax tips and tricks to get you through the preparation process. You could be missing out on more money from the IRS which is why we want to help. We’ll let you know about hidden deductions and rare credits to report on your tax return to maximize your refund. Don’t hesitate to leave a comment on our blog if you have a question about your tax situation. Also, check back here for new tips and tricks throughout the tax season because our team is on the lookout!

Archive for the ‘Tax Tips and Tricks’ Category

April 17th, 2018 is the Last Day to Claim your 2014 Refund!

Posted by Manisha Hansraj on January 16, 2018
Last modified: January 19, 2018


Don’t delay your 2014 refund.

Your 2014 refund is waiting for you. Luckily, the IRS allows you to claim your refund due to their convenient Statute of Limitations. However, you have three years from the original tax deadline date to claim your tax refund. With that in mind, if you wait three years after the filing deadline, your refund will expire. On top of that, if you fail to claim your refund, the IRS will collect it and you will no longer be entitled to your refund.

That sounds like a waste, doesn’t it? Read to find out what you need to do in order to claim your 2014 tax refund.

Can I still E-file?

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Missed 2016 Tax Deadline: How To File Prior Year 2016 Taxes

Posted by admin on December 26, 2017
Last modified: December 27, 2017

Did you miss the 2016 tax deadline?

With the 2018 Tax Season less than a month away, you probably have some catching up to do. Luckily, you can still file your 2016 tax return if you’re one of many taxpayers that are rushing to stay on top of a missed 2016 tax deadline. That being said, start raiding your rooms for all the receipts you need to finish your taxes. If you want to find out if you have a refund coming your way, utilize our 2016 tax calculator.

Read on to find out how to file your 2016 prior year return.

Can I E-file my 2016 Tax Return?

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How to qualify for the Child Tax Credit?

Posted by Divya Hansraj on June 16, 2017
Last modified: October 3, 2017

Oh, the joys of having children!

Today, it is difficult for parenthood to have its rewards. Children want us to buy them the most expensive toys and clothing and that spending can sometimes feel fruitless. As with struggling to finish a marathon, we strive, hoping there will be a light at the end of the tunnel. Luckily the IRS understands this struggle and gives parents a little something back. The Child Tax Credit and the Additional Child Tax Credit serve as the cushioned shoe inserts that help us finish.

Child Tax Credit (CTC) Facts:

  • You must have a qualifying child.
  • You must have earned greater than $3000 of Income.
  • Each child can receive up to $1000.

 

What is a qualifying child?

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Unfiled tax returns have you drowning?

Posted by admin on June 6, 2017
Last modified: June 16, 2017

Overwhelmed With Prior Year Unfiled Tax Returns?

While most Americans finish or have finished their current year taxes, others have stacks of unfiled tax returns from previous years. You may feel swamped with the pressures of work and within a blink of an eye, you wake up to find an IRS notice in the mailbox. Let’s face it, life gets busy. Nevertheless, you have forgotten about those prior year tax returns, but the IRS hasn’t. Here are some common questions for those taxpayers who are stuck in the mud with unfiled tax returns:

Should I file my Unfiled tax returns?

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20 Facts About Filing an Amended Prior Year Tax Return

Posted by admin on February 7, 2017
Last modified: February 7, 2017

Did you take the wrong step with your tax return? Don’t be too hard on yourself.

Mistakes happen. If you filed your tax return with incorrect or missing information, the IRS will give you a chance to fix your mishap. Before insisting you 100% need to amend your return, though, take a look at our list of when you should, when you shouldn’t, and other need-to-know info about doing so.

 

What it is and where to file

1.Another name for an amended tax return is 1040X.

2.If you are amending multiple tax returns at once, you will need a prepared 1040X for each one. They will also need to be mailed in separate envelopes to the IRS.

3.You can prepare your amended tax return with PriorTax whether you filed your original return with us or a different tax preparer.

4.The address to mail your amended tax return is:

Department of the Treasury

Internal Revenue Service

Austin, Texas 73301-0215

Or if you are using a private delivery service:

Internal Revenue Service

3651 South I-H 35, Stop 6055 AUSC

Austin, Texas 78741

 

Fixing Information VS. Adding Additional Information

5.You don’t need to file an amended return for calculation mistakes. The IRS has calculators of their own which will update the information automatically on your return. (more…)

Someone Used My Social Security Number to File Taxes – What Should I Do?

Posted by admin on January 10, 2017
Last modified: January 25, 2017

Victim of identity theft? Don’t let panic get the best of you.

After entering your tax information, you finally hit the e-file button, only to have your return rejected by the IRS. The reason; a tax return has already been filed with your social security number!

There’s a sinking feeling in your gut and an enveloping sense of dread. What do you do? How will you ever get your refund money now? Remain Calm. You’ll get through this.

 

Here’s what you should do now

Step #1

The first thing to do is double check all of the information on your return, especially your name and Social Security number and those of your spouse and dependents. Sometimes this error can be caused by a simple typo. (more…)

What Does Being Audited By The IRS Mean?

Posted by Michelle O'Brien on December 23, 2016
Last modified: December 23, 2016

Feel like the IRS has all eyes on you?

Think of filing your taxes as going through security at an airport. Your tax return is you. The security checkpoint is the IRS. Just like you can be stopped while going through security, your tax return can be stopped by the IRS. With a security checkpoint, you’re either stopped because you were the lucky number of the hour or because something triggered suspicion. The same goes for your tax return and the next step is an IRS audit.

 

What is an audit?

An audit is simply an examination of the information you reported on the tax return you filed for a specific year. Contrary to popular belief, the IRS is not employed with millions of accountants checking each return that comes through their doors. In fact, much of the processing is computerized now. You can imagine how technology can be manipulated a bit by fraud accounts and identity theft. Audits are necessary to help stop that from occurring as well.

 

What triggers your return for an audit?

Just like at the airport security check, the IRS can stop a tax return randomly or for suspicious activity. Here is a list of the most common audit triggers we’ve come across: (more…)

Filing Taxes in Two States: Working in NY & Living in NJ

Posted by admin on October 20, 2016
Last modified: November 2, 2016

If you’re living and working in different states, plan on filing taxes in two states.

For many, working and living in different states can save you a lot of money. This is especially true if you work in an expensive city like New York City.

The commute from New Jersey to the Big Apple may be much more attractive to you, especially if you’re looking for more space, lower costs and fewer people.

However, you’ll want to keep in mind that those who work and live in different states are required to file taxes in both states.

In other words, you’ll need to file both a New Jersey and New York state tax return.

File a nonresident NY state tax return and a resident NJ state return

If you’re working in a different state than you live in, you’re required tofile:

  • a non-resident state return to the state you work in
  • a resident state return to the state you live in
  • a federal tax return (more…)

The IRS Address to File Taxes

Posted by admin on October 18, 2016
Last modified: December 21, 2016

Mailing your tax return to the IRS? Don’t forget the stamp!

It’s 2016 and we are well into the era of e-file. In fact, the vast majority of taxpayers now send their return into the IRS electronically. However, there are some people out there who prefer to kick it old school and snail mail a paper copy of their return to the IRS. Alternately, if you are filing a late return from a prior year, snail mail is the only option.

So after you complete your return and breathe a big sigh of relief, make sure you know where you’re mailing your return. There’s nothing worse than scrambling to find out where to mail your return as the clock ticks down the final hours of the tax season.

Here is a list of each IRS address based on the state where you live. The list is complete with addresses of the IRS processing centers where you can mail your return whether you include a check or money order. (more…)

How to File Taxes without a W-2

Posted by admin on October 18, 2016
Last modified: November 2, 2016

It’s easy to lose your W-2 and just as simple to file without it.

E-filing your tax return these days is pretty straightforward. You just plug in the numbers on your W-2 to the online  tax application, take the credits and deductions you’re entitled to, and VOILA! Couldn’t be simpler.

But what happens if you don’t have a W-2? Suddenly things get a lot more complicated. Don’t worry. There are steps to take to make sure you get your tax return to the IRS.

Contact your employer

First thing’s first. Make every attempt to get the actual document itself. If your employer didn’t send you one, or sent you one that was incorrect, contact them and request that they send you the right one.

Employers are required to have W-2 forms issued to their employees by January 31. If you still don’t have it by then, it’s time to take additional action. At this point you should call the IRS at 1-800-829-1040 and tell them about your missing W-2. They will call your employer and tell them to send you the W-2.

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