LJ Ray & Associates

While the federal income tax filing deadline has passed for most people, there are some taxpayers still facing tax-related issues. This includes taxpayers who haven’t paid their taxes and those who are waiting for their refund. Here are some tips for taxpayers handling some of the most typical after-tax-day issues. Here’s how taxpayers can: Check the status of a refund Taxpayers can check on their refund using the Where’s My Refund? tool. It is available on IRS.gov and the ...IRS2Go app. Taxpayers without access to a computer can call 800-829-1954. To use this tool, taxpayers need the first Social Security number on the tax return, the filing status, and the expected refund amount. The tool updates once daily, so taxpayers do not need to check more often. Do a Paycheck Checkup The IRS urges all employees, including those with other sources of income, to perform a Paycheck Checkup now. Doing a checkup will help employees make sure their employers are withholding the right amount of tax from their paychecks. Doing so now will help avoid an unexpected year-end tax bill and possibly a penalty. The easiest way to a Paycheck Checkup is to use the Withholding Calculator on IRS.gov. Taxpayers can use the results from the Calculator to help fill out the Form W-4 and adjust their income tax withholding with their employer. Taxpayers who receive pension income can use the results from the calculator to complete a Form W-4P and give it to their payer. See more

IRS Tax Tip 2019-82, June 25, 2019 When filling out financial aid applications, students and families may need to get tax information to complete the Free Application for Federal Student Aid form. The IRS Data Retrieval Tool is available to use with the 20192020 FAFSA Form. This tool is the fastest, most accurate way to input tax return information into the FAFSA form. Students and parents who are eligible to use the IRS Data Retrieval Tool can access it from within the Free... Application for Federal Student Aid. Here is some information for applicants to help get tax return information for the FAFSA form. Applicants filing a 2019-20 FAFSA must use data from their 2017 tax returns. Taxpayers should always keep a copy of their tax return. Whether they keep it electronically or on paper, they should keep it in a secure place. Here are some options for taxpayers who did not keep a copy of their tax return. They can: Access the tax software product used to prepare and file their 2017 return. They may be able to access their account to download and print a copy. Contact the tax preparer or provider who filed their 2017 return. Download their tax transcript at Get Transcript Online. They should remember to review the identity authentication requirements for Secure Access before attempting to register. Use Get Transcript by Mail. The IRS will mail a transcript to the address on their return within five to 10 days. Call the IRS’s automated line at 800-908-9946 to order a transcript by mail. Taxpayers who filed an amended tax return, Form 1040-X, should use the adjusted gross income and earned income listed on their revised tax return. Finally, here’s some information about getting alternative documentation for IDR applications. IRS Data Retrieval plan applicants must submit alternative documentation of income. The applicants submit this documentation to their federal loan servicers after completing and submitting the online IDR application. The process for submitting the alternative documentation of income is explained to borrowers as part of the online IDR application. Alternative documentation of income usually consists of copies of pay stubs or most recently filed tax returns. More information: www.studentaid.gov Get Transcript FAQs See more

Educators can claim deduction to get money back for classroom expenses Educators may be able to deduct unreimbursed expenses on their tax return. This deduction can put money right back in the pockets of eligible teachers and other educators. Here are some things to know about this deduction: Educators can deduct up to $250 of trade or business expenses that were not reimbursed. As teachers prepare for the next school year, they should remember to keep receipts after making... any purchase to support claiming this deduction. The deduction is $500 if both taxpayers are eligible educators and file their return using the status married filing jointly. These taxpayers cannot deduct more than $250 each. Qualified expenses are amounts the taxpayer paid themselves during the tax year. Examples of expenses the educator can deduct include: o Professional development course fees o Books o Supplies o Computer equipment, including related software and services o Other equipment and materials used in the classroom Taxpayers claim the deduction on Form 1040 or Form 1040NR. The taxpayer should remember to complete and attach Form 1040, Schedule 1 to their return. To be considered an eligible educator, the taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide. They must also work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law. More Information: Topic Number 458: Educator Expense Deduction Publication 17, Your Federal Income Tax for Individuals Form 1040NR Instructions

IRS, States, Industry Continue Progress to Protect Taxpayers from Identity Theft WASHINGTON The Internal Revenue Service, state tax administrators and leaders of the tax industry announced today continued progress to expand and strengthen protections against identity theft refund fraud for the 2016 tax season. The public-private sector partnership announced success in identifying and testing more than 20 new data elements on tax return submissions that will be shared with th...Continue reading

In 2016, Some Tax Benefits Increase Slightly Due to Inflation Adjustments, Others Are Unchanged WASHINGTON For tax year 2016, the Internal Revenue Service today announced annual inflation adjustments for more than 50 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2015-53 provides details about these annual adjustments. The tax items for tax year 2016 of greatest interest to most taxpayers include the following dollar amounts: ...Continue reading

IRS Grants Tax Relief to Drought-Stricken Farmers and Ranchers in 48 States and Puerto Rico If you are a farmer or rancher forced to sell your livestock because of the drought that affects much of the nation, special IRS tax relief may help you. The IRS has extended the time to replace livestock that their owners were forced to sell due to drought. If you’re eligible, this may help you defer tax on any gains you got from the forced sales. The relief applies to all or part of ...48 states and Puerto Rico affected by the drought. Here are several points you should know about this relief: Defer Tax on Drought Sales. If the drought caused you to sell more livestock than usual, you may be able to defer tax on the extra gains from those sales. Replacement Period. You generally must replace the livestock within a four-year period to postpone the tax. The IRS can extend that period if the drought continues. IRS Grants More Time. The IRS has added one more year to the replacement period for eligible farmers and ranchers. The one-year extension of time generally applies to certain sales due to drought. Livestock Sales that Apply. If you are eligible, your gains on sales of livestock that you held for draft, dairy or breeding purposes apply. Livestock Sales that Do Not Apply. Sales of other livestock, such as those you raised for slaughter or held for sporting purposes and poultry, are not eligible. Areas Eligible for Relief. The IRS relief applies to any farm in areas suffering exceptional, extreme or severe drought conditions during any weekly period between Sept. 1, 2014, and Aug. 31, 2015. The National Drought Mitigation Center has listed all or parts of 48 states and Puerto Rico that qualify for relief. Any county that borders a county on the NDMC’s list also qualifies. 2011 Drought Sales. This extension immediately impacts drought sales that occurred during 2011. Prior Drought Sales. However, the IRS has granted previous extensions that affect some of these localities. This means that some drought sales before 2011 are also affected. The IRS will grant additional extensions if severe drought conditions persist. See more

The Outreach Corner Edition for November highlights the following drop-in articles: 1. What to do if you haven’t filed your tax return 2. Do you need to make a tax payment? 3. There’s still time to act to avoid surprises at tax-time 4. Your kids might be able to earn you some credit at least with your taxes... 5. Use the Premium Tax Credit Change Estimator tool to estimate how your PTC will change if your income or family size changes 6. The Individual Shared Responsibility Provision Payment Estimator helps estimate the ISRP payment you may owe 7. IRA 2015 year-end reminders help you save for retirement 8. Know your 2016 retirement plan contribution amounts ________________________________________ Contact us for information on any of these topics