Better Refund
12.21.2015

A special announcement from the IRS!

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                         "Taxes. Security. Together. 

We all have a role to play in protecting your data "

We need your help.

The IRS, the states and the tax industry came together in 2015 to identify even more safeguards to protect your federal and state tax accounts from identity thieves.

Many of these steps are invisible to you but will help us verify the identity of the taxpayer and the validity of the tax return. There are new password standards for tax software. We’re doing a better job sharing information about identity theft schemes. (See Fact Sheet 2015-23 for details on our efforts.)

In recent years, we’ve also helped convict nearly 2,000 identity thieves thanks to our Criminal Investigation division and we have 1,700 open investigations.

All this means the IRS, states and the tax industry have formed an even stronger partnership in face of a constantly evolving enemy – the identity thief.

We are asking you to join with us. We have launched an awareness campaign in an effort to better inform you about the need to protect your personal, tax and financial data online and at home. People continue to fall prey to clever cybercriminals who trick them into giving up Social Security numbers, account numbers or password information. In turn, criminals use this information a variety of ways, including filing fraudulent tax returns.

Learn more at: IRS News Release 2015-129, Commissioner John A. Koskinen's remarks, and Security Awareness Tax Tips.

How taxpayers can help
We’ve listed a few common sense suggestions that can make a big difference. See Publication 4524, Security Awareness for Taxpayers, and Security Awareness Tax Tips for details.

A few highlights:

Always use security software with firewall and anti-virus protections. Make sure the security software is always turned on and can automatically update. Encrypt sensitive files such as tax records you store on your computer. Use strong passwords.
Learn to recognize and avoid phishing emails, threatening calls and texts from thieves posing as legitimate organizations such as your bank, credit card company and even the IRS. Do not click on links or download attachments from unknown or suspicious emails.
Protect your personal data. Don’t routinely carry your Social Security card, and make sure your tax records are secure. Treat your personal information like you do your cash; don’t leave it lying around.
How tax preparers can help

Tax preparers are critical and valued partners in the tax administration process, and they have an important role to play in helping prevent identity theft. Tax preparers can share Publication 4524 with clients to help raise awareness about important security steps.

Tax preparers also should review their own security features. We’ve updated Publication 4557, Safeguarding Taxpayer Data, to help provide an easy check list for you to review and update your security plan.

How businesses can help

Businesses and other organizations also can help combat identity theft by helping educate their employees, clients and customers. Businesses can share Publication 4524 or create their own messages.

Businesses that retain sensitive financial data also should review and update their security plan.Publication 4557, Safeguarding Taxpayer Data, provides a good place to start and helpful recommendations.

Video Link: https://youtu.be/aMH8TBeA4lE

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Source information at IRS.gov. 

For more on the newest and important tax law changes, follow us online at BetterRefundIncomeTax.com & Social Media! BetterRefundIncomeTax at Facebook/Twitter/Yelp!

Celebrating Veterans Day

Better Refund
11.11.2015

To Our Cherished US Veterans

       Today we honor our Veterans by thanking them for their amazing bravery and sacrifices to keep this country everyone in this country free and safe. Thank you Veterans for being the representing force for freedom around the world.  Your service is (as always) treasured.


-Better Refund staff

IRS Tips about Vacation Home Rentals

Better Refund
07.08.2015

Vacation Home Rentals!

Here is a recent post from the IRS over the ins and outs of Vacation Home Rental conditions of reporting in your Tax Filing! Keep these in mind for future reporting! Enjoy!

IRS Tips about Vacation Home Rentals

IRS Summertime Tax Tip 2015-03, July 8, 2015

If you rent a home to others, you usually must report the rental income on your tax return. However, you may not have to report the rent you get if the rental period is short and you also use the property as your home. In most cases, you can deduct your rental expenses. When you also use the rental as your home, your deduction may be limited. Here are some basic tax tips that you should know if you rent out a vacation home:
Vacation Home. A vacation home can be a house, apartment, condominium, mobile home, boat or similar property.


Schedule E. You usually report rental income and rental expenses on Schedule E, Supplemental Income and Loss. Your rental income may also be subject to Net Investment Income Tax.


Used as a Home. If the property is “used as a home,” your rental expense deduction is limited. This means your deduction for rental expenses can’t be more than the rent you received. For more about these rules, see Publication 527, Residential Rental Property (Including Rental of Vacation Homes).


Divide Expenses. If you personally use your property and also rent it to others, special rules apply. You must divide your expenses between the rental use and the personal use. To figure how to divide your costs, you must compare the number of days for each type of use with the total days of use.


Personal Use. Personal use may include use by your family. It may also include use by any other property owners or their family. Use by anyone who pays less than a fair rental price is also personal use.


Schedule A. Report deductible expenses for personal use on Schedule A, Itemized Deductions. These may include costs such as mortgage interest, property taxes and casualty losses.


Rented Less than 15 Days. If the property is “used as a home” and you rent it out fewer than 15 days per year, you do not have to report the rental income. In this case you deduct your qualified expenses on schedule A.


Use IRS Free File. If you still need to file your 2014 tax return, you can use IRS Free File to make filing easier. Free File is available until Oct. 15. If you make $60,000 or less, you can use brand-name tax software. If you earn more, you can use Free File Fillable Forms, an electronic version of IRS paper forms. Free File is available only through the IRS.gov website.

You can get forms and publications on IRS.gov/forms at any time.

Additional IRS Resources:
Tax Topic 415 – Renting Residential and Vacation Property
Rental Income and Expenses – Real Estate Tax Tips

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Source Information at IRS.gov. For more on the latest in tax news and updates, please follow us on all of our social medias and WWW.BetterRefundIncomeTax.com ! 

-Better Refund

Identity Protection: Prevention, Detection and Victim Assistance

06.15.2015

Better Refund

Identity Protection: A message from the IRS!

IRS: 



Identity theft places a burden on its victims and presents a challenge to businesses, organizations and government agencies, including the IRS. Tax-related identity theft occurs when someone uses your stolen social security number to file a tax return claiming a fraudulent refund.

The IRS combats tax-related identity theft with an aggressive strategy of prevention, detection and victim assistance. We are making progress against this crime, but it remains one of our highest priorities. And, if you become a victim, we are committed to helping you resolve your case as quickly as possible.



Are you a victim of tax-related identity theft?

Review the following resource information:

Taxpayer Guide to Identity Theft


Publication 5027 Identity Theft Information for Taxpayers (PDF)


Data Breach: Tax-Related Information


Identity Protection Tips


Identity theft information for tax preparers and businesses:

Identity Theft Information for Tax Preparers


Publication 5199 Tax Preparer Guide to Identity Theft (PDF)


Information for businesses about data breaches and identity theft


Tax Practitioner Guide to Business Identity Theft



What the IRS is doing to combat identity theft:

What we’re doing to combat identity theft


Special identity theft enforcement efforts


Law Enforcement Assistance Program



Additional Identity Theft Resources:

Identity Theft News and Outreach


Federal Trade Commission


Social Security Administration


Remember:
The IRS doesn't initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

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Source information found at IRS.gov! For more on the latest in tax news, follow us on Facebook/Twitter/Blogger or our website at www.BetterRefundIncomeTax.com !

-Better Refund

Information for Veterans with Disabilities

Better Refund

05.13.2015

Information for Veterans with Disabilities from the IRS!

The Internal Revenue Service is committed to providing assistance to veterans and veterans with disabilities. We work with community and government partners to provide timely federal tax-related information to veterans about tax credits and benefits, free tax preparation, and asset-building opportunities available to them.

VA Disability Benefits
Do not include disability benefits you receive from the U.S. Department of Veterans Affairs (VA) in your gross income. In particular some of the payments which are considered disability benefits include:
Disability compensation and pension payments for disabilities paid either to veterans or their families,
Grants for homes designed for wheelchair living,
Grants for motor vehicles for veterans who lost their sight or the use of their limbs, or
Benefits under a dependent-care assistance program.

VA has created an eBenefits portal where you can apply for many of these benefits online. Veterans can apply for Veterans' Benefits Online (VONAPP), access VA Payment History, apply for VA Home Loan Certificate of Eligibility, check on Compensation & Pension Status, and more. Family members (spouses and dependents [ages 18+]) of Service members and Veterans may register for a Basic (Level 1) DS Logon to access eBenefits. View TRICARE benefits, explore eLearning opportunities, and request information from State VA offices online.

The VA publishes an annual benefits booklet, a comprehensive guide for Federal Benefits for Veterans, Dependents and Survivors.

If you are a military retiree and receive your disability benefits from the VA, see IRS Publication 525for more information .

Special Tax Considerations
Special tax considerations for disabled veterans occasionally result in a need for amended returns

Rehabilitative Program Payments
VA payments to hospital patients and resident veterans for their services under the VA's therapeutic or rehabilitative programs are no longer included in income. For more information, please see IRS Revenue Ruling 2007-198.

Tax Credits
Many disabled veterans are eligible for various tax credits including the Earned Income Tax Credit, a refundable federal income tax credit for low- to moderate-income, working individuals and families. Those requiring free help in preparing their income tax returns should check out the Volunteer Income Tax Assistance Program.

Homeless Veterans
Veterans with disabilities experience high rates of unemployment, poverty, and homelessness. The VA and other organizations work together through neighborhood stand-downs to help disabled veterans who are homeless. This collaborative effort provides a variety of services such as food, shelter, clothing, health screenings, and benefits counseling.

Research shows that veterans have a significant and too often unmet need for legal services. Veterans who are homeless or at risk of becoming homeless rank legal needs regarding eviction or foreclosure proceedings, child support issues and outstanding warrants or fines as some of their highest unmet needs. The website www.statesidelegal.org has 1) legal information on various topics of interest to veterans and 2) a search engine that allows veterans to find free legal help in their geographic area.

Federal Employment
If you are a veteran and have a disability per the VA, you may qualify for internships or you could be hired non-competitively for any federal position for which you qualify. The IRS Veterans Employment Program Office is designed to provide quality training and work experience to wounded warriors and veterans by offering various non-paid internship opportunities within the IRS as well as help veterans who qualify for one or more of the three special hiring authorities to become gainfully employed within the IRS.

Do you need alternate formats for IRS forms and publications?
The IRS is committed to making every document on its Web site accessible to everyone, including veterans with disabilities. If you need help accessing these products, please visit our Accessible IRS Tax Products page. See also other forms and publications for people with disabilities.

Active Duty Military
This page is intended for veterans with disabilities. If you are looking for information for service members on active duty, please visit the IRS Military Web page.

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Source information at IRS.gov.  For more on the latest in Tax law updates, please follow us on Facebook/twitter/Google Plus and our website at BetterRefundIncomeTax.com

-Better Refund

Phishing-Malware!

Better Refund
03.30.2015



 There are many scams that happen during the Tax filing year. From fictitious phone calls to strange E-mailer's  from unknown sources, claiming to be from the IRS. Here is a helpful video that might help you spot and prevent any theft of your personal information! 











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Source information at IRS.gov! For more on the latest in tax news and updates, follow us online at www.BetterRefundIncomeTax.com !


-Better Refund

Adoption Benefit Tax!

Better Refund

03.10.2015

Top Ten Facts about Adoption Tax Benefits for growing families!

IRS Tax Tip 2015-35, March 10, 2015

If you adopted or tried to adopt a child in 2014, you may qualify for a tax credit. If your employer helped pay for the costs of an adoption, you may be able to exclude some of your income from tax. Here are ten things you should know about adoption tax benefits.
Credit or Exclusion. The credit is nonrefundable. This means that the credit may reduce your tax to zero. If the credit is more than your tax, you can’t get any additional amount as a refund. If your employer helped pay for the adoption through a written qualified adoption assistance program, you may qualify to exclude that amount from tax.


Maximum Benefit. The maximum adoption tax credit and exclusion for 2014 is $13,190 per child.


Credit Carryover. If your credit is more than your tax, you can carry any unused credit forward. This means that if you have an unused credit in 2014, you can use it to reduce your taxes for 2015. You can do this for up to five years, or until you fully use the credit, whichever comes first.


Eligible Child. An eligible child is under age 18. This rule does not apply to persons who are physically or mentally unable to care for themselves.


Qualified Expenses. Adoption expenses must be directly related to the adoption of the child and be reasonable and necessary. Types of expenses that can qualify include adoption fees, court costs, attorney fees and travel.


Domestic or Foreign Adoptions. In most cases, you can claim the credit whether the adoption is domestic or foreign. However, the timing rules for which expenses to include differ between the two types of adoption.


Special Needs Child. If you adopted an eligible U.S. child with special needs and the adoption is final, a special rule applies. You may be able to take the tax credit even if you didn't pay any qualified adoption expenses.


No Double Benefit. Depending on the adoption’s cost, you may be able to claim both the tax credit and the exclusion. However, you can’t claim both a credit and exclusion for the same expenses. This rule prevents you from claiming both tax benefits for the same expense.


Income Limits. The credit and exclusion are subject to income limitations. The limits may reduce or eliminate the amount you can claim depending on the amount of your income.

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Source Information found at IRS.gov! For more on the latest in tax news and updates, please follow us on Facebook/Twitter/Blogger or online at BetterRefundIncomeTax.com !

-Better Refund