The post If you are checking the status of your refund and you get this message, don’t panic! first appeared on Palmer Insurance.

1. Know the Difference Between Tax Credits and Tax Deductions: Tax credits are a dollar-for-dollar reduction of your tax liability, while tax deductions reduce your taxable income.

2. Understand Eligibility Requirements: Different deductions have different eligibility requirements, so make sure you understand the requirements for the deductions you are claiming.

3. Keep Good Records: Keeping good records of your expenses is essential for claiming deductions. Make sure to keep receipts, invoices, and other documents that can help you prove your deductions.

4. Know the Limits: Many deductions have limits, so make sure you understand the limits for the deductions you are claiming.

5. Call us!: If you are unsure about any deductions or have questions, it is always a good idea to Give us a call or swing by. We can help you understand the deductions you are eligible for and ensure you are taking advantage of all the deductions you can.

The post Understanding Tax Deductions first appeared on Palmer Insurance.

The American Opportunity Credit is worth up to $2,500 per eligible student per year. It is a partially refundable credit, meaning that if the credit exceeds the amount of taxes owed, 40% of the remaining amount can be refunded to the taxpayer. The credit is also available for four years of post-secondary education, so long as the student is enrolled at least half-time.

The American Opportunity Credit is a great way to help students and their families pay for college. It can help reduce the cost of tuition, fees, books, and other related expenses. It is also a partially refundable credit, meaning that if the credit exceeds the amount of taxes owed, 40% of the remaining amount can be refunded to the taxpayer. This can be a great way to help offset the cost of college and make it more affordable.

The post American opportunity credit Breakdown first appeared on Palmer Insurance.

The amount of the credit is based on the number of children in the family, their ages, and the family’s income. Generally, the credit is worth up to $2,000 per child, depending on the family’s income. The credit is also refundable, meaning that if the credit is more than the amount of taxes owed, the family can receive the difference as a refund.

In addition to the child tax credit, there are other tax credits available to families with children. These include the Earned Income Tax Credit, the Child and Dependent Care Credit, and the Adoption Credit. Each of these credits has its own eligibility requirements and can provide additional financial support to families with children.

It is important for families to understand the child tax credit and other tax credits available to them. Knowing how to take advantage of these credits can help families save money and reduce their tax burden. It is also important to remember that the credits are subject to change from year to year, so it is important to stay up to date on the latest information.

The post Child Tax Credit Breakdown first appeared on Palmer Insurance.

As of now the State of CA has extended tax interest and penalties for the 2019 tax year till 06/15/2020 and we expect that the fed should follow suit shortly.  We will keep this blog and all our social media updated with any new info.

If you do want to file we are happy to help with that also.  Just Email us your tax documents and telephone number to Service@palmerincometax.com and a prepare will reach out to file your taxes right there digitally.  We will be here to help in any way we can so if you have even just questions please feel free to reach out.

Michael Palmer

The post We are offering free tax extensions! first appeared on Palmer Insurance.

The House bill consolidates those into four brackets: There are seven federal income tax brackets in today’s code 12% (on the first $45,000 of taxable income for individuals; $90,000 for married couples filing jointly) 25% (starts at $45,000 for individuals; $90,000 for married couples) 35% (starts at $200,000 for individuals; $260,000 for married couples) 39.6% (starts at $500,000 for individuals; $1 million for married couples)

Nearly doubles the standard deduction: The bill raises today’s standard deduction for singles to $12,000 from $6,350 currently;
and it raises it for married couples filing jointly to $24,000 from $12,700. That would drastically reduce the number of people who
opt to itemize their deductions, since the only reason to do so is if your individual deductions combined exceed the standard deduction amount.

Eliminates personal exemptions: Today you’re allowed to claim a $4,050 personal exemption for yourself, your spouse and each of your dependents. The House bill eliminates that option.

Expands tax credits for families: The bill would increase the child tax credit to $1,600, up from $1,000, for any child under 17.
The bill would also create a new $300 tax credit for “each parent and non-child dependents,” according to a summary document from House Republicans. Together with the child tax credit, they will be called the Family Credit.

Repeals state and local tax deductions, but preserves property tax break: The original GOP proposal was to fully repeal the state and local tax deduction, which lets filers deduct their property taxes as well as their state and local income or sales taxes. But it was met with strong opposition from lawmakers in high-tax states and cities. The House bill restores an itemized property tax deduction for property taxes up to $10,000.

Limits deductible mortgage interest: The bill preserves the mortgage deduction as currently structured for existing mortgages. But it curbs it for mortgages on newly purchased homes going forward. You would only be able to claim a deduction for interest you pay on mortgage debt up to $500,000, down from $1 million today.

Although i could write  pages and pages on each of these topics, i feel this is a good summary.  If you would like to know how these particular changes can affect you directly please contact us and i would be happy to look at your return and let you know if you will be helped or hurt by this plan as it is stated.

Find original article @ money.cnn.com/2017/11/02/news/economy/house-tax-reform-bill-individuals/index.html

The post Breakdown of the new tax plan proposal first appeared on Palmer Insurance.

Under the current plan there are 7 tax brackets ranging form 10%-39.5%. Simply put that is what you pay the fed depending on how much you made. In the plan The President has presented there will only be 3 tax brackets 12%, 25%, and 35%. Some will say well he is lowering the taxes on the rich and raising them 2% on the poor. That is not entirely true based on the doubling of the standard deduction.

What is a standard deduction? Well lets say you are married and you household makes $40,000 per year. Under the current plan you will take the current standard deduction ($12,600) from what you made ($12,600-$40,000) and pay on the difference ($27,400). Under the announced framework it would look more like this $24,000-$40,000= $16,000. So although your tax bracket went up 2% you are being taxed on 28% less income. President Trump also proposed an increase to particular credits and a creation of a new one.

he specified that he would like to rise the child tax credit (currently $1,000 per child under 17) to an unspecified amount and create a $500 credit for certain dependents such as the elderly.

Those are the key points as i see them in this outline that was presented. I would be more then happy to discuss these proposed tax cuts and how they apply to you just give us call, drop us a comment below or email us. Hope this helped!

Michael Palmer

The post Breakdown of Trumps Tax Reform Plan first appeared on Palmer Insurance.

Infinity Investigates: Latinos and Taxes

Infinity has a great network of independent insurance agents who sign people up for Infinity Insurance and get them the best deal. Many of our agents are also tax preparers, so when we had questions about Latinos and taxes, we knew just where to turn. Michael Palmer, of Palmer Income Tax in Santa Ana, California, talked with us about filing taxes for undocumented immigrants. The first thing an undocumented immigrant has to do to file taxes is get an ITIN number, and they are in luck if they stop by Palmer’s office. He has agents on hand who have been licensed by the IRS to verify ID and get ITIN numbers from the IRS, greatly expediting the process for his clients.

Palmer said his office has filed hundreds of undocumented immigrants’ taxes.

“It’s no different with regards to filing,” he said. The difference seems to come into play when it comes to tax credits.

Rumalda Medina, of Medina’s Tax and Insurance in Miami, explained that undocumented immigrants can only qualify for the Child Tax Credit and tuition credits such as the American Opportunity Credit. The reason for this is that you must have a valid Social Security Number for other credits, such as the Low Income Credit. Unfortunately, both Medina and Palmer have seen abuse of the Child Tax Credit and other manipulations of undocumented immigrants by crooked tax preparers.

“[Undocumented immigrants] are quite often taken advantage of because they have no knowledge about taxes,” Medina said. “People take their money… by withholding more than is necessary and charging a high rate.”

One example Medina has seen is tax preparers charging undocumented immigrants the penalty for not having insurance, even though they are not required to be insured. That means the “penalty” goes straight into that preparer’s pocket.

Palmer said he sees the misuse of the Child Tax Credit, a $1000 credit issued for every child under the age of 16, “almost on a daily basis.”

“A lot [of people] are uneducated, paying and trusting. When they get audited [the preparer] takes the money and runs,” he said.

As for how these crooked tax preparers get away with manipulating people, Medina says, “Nobody will call and report them.”

You can call the IRS to report any concerns at 1-800-829-1040.

Joey Hernandez, of JL Hernandez and Associates in Miami, adds that crooked tax preparers file as if their client were filing rather than the tax preparer filing on the client’s behalf. Accredited tax offices like his use a pin number that is regulated by the IRS. Hernandez prepares taxes for undocumented immigrants mostly from Mexico. He also files taxes for many Cubans, but they tend to have Social Security Numbers and therefore can file without restrictions. He said about 25 percent of his clients are Latino, but less than 5 percent are undocumented.

He has seen these undocumented immigrants be mistreated by former tax preparers, but he feels that it happens to many other people besides just undocumented immigrants.

“People [act as though] cheating on their taxes [is] like stealing grapes at the supermarket,” he said.

“In Miami, people set up tax shops on every corner during tax season. I spend the summer fixing their problems, because those preparers are gone,” he said. “Everybody is a tax preparer during tax season.”

Medina’s advice for Latinos and other first-time tax filers is to “ask questions. Know what is in your return. Know your credits.”

She also advises people to be careful with their refund checks, and not spend it on unneeded items. “Write down the things you want versus the things you need, and save money for a rainy day,” she said.

Hernandez had similar advice. He added,” Don’t expect to get it all back.”

He sees a lot of young, first-time filers who “don’t really grasp” that they won’t get a complete refund.

Another interesting event Hernandez has seen is a spike in insurance policies during tax season, because people use their refunds to buy cars or pay the fines to get their license.

Tax season can be hard on many people, but especially on those who are not familiar with taxes already, such as first-time filers. The confusion around taxes is multiplied when an undocumented immigrant needs to file their taxes, which is how they often get taken advantage of. Luckily, there are people out there like our Infinity agents who are fighting the good fight as honest tax preparers.

The original atrical is posted here

The post Undocumented Immigrents Filing Taxes first appeared on Palmer Insurance.

1: Tax season does not start until the 23rd of January. Although we are processing taxes now, the IRS does not open there doors until the 23rd and that is when the first batch will be submitted.

2: Do you qualify for EIC (earned income credit) or the additional child tax credit? The IRS is not releasing refunds that have these added credits until February 15th so you will see delays if you file in the firs few days of the season.

3: Did you have health insurance last year? This is one of the most important questions asked on your tax return this year as the penalties for the Affordable Care Act (Obamacare) are higher then they have ever been. here it is “The penalty is $695 per adult and $347.50 per child (up to $2,085 for a family) or 2.5 of the family income, whichever is greater.” So there’s that.

These are just a few of the changes that take affect this year along with a slew of other minor adjustments. So if you need some advise and are looking for competent, educated, and experienced tax preparers please give us a call. We are here 7 days a week and can help with any tax issue you may have.

See you here at Palmer

Michael

The post It’s Tax Time! first appeared on Palmer Insurance.

First thing is find a competent tax professional (like us here at Palmer Income Tax) to do your taxes. Self employment taxes can get
complicated. It is very important to have someone that is familiar with the Uber and Lyft business model and know everything that
can be deducted to report it correctly. With the info in this blog you will know what can be deducted. But how to report it on your
personal taxes is a whole different monster and that is what we at Palmer are here for.

Second is to calculate your mileage correctly. This month these companies will be sending you a statement showing the income made
and the mileage drove. This mileage is going to be your largest deduction. The problem with the statement issued by Uber and Lyft
is that they only include the miles driven when there is a fair in the car. Although this information is useful you also need to
calculate how many miles where driven to and from fairs. If you have not yet downloaded a mileage tracking app for your smart
phone do that ASAP as this is the easiest way to prove to the IRS of your mileage.

Lastly, are you one of those awesome drivers that give water bottles to your fairs? gum? candy? charge there phones? All of this is
deductable so keep your receipts!

Although this is a general overview of what you can deduct a case by case analysis is still necessary to get your tax liability as
low as possible. We also walk all of our client that drive for Uber and Lyft what they can do in the future to prepare and track
all expenses so next year you will be ready to go. That is what we are experts in here at palmer. So give us a call and set up an
appointment when you are ready to file and get the highest possible refund on your returns this year.

Happy New Year!!

Michael Palmer

The post Report your Uber or Lyft income correctly first appeared on Palmer Insurance.