LORRAINE KELLOGG

Tax Changes for Students and Teachers

As the school year begins, students are considering what classes they need to take and how much the classes will cost. Whether it’s community college, a trade school, a four-year university or an advanced degree, higher education is expensive. The good news is tax deductions and credits can help offset these costs.

These deductions and credits reduce the amount of tax someone owes. If the credit reduces tax to less than zero, the taxpayer could even receive a refund.

Taxpayers who pay for higher education in 2021 can see these tax savings when they file their tax return next year. If taxpayers, their spouses or their dependents take post-high school coursework, they may be eligible for a tax benefit.

In addition, teachers are offered a deduction for out-of-pocket expenses that they incur for books and supplies they use in the classroom. 

Identity Protection PIN (IP-PIN) Opt-In Program

The IRS is asking tax professionals to spread the word to their clients about the NEW voluntary IP-PIN program.

IP-PINs are six-digit numbers assigned to eligible taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN.

Tax Related Identity Theft

Tax Related Identity Theft – Protecting Your Tax Data

The Internal Revenue Service issued a News Release this week reminding tax practitioners the importance of protecting your tax data against tax related identity theft. Because the number of data thefts reported by tax professionals to the IRS continued to climb., the IRS launched it’s sixth summer campaign. “Boost Security Immunity: Fighting Against Identity Theft” urges practitioners to boost security immunity.

Cybercriminals target tax professionals because they are custodians of highly sensitive client data. In addition to trying to steal client data, thieves may try to steal your identity as well, using your PTINs, EFINs and CAF numbers to file fraudulent returns or steal even more information.

ADVANCE CHILD TAX CREDIT PAYMENTS TO START JULY 15!

The IRS will begin sending advance child tax credit payments to eligible taxpayers starting July 15. The IRS recently sent letters to over 36 million taxpayers who may be eligible to receive the advance credits. Payments are based on information included in either their 2019 or 2020 federal income tax return or who was a non-filer that registered for an Economic Impact Payment.

Families who are eligible for advance Child Tax Credit payments will receive a second, personalized letter listing an estimate of their monthly payment, which begins July 15.

Become an Annual Filing Season Program Participant

The IRS believes in a mandatory competency standard for federal tax return preparers. To this end, legislation continues to be the priority of the IRS. The Annual Filing Season Program recognizes the efforts of unenrolled return preparers who improve their professional competency through continuing education. Anyone with a PTIN can prepare a federal tax return. However, some preparers with a PTIN work to ready themselves for the filing season through educational efforts, The program differentiates these preparers from the rest of the marketplace.

INTRODUCING A BRAND NEW CE PROVIDER WITH AN INTERNATIONAL FOCUS

We are live! And we are so excited to tell you about our new CE courses!

PTIN Courses International is a new continuing education provider that was recently approved by the Internal Revenue Service. But what makes us different from the rest is that our courses will focus on international taxation issues. We ensure that even our most basic courses will address any international tax issues that could arise.

Our goal is to provide a quality CE experience at a reasonable price. All our courses are offered at $10.00 per CE credit.