Beyond Pro Consultants LLC

01/30/2024

$7,430 credit from the IRS: Requirements and who is eligible to receive the refund

Tax season is officially underway and the Internal Revenue Service is urging filers to check if they are eligible for one of the most often overlooked tax credits.

The Earned Income Tax Credit is a tax break for low to moderate earners with higher amounts available for those with children. According to the most recent IRS figures, about 23 million workers and families received about $57 billion in EITC for tax year 2022 with an average amount received of $2,541.

The IRS estimates about 20% of eligible taxpayers don’t claim the credit, however.

READ MORE: IRS starts accepting tax returns today: How long will it take to get your refund?

Who is eligible?

To claim the EITC, workers must meet certain requirements and file a tax return, even if their income level falls below the threshold that would require them to file. Income thresholds are $56,838 for individuals and $63,398 for married filing jointly with investment income of less than $11,000 for the tax year. Other requirements include a valid Social Security number, being a U.S. citizen not filing Form 2555 reporting foreign income.

Here are income thresholds and credit amounts for this year:

No children with adjusted gross income of up to $17,640 for single filers or $24,210 for joint filers - $600 maximum credit.
One child with AGI of up to $46,560 for single filers or $53,120 for joint filers - $3,995 credit
Two children with AGI of up to $52,918 for single filers or $59,478 for joint filers - $6,604 credit
Three or more children with AGI of up to $56,838 or $63,398 for joint files - $7,430 credit
The maximum EITC is up from $6,935 in 2022.

Refund delays

Claiming EITC or the Additional Child Tax Credit can delay your tax refund.

Federal law requires additional checks to prevent identity theft for filers claiming the credits. While most tax refunds are available within three weeks, EITC or ACTC filers won’t receive their refunds until at least Feb. 27 if taxpayers chose direct deposit and there are no other issues with the tax return.

01/28/2024

01/25/2024

Child Tax Credit 2024 Eligibility: Can you get the child tax credit if you have no income in 2023?

Changes in legislation expanded the spectrum of families that can access credit.

There are seven eligibility criteria to access the child tax credit.

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With tax season right around the corner, many parents are anxious to know how much their child tax credit (CTC) will be. On the other hand, others just want to find out if their income will allow them to access the benefit or even a refund.

For several American families, the CTC is an indispensable part of their economies, either because of the discount they will obtain on their taxes or because of the refunds they can get by applying the additional child tax credit (ACTC).

Families who are low-income or who, for some reason, had no income in the tax year 2023 may feel hard-pressed by not being able to access the CTC. However, a recent change in legislation opened the doors for much-needed relief.

Starting with the 2023 tax year, filed in 2024, families with no income can also apply to the CTC and get a refund of up to $1,600 for each qualifying child.

How much do you have to do to get the Child Tax Credit 2024?

The income limit to obtain the maximum CTC is $400,000 for married people filing a joint return and up to $200,000 for the rest of the filers.

The CTC for taxpayers' modified adjusted gross income above these figures will decrease by $50 for every $1,000 their income exceeds the established limit.

The maximum credit per qualifying child is $2,000, but lower-income or no-income families can apply to ACTC for up to $1,600 in rebates for each qualifying child.

To find out if you are eligible for the ACTC you must fill out Form 8812.

What are the eligibility criteria?

For a child to qualify for the CTC they must:

Be under 17 years of age at the end of the year.
Meet the relationship criteria established by the IRS.
Do not provide more than half of their own financial support per year.

Have lived with the applicant for more than half the year.

Have been a US citizen, a US national, or an alien US resident.

The applicant should not fill out a joint return with her husband or fill it out only to claim the refund of withheld income tax or estimated tax paid.

01/12/2024

IRS WILL ENFORCE 1099-K REPORTING OF CASH APP, VENMO, ZELLE, AND PAYPAL TRANSACTIONS
In 2024, the IRS is set to enforce the long-anticipated 1099-K reporting requirement for third-party payment apps.

In 2024, the IRS is set to enforce the long-anticipated 1099-K reporting requirement for third-party payment apps, such as PayPal, Venmo, Cash App, or Zelle. Initially slated for 2022, this rule mandates reporting earnings over $600 to the IRS; however, reporting will apply only to income exceeding $5,000 for the upcoming year. According to CNET, the IRS aims to streamline income reporting to ensure more accurate financial disclosures from freelancers and business owners.

This tax reporting shift has experienced delays in allowing payment apps to navigate complexities in distinguishing taxable and non-taxable transactions. This year’s phased rollout requires payment apps to report earnings exceeding $5,000, offering a transitional period to reach the eventual $600 threshold.

For freelancers, the evolving landscape introduces uncertainties regarding tax expectations for the upcoming season. While the reporting requirement was deferred for 2023, freelancers must continue reporting earnings. The impact of this change on 2024 tax returns is noteworthy, with the IRS potentially revisiting the threshold or further delaying the rule.

Popular payment apps like PayPal, Venmo, Zelle, and Cash App will be subject to this IRS rule, necessitating freelancers to consider maintaining separate accounts for professional transactions. Importantly, the IRS clarifies that personal transactions, like gifts or reimbursements from family and friends, remain non-taxable.

For individuals selling personal items via third-party payment apps, transactions below the purchase cost are exempt from taxes. However, those running side hustles with profits exceeding $5,000 are subject to taxation.

As the reporting change looms, payment app users are encouraged to confirm tax information, such as an employer identification number or Social Security number. While the 1099-K simplifies filing for self-employed individuals, maintaining accurate records remains crucial. Freelancers with multiple clients are advised to track earnings systematically, manually, or through accounting software, ensuring a smooth transition into this new tax reporting landscape

01/09/2024

Personal Finance
When does the IRS start processing tax returns with Child Tax Credit?

Where's My Refund?

For those eagerly awaiting their tax returns, understanding the processing timelines, especially when claiming the Child Tax Credit (CTC), is crucial. The IRS provides valuable information to address common queries and concerns.

Firstly, individuals may experience a delay or reduction in their refund if they have outstanding federal tax, state income tax, child support, spousal support, or other federal non-tax debts like student loans. Checking for possible offsets and contacting the relevant agency is advised.

When does the IRS start processing tax returns?

Refunds are typically issued in less than 21 days, with Where's My Refund? providing real-time updates. However, factors such as mailing the return or additional processing requirements may extend the timeline. Those counting on their refund for essential purposes should be mindful of potential delays.

When claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), the Protecting Americans from Tax Hikes (PATH) Act stipulates that the IRS cannot issue refunds before mid-February. Most related refunds are expected in bank accounts or on debit cards by February 27, with Where's My Refund? being the go-to resource for personalized refund dates.

For individuals with unique situations, such as nonresident aliens claiming a refund for federal taxes withheld on U.S. income, the IRS recommends filing Form 1040-NR and allowing up to 6 months for processing.

Where's My Refund? serves as a comprehensive tool to track the status of tax returns, providing insights from receipt to completion. It reflects stages like return received, refund approved, and refund sent, with updates occurring once per day.

Understanding the reasons for potential deviations from the expected refund method is crucial. Refunds may be mailed as paper checks if electronic deposit conditions are not met or if there are issues with the financial institution.

Taxpayers are advised not to cash or spend unexpected refunds and to follow specific procedures outlined in Tax Topic 161 for returning erroneous refunds.

01/09/2024

The IRS just announced when taxpayers can start filing returns this year
Last Updated: Jan. 8, 2024 at 7:40 p.m. ET
First Published: Jan. 8, 2024 at 3:28 p.m. ET
By Andrew Keshner
The IRS also said when it expects to roll out its free ‘direct file’ system in 12 states

Americans can start filing their income-tax returns with the Internal Revenue Service on Monday, Jan. 29, the federal tax collector announced Monday.

Monday, April 15, is the deadline to pay any taxes owed, and it’s also the deadline to either file a return or get an extension until Oct. 15. Taxpayers in Maine and Massachusetts have an April 17 deadline due to the observance of Patriot’s Day and Emancipation Day in those states.

By April 15, the IRS expects to have received 128.7 million income-tax returns.

This year will be another closely-watched tax-filing season.

Millions of Americans are seeking their largest possible tax refund — or their smallest possible tax bill — as they try to move past red-hot inflation.

The IRS issued 105.7 million refunds last year, paying an average of $3,167.

This tax season will include some new developments, including the IRS’s effort to launch its own “direct file” tax-filing platform, which would be a free alternative to paid tax-prep platforms such as Intuit’s INTU TurboTax and H&R Block HRB .

The pilot version of the IRS Direct File platform will be available in 12 states to start, and will serve an estimated several hundred thousand taxpayers, the IRS said. But it’s not expected to be widely available in those states until mid-March, the IRS said Monday.

The states are Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington state and Wyoming.

The IRS is preparing for tax-filing season as lawmakers wrangle over how to avoid a partial government shutdown beginning Jan. 19.

One bargaining chip in the negotiations is a multibillion-dollar chunk of IRS funding for more audits of rich taxpayers and corporations. The $20 billion in question was part of $80 billion destined for an IRS overhaul in the Inflation Reduction Act, which passed in 2022.

“As our transformation efforts take hold, taxpayers will continue to see marked improvement in IRS operations in the upcoming filing season,” IRS Commissioner Danny Werfel said in a statement Monday.

“IRS employees are working hard to make sure that new funding is used to help taxpayers by making the process of preparing and filing taxes easier,” he said.

One improvement the agency is making this year will give more information to people tracking their refund’s status, the IRS said. There will be more details about a refund’s progress and it will be explained in easy-to-understand language.

The fastest way people can get their refund is by filing their tax return electronically and arranging for direct deposit into a bank account.

Even though a deal to avert the partial shutdown emerged Sunday, observers emphasized there’s still a ways to go before the agreement is finalized and passed through Congress.

As of now, IRS funding runs through Feb. 2.

A Treasury Department spokeswoman previously told MarketWatch taxpayers will still be able to file their returns even if there is a lapse in funding.

What to know about the IRS Direct File tax-filing program

Because the IRS Direct File program is in a pilot phase, the program will only be open to taxpayers with relatively simple returns this year. It can handle W-2 wage income, Social Security income, unemployment compensation and interest income up to $1,500.

Direct File can process a handful of tax credits, including the earned income tax credit and the child tax credit. It can apply the standard deduction but not itemized deductions.

IRS officials initially considered an invitation-only approach to find Direct File users. They dropped the idea, an agency spokesperson said.

“We have adjusted our approach based on feedback from partner organizations and to provide additional time to rigorously test Direct File, enabling us to make an easy to use, secure, and free tax filing service available to eligible taxpayers as soon as possible,” the spokesperson said.

The IRS is expecting “at least several hundred thousand taxpayers across the country will decide to participate in the pilot,” the spokesperson noted.

The IRS Direct File program is up for its first test run, but there is already a separate IRS program that offer no charge to filers who meet certain requirements.

Known as the IRS Free File program, it’s an IRS partnership with certain tax software providers that provides free tax prep, but research shows few people use the program. The Free File program opens to eligible taxpayers on Jan. 12. Households need adjusted gross income of $79,000 or less in 2023 in order to qualify for the program.

01/05/2024

2024 Tax Refund Schedule: When will you get your payments during this year tax season?

This is all you need to know

The IRS Tax Refund Calendar for 2024 outlines the key dates for tax return processing, providing clarity to taxpayers. For electronic filers, refunds are typically received within 21 days of submission. For instance, e-filers who submit between January 23 and 28 can expect direct deposits by February 17 or checks mailed by February 24.

The IRS aims to process electronic tax returns within 21 days in 2024. This means that for those filing from January 23 to 28, potential refund dates include February 17 for direct deposit and February 24 for mailed checks. The schedule continues with each filing period corresponding to specific refund dates.

If you're wondering about the timeline for receiving your refund, consider the IRS Tax Refund Calendar for 2023, which states that the last date to file taxes is April 15, 2024. It's important to seek advice from a tax expert like a CPA or EA if you've experienced significant income changes or major life events this year.

The IRS has been processing tax returns more quickly this year, and the last week of January 2024 is typically when they begin to receive tax returns. However, the start of tax season could be delayed by a week or two if significant new tax legislation is approved at the end of the year.

When can you expect your tax refund?

Those who file their taxes early and are entitled to a refund may receive it as early as mid- to late February. However, individuals claiming the Earned Income Tax Credit or Child Tax Credit may have a one-month refund wait while the IRS verifies their eligibility.

The IRS refund schedules for 2024 are established by the Internal Revenue Service, with refunds typically issued within 21 days of electronic submission. During the busiest filing season, many Americans expecting a tax refund can receive it by direct deposit in as little as two weeks, although there are exceptions when it may take longer.

It's important to note that the IRS Tax Refund Schedule 2024 lists additional conditions that may affect the timing of tax refunds, including how quickly you submit and whether you are seeking certain credits.

12/25/2023

Merry Christmas

05/19/2023

When you look in the mirror 🪞and see Loose lips, anger, bad behavior, hateful, spiteful, arrogance, prideful, condescending, disrespect or such things like these and still think that you have an intimate relationship with Jesus Christ then think again because this isn’t our Heavenly Father nature..You need to check yourself, your prayer life and your Bible intake that you aren’t being deceived by the father of lies & destruction…You relationship with God should be life changing, fulfilling and uplifting even when it’s painful this is a daily routine.. Talking to our God is very important for growth in our spiritual walk with him and we shouldn’t and can’t afford to abandon that…Ask Jesus to be your 🪞mirror so when you take a look at your reflection all you will see is Jesus Christ love.. For God is Love…💕💕💕 I Pray you all have a blessed day and keep God first

01/31/2023

This is how you check your refund

01/31/2023

What to Expect for Refunds This Year

More In Refunds

Paper Return Delays

If you filed on paper, it may take 6 months or more to process your tax return. For service delay details, see Status of Operations.
The IRS issues more than 9 out of 10 refunds in less than 21 days. However, it’s possible your tax return may require additional review and take longer.

If Your Refund Isn’t What You Expected
If your refund amount isn’t what you expected, it may be due to changes we made to your tax return. These may include:

Corrections to any Recovery Rebate Credit or Child Tax Credit amounts
Payments on past-due tax or debts, offset from all or part of the refund amount
For more details, see Tax Season Refunds Frequently Asked Questions.

Where's My Refund?
You can find the most up to date information about your refund on Where’s My Refund? The tool is updated daily so you don’t need to check more often.

You can use the tool to check the status of your return within:

24 hours after e-filing a tax year 2022 return
3 or 4 days after e-filing a tax year 2021 or 2020 return
6 months or more after filing a paper return
Where’s My Refund? has a tracker that displays progress through 3 stages: (1) Return Received, (2) Refund Approved and (3) Refund Sent.

You will get personalized refund information based on the processing of your tax return. The tool will provide an actual refund date as soon as the IRS processes your tax return and approves your refund.

Call us about your refund status only if Where's My Refund? directs you to contact us.

Direct Deposit
Join the nine in 10 taxpayers who get their refunds faster by using e-file and direct deposit. It's always been the safest, fastest way to receive your refund, but is even more so in these uncertain times. It is also easy to use. Just select it as your refund method through your tax software and type in the account number and routing number. Or, tell your tax preparer you want direct deposit. You can even use direct deposit if you are one of the few people still filing by paper. Be sure to double check your entry to avoid errors.

Your routing and account numbers can be found on the bottom of your checks, through your online banking application or by contacting your financial institution directly. Do not enter the number on your bank card.

If you have a prepaid debit card, you may be able to have your refund applied to the card. Many reloadable prepaid cards have account and routing numbers that you could provide to the IRS. You would need to check with the financial institution to ensure your card can be used and to obtain the routing number and account number, which may be different from the card number.

Your refund should only be deposited directly into U.S. bank or U.S. bank affiliated accounts that are in your own name; your spouse’s name or both if it’s a joint account. No more than three electronic refunds can be deposited into a single financial account or pre-paid debit card. Taxpayers who exceed the limit will receive an IRS notice and a paper refund.

Whether you file electronically or on paper, direct deposit gives you access to your refund faster than a paper check. Refunds that are direct deposited are not delayed for disaster and other weather-related events affecting mail delivery.

Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding
If you requested a refund of tax withheld on a Form 1042-S by filing a Form 1040NR, we will need additional time to process the return. Please allow up to 6 months from the original due date of the 1040NR return or the date you actually filed the 1040NR, whichever is later to receive any refund due.

Additional Information
Publication 2043, IRS Refund Information Guidelines for the Tax Preparation CommunityPDF
Refund Related

When to Expect Your Refund if You Claimed the Earned Income Tax Credit or Additional Child Tax Credit
Tax Season Refund Frequently Asked Questions
Large Tax Refunds and Credits

When Will I Get My Refund?

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