Table of contents:

• Transcript

• Contact Information

• About Angelina King

• Quotes From Angelina King

• FAQ

• Glossary and Terms

Transcript:

Contact Information:

Website: https://www.718taxservices.com/

Reference About That Wallet when reaching out.

About Angelina King and the episode:

As tax season approaches, many people find themselves overwhelmed with questions about filing, refunds, and credits. In the latest episode of our podcast, we welcomed tax expert Angelina King, CEO of 718 Tax Services, who shared invaluable insights that can help you navigate this often-stressful time of year.

Angelina emphasizes the necessity of being proactive with tax filings to avoid penalties and interest from the IRS. She also provides valuable tips on how to prepare for tax season, including the importance of keeping good records and utilizing technology to streamline the process. The conversation touches on the recent changes in tax laws, the significance of adjusting withholding, and strategies for both W2 employees and business owners to maximize their tax benefits.

One of the key takeaways from our conversation was the importance of filing your taxes early. Angelina emphasized that doing so not only reduces the risk of fraud but also gives you the chance to identify any missing documents well ahead of the deadline. She advised listeners to check their IRS online accounts for updates on their transcripts, ensuring they have everything they need before filing.

Angelina also shed light on the PATH Act, which can hold up tax returns for those claiming dependents. This is crucial information for parents or guardians who rely on tax credits to support their families. By understanding these nuances, you can avoid potential disputes and ensure you're claiming all eligible credits.

Moreover, we discussed the mindset around tax refunds. Angelina pointed out that many view refunds as a windfall, but she reminded us that these are essentially interest-free loans to the IRS. Instead, she encouraged listeners to consider their tax withholdings carefully, as owing money can lead to penalties and interest.

For those with side hustles or small businesses, Angelina highlighted the advantages of keeping meticulous records. She introduced the app 4Receipt, which can help organize expenses and simplify the tax preparation process. This is especially beneficial for self-employed individuals who often have more deductions available to them.

Throughout the episode, Angelina’s passion for educating taxpayers was evident. She reminded us that understanding the tax code is empowering and can lead to better financial decisions. Whether you're a W2 worker or a small business owner, there are strategies you can employ to minimize your tax liability and maximize your refunds.

If you’re feeling uncertain about your taxes this year, don’t hesitate to reach out to a tax professional. As Angelina stated, “Don’t be fearful; get educated.” Tune in to our latest episode for more tips and strategies to ensure a smooth tax season. Your financial future depends on it!

🗣️ Quotes from Angelina King

• "Refunds are interest free money that you're leaving on the table for the IRS to use until you claim it."

• "Don't be fearful about that. And I think another... I want to give too much away in the newsletter."

• "If you have all your documents, now is a great time [to file your taxes]."

• "We want to reduce the fraud risk on your Social Security number. Get it out the way."

• "Don't chase the money. The money will come."

Frequently Asked Questions (FAQ)

Glossary and Terms:

• Adjusted Gross Income (AGI): Gross income (total income before deductions) minus certain allowable deductions, such as contributions to traditional IRAs, student loan interest payments, and self-employment taxes. AGI is a key figure used to determine eligibility for various tax benefits.

• Beneficial Ownership Information (BOI) Report: A mandatory filing requirement for many companies in the United States, requiring them to report information about the individuals who directly or indirectly own or control the company to the Financial Crimes Enforcement Network (FinCEN). This is intended to help prevent money laundering and other illicit activities.

• EIN (Employer Identification Number): A unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. It is used by employers, corporations, partnerships, and other entities for tax filing and reporting purposes.

• Form 1099: An information return issued by payers to recipients of certain types of income other than wages, salaries, and tips (which are reported on Form W-2). Common types of 1099 forms include 1099-NEC for non-employee compensation (independent contractors) and 1099-DIV for dividends and distributions. The IRS also receives a copy of these forms.

• Form 990-N (e-Postcard): A simplified electronic filing requirement for most small tax-exempt organizations (typically those with gross receipts of $50,000 or less). It requires basic information about the organization, such as its name, address, and website.

• Form W-2: A wage and tax statement provided by employers to their employees by January 31st each year. It reports the employee's total earnings for the previous year and the amounts of federal, state, and other taxes withheld from their pay. Employees need this form to file their individual income tax returns.

• Itemized Deductions: Specific expenses that taxpayers can choose to deduct from their Adjusted Gross Income (AGI) instead of taking the standard deduction. Common itemized deductions include mortgage interest, state and local taxes (up to a limit), charitable contributions, and medical expenses (to the extent they exceed 7.5% of AGI). Taxpayers will itemize if the total of their itemized deductions is greater than the standard deduction for their filing status.

• Non-Refundable Credit: A type of tax credit that can reduce a taxpayer's tax liability to $0, but any excess credit cannot be received back as a refund. Examples include the Child Tax Credit (to a certain extent) and education credits.

• PATH Act of 2015: The Protecting Americans from Tax Hikes (PATH) Act, enacted in 2015, made several permanent tax changes and included provisions aimed at preventing tax fraud, particularly related to the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC). One key provision delays the issuance of refunds for tax returns claiming these credits until mid-February.

• P10 (Preparer Tax Identification Number): A number issued by the IRS to paid tax return preparers. All paid tax return preparers are required to obtain and use a P10 on the tax returns they prepare.

• Refundable Credit: A type of tax credit that can reduce a taxpayer's tax liability below $0, with any excess amount being refunded to the taxpayer. Examples include the Earned Income Tax Credit (EITC) and the refundable portion of the Child Tax Credit.

• Schedule C (Form 1040): Profit or Loss From Business (Sole Proprietorship). This IRS form is used by sole proprietors to report income and expenses from their business. The net profit or loss from Schedule C is then transferred to the taxpayer's Form 1040.

• Standard Deduction: A fixed dollar amount that taxpayers can deduct from their Adjusted Gross Income (AGI) if they choose not to itemize their deductions. The standard deduction amount varies based on the taxpayer's filing status, age, and whether they are blind. It is adjusted annually for inflation.

• Statute of Limitations (for taxes): The time limit within which the IRS can assess additional tax or within which a taxpayer can file an amended return to claim a refund. Generally, the statute of limitations for assessing additional tax is three years from the date the return was filed or its due date, whichever is later. The statute of limitations for claiming a refund is also generally three years from the date the return was filed or two years from the date the tax was paid, whichever is later.

• Taxable Income: The amount of income that is subject to income tax. It is calculated by subtracting the taxpayer's standard deduction or total itemized deductions from their Adjusted Gross Income (AGI). The tax liability is then determined based on the applicable tax brackets for the taxpayer's filing status and their taxable income.

• Withholding (Tax): The portion of an employee's wages or other income that an employer or payer deducts and sends directly to the government as an advance payment of the employee's or recipient's income tax liability. The amount withheld is based on the information the employee provides on their Form W-4 (for wages) or Form W-9 (for other income) and the applicable tax rules.