Identity theft has become a very serious problem. The Internal Revenue Services offers additional protection if you believe your identity has been stolen or compromised in any way. An Identity Protection PIN is a six-digit number that prevents someone else from filing a tax return using a taxpayer’s Social Security number. The IP PIN is…
Read More...Social Security Changes for 2021
Social Security recipients got a 1.3% raise for 2021, compared with the 1.6% hike beneficiaries received in 2020. Maximum earnings subject to the Social Security tax also increased—from $137,700 a year to $142,800. Other changes for 2021 included an increase in how much money working Social Security recipients can earn before their benefits are reduced…
Read More...Tax time is seasonal, but the Taxpayer Bill of Rights applies all year
All taxpayers have fundamental rights when they’re interacting with the IRS. These rights apply all year long, not just during tax season. The Taxpayer Bill of Rights presents these rights in 10 categories. Here’s an overview of these rights and links to details about each one: The right to be informed Taxpayers have the right…
Read More...Time to Schedule
It is cold and dreary and the last thing you want to do is mess with taxes. The IRS opened for filing on February 12 so now is the time to schedule your appointment. Go go my website: pedersonaccountingservices.com. Next to my telephone number is the button that says Schedule. The times shown are when…
Read More...Facing an income-tax surprise? Now is a good time to update your W-4
After a tumultuous year that has upended traditional employment, millions of Americans could face income-tax surprises. One way to reduce the odds of owing a big bill to Uncle Sam — or paying out too much and thus giving an interest-free loan to the government — is to check your withholding. More than a year…
Read More...Is Your Credit Score Affected by the Number of Cards You Have?
Your credit score, which is also referred to as your FICO score, is a measure that creditors use to assess your potential credit worthiness. Generally speaking, the higher your credit score, the less of a credit risk borrowers will perceive you to be. If you have a low FICO score, then you could be deemed…
Read More...IRS urges taxpayers to gather tax documents now for smooth filing later
WASHINGTON —The Internal Revenue Service is reminding taxpayers that organizing tax records is an important first step for getting ready to prepare and file their 2020 tax return. Taxpayers should keep all necessary records, such as W-2s, 1099s, receipts, canceled checks and other documents that support an item of income, or a deduction or credit,…
Read More...Second Economic Impact Payment
WASHINGTON – The Internal Revenue Service today urged people to visit IRS.gov for the most current information on the second round of Economic Impact Payments rather than calling the agency or their financial institutions or tax software providers. IRS phone assistors do not have additional information beyond what’s available on IRS.gov. The IRS and the…
Read More...Happy New Year!
Happy New Year! We pray 2021 will be a much better year for everyone! It is that time of year again. Envelopes will start arriving that say “Tax Documents.” Be sure to put all the documents in the same place so when you are ready to have your taxes done, they will all be together.…
Read More...Be Aware “FREE” is Not Necessarily Free
Earlier this year, all of the television stations were running ads screaming “FREE, FREE, FREE.” That screaming was followed by ads for online tax preparation companies where you could file your taxes for FREE. Please be aware, there are restrictions on filing for free. One site I found allowed free filing if you have W-2…
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