DCS-Datatax

Taxes can be scarier than any Halloween monster, but with us here to help you face them fearlessly. 🎃 Reach out to us today for a consultation—no tricks, just solid tax advice!

Feeling trapped in a tax mess? Let DCS-DATATAX handle it! We simplify everything so you can stay focused and stress-free. 💼✍️

2025 Healthcare Open Enrollment - Did You Know?

The 2025 open enrollment period for Marketplace health insurance starts on November 1, 2024, and ends December 15, 2024. Plans will start January 1, 2025. During this period, you will be able to enroll in, renew, or change health plans for the coming year.

Once the Open Enrollment period is over, you will only be able to enroll if there's a qualifying life event for the Special Enrollment Period.

Enrollment can be done at https://healthcare.gov, and a simple checklist of documents you'll need can be found here: https://marketplace.cms.gov/outreach-and-education/marketplace-application-checklist.pdf.

Need help with your taxes? Let us handle the paperwork so you can stay stress-free. Get in touch today for expert advice and easy filing!💼 📞

Hurricane Relief Charity Scams

Natural disasters like Hurricanes Helene and Milton bring out the best in American generosity, as millions of people seek to help those affected by the storms. Unfortunately, these tragedies also attract scammers looking to steal the money and identities of people who wish to donate to relief efforts.

If you get a phone call, text message or email from someone claiming to represent a hurricane relief charity, verify the legitimacy of the organization before providing any personal information. Request the organization's official name, mailing address and website address, and keep in mind that scammers use fake organization names that sound similar to real charities. You can use the IRS Tax Exempt Organization Search tool (TEOS, link below) to verify that you are dealing with an authentic charity, authorized to receive tax-deductible donations. If you cannot find the organization in the database or the person who contacted you refuses to answer your questions, do not donate or share sensitive information like your Social Security number (SSN) or credit card number. Instead, hang up immediately or delete the message.

TEOS tool: https://www.irs.gov/charities-non-profits/search-for-tax-exempt-organizations

Tax Tip!💼

Everything adds up—even that coffee you bought for your home office! ☕ Don’t miss out on those small deductions that can make a big difference.

Keep your expenses organized, and let’s maximize your savings! 💸

Cryptocurrency Taxes: Are You Prepared?
Let us help you navigate the complex world of crypto taxation and keep your finances in check. Make sure you understand how crypto taxes work to avoid penalties! 📈💰

Clean Energy Tax Credit Scams – Did You Know?

The Inflation Reduction Act 2022 made it possible for people to sell certain clean energy tax credits. In these credit transfers, both the seller and purchaser must meet strict eligibility requirements and file required paperwork with the IRS. Unfortunately, dishonest tax return preparers are actively encouraging people to ignore the rules and improperly claim purchased clean energy credits. These scammers lure people in with false claims that the credits may be used to reduce tax on a wide variety of income types.

In reality, purchased credits may generally only be used to offset tax on passive activity income, which most people do not have. Regardless of what a scammer tells them, anyone who attempts to use purchased tax credits inappropriately, or claims credits they did not actually purchase, may face additional tax assessments and IRS penalties. Meanwhile, the scammer disappears with the fees they collected to file an inaccurate return on the person's behalf.

A tax professional can help you determine whether purchasing clean energy credits would actually reduce your tax, and if so, help you complete and file all the required forms.

Have you got an extension? Time’s almost up! Submit your tax return by October 15 to avoid penalties. Need help? DCS-DATATAX is ready to assist you!

IRS Online Account – Did You Know?

Setting up a free IRS online account (link below) makes it possible to handle many tax-related tasks conveniently and securely. With an online account, you can readily check your tax balance, whether your payments have been processed, and the status of your tax return or refund. You can also submit electronic tax payments for fast, safe processing.

In addition, you can use your online account to request transcripts of past returns, or official letters verifying that you were not required to file. These records may come in handy for a variety of purposes, such as securing college financial aid, completing rental applications or claiming the Clean Vehicle Credit when purchasing a car or truck. The IRS may charge a service fee for transcript requests made by phone, mail or email, but with an online account, you can obtain these documents for free.

Link to access or set up your online IRS account:
https://www.irs.gov/payments/online-account-for-individuals.

If you've faced medical bills this year, let us help you explore potential deductions and take care of your finances. Your financial health matters too. 💼💖

October 15 is the 6-month Extension Deadline

With the exception of those eligible for tax deadline relief due to a federally declared disaster, everyone who requested a 6-month extension to file a 2023 tax return must file by October 15.

If you owe tax, remember that the automatic 6-month extension applies only to filing your return, not to paying tax. Generally, after the standard April filing deadline, unpaid tax balances begin accumulating interest charges that increase daily. Filing and paying as soon as possible will keep those charges to a minimum.

People who cannot pay their full tax balance now should still file as soon as possible. By proactively setting up a payment plan with the IRS, they can minimize late payment penalties.

Disaster Relief Eligibility: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations

Contact us today to make sure you’re not overpaying on your taxes. Keep more of your hard-earned money! 💼📈

We help you stay organized and prepared, ensuring a smooth tax season. Contact us today for expert guidance and peace of mind!

Disaster Preparedness – Did You Know?

September is National Preparedness Month, the perfect time for all Americans to check their readiness for storms, floods, fires and other disasters. To help with that checkup, the IRS recently reminded taxpayers of important steps to include in their disaster preparation plans.

- Store key documents in a secure, waterproof and fireproof container. These documents include birth certificates and/or Certificates of Naturalization, Social Security cards, tax returns, home deeds and vehicle titles. If you do not have a suitable storage option in your home, you may wish to rent a safe deposit box. In either case, make copies of these documents and store the copies in a separate location from the originals, such as at a relative's home. You may also wish to scan documents if you have access to a secure digital storage option.

- To facilitate making insurance claims and/or claiming disaster loss tax deductions, individuals and businesses should maintain accurate inventories of their valuables. One simple way to document your possessions is to regularly take photos or videos around your home. Store the photos or videos securely, and include written notes like the year, make and model of key items.

Recovering from a disaster is always challenging. However, the right preparation can make the process a little simpler, and less stressful.

We offer expert guidance to help you make informed decisions, ensuring your business is set up for long-term success and tax efficiency.

Navigating taxes can be complex, but you don’t have to do it alone. DCS-DATATAX offers expert advice to make tax season stress-free. Let us guide you through the process with clarity and confidence. Contact us today!

Many Americans May Qualify for Higher Education Tax Credits – Did You Know? (2/2)

If you pay higher education expenses like college or trade school tuition for yourself, your spouse or your dependent, then you may qualify for a tax credit in 2024.

The Lifetime Learning Credit (LLC) is available for an eligible student in your household at any stage of postsecondary education, including taking one or more courses to improve job skills. If you meet the eligibility requirements, which include income limits, you may claim a credit of up to $2,000 for tuition and school fees. Unlike the American Opportunity Tax Credit (AOTC), the LLC is nonrefundable, so if your credit amount exceeds the tax you owe, you cannot receive the excess credit as a refund.

To claim either the LLC or AOTC, you must obtain Form 1098-T (Tuition Statement) from a qualifying educational institution. A tax professional can help you determine whether you qualify for higher education tax benefits, and if so, help you claim them on your tax return next spring.

Quarterly Estimated Tax Payments - Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the June 1st - August 31st, 2024 quarter of year is September 16th, 2024.

For payments made using IRS Direct Pay, you can make payments until 11:45PM EST, and for payments using a credit or debit card, payments can be made up to midnight on the due date.

Maximize your savings by claiming all eligible tax deductions. At DCS-DATATAX, we help you identify deductions that can reduce your tax burden and increase your financial health. Reach out today to ensure you’re not missing out!

Many Americans May Qualify for Higher Education Tax Credits – Did You Know? (1/2)

If you pay higher education expenses like college or trade school tuition for yourself, your spouse or your dependent, then you may qualify for a tax credit in 2024.

The American Opportunity Tax Credit (AOTC) is available for students who are pursuing a degree or similar credential, and have not completed four years of postsecondary education. If you meet the eligibility requirements, which include income limits, you may claim a credit of up to $2,500 per eligible student in your household for tuition and school fees. The credit is partially refundable, so if your credit amount exceeds the tax you owe, you could receive up to 40% of the excess credit as an IRS refund.

In order to claim the credit, you must obtain Form 1098-T (Tuition Statement) from an eligible education institution. A tax professional can help you determine whether you qualify for the AOTC or other benefits for higher education costs, and if so, help you claim them next spring.

Late Summer Tax Checkup – Did You Know?

Every year, millions of Americans face the disappointment of an unexpectedly large tax bill in the spring. Often, those bills occur because people did not adequately plan for the tax impacts of their activities the previous summer. A late summer or early fall tax checkup can help you stay up to date with your payments, protecting you from disheartening April surprises.

Here are some key questions to consider when reviewing your tax situation:
- Did you take on a seasonal or part-time job for the summer?
- Did you earn summer income as a gig worker, freelancer or independent contractor?
- Did you receive other income not subject to tax withholding, such as interest or dividends?
- Did you sell valuable assets like antiques, cryptocurrency, artwork, jewelry, collectibles, stocks or musical instruments at a gain?
- Did your tax filing status change (for example, because you got married)?

Any of these circumstances could result in your regular paycheck withholding being insufficient to cover your tax obligations. You can use the IRS Withholding Estimator tool (link below) to check whether your payments are staying on track. If not, you may need to submit a new Form W-4 to your employer to request extra withholding, or make quarterly estimated tax payments. A tax professional can help you analyze your tax circumstances now, so you can make the right moves to bring about a favorable outcome later.

IRS Withholding Estimator: https://www.irs.gov/individuals/tax-withholding-estimator