Did you miss out on the special COVID-19 tax-deductible donations credit in 2021? Thanks to the CARES Act, Americans could deduct a whopping $300 for cash contributions they made to qualifying public charities in 2020.

The bad news is that that special credit won’t be available for 2022 and beyond unless Congress decides to extend it. The good news is that there are other tax-deductible donations you can make regardless of the year.

If you want your donation to have the maximum impact and help you along with your taxes, you’ll need to make sure that you donate to a qualified organization. Next, you’ll need to document your contributions and note them when you file your taxes. 

Do you need more information about which donations are tax deductible? Follow along below; we’ll show you everything you need to know.

Are Donations Tax Deductible?

If you’ve never made a donation before, you may have more questions about why and how these charitable contributions are tax deductible. So, before we go further and discuss the topic, we need to answer the question: Are donations tax deductible?

In a nutshell, yes, many donations are tax deductible if they are made to qualified organizations. There is also a charitable donations tax deduction limit that businesses and individuals need to be aware of. The reason why the IRS decided to make charitable contributions tax deductible is because it subsidizes giving. This provides benefits to those who need it and lowers the cost of making donations. Tax deductions, in theory, would increase giving, which would allow charities to help even more people.

Qualified Organizations: An Overview

Not all donations are tax deductible, though. According to IRS tax code section 170(c), only contributions to qualified organizations will count. The timing of your donation also makes a difference; to be tax deductible, you’ll need to make that donation within the tax year you’re filing for. 

For instance, if you made a donation in 2020, then you’d need to file that donation on your 2020 tax return when you file it in 2021. If you don’t or you forget to note the donation, then you won’t be able to get the deduction on future returns.

So, what types of organizations are covered under the IRS codes? Let’s go over a few of the most commonly asked about organizations below:

Are Political Donations Tax Deductible?

One common question that taxpayers often ask is, whether political donations are deductible. Deductible political contributions are largely a myth. The truth is that political donations aren’t tax deductible at all.

Citizens and businesses are welcome to make political donations, but they won’t qualify as tax deductible no matter who you donate to. Similarly, any volunteer time or supplies you provide to a political organization cannot be deducted from your taxes, either.

Are Church Donations Tax Deductible?

The short answer is yes. Per IRS regulations, all churches, synagogues, and religious organizations are considered “qualified organizations.” Of course, these organizations must operate solely for religious and educational purposes to be considered a church, synagogue, or religious organization.

To deduct these donations, you’ll need to itemize the contribution on your IRS Schedule A form. This is important to know, though, because many taxpayers opt not to go through and itemize all their deductions. Instead, the common taxpayer will simply take the standard deduction set by the IRS. If you take the standard deduction, you won’t be able to deduct the donation.

Are GoFundMe Donations Tax Deductible?

In 2022, donating to those who need it is as simple as making a few clicks on the Internet. GoFundMe is one of the most popular internet donation sites where people can share their stories and ask for help. While similar platforms have helped countless citizens get back up on their feet, GoFundMe is not one of the qualified organizations listed by the IRS. Donations made to GoFundMe campaigns are considered “personal gifts,” rather than charitable donations. In other words, they are not tax deductible.

Limitations on Deductions

You won’t be able to deduct 100% of your charitable contributions. According to the IRS, charitable donations can be deducted up to 50% of your AGI without regard to net operating loss. AGI stands for adjusted gross income.

The 50% threshold applies to:

• Public charities
• Private operating foundations
• Certain private foundations that distribute the contributions to charities and private foundations within 2 ½ months of receiving it
• Certain private foundations that use the money and put it into a common fund

Charitable contributions to certain organizations, like fraternities, veterans groups, and cemetery organizations, are limited to deductions up to 30% of your AGI.

Tips to Ensure You Can Deduct Your Contribution on Your Taxes

To ensure that you can deduct your contributions, always make sure you’re donating to a qualifying organization first. Another important tip is to always keep track of your donations. After all, if you ever get audited, you’ll want that documentation to back up your claims. Finally, don’t forget to include volunteering or buying supplies for these qualifying organizations, too.

How to Make Tax-Deductible Donations

There’s a big reason why so many corporations make tax-deductible donations. These donations not only provide much-needed help to citizens and organizations in need, but they also provide some benefits to the organization making the donation.

If you’re hoping to make such a donation this year, then it’s important to understand what organizations qualify for the tax deduction. Next, you’ll need to make sure that you document the donation and make a note of it when you file your taxes.

Do you have more tax questions? Would you prefer to discuss your potential tax-deductible donations with a tax expert? If so, then our team of tax professionals can help. Fill out our online submission form or call us directly at (800) 264-1869 to discuss your situation in more detail with our experts.

Every year, about 17 million new cars are sold by dealerships and 6-7 million homes are sold by homeowners. If you’re hoping to join those statistics by buying a home or car soon, you’ll need to verify your income first, especially if you want a good loan or mortgage rate.

One of the best ways to do this is by filling out an IRS Form 4506-T to request an official tax return transcript, which will show potential lenders that you can afford the payments.

If you’re wondering, What is a 4506-T form, anyway? and want to know how to fill it out, keep reading.

What Is a 4506-T Form?

The IRS uses Form 4506-T to request an official IRS tax transcript. You can get a transcript online or have it mailed to you. The information on the transcript has been changed so that some personal information is not shown—this is to protect people from criminals who might try to steal their information.

Here is what will be visible:

• The last four digits of your SSN or EIN.
•  The last four digits of the account phone number.
• The first four characters of the first name and the first four characters of the last name.
• The first four characters of any name on the business name line.
• The first six characters of the street address.
•  All money amounts (wages, income, interest, balance due, penalties).

Only individual taxpayers can request their own transcripts.

What is a 4506 T Form Used For?

The 4506-T form is used to prove your income. You might need it when applying for an auto loan or a mortgage for a home. Taxpayers might also use this form while seeking financial aid for college or if they’re struggling to resolve tax problems with the IRS.

How to Fill Out Tax Form 4506-T

Form 4506-T is the form you need to request a transcript of your tax return from the IRS.

To fill it out: 

• In Section 1, write your name, Social Security number, and address.
• In Section 6, write “1040” in the box and check the box at the end of line 6a.
• On Line 9, write out the last calendar day of the tax year you’re requesting.
• Check the box above the signature line and place your phone number in the proper box.
• Sign and date the form.

Tax Return Transcript

Once you have completed your form, you can submit it online on the IRS platform or through the mail. If you choose to mail your form, remember that it will take at least an additional week or two to process your request and receive your tax return transcript.

Do you need help filling out your form? Are you requesting transcripts for more than one year? Have you fallen behind with your tax obligations? If you are looking into your tax return transcripts to identify how much money you owe the IRS, it might be a good idea to start researching tax relief solutions that can help you manage your debt.

How Long Does it Take to Receive a Tax Transcript?

Remember that all of these time estimates may take longer in 2022. In the past few years, the IRS has struggled because they’ve had more work to do—they’ve had their normal tax responsibilities on top of sending out stimulus checks and advanced tax credits, too.

If you think the IRS is taking too long or need more help than you’re getting, try our tax help resources.

Do You Need Help With Your IRS Form 4506-T?

The IRS Form 4506-T will help you get a copy of your official tax transcripts. Once you have this document, you can use it to secure a loan, establish a mortgage, or prove your income to other potential lenders. Now you should know where to find this form, how to fill it out, and how long it will take to get your IRS tax return transcript from the IRS.

Do you need additional help with your tax forms? Are you unsure if you’ve even filed your taxes for the years you need transcripts for? If you’ve neglected your taxes for some time, then you might want the help of a tax expert. Contact us to get the help you need.

Most of us don’t want to pay taxes—the good news is that most of us don’t have to on Tax Day. Recent statistics show that only about 39% of Americans owed federal income taxes in 2020 during the height of the pandemic. That means the majority (61%) owed nothing.

How come? The answer is the W-4 and tax withholding. Most of us don’t pay taxes on Tax Day because we’ve already paid them throughout the year via tax withholding. 

So, how much money is withheld from your paycheck? The answer depends on your specific tax situation, but we hope to clear up some confusion by outlining the basics. Learn more about tax withholding and how it applies to you below.

How Does Tax Withholding Work?

Before you get into the details, it’s crucial to understand how withholding works.

As an employee, you are paid by your employer. Your employer doesn’t just hand over all your earnings, though. A percentage of your income is withheld and given to the IRS. Consider this an advanced payment on your income taxes—if your employer did not withhold this amount, then you’d be expected to pay it all in one big lump sum come tax time. For most Americans, it’s far easier to bear the brunt of their tax burdens by paying them with each paycheck rather than all at once.

If you’re self-employed, or your employer doesn’t withhold your taxes, then you’ll be expected to pay them on your own.

Who decides how much is withheld? That’s where the W-4 comes in. 

How Does a W-4 Work?

Prior to 2020, you’d fill out a personal allowances worksheet on your W-4 to determine the amount your employer withheld from your paycheck. Now, however, you’ll find a five-step process on your W-4 form: 

1. Fill out your personal information
2. Account for your and your spouse’s job, if filing jointly
3. Claim your dependents
4. Take the standard deduction or list your deductions manually
5. Sign and date the form

The amount ultimately withheld from your paycheck is a factor of your combined income (if filing jointly), how many dependents you have, and your deductions. 

If you underpay, you might end up owing the IRS when you’d typically get that money refunded. If you end up owing way more than you can pay off, then you’ll be researching tax relief solutions to help get you out of debt!

To avoid that situation, consider using a W-4 withholding calculator to determine how much you’ll owe if you opt not to have your taxes withheld by your employer. This type of calculator is available directly on the IRS website. You’ll want to input all your information to receive the best possible estimate.

How Many Allowances Should I Claim?

Since 2020, filing a W-4 has become much easier. You won’t have to decide how many allowances to claim because there aren’t allowances on the form anymore. Instead, if you want to impact your withholding, then you’ll need to fill out the multiple jobs or spouse works sections. You’ll also want to fill out Step 3, which goes over your dependents. If you have extra withholding you want or if you have other income, you’ll fill out Step 4.

Do You Have More Tax Questions?

Are you still unclear about your tax situation? If so, then it’s advised that you speak with a tax expert about your situation. Getting professional help with your taxes could be the difference between getting penalized by the IRS and getting a chunk of money back through a refund!

Leave your tax worries behind by getting expert guidance from a team with over 30 years of experience working with the IRS. Contact us now to learn more about how we can help you!

Are you a notoriously late tax filer? Have you fallen behind on your taxes for more than a few years? If so, then you’re in good company. Experts suggest that about 7 million American taxpayers fail to file their income tax returns every year.

If it’s been a while since you filed, then you might be wondering what IRS forms you need to file. So, what is a 1040-EZ form? Do you need to file one?

On top of knowing what forms to fill out, you also need to understand how tax laws have changed in recent years. Learn everything you need to know about the 1040-EZ form, whether you need to file one, and how to go about doing your taxes this year below.

What Is a 1040-EZ Form?

So, what exactly is a 1040-EZ tax form? The best form 1040-EZ definition describes the document as a simple and short version of a 1040. The form is streamlined, which makes both tax preparation and filling out a 1040-EZ online form quick and seamless.

A 1040-EZ form is used to complete your annual taxes. On it, you’ll provide all your personal identification information and describe your tax situation.

Who Can File a 1040-EZ Form?

This tax form is the easiest to fill out, but you won’t want to use it if you have a complicated tax situation. This tax form is reserved for individuals who have very basic tax situations and only need to provide minimal information to the IRS. These taxpayers also fall into the following categories:

• They’re single or married filing jointly
• They’re under 65 years old
• They don’t have dependents
• No visual impairments
• Not going through bankruptcy
• Their income comes from wages, salaries, unemployment, or tips
• Their taxable income is less than $1,500
• They don’t owe money as a result of hiring a household employee

In general, first-time taxpayers fill out federal tax forms 1040-EZ since they often don’t claim deductions or many credits at all. That makes a 1040-EZ a good option for younger individuals, students, or people who only work part-time jobs.

This type of tax form isn’t good for you if you have important credits and deductions that you need to file. The 1040-EZ form is dubbed easy for a reason: it doesn’t contain the appropriate sections for you to file those deductions and credits, which are important to reduce your overall tax burden. If you have real estate assets, foreign income, tax shelters, or receive retirement contributions, then it’s not a good idea to use this simplified form.

How Do I File a 1040-EZ?

Do you believe you fall into the categories outlined above? If so, then we know what you’re thinking—how do I file a 1040-EZ? If you’re hoping to use this form, then follow the following 1040-EZ instructions:

• Confirm that you meet the eligibility requirements listed above
• Wait to receive your W-2 from your employer
• Get a blank 1040EZ form for the year you’re filing for
• Input your personal information
• Send the form to the IRS or file the form electronically

Keep in mind that the IRS no longer uses 1040-EZ forms now that it’s 2022. If you’re filling out a 1040-EZ, then you’re likely doing so for a year that you failed to file. If you have more questions about how to file the appropriate forms, then consider consulting with tax attorneys who can help.

Form 1040 or Form 1040-SR?

If 1040-EZ forms are no longer applicable in 2022, what forms do you fill out instead? Rather than using a simplified 1040-EZ, you’ll need to fill out either a regular 1040 or a 1040-SR. Let’s break down the differences below.

A 1040-SR form is appropriate for taxpayers who receive Social Security benefits or are older than 65. This form has a color scheme with greater contrast, which could help seniors file their paperwork with ease. The form also has a larger font. This form allows space to document distributions from retirement plans, income you receive from annuities, your Social Security benefits, other deferred-payment arrangements and more. While you don’t have to be retired to use this form, it’s a great option for taxpayers who have retired.

A standard 1040 form is what you’ll want to use if you’re reporting a significant amount of income, plan to use deductions, or want to claim tax credits. This standard form gets used by the IRS to determine how much of your income is subject to tax. It also alerts the IRS to any refunds they may owe to you. Here are the schedules you’ll want to fill out:

• Schedule 1: Additional income and deductions
• Schedule 2: Owe additional taxes (self-employment, household employment, etc.).
• Schedule 3: Claiming certain credits

Answering Your Tax Questions

While you may understand which forms to fill out now, the process is still pretty complicated. You may have more questions. If that’s the case, then there are tax help resources you can use to continue learning more. You could also consult with a tax professional to ensure you fill out all your returns correctly.

Getting Tax Help For a Brighter Future

Have you found yourself asking questions like, What is a 1040-EZ? What tax forms do I need to fill out this year? If so, then we hope this article has helped inform you about the proper tax forms you need to fill out going forward.

Of course, tax laws do change from time to time, so you may need to check back on our website each year to remain compliant. If you have questions or concerns about past, present, or future taxes, then it’s far better to consult with a tax expert about your situation.

Leave your tax worries behind with expert guidance from a team that has 30 years of experience working with the IRS. Contact us today to get started on your brighter future.

Over 11 million Americans currently owe a collective $125 billion in taxes to the IRS. That’s not good news, considering that the IRS has the legal authority to levy consequences against those individuals.

One of those consequences is an IRS wage garnishment, which means the IRS can seize a portion of your paycheck before it even reaches your hands. If you’re subject to wage garnishment, then you’ll receive IRS form 668-W before the garnishment starts—but you still have time to seek out tax debt help. Below, learn more about this important IRS form and what steps you should take after getting one.

What Is IRS Form 668-W?

Receiving an IRS form 668-W is intimidating, but it’s one of the most common tax problems we see. It’s a notice of an IRS wage garnishment. It’s often sent to your employer to alert them about the garnishment plans.

Once the garnishment goes into play, an employee’s wages, commissions, bonuses, and salary are up for garnishments. Retirement income and other benefits aren’t safe, either; these can still get garnished, too. It’s important to also understand that these garnishments are continuous—your employer is expected to comply until the IRS releases the levy.

How Employers Should Deal With a Wage Levy

If you’re an employer and you receive a 668-W, then there are some specific steps you must take. You have at least a full pay period between receiving a 668-W and complying with the garnishment order, though. The IRS advises employers to encourage the employee that owes the tax liability to contact the IRS. In some cases, that employee can deal with the garnishment and get it removed. If those attempts are unsuccessful, though, then you’ll need to start complying with the order.

To do so, you need to give your employee parts 2, 3, 4, and 5 of the form and have them sign a statement. Then, you’ll need to calculate what that employee’s net pay minus exemptions will be. You’ll need to send over all this information to the IRS.

From there, you’ll need to start complying with the levy and sending over the required amount.

How Employees Should Handle Form 668-W

If you’re currently an employee who was informed about a 668-W (or you received one), then a wage garnishment is imminent. If you haven’t done so already, attempt to contact either the IRS or a tax debt expert who can help with IRS debt. If you can work out an arrangement with the IRS, then the agency will consider releasing the levy and garnishment.

If you don’t act, then your employer will ask you to fill out a few forms. You need to complete those forms within three days. If you don’t, then calculations will get made for you, which could end up causing you to get garnished more than you should.

Once you’ve filled out the papers and returned them to your employer, you’ll start to notice a smaller paycheck each week or month. You won’t have to take further action, as that money will go straight to the IRS.

Are you worried that the IRS levy will cause significant financial hardship for your family? If so, then it’s possible to contact the IRS and file for an extreme hardship.

Self-Employment and Tax Levy Garnishment

Are you currently self-employed? If so, then your tax levy garnishment situation will be much more complex. A 668-W form isn’t ideal. Why? As a self-employed individual, you are not considered an “employee.” In other words, your independent contractor status means you don’t actually have an employer who can garnish your wages.

It’s more appropriate to get a form 668-A form, which is a levy of third parties. Often, this type of levy goes to your bank. That way, your bank can levy your income stream. This type of form is often called a “1099 levy.” If you received a 668-W form but you’re self-employed, then it may be a good idea to consult with a tax professional or IRS agent who can set you up with a 668-A instead.

Can the IRS Garnish Wages Without Notice?

Do you currently owe a serious tax debt? If so, then it’s normal to worry that your wages or bank account could be garnished unexpectedly. So, can the IRS garnish wages without notice? The good news is that the short answer is “no.”

IRS wage garnishment cannot happen without ample notice. First, you should receive a notice by direct mail. You will have the right and opportunity to speak with the IRS directly in an attempt to arrange a payment schedule. You’ll also need to fill out forms when your employer gets the levy notice.

Tax Debt Help

Wage garnishment is not an ideal situation for anyone. You won’t have control of your full paycheck, and you’re putting undue stress on your employer, too. If you’re facing this type of situation, then it’s in your best interests to research tax relief solutions like installment plans. If you need help learning more about your options, then speak with a tax professional who can help.

Understanding Your IRS Form 668-W

Have you recently received IRS form 668-W? If so, then your wages, salary, or income are about to get garnished. The good news is that you are allotted a period of time between getting notified and the time when the garnishment will begin.

During this time, it’s advised that you seek out tax debt help from an expert. In many cases, you can work out a payment plan with the IRS.

Leave your tax worries behind with expert guidance from a team that has 30 years of experience working with the IRS. Contact us today to get started!

Almost half (47%) of Americans are bothered by the complexity of our nation’s tax system. While it remains challenging, things have improved since IRS tax returns went digital. Electronic filing helps taxpayers feel more confident about understanding confusing forms, and it can help reduce errors, too.

But despite all those changes, tax return mistakes can still happen. When they do, you’ll need to file an amended return.

Are you currently attempting to learn more about your amended tax return status? Have you been wondering, Where’s my amended return? Don’t panic! We’re here to put your mind at ease. You can learn everything you need to know about an amended tax return below.

What To Do If You Find an Error On Your Taxes

Even if you file your taxes online, you might still make a mistake. If you realize you made a mistake, don’t panic or call the IRS right away. First, figure out what went wrong.

Maybe you made a mistake with the math. If so, fixing the error might not be necessary at all—most math mistakes are automatically corrected when your return is processed.

Perhaps you made an error with your filing status, like forgetting to include certain income streams or deductions. If that’s the case, these errors call for filing an amended return.

How To File an Amended Tax Return

One common tax problem is not knowing how to fill out the forms correctly. If you made a mistake on your tax return, you can fix it by filing a 1040-X form.

This form is broken down into three sections:

In Section A, you will input the amount from your original return. In Section B, you will put the total difference between the inaccurate and amended returns. Lastly, in Section C, you will add the accurate figures.

If your error resulted in you owing more money to the IRS, it is advised that you pay as soon as possible.

Do you need additional help with your tax forms or have questions about filing your taxes? If so, contact us for help.

Amended Tax Return Refund Timeline

Once you finish filing your amended return, it can take up to three weeks for the return to even reach the IRS, depending on whether you file via mail or electronically. Once they have it, you may be looking at up to 16 weeks to process the return.

While you wait, why not learn how to check 1040-X status?

How Do I Check My IRS Amended Refund Status?

To find my amended return status, you’ll need your Social Security number (or tax ID), date of birth, and ZIP code. Once you have that information, go to the IRS’s “Where’s My Amended Return” page.

There, you’ll find a status like:

• Return received
• Return adjusted
• Return completed

Once the IRS receives your amended return, that’s when your 16 weeks starts. Once an adjustment has been made, your return is in progress. Once the return is completed, that means your return is on its way.

The IRS updates this system at least once a day, usually at night. So, feel free to check your status on a daily basis to see how far along in the process your return is so far.

How To File an Amended Return Online

Filing an amended return online is a relatively simple process. The first step is to log into your account on the IRS website. Once you are logged in, you will need to locate the section for amended returns.

When you have found the appropriate section, you will need to enter the necessary information, including your Social Security number and the reason for filing an amended return. You will then be able to submit your amended return electronically.

In most cases, the IRS will process your amended return within 16 weeks. However, if you have any questions or concerns, you can always contact the IRS directly for assistance.

I Have Not Received my Amended Tax Refund: Next Steps

If you are wondering where your amended refund is, check the 1040-X status to see if it is on the way. It is normal to feel anxious about getting the money you deserve, but keep in mind that the IRS is very busy during tax time—it may take at least 16 weeks before you get your refund.

Does it really take 16 weeks for an amended return to process? Yes, it often does. It can happen faster, but you should expect to wait at least that long.

Will My Amended 1040-X Status Trigger an IRS Audit?

The answer is complicated. The IRS won’t initiate an audit based on the fact that you amended it, but it can make an audit more likely. If you end up getting audited, be prepared to provide proof of your amended estimates.

If you’re concerned that an audit could cause problems for you or you have more questions about filling out your taxes, then consider looking around at our tax help resources.

Do You Need More Tax Help?

If you’ve been waiting patiently to learn more about your IRS 1040-X status, then you’re not alone. It’s important to understand that the IRS will likely look at your returns much more closely, and your chances of getting audited increase, too. For all these reasons, your return will likely take longer to process.

If you have more questions about your taxes, then we invite you to leave your tax worries behind with expert guidance from a team that has over 30 years of experience working with the IRS. Contact us today to learn more about how our team of tax experts can help you get through even the most complex tax situations.