IRS News / 49 posts found

2017 Tax Filing Season Updates

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The Internal Revenue Service announced that the nation’s tax season will begin Monday, Jan. 23, 2017, and reminded taxpayers claiming certain tax credits to expect a longer wait for refunds. The IRS will begin accepting electronic tax returns that day, with more than 153 million individual tax returns expected to be filed in 2017. The IRS again expects more than four out of five tax returns will be prepared electronically using tax return preparation software. Here at Creative Tax along with other tax professionals will be accepting tax returns before Jan. 23 and then will submit the returns when IRS […]

EIC Scam Alert!

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Warning!! In 2010 Obama signed the Improper Payments Elimination and Recovery Act and then in 2012 he signed the Improper Payments Elimination and Recovery Improvement Act . These Acts have tasked the IRS to get control of rampant fraud taking place among Earned Income Tax Credit filers and preparers.

Since its inception individuals have tried to manipulate the system to get their hands on this FREE money that the government has set aside to help low income families struggling to raise their families.

Over the years the amount of abuse has reached staggering proportions. A minimum of $13.3 billion and a maximum of $15.6 billion — billion, not million — is wasted in this one program in a single year.

 Last fall, the inspector general estimated that somewhere between $110 billion and $132 billion had been thrown away in improper Earned Income Tax Credit payments in the last decade. Now add somewhere around $15 billion more — with no indication the rate of fraud will be reduced anytime in the future.

Even though the IRS has been lacking in attacking this problem in the past they can no longer ignore the waste, fraud and abused taking place and they are now utilizing a very streamed line and effective audit process to help reduce and stop these abusive practices.

Understanding The Obama Care Individual Shared Responsibility Payments?

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Beginning in 2014, the individual shared responsibility provision of the Affordable Care Act kicked in requireing each individual to: Maintain a minimum level of health care coverage – known as minimum essential coverage, or Qualify for an exemption, or Make an individual shared responsibility payment when filing their federal income tax returns. Minimum essential coverage generally includes government-sponsored programs, employer-provided health coverage, and coverage purchased in the individual market, including the Health Insurance Marketplace.  Most people already have health insurance coverage that qualifies as minimum essential coverage, and therefore will not need to make a payment if they maintain their […]

IRS Warns: Obamacare Tax Must Be Paid

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In 2014 Obamas Affordable Health Care Act kicks in and will affect millions of individual Americans. You need to understand your “shared responsibility payments” and your exemptions. We will be covering these issues in our 3 part series on Obama Care. In Part 1 we are giving a general overview of these two primary issues that will affect millions of individuals in the upcoming month, “shared responsibility payments (tax)” and exemptions. If you have any questions concerning Obama Care feel free to call us at (562) 251-1300 So What Are Shared Responsibility Payments? The term “shared responsibility payment” refers to […]

10 Special Tax Benefits for Members of the Armed Forces

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Our military is one of the finest in the world. They put themselves into harm’s way every day fighting for what they believe is for the best interest of our nation. These brave men and women deserve and receive special tax benefits.  Below are 10 special tax benefits that apply to all members of the U. S. Armed Forces. If you are a loved one is in the military make sure you read this article. Some types of military pay are not taxable and special rules may apply to other tax deductions, credits and deadlines: Deadline Extensions.  Some members of […]

5 Tax Tips on Travel While Giving to Charity

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Do you plan to donate your services to charity this summer? Will you travel as part of the service? If so, some travel expenses may help lower your taxes when you file your tax return next year. Here are five tax tips you should know if you travel while giving your services to charity. 1. You can’t deduct the value of your services that you give to charity. But you may be able to deduct some out-of-pocket costs you pay to give your services. This can include the cost of travel. To deduct out-of-pocket costs they must meet all of the […]

Protect Yourself From IRS Audits

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questions1The tax filing season is almost ove and in the rush to get your taxes prepared before April 15 mistakes can be made that could trigger an audit. These 10 tips will help you save time and help to protect you in the event of an IRS audit:

1. Gather your records.  Collect all tax records you need to file your taxes. This includes receipts, canceled checks and records that support income, deductions or tax credits that you claim on your tax return. Store them in a safe place.

2. Report all your income.  You will need to report your income from all of your Forms W-2, Wage and Tax Statements, and Form 1099 income statements when you file your tax return.

Is The IRS Your Puppet Master?

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Feel like the IRS is your Puppet Master? Put an end to your IRS problems and call Creative Tax at (562) 251-1300..  Audits, Collections, Amended Returns  it does not matter … We Can help!

Living Trusts: Why Anna Got One

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Don't get stuck with paying high estate taxes and fees.Call us and learn about How Our  Living Trust packages can not only save you money but give you peace of mind  Call us we can help (562) 251-1300   

Are You Affected By Obama Care AKA The Affordable Health Care Act?

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profile cover1Obama Care has within it numerous different taxes. However everyone one is not affected the same. Let's take a look at how Obama Care's taxes affect certain income groups.

Obama Care (Affordable Health care Act) Taxes for High Earners and Large Businesses

Most of the new taxes are on what on so called high end earners. This group includes anyone making over $200,000 and families that making over $250,000.  If you own a business with over 50 full-time equivalent employees making over $250,000 you are included in this group. Also if you are in an industry that profits from healthcare you are also included in this group. Essentially who will see gains under Obama Care are required to put money back in the program via taxes.

FACT: Tax increases generally affect single filers with an adjusted gross income (AGI) above $200,000 and married couples filing jointly above $250,000. Some of the tax increases don't kick in until single AGI hits $400,000 and married filing jointly AGI hits $450,000.

Obama Care (Affordable Health care Act) Taxes for the Average American With Health insurance

For most of the 85% of Americans with health insurance, making less than $250,000, most of the new taxes won't mean much of anything, however if you fall in one of the categories below  there are certain taxes that will affect you and your family.

 Obama Care (Affordable Health care Act)  Taxes for the Average American Without Health insurance

There are approximately 15% of Americans without health insurance. These are primarily younger Americans who are just starting out looking for jobs. They will be required to obtain health insurance (Note: this is called the Individual Mandate) or will they will face a "tax penalty".