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Offset Accounting Services, Overland, MO (2026)

03/31/2023

Tax Refund Myths and Realities – Did You Know? (2/2)

Here are two more key facts you need to know to avoid falling for the myths.

- The refund amount displayed by the Where's My Refund tool could differ from the amount you were expecting. The IRS may need to adjust a taxpayer's refund amount for a variety of reasons, ranging from math errors on their returns to outstanding financial obligations. When such an adjustment is necessary, the IRS always sends a letter explaining the change.

- Getting a 2022 tax refund does not necessarily mean that your 2023 withholding is on track. Regardless of how your 2022 taxes came out, you should check your withholding at least once every year. Tax law changes, along with changes in your marital status, family size or many other factors can affect your withholding. You can use the IRS Withholding Estimator tool (link below) to find out if you need to make any adjustments.

If you have not yet filed your 2022 tax return, a tax professional can help you file it electronically with direct deposit, to ensure that you get your refund as quickly as possible.

IRS Where's My Refund tool: https://www.irs.gov/refunds
IRS Withholding Estimator: https://www.irs.gov/individuals/tax-withholding-estimator

03/28/2023

Tax Refund Myths and Realities – Did You Know? (1/2)

Taxpayers who are owed a 2022 tax refund naturally want to know how quickly that refund will come. Unfortunately, a lot of myths and half-truths about IRS refunds circulate online, giving people false expectations or leading them to waste time on unnecessary steps. Here are two key facts you need to know to avoid falling for the rumors.

- Calling the IRS will not yield more information about your refund. You can get the most up-to-date information about your refund status nearly around the clock by using the online Where's My Refund tool (link below) or calling 800-829-1954.

- The Where's My Refund Tool cannot always give a refund date. Many taxpayers believe something is wrong if this tool does not display a mailing or deposit date for their refunds. Although the IRS issues many refunds within 21 days, some returns take longer to process. You will get a refund date once the IRS finishes reviewing your return.

If you have not yet filed your 2022 tax return, a tax professional can help you file it electronically with direct deposit, to ensure that you get your refund as quickly as possible.

IRS Where's My Refund tool: https://www.irs.gov/refunds

03/24/2023

IRS Warns Businesses About Employee Retention Credit Scams

The IRS recently issued multiple warnings about scams related to the Employee Retention Credit (ERC). Congress created the ERC in 2020 to help businesses that kept employees in spite of reduced revenues during the pandemic. In most cases, to qualify for the credit, a business must have had significant, pandemic-related revenue decreases in 2020 or the first three quarters of 2021. Some ventures classified by the IRS as “recovery startup businesses” may also claim the credit if they paid employees during the third and/or fourth quarter of 2021.

In radio and internet ads, scammers are making exaggerated claims about the size of the ERC, and often misleading business owners about eligibility rules for the credit. Some scammers offer to file an ERC application on the business owner's behalf, for a fee. However, with IRS staff carefully reviewing all ERC claims, bogus applications will typically be identified and rejected. Taxpayers who file inaccurate returns or improperly claim tax benefits may face IRS as well as legal penalties.

Some other promoters of fake ERC opportunities are engaged in identity theft. These scammers use a bogus application form to harvest a taxpayer's personal identification and tax information, then disappear. The IRS urges business taxpayers to be suspicious of all ads making “too good to be true” claims about the ERC. The safest way to determine whether your business qualified for the ERC in 2020 or 2021, and may still claim it, is to work with a trusted tax professional.

03/23/2023

Common Tax Filing Errors – Did You Know? (3/3)

Every year, many taxpayers may make mistakes on their returns that cause IRS processing delays. Some common errors can also result in paying too much or too little tax.

The following mistakes often cause filers to pay the wrong amount of tax:

Incorrectly Figuring Credits or Deductions:
Once you determine that you qualify for a tax deduction or credit, you must carefully compute the amount that you can claim. Many taxpayers fail to take into account income limitations (including the calculations that must be made if your income falls within a “phase-out” range) and other restrictions. Others claim less than they could, or miss out on deductions and credits entirely by not filing the required forms and schedules.

Expired ITIN:
Those who file their IRS returns using individual tax identification numbers (ITINs) must keep in mind that ITINs periodically expire. Although a return filed with an expired ITIN may be accepted, the IRS generally will not allow any of the exemptions or tax credits claimed. The taxpayer must renew their ITIN in order to obtain the full refund that they are owed.

To avoid costly mistakes, the IRS recommends having a tax professional prepare or check your return and file it electronically. A tax pro might also help you claim deductions and credits that you would otherwise miss.

03/20/2023

Reminder: First Retirement Required Minimum Distributions Deadline

If you reached 72 years of age in 2022 and have an IRA (other than a Roth), or a 401(k) or similar retirement plan, then you likely need to withdraw funds from that account by April 1. In general, taxpayers with these retirement plans must begin taking annual withdrawals, called required minimum distributions (RMDs), once they reach a specified age.

This special April 1 deadline applies only to those taking their FIRST retirement account RMD. The normal deadline for RMDs is December 31 of the year that the RMD applies to. This means that taxpayers who turned 72 in 2022 and take their first RMD by April 1 will generally need to take a second, separate RMD for 2023 by December 31.

The age threshold of 72 for 2022 RMDs generally applies for traditional, SEP and SIMPLE IRAs, as well as for many workplace retirement plans such as 401(k), 403(b) and 457(b) plans. However, if you still work for the organization where you set up your 401(k) or similar plan, you may be able to delay your first RMD until April 1 of the year after you retire. Roth IRAs generally do not have RMDs, unless the account was inherited.

Your retirement account manager can help you figure the amount of your first RMD, and ensure that the transaction is completed by the deadline. In general, RMDs are taxable income.

03/15/2023

Common Tax Filing Errors – Did You Know? (2/3)

Every year, many taxpayers may make mistakes on their returns that cause IRS processing delays. Some common errors may also result in paying too much or too little tax. A miscalculation in either direction can be costly, since the IRS may assess penalties for underpayment.

The following mistakes can cause filers to pay the wrong amount of tax:

Math Mistakes:
Even mathematicians sometimes make errors in simple addition and subtraction, and some of the calculations required for 1040 schedules can be complicated. Thoroughly double-check every bit of math on your return.

Incorrect Filing Status (Single, Married Filing Jointly, etc.):
The IRS will not accept a return showing a filing status that you are not eligible to claim. If you qualify for more than one status (for example, filing jointly or separately if you are married), the option you choose may significantly change your tax.

To avoid costly mistakes, the IRS recommends having a tax professional prepare or check your return and file it electronically. A tax pro might also help you claim deductions and credits that you would otherwise miss.

03/09/2023

Common Tax Filing Errors – Did You Know? (1/3)

Every year, many taxpayers may make mistakes on their returns that cause IRS processing delays. Some common errors may also result in paying too much or too little tax. A miscalculation in either direction can be costly, since the IRS may assess penalties for underpayment.

The following mistakes may not change your tax, but they can cause processing problems. The IRS may even withhold your refund until the errors are corrected.

Missing or Inaccurate Social Security Number (SSN):
Even when filing electronically, many people mistype their SSNs and do not catch the error. If the SSN on your return does not match the number on your Social Security card, the IRS may not be able to process your return.

Misspelled Name:
Take your time when filling in every blank on your return, even your name. A misspelling or illegible writing can prevent proper processing.

Incorrect Bank Account or Routing Number:
Getting your return filed electronically and requesting direct deposit is the fastest way to get your refund, IF you provide accurate information. An error in your banking info can cause big headaches.

Missing Signature:
Remember that in most cases, couples filing jointly must both sign their return.

To avoid costly mistakes, the IRS recommends having a tax professional prepare or check your return and file it electronically. A tax pro might also help you claim deductions and credits that you would otherwise miss.

03/07/2023

False Tax Returns Scams – Did You Know?

IRS and state tax officials recently issued warnings about misleading posts on social media encouraging people to file bogus returns. Typically, the scammers claim that by following their instructions, taxpayers can receive a large tax refund. These claims are false and dangerous.

Some scammers urge people to use tax software to fill out a Form W-2 (Wage and Tax Statement) with false information, such as fake employers or high amounts of tax withheld. A similar scam involves completing Schedule H (Household Employment Taxes) with made-up figures related to paying household employees. In both cases, the scammers state that people can get a tax refund by electronically filing these fraudulent forms.

Alternatively, a scammer may encourage taxpayers to file Form 7202 to get a tax credit for sick or family leave. This special credit was only available in 2020 and 2021, and only for self-employed individuals. Employees could never claim it, and no one may claim it for tax year 2022.

The IRS urges all taxpayers not to believe these scam posts and messages, and to only file tax forms with true and accurate information. Filing a bogus return could trigger IRS penalties including up to a $5,000 fine, and potentially criminal charges.

03/03/2023

Refund Amounts - Did You Know?

If your refund amount is different than stated on the filed tax return, part or all of your refund may have been used to pay off (offset) past-due federal tax, student loans, state income tax or other past-due debts.

You'll receive a notice from the IRS if such an offset occurs that will show the original tax refund amount, the offset amount, as well as the name, address and telephone number of the agency receiving the payment.

If you haven't received your refund yet, you may be able to check the status using the IRS' "Where's my Refund?" tool: https://www.irs.gov/refunds.

03/01/2023

Credit for Other Dependents – Did You Know?

If you have dependents who do not meet the age or other eligibility requirements for the Child Tax Credit (CTC), you may qualify for the Credit for Other Dependents. This credit may be claimed for dependents of any age, including children, parents and certain other relatives, along with some non-related dependents who live with you. Each dependent must be a U.S. citizen, national or permanent resident, and must have either a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).

The maximum credit amount is $500 per qualifying dependent for taxpayers with an adjusted gross income (AGI) of $400,000 or below for joint filers, or $200,000 or below for all others. The credit phases out at higher income levels.

If you qualify, you may claim the Credit for Other Dependents in addition to the Child and Dependent Care Credit and Earned Income Tax Credit (EITC). A tax professional can help you determine which credits for dependents you are eligible for, and how to best combine credits to reduce your tax or increase your refund.

02/24/2023

Earned Income Tax Credit – Did You Know?

Many Americans may qualify for the Earned Income Tax Credit (EITC), but do not claim it because they do not know it is available. The EITC is a fully refundable tax credit, which means that eligible filers can use it to get a tax refund even if they owe no tax.

To qualify for the credit, your 2022 income must include earned income, such as employee pay or earnings from self-employment activities like freelance or gig economy work. You also cannot have more than $10,300 in investment income, such as interest or dividends.

In addition, your adjusted gross income (AGI) for 2022 must be below the limit set by the IRS for your filing status and number of qualifying dependents. For married taxpayers who file joint returns, the 2022 AGI limit ranges from $22,610 (no dependents) to $59,187 (three or more qualifying dependents). For those who file under single, head of household or surviving spouse status, the AGI limit ranges from $16,480 (no dependents) to $53,057 (three or more qualifying dependents).

In order to claim the EITC, you must file a 2022 federal tax return, even if you would not ordinarily be required to file based on your income. A tax professional can help you file your return electronically, and set up direct deposit to get your refund as quickly as possible.

02/22/2023

Tips for Filing an Accurate 2022 Return (2/2)

Here are some additional key points to keep in mind as you prepare your 2022 tax returns. To avoid processing delays and potential IRS penalties, taxpayers must report all forms of potentially taxable income. In addition to wages or a salary that you receive as an employee, make sure to accurately report any income you had from:

- Business activities, including selling goods online, independent contract work, side gigs or other forms of self-employment
- Interest, dividends, gains from digital assets (cryptocurrency, non-fungible tokens, stablecoins) transactions or other investment returns
- Seasonal or other temporary or part-time work
- Prizes, awards, bonuses or gambling winnings

A tax professional can help you properly report all your income, and file your return electronically for faster processing.

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