The Tax Guy

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CT Child Tax Rebate

Applications for the Child Tax Payments are now open!

Any Connecticut resident who claimed at least one dependent child under the age of 18 on their 2021 federal income tax return may be eligible to receive a maximum payment of $250 per child (for up to three children) with the following income guidelines (higher incomes may be eligible for a reduced rebate):
Anyone who is interested in seeking a payment must apply to the Connecticut Department of Revenue Services with applications closing on July 31, 2022 - recipients will receive funds beginning in late August.
Apply for the 2022 CT Child Tax Payments
The Department of Revenue Services is in the process of reaching out to eligible households and I encourage you to share this information with any parents that may qualify.

https://egov.ct.gov/drschildrebateform/?utm_source=D%27Agostino&utm_campaign=c1d9ea9491-EMAIL_CAMPAIGN_2022_06_01_01_59&utm_medium=email&utm_term=0_2ee6ff3b7c-c1d9ea9491-47791437

CT Child Tax Rebate

2022 CT Child Tax Rebate

2022 CT Child Tax Rebate The Child Tax Rebate, which was recently authorized by the Connecticut General Assembly and signed into law by Governor Ned Lamont, is intended to help Connecticut families with children. You may be eligible for a Child Tax Rebate of up to a maximum of $750 ($250 per child up to three children).

How taxpayers can check the status of their federal tax refund | Internal Revenue Service

https://www.irs.gov/newsroom/how-taxpayers-can-check-the-status-of-their-federal-tax-refund

How taxpayers can check the status of their federal tax refund | Internal Revenue Service Tax Tip 2022-60, April 19, 2022 — Once a taxpayer files their tax return, they want to know when they’ll receive their refund. The most convenient way to check on a tax refund is by using the Where's My Refund? tool on IRS.gov.

Filing season reminder for teachers: Some educator expenses may be tax deductible | Internal Revenue Service

https://www.irs.gov/newsroom/filing-season-reminder-for-teachers-some-educator-expenses-may-be-tax-deductible

Filing season reminder for teachers: Some educator expenses may be tax deductible | Internal Revenue Service COVID Tax Tip 2022-30, February 24, 2022 — The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies and training from their taxes. They can only claim this deduction for expenses that were not reimbursed by their employer, a gran...

IRS Chief: We're facing enormous challenges this tax filing season

IRS Chief: We're facing enormous challenges this tax filing season The IRS Commissioner says the agency's focus is "simplifying the taxpayer’s filing experience," he writes in an exclusive Op-Ed for Yahoo Finance.

IRS backlog hits nearly 24 million returns, further imperiling the 2022 tax filing season

IRS backlog hits nearly 24 million returns, further imperiling the 2022 tax filing season Nearly 24 million taxpayers are still waiting for the Internal Revenue Service to process their tax returns from last year - a number far larger than previously reported by the agency - with many refunds being held up for 10 months or more. The inventory of unprocessed returns and related correspond...

Q A11. Will the IRS send me a letter about my advance Child Tax Credit payments to help me claim the correct Child Tax Credit amount on my 2021 return during the 2022 tax filing season? (updated January 11, 2022)
A11. Yes. In January 2022, the IRS will send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. Please keep this letter regarding your advance Child Tax Credit payments with your tax records. You may need to refer to this letter when you file your 2021 tax return during the 2022 tax filing season.
For more information regarding this letter and how to reconcile your advance Child Tax Credit payments with your Child Tax Credit on your 2021 return, see Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax
Return.

Taxpayers beware: Tax season is prime time for phone scams | Internal Revenue Service

Taxpayers beware: Tax season is prime time for phone scams | Internal Revenue Service Tax Tip 2022-15, January 27, 2022 — With the new tax season starting this week, the IRS reminds taxpayers to be aware that criminals continue to make aggressive calls posing as IRS agents in hopes of stealing taxpayer money or personal information.

Understanding taxpayer rights: The right to pay no more than the correct amount of tax | Internal Revenue Service

Understanding taxpayer rights: The right to pay no more than the correct amount of tax | Internal Revenue Service Tax Tip 2022-17, February 1, 2022 — The IRS is committed to ensuring taxpayers pay no more than the correct amount of tax.

Free File: Do your Federal Taxes for Free | Internal Revenue Service

https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

Free File: Do your Federal Taxes for Free | Internal Revenue Service IRS Free File lets you prepare and file your federal income tax online for free. File at an IRS partner site with the IRS Free File Program or use Free File Fillable Forms. It's safe, easy and no cost to you.

Earned Income Tax Credit (EITC) Can Put More Money in Your Pocket

https://www.youtube.com/watch?v=0c_wQgyDMDI

Earned Income Tax Credit (EITC) Can Put More Money in Your Pocket If you make low to moderate income, see if you qualify for the Earned Income Tax Credit (EITC). For more information, go to https://www.irs.gov/eitc. #...

An overview of the credit for other dependents | Internal Revenue Service

https://www.irs.gov/newsroom/an-overview-of-the-credit-for-other-dependents

An overview of the credit for other dependents | Internal Revenue Service Tax Tip 2022-12, January 24, 2022 — Taxpayers with dependents who don't qualify for the child tax credit may be able to claim the credit for other dependents.

Mistakes with child tax credit, stimulus can trigger refund tax delays, IRS warns

https://finance.yahoo.com/news/mistakes-child-tax-credit-stimulus-100020327.html

Mistakes with child tax credit, stimulus can trigger refund tax delays, IRS warns The IRS urged extra caution for those who received money through the advance child tax credit and the third stimulus payment in 2021.

The Tax Guy

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How a taxpayer’s filing status affects their tax return | Internal Revenue Service

https://www.irs.gov/newsroom/how-a-taxpayers-filing-status-affects-their-tax-return

How a taxpayer’s filing status affects their tax return | Internal Revenue Service Tax Tip 2022-13, January 25, 2022 — A taxpayer’s filing status tells the IRS about them and their tax situation. This is just one reason taxpayers should familiarize themselves with each option and know their correct filing status.

IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience | Internal Revenue Service

https://www.irs.gov/newsroom/irs-issues-information-letters-to-advance-child-tax-credit-recipients-and-recipients-of-the-third-round-of-economic-impact-payments-taxpayers-should-hold-onto-letters-to-help-the-2022-filing-season

IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience | Internal Revenue Service IR-2021-255, December 22, 2021 — The Internal Revenue Service announced today that it will issue information letters to Advance Child Tax Credit recipients starting in December and to recipients of the third round of the Economic Impact Payments at the end of January. Using this information when p...

It’s important for taxpayers to know the difference between standard and itemized deductions

Taxpayers have two options when completing a tax return, take the standard deduction or itemize their deductions. Most taxpayers use the option that gives them the lowest overall tax.

Due to all the tax law changes in the recent years, including increases to the standard deduction, people who itemized in the past might want to switch to the standard deduction.

Here are some details about the two options.

Standard deduction
The standard deduction amount increases slightly every year and varies by filing status. The standard deduction amount depends on the taxpayer's filing status, whether they are 65 or older or blind, and whether another taxpayer can claim them as a dependent. Taxpayers who are age 65 or older on the last day of the year and don't itemize deductions are entitled to a higher standard deduction.

Most filers who use Form 1040 can find their standard deduction on the first page of the form. The standard deduction for most filers of Form 1040-SR, U.S. Tax Return for Seniors, is on page 4 of that form.

Not all taxpayers can take a standard deduction, which is discussed in the Instructions for Forms 1040 and 1040-SR. Those taxpayers include:

A married individual filing as married filing separately whose spouse itemizes deductions—if one spouse itemizes on a separate return, both must itemize.
An individual who files a tax return for a period of less than 12 months. This is uncommon and could be due to a change in their annual accounting period.
An individual who was a nonresident alien or a dual-status alien during the year. However, nonresident aliens who are married to a U.S. citizen or resident alien can take the standard deduction in certain situations.

Itemized deductions
Taxpayers choose to itemize deductions by filing Schedule A, Form 1040, Itemized Deductions. Itemized deductions that taxpayers may claim include:

State and local income or sales taxes
Real estate and personal property taxes
Home mortgage interest
Mortgage insurance premiums on a home mortgage
Personal casualty and theft losses from a federally declared disaster
Gifts to a qualified charity
Unreimbursed medical and dental expenses that exceed 7.5% of adjusted gross income

Some itemized deductions, such as the deduction for taxes, may be limited. Taxpayers should review the instructions for Schedule A Form 1040 for more information on limitations

Taxpayers must report gig economy earnings when filing taxes

Whether it’s a full-time job or just a side hustle, taxpayers must report gig economy earnings on their tax return. Understanding how gig work can affect taxes may sound complicated but, it doesn’t have to be. The IRS offers several resources to help gig economy taxpayers properly fulfill their tax responsibilities.

Here are some things gig workers should keep in mind.

Gig work is taxable:

Earnings from gig economy work is taxable, regardless of whether an individual receives information returns. The reporting requirement for issuance of Form 1099-K changed for payments received in 2022 to totals exceeding $600, regardless of the total number of transactions. This means some gig workers will now receive an information return. This is true even if the work is full-time, part-time or if an individual is paid in cash.
Gig workers may also be required to make quarterly estimated income tax payments and pay their share of Social Security and Medicare taxes.

Still haven't filed your taxes? Now is the perfect time to catch up. Call Tom at The Tax Guy 203-684-3512/[email protected]/or message me.

Tax Refunds: IRS Delays Leave Millions Waiting For Their Money

https://baltimore.cbslocal.com/2021/07/16/tax-refund-delay-2021-status-irs-backlog/

Tax Refunds: IRS Delays Leave Millions Waiting For Their Money While the IRS sent out two stimulus checks and updated the Child Tax Credit this year, it fell short of its core mission of servicing American taxpayers.

IRS sends 2.8 million additional refunds to taxpayers for unemployment

IRS sends 2.8 million additional refunds to taxpayers for unemployment The Internal Revenue Service is sending 2.8 million refunds this week to taxpayers who paid too much in taxes for their 2020 unemployment benefits.

Taxpayers must report gig economy income on their tax return
In 2020, many people joined the gig economy to help make ends meet during the pandemic. Whether it’s a side business or a primary source of income, all taxpayers need to understand how their gig work affects their taxes. The bottom line is taxpayers must report gig economy income on their tax return.
Here's a quick overview of the gig economy:
The gig economy is also referred to as the on-demand, sharing or access economy. People involved in the gig economy earn income as a freelancer, independent worker or employee. They use technology known as online platforms to connect them with customers to provide goods or services. This includes things like renting out a home or spare bedroom and providing delivery services.
Here are some things taxpayers should know about the gig economy and taxes:
• Money earned through this work is usually taxable.
• There are tax implications for both the company providing the platform and the individual performing the services.
• This income is usually taxable even if the:
- Taxpayer providing the service doesn't receive an information return, like a Form 1099-NEC, Form 1099-MISC, Form 1099-K, or Form W-2.
- Activity is only part-time or side work.
- Taxpayer is paid in cash.
• People working in the gig economy are generally required to pay:
- Income taxes.
- Federal Insurance Contribution Act or Self-Employment Contribution Act tax.
- Additional Medicare taxes.
• Independent contractors may be able to deduct business expenses. These taxpayers should double check the rules around deducting expenses related to use of things like their car or house. They should remember to keep records of their business expenses.
• Special rules usually apply to rental property also used as a residence during the tax year. Taxpayers should remember that rental income is generally fully taxable.
• Workers who do not have taxes withheld from their pay have two ways to pay their taxes in advance. Here are these two options:
- Gig economy workers who have another job where their employer withholds taxes from their paycheck can fill out and submit a new Form W-4. The employee does this to request that the other employer withholds additional taxes from their paycheck. This additional withholding can help cover the taxes owed from their gig economy work.
- The gig economy worker can make quarterly estimated tax payments. They do this to pay their taxes and any self-employment taxes owed throughout the year.
Contact The Tax Guy at 203-684-3512 or [email protected] for more information.

Tax Time Guide: Didn’t get Economic Impact Payments? Check eligibility for Recovery Rebate Credit
The Internal Revenue Service reminds first-time filers and those who usually don’t have a federal filing requirement to consider filing a 2020 tax return. They may be eligible to claim the Recovery Rebate Credit, a new refundable credit, authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the COVID-related Tax Relief Act.
Most individuals eligible for the Recovery Rebate Credit have already received the full amount in two rounds of payments, known as Economic Impact Payments. All legally permitted first and second Economic Impact Payments have been issued.
Individuals who were eligible but did not receive the first or second Economic Impact Payment or received less than the full amounts may be eligible to claim the Recovery Rebate Credit and must file a 2020 federal tax return, even if they do not usually file a tax return. The IRS offers free options to prepare and file a return.
Taxpayers who received the full amounts of both Economic Impact Payments won’t claim the Recovery Rebate Credit or include any information about the payments on their 2020 tax return because the IRS already issued their Recovery Rebate Credit in advance as Economic Impact Payments.
Didn’t get an Economic Impact Payment or got less than the full amount?
People who didn’t get an Economic Impact Payment or got less than the full amounts may be eligible to claim the Recovery Rebate Credit and must file a 2020 tax return, even if they don’t usually file.
The first Economic Impact Payment was based on an individual’s 2019 tax year information or 2018 if the 2019 tax return information was not available. The second Economic Impact Payment was based on an individual’s 2019 tax year information. The Recovery Rebate Credit is similar except that the eligibility and the amount are based on 2020 information on the tax return. The Recovery Rebate Credit is reduced by any Economic Impact Payments issued.
People who were not eligible for either or both of the Economic Impact Payments may still be eligible for the Recovery Rebate Credit since it’s based on their 2020 tax return information. Those with lower income in 2020 or who were claimed as a dependent on someone else’s tax return in 2018 or 2019, but who cannot be claimed as a dependent on someone else’s return in 2020, may now be eligible for the Recovery Rebate Credit.
People eligible to claim the Recovery Rebate Credit based on their 2020 tax information must file a 2020 federal tax return. For more information about the Recovery Rebate Credit, see Frequently Asked Questions at IRS.gov.
Filing a 2020 tax return
To avoid refund delays, file a complete and accurate tax return. The best way to file a complete and accurate 2020 tax return is to file electronically. The tax software will ask questions about income, credits and deductions and help taxpayers figure their Recovery Rebate Credit. The Form 1040 and Form 1040-SR instructions includes a worksheet that can also help.
Individuals will need to know the amount of their Economic Impact Payments to claim the Recovery Rebate Credit. Those who don’t have their Economic Impact Payment notices can view the amounts of their first and second Economic Impact Payments through their individual online account. For married filing joint individuals, each spouse will need to log into his or her own account.
The Recovery Rebate Credit will be included in any tax refund. It will not be issued separately. For those due a refund (which would include the Recovery Rebate Credit), combining electronic filing with direct deposit is the safest and fastest way to get their refund.
Contact The Tax Guy with any questions or to file your tax returns. 203-684-3512 or [email protected]

The Pros and Cons of Standard vs. Itemized Tax Deductions..
2nd in a series
Taxpayers have two deduction options: a standard deduction or itemized deductions. While the standard deduction is the government's built-in subtraction that you can take while preparing your taxes, itemizing is composed of individual deductions that, together, can help lower the amount of taxable income.
Anyone with deductible expenses that exceed the standard deduction should itemize.
Itemized Deductions
Unlike the standard deduction, itemized deductions can result in a different amount for each taxpayer. Itemized deductions are claimed on a Schedule A form and are broken down into five main categories:
-- Medical and dental expenses.
-- Taxes you paid.
-- Interest you paid.
-- Gifts to charity.
-- Casualty and theft losses.
There is also a line for other itemized deductions, which covers less common situations such as gambling losses and certain unrecovered investments in a pension. For most people, state and local taxes, mortgage interest and charitable donations will make up the bulk of their itemized deductions.
Here are the benefits of itemized deductions:
-- You can claim more expenses.
-- You can save more money in taxes.
You can claim more expenses. Mortgage interest, property taxes and medical bills are just a few of the expenses allowed with itemization. While some of these categories have caps or limitations, taxpayers with large mortgages who give generously to charity may find they get a larger deduction by itemizing.
You can save more money. Because you can include more deductions when itemizing, you might stand to earn a larger tax refund. The amount itemizing saves you will depend on your tax bracket. For instance, income taxed in the 24% tax bracket will see a 24 cent tax savings for every dollar itemized above the standard deduction.
Itemizing deductions comes with some drawbacks, however. Here are the disadvantages of itemized deductions:
-- It takes more paperwork and effort to itemize.
-- There are restrictions on some itemized deductions.
It takes more paperwork and effort to itemize. Unlike standard deductions, itemizing is a manual process that requires gathering documentation and tallying expenses. Depending on how good your records are and the amount of your deductions, this time-consuming process might not reduce your taxable income enough to make it worth the effort.
There are restrictions on some itemized deductions. The Tax Cuts and Jobs Act caps the itemized deduction for state and local taxes, including property taxes, at $10,000. What's more, interest on home equity loans taken out for purposes other than a renovation are no longer deductible, and only interest on the first $750,000 of a new mortgage can be included. If you want to deduct medical and dental expenses, only those in excess of 7.5% of your adjusted gross income are eligible to be itemized.

Message The Tax Guy to file fast and accurate tax returns. 203 684-3512/[email protected]