Report tip money as income on your tax return

For those working in the service industry, tips are often a vital part of their income. Like most forms of income, tips are taxable. Therefore, it’s also vital that people understand the tax obligations that come with tip income. Here’s some information to help taxpayers report tip income so they don’t receive a surprise tax […]

Social Security benefits may be taxable

A new tax season has arrived. The IRS reminds taxpayers receiving Social Security benefits that they may have to pay federal income tax on a portion of those benefits. Social Security benefits include monthly retirement, survivor and disability benefits. They don’t include supplemental security income payments, which aren’t taxable. The portion of benefits that are […]

Remember all your documents when filing tax return

With 2022 Tax season now on its way, Tax Associates is here to remind you about the most important things to do and not do when filing a tax return. Read the following suggestions and if any questions arise, feel free to contact our offices by phone or email. Phone: 847-566-3010 E-mail: Don’t file […]

IRS Can Help Taxpayers Get Form W-2

Most taxpayers got their Form W-2, Wage and Tax Statement, by the end of January. Taxpayers need their W-2s to file an accurate tax returns, as the form shows an employee’s income and taxes withheld for the year. Taxpayers who haven’t received their W-2 by the end of February should: • Contact their Employer. Taxpayers should ask […]

Pay No More than the Correct Amount of Tax

The Right to Pay No More than the Correct Amount of Tax – Taxpayer Bill of Rights #3   Taxpayers have the right to pay no more than the correct amount of tax they owe. This is one of ten basic rights known collectively as the Taxpayer Bill of Rights. This tip is the third in […]

Steps Victims Can Take to Minimize Effect of Data Theft

Every day, the theft of personal and financial information puts people at risk of identity theft. Generally, thieves try to use the stolen data as quickly as possible to: Sell the information to other criminals. Withdraw money from a bank account. Make credit card purchases. File a fraudulent tax return for a refund using victims’ […]

The Right to Quality Service

All taxpayers have basic rights when filing taxes and dealing with the IRS. This tip is one in a series that outlines the Taxpayer Bill of Rights, which groups the multiple existing rights in the nation’s tax law into 10 categories. This makes it easier for taxpayers to find, understand and take advantage of their rights. […]

Get to Know the Earned Income Tax Credit and How It Benefits

The earned income tax credit is a benefit for working people with low and moderate incomes. To qualify, taxpayers must meet certain requirements and file a tax return, even if they don’t owe any tax or aren’t required to file. Here are some things taxpayers should know about the EITC: It’s Important to Review Eligibility […]

Taxpayers Must Validate Identity When Calling the IRS

The Internal Revenue Service today reminded taxpayers and tax professionals that they will be asked to verify their identities if they call the IRS. This is part of the agency’s efforts to keep taxpayer data secure from identity thieves. Days before and after Presidents Day mark the peak period for taxpayer phone calls to the […]

Beware of Fake Calls to Return Money to a Collection Agency

Scam Alert: IRS Urges Taxpayers to Watch Out for Erroneous Refunds; Beware of Fake Calls to Return Money to a Collection Agency    The Internal Revenue Service today warned taxpayers of a quickly growing scam involving erroneous tax refunds being deposited into their bank accounts. The IRS also offered a step-by-step explanation for how to […]