For tax year 2016, student must receive Tuition Statement, form 1098-T, from an eligible institution to claim the tuition and fees deduction, American opportunity credit, or the lifetime learning credit,
There are certain reasons why institutions will not send you form 1098-T. For example having tuition waived or paid in full with scholarships, being a non-resident student, or having a formal separate financial and billing arrangement with an employer or government agency.
Keep records to prove enrollment, related expenses and tuition payments. This can be used to send to the IRS directly to claim the credit.
For more information and a test of questions to determine eligibility Click Here!
The IRS and state governments are combating identity theft and tax fraud this tax year. Beginning this filing season all tax payers are required to have identity verification. Please include with your tax documents a copy of your state driver’s license or other state ID. If you’re married, both individuals must meet the requirement.
This holiday season, if you’re in the spirit of giving, charitable contributions can be the gift that gives back!
Charitable contributions made to qualified organizations can help lower your tax bill. Record keeping of donations and contributions must be maintained no matter the amount. To properly back up your contributions please keep bank records, receipts, or payroll deductions reflecting the amount.
If you are receiving a benefit for your contribution, you can only deduct the amount that exceeds the fair market value (ex. gala tickets). Non-cash donations such as household items and clothing, must be in good used condition and valued at fair market price.
For more information, read these eight tips the IRS provides here!
The ITIN is an Individual Taxpayer Identification Number issued to an individual by the IRS for tax processing. This is used in cases where an individual does not have, and cannot obtain a Social Security Number. A Nonresident alien who is required to file a U.S tax return will be required to obtain a ITIN.
“As announced in August 2016, all ITINs not used on a federal income tax return at least once in the last three consecutive tax years will expire at the end of the year, based on the 2015 PATH Act. Additionally, ITINs issued before 2013 will need to be renewed, starting with those with middle digits of 78 and 79.”
In order to renew an ITIN, a W-7 form (Application for IRS Individual Taxpayer Identification Number) must be filled by following the instructions and including all information and documentation required. This could be mailed with original identification documents or make an appointment with a IRS certified Acceptance Agent.
As a courtesy, BYB automatically places current clients on an extension after missing the Tax deadline on April 15th (April 18th deadline in 2016). The extension allows for you to file after the deadline up until October 15th (October 17th deadline in 2016).
An extension allows you six months to accurately file your returns, but if you owe taxes the IRS does not give you an extension to pay what you owe. The IRS requires you to pay what you owe by the original deadline to avoid penalties and interest charges.
If you still haven’t filed your 2015 Tax returns, you need to take action NOW!
Below you will find more information regarding late filings.
As a courtesy, BYB has placed all current clients on an extension. If you are on an extension, the IRS gives you up until October 15th to file tax returns. Please drop off your tax information as soon as possible any day Mon – Fri before 5:00 PM. We would like to get these returns completed as soon as possible to avoid any penalties.
IF YOUR TAX RETURNS HAVE ALREADY BEEN FILED PLEASE DISREGARD