News

IDENTITY THEFT ALERT

TAXPAYERS BEWARE

Don't become a victim!

If you believe you have been a victim of an IRS Impersonation Scam, report it!

Contact the US Treasury Inspector General For Tax Administration at http://www.treasury.gov/tigta to learn more or report an incident.

BE ACCURATE ON YOUR W-4

When you start a new job you fill out a Form W-4. It's important for you to accurately complete the form.

For example, special rules apply if you work two jobs or you claim tax credits on your tax return. Your employer will use the form to figure the amount of federal income tax to withhold from your pay.

PAY ESTIMATED TAX IF REQUIRED

If you get income that's not subject to withholding you may need to pay estimated tax. This may include self employment income, interest or rent income. If you expect to owe $1000 or more in tax, and meet other conditions, you may need to pay this tax. This tax is normally paid in 4 payments in the year.

ADJUST WITHHOLDING

If you are an employee and you think your tax withholding may fall short of your total tax liability, you may want to increase your withholding. If you are having too much tax withheld, you get a larger refund that you expect.

In either case, you can complete a new form W-4, Employee's Withholding Allowance Certificate and give it to your employer.

CHANGE TAXES WITH LIFE EVENTS

You may need to change the taxes you pay when certain Life Events take place. A change in your marital status or the birth of a child can change the amount of taxes you owe. When they happen you can submit a new for W-4 at work or change your estimated tax payment.

PLEASE BE AWARE:

There are several new forms this year, forms 8965, 1095-B Health Coverage form and 1095-C Employer provided health insurance, to be included with tax returns where applicable due to the healthcare reform act.

There is a Medicare tax on Investment Income (form 8960), Interest & Dividends, etc., when taxpayers reach a certain level of income.

A Premium Tax Credit (form 8962) is possble for some lower income level taxpayers.

*****WE NEED TO KNOW*****

If you have health insurance on each member of your family, how many months of the year each person was convered by health insurance and we will need copies of the insurance policies for each person.