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COVID19 Guidelines Update: Due to COVID19 pandemic social distance guidelines T&S Financial and Tax Services urgent our clients to provide tax documents electrically. To protect ourselves and clients from the spread of COVID19. By utilize our Secure  email address  at: tsfinancialandtaxservices.net. Clients can exchange confidential documents safely and conveniently. Spend less time faxing, emailing, and mailing documents. Just upload PDFs, access at their convenience. No face to face drops off, No waiting, and No hassle.

Clients must email or call to confirm or schedule an appointment and to verify documents upload. To make your tax experience more convenient and secure. Clients can contact via email (customerservice@tsfinancialtaxservices.net) or by phone at :520-982-6686 or 806-478-2263. for Clients and Tax professionals to be able to communicate if needed.

We are now scheduling appointments for the current tax season. Call and schedule appointment today at: 520-982-6686 or 806-478-2263.

Reconcile Your Advance Payments Total on Your 2021 Tax Return :

Eligible families who didn't receive advance child tax credit payments can claim the full amount of the child tax credit on their 2021 federal. This includes families who don't normally need to file a tax return or have no earned income. IRS is sending Letter 6419, Advance Child Tax Credit Reconciliation from late December 2021 through January 2022. Taxpayers should keep this, and any other IRS letters about advance CTC payments, with their tax records. If you received advance payments of the Child Tax Credit, you need to reconcile (compare) the total you received with the amount you’re eligible to claim. You can refer to Letter 6419 that you should have received from the IRS. Taxpayer (s) should take this letter to a tax professional when filing 2021 tax return. Letter 6419 includes: Total amount of 2021 advance Child Tax Credit (CTC) payments. Number of qualifying children used to calculate advance payments, and repayment protection when filing your 2021 federal tax return to reconcile advance payments on your 2021 return.

Recovery Rebate Credit (Stimulus EIP3)​

Most people have already received their stimulus payments and won't be eligible to claim a Recovery Rebate Credit, however people who did not receive, are missing a stimulus payment, or got less than the full amount may be eligible to claim a Recovery Rebate Credit on their 2020 or 2021 federal tax return. It is critical that eligible individuals claiming a Recovery Rebate Credit understand that the advance payments applied to different tax years. Depending on which advance payment is missing – the first, second or third payment – you will file either a 2020 or 2021 tax return to claim a Recovery Rebate Credit.

-Missing first and second payments may only be claimed on a 2020 tax return.

-Missing third payments may only be claimed on a 2021 tax return.

You will need the tax year(s) and amount(s) of the Economic Impact Payments you received to accurately calculate the Recovery Rebate Credit.

T&S Financial and Tax Services, LLC: Economic Impact Payment (EIP) News Update:

Who is eligible for the economic impact payment?

Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.

Understanding IRS Notices and Letters:

Why was I notified by the IRS?

The IRS sends notices and letters for the following reasons:

You have a balance due.

You are due a larger or smaller refund.

We have a question about your tax return.

We need to verify your identity.

We need additional information.

We changed your return.

We need to notify you of delays in processing your return.

Next steps

Read

Each notice or letter contains a lot of valuable information, so it’s very important that you read it carefully. If we changed your tax return, compare the information we provided in the notice or letter with the information in your original return.

Respond

If your notice or letter requires a response by a specific date, there are two main reasons you’ll want to comply:

to minimize additional interest and penalty charges.

to preserve your appeal rights if you don’t agree.

Pay

Pay as much as you can, even if you can’t pay the full amount you owe. You can pay online or apply for an Online Payment Agreement or Offer in Compromise. Visit our payments page for more information.

Keep a copy of your notice or letter

It’s important to keep a copy of all notices or letters with your tax records. You may need these documents at a later date.

Contact us

We provide our contact phone number on the top right-hand corner of the notice or letter. Typically, you only need to contact us if you don’t agree with the information, if we requested additional information, or if you have a balance due. You can also write to us at the address in the notice or letter. If you write, allow at least 30 days for our response.

The location of the notice or letter number

You can find the notice (CP) or letter (LTR) number on either the top or the bottom right-hand corner of your correspondence.

When the notice or letter looks suspicious

Please visit our Report Phishing page if you receive a notice or letter that looks suspicious and was designed to appear as though it came from the IRS. You can also call 800-829-1040. We never ask taxpayers for personal information via e-mail or social media.

Maximizing Your Tax Returns

Stay updated with the different strategies on how you can maximize your returns with information from T & S Financial and Tax Services in Tucson, Arizona. We regularly post articles related to tax and finance so keep checking back for more.

Deductions and Credits

There are a variety of credits and deductions for individual and business taxpayers. The Earned Income Tax Credit and the Child and Dependent Care Credit help millions of families each year. Furthermore, there are a number of credits for small and large businesses.

You may have taken deductions when you prepared your annual tax return. In addition to the standard deduction for individuals, common deductions include home mortgages, interests, state and local taxes, and charitable contributions. Many business expenses are deductible as well.

Bear in mind that there are a few basic tips to keep in mind about the new health care law. The health insurance choices you make now may affect the income tax return you file next year. Below are some of the health insurance situations you will need to take note of:

  • People who already have qualified health insurance coverage will not need to do anything more than maintaining qualified coverage throughout the year.
  • Those who do not have health insurance through their job or government plans may be able to buy a plan through the health insurance market.
  • If you buy your insurance through the marketplace, you may be eligible for advance payment of the premium tax credit to lower your out-of-pocket monthly premiums.
  • Your current year’s tax return will ask if you had insurance coverage or qualified for an exemption. If not, you may owe a shared responsibility payment when you file the following year.

Tax Reform

Major tax reform was approved by Congress in the Tax Cuts and Jobs Act (TCJA) on December 22, 2017. The IRS is working on implementing this major tax legislation that will affect both individuals and businesses. We will provide information and guidance to taxpayers, businesses and the tax community as it becomes available. Check this page for updates and resources.

1099MISC & 1099NEC vs. W-2 Employees

Should the payment for the services you rendered is listed in box 7 of Form 1099-MISC, the payer is treating you as a self-employed worker. You may also be referred to as an independent contractor. This means that:

  • You do not necessarily have to “have a business” to receive payments for your services to be reported on Form 1099-MISC. Rather, you may simply perform services as a non-employee.
  • The payer has determined that you are not in an employer-employee relationship.
  • That determination is complex but is essentially made by examining the right to control what services you perform and how you perform those services.
  • It is not based on how you are paid, how often you are paid, or whether you work part-time or full-time.

There are three basic areas that are relevant to determine if an employer-employee relationship exists. They are:

  • Behavioral Control
  • Financial Control
  • Relationship of the Parties
  • Paystubs
  • W-2s
  • 1099 Miscellaneous Forms
  • Paid Baby Sitter Receipts
  • Traffic Tickets
  • Receipt Books
  • Expense Receipts
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