Tax Tips | Tax On Wheels, LLC | Tax Preparation

What you need to know:

You should file as a South Carolina resident if you intend to maintain the state as your permanent home, keep South Carolina as the center of your financial, social and family life, and when you’re away, intend to return back to the state.
You must file as a nonresident if you have a permanent home outside of South Carolina and none of the other resident criteria apply.
Those in the military who entered the service with South Carolina as their home should file a state return as a South Carolina resident, even if absent from the state on military orders.

More than 346,000 taxpayers filed South Carolina Individual Income Tax returns in tax year 2022 as nonresidents. Another 3,220 filed returns from outside the country.

Some of those nonresidents may have just moved to the state. Others work in South Carolina but live in a neighboring state. Some are in the military and are stationed in South Carolina but consider another state home. If you fall into one of those categories and are unsure how to determine if you are a South Carolina resident for tax purposes, the South Carolina Department of Revenue (SCDOR) has some tips to help:

You are considered a South Carolina resident if all three of the following are true:

Your intention is to maintain South Carolina as your permanent home.
South Carolina is the center of your financial, social, and family life.
When you are away, South Carolina is the place to which you intend to return.

You are considered a nonresident of South Carolina if the following is true:

Your permanent home is located outside of South Carolina all year.
None of the requirements listed above are true.

But the SCDOR knows that, for many folks, determining your residency isn’t quite that easy. Here are some tips on what to do in certain special circumstances:

Military members who left South Carolina on military orders to be stationed elsewhere– If you enter the military as a South Carolina resident, you do not lose your residency, even if you are absent from the state on military orders. You should file a South Carolina return as a South Carolina resident.
Married couples where one spouse is a resident while the other is not – Couples in this situation should file a South Carolina return with the accompanying Schedule NR. On the Schedule NR, Column A is the income from your federal return, and Column B includes only the income earned while a resident of South Carolina or income earned from South Carolina sources.
SC residents who work in another state – As a resident of South Carolina, you are taxed on all your income regardless of where it is earned. In order to avoid double taxation, South Carolina allows a tax credit for taxes you paid to another state on wages earned in that state.
Those who are part-year residents of SC– These folks should choose the filing method below that is most beneficial:
- You can compute South Carolina tax as a South Carolina resident for the entire year. File an SC return including all federal taxable income and use the SC1040TC to claim a credit for Income Tax paid to another state.
- Or, you can compute South Carolina tax using the Schedule NR. Include in Column B of the Schedule NR only the amounts that are taxable to South Carolina. Amounts taxable to South Carolina include all items of income, gain, loss, or deductions earned from South Carolina sources or while you are a South Carolina resident. File an SC return and attach the completed Schedule NR.

For more Individual Income Tax information, visit the SCDOR’s Individual Income Tax FAQ page. For more information on residency and domicile, refer to the SCDOR’s Determining a Taxpayer’s Domicile for Income Tax Purposes guide.

In recent years, the gig economy has changed how people do business and provide services. Taxpayers must report their gig economy earnings on a tax return – whether they earned that money through a part-time, temporary or side gig. The IRS’ Gig Economy Tax Center provides information and resources to help this group of entrepreneurs and workers understand and meet their federal tax obligations.

Here are key things for individuals involved in the gig economy to remember as they get ready to file in 2023.

Workers report income according to their worker classification
Gig economy workers who perform services, such as driving a car for booked rides, running errands and other on demand work, must be correctly classified. Classification helps the taxpayer determine how to properly report their income.

The business or the platform determines whether the individual providing the services is an employee or independent contractor. The business owners can use the worker classification page on IRS.gov for guidance on properly classifying employees and independent contractors.

Expenses related to gig economy income may be deductible
Individuals involved in the gig economy may be able to deduct expenses related to their gig income, depending on tax limits and rules.

Pay the right amount of taxes throughout the year
An employer typically withholds income taxes from their employees’ pay to help cover taxes their employees owe.

Please feel free to reach out to Tax On Wheels, LLC at 803 732-4288 if you need additional information on this or any other tax topic.

As taxpayers get ready to file their 2022 tax return, they may be considering hiring a tax return preparer. The IRS reminds taxpayers to choose a tax return preparer wisely. This is important because taxpayers are responsible for all the information on their return, no matter who prepares it for them.
There are different kinds of tax preparers, and a taxpayer’s needs will help determine which kind of preparer is best for them. With that in mind, here are some quick tips to help people choose a preparer.

Despite the ongoing government shutdown, tax season is essentially upon us. If not resolved, the shutdown could delay the official start of tax season, as defined by the date the IRS begins accepting and processing tax returns.

But even though the government may allow themselves to ignore their responsibilities, that privilege does not apply to me and you my friends. So in the interest of helping you make sure you timely fulfill your tax filing obligations I call your attention to this list of items to bring to your tax appointment. It’s an oldie but a goody.

Otherwise there is not much more you can do right now. However, you need to be aware that the TCJA (Tax Cuts and Jobs Act) has imposed substantial changes on the tax system. Everything from the look of the tax forms to the way claiming your dependents impacts your refund has changed. Almost everything will be different. So if you are one of those people that just kind of copies everything from last years return onto the current years return, that won’t work this year.

We are here to help. If you have any questions please do not hesitate to contact Tax On Wheels, LLC at 803 732-4288. We will be glad to answer your questions free of charge.

The right to retain representation when dealing with the IRS is one of ten rights in the Taxpayer Bill of Rights. Taxpayers who interact with the IRS should be aware of their rights.

As an enrolled agent, I am enrolled to practice before the IRS and can assist you with all matters pending before the IRS. When you get THE LETTER, give Tax On Wheels, LLC a call at 803 732-4288 so we can assist you in resolving your tax issues.

#IRSTaxTip: The Right to Retain Representation: Taxpayer Bill of Rights #9 https://go.usa.gov/xQbnA

The IRS offers a variety of payment options where taxpayers can pay immediately or arrange to pay in installments. Those who receive a bill from the IRS should not ignore it. A delay may cost more in the end. As more time passes, the more interest and penalties accumulate.

Those wishing to use a mobile devise can access the IRS2Go app to pay with either Direct Pay or debit or credit card. IRS2Go is the official mobile app of the IRS. Download IRS2Go from Google Play, the Apple App Store or the Amazon App Store.

Those who owe taxes are reminded to pay as much as they can as soon as possible to minimize interest and penalties. Visit IRS.gov/payments for all payment options.

Please feel free to contact Tax On Wheels, LLC if we can be of assistance to you. We can be reached at 803 732-4288

WASHINGTON –The federal income tax filing deadline has arrived and the IRS estimates it will receive approximately 12 million 2016 federal income tax returns and nearly 8.4 million extension requests in the final days of the filing season.

No matter how or when they file, taxpayers are reminded to keep a copy of their tax return and all supporting documents.

And if all of that is too much to bear, remember, Tax On Wheels, LLC will be glad to handle it all for you. Just give us a call at 803 732-4288.

The New York State Department of Taxation and Finance, and the New York Department of State’s Division of Consumer Protection, are highlighting five ways that the seven million New Yorkers who receive tax refunds can make smart decisions with their money.

“There’s no harm in treating yourself, of course—you’ve earned it!” says New York State Commissioner of Taxation and Finance Jerry Boone. “But making a smart decision now can help pave the way to a better financial situation down the road.”

“Foresight and education are keys to being a smart consumer,” said Acting Secretary of State Rossana Rosado. “These suggestions provide New Yorkers with some of the options available to help them secure a better financial future.”

Although we are located in South Carolina, we prepare tax returns for clients all across the country including the state of New York.

For the past few weeks, the state of New York has been on a bit of a tear locking up rogue tax preparers, as have many other jurisdictions including the IRS. But New York has made a special effort to post the name and image of tax preparers who have been arrested for various scams involving bogus tax returns to the tune of about one a week. (Scroll to the bottom of this article for more details on the arrests).

In light of their recent activities, the state of New York has posted what we think is a pretty good guide to choosing a tax preparer and we would like to share their guide with our readers. Of course, we think Tax On Wheels, LLC is an excellent choice for your tax preparation needs and we will be happy to assist you with your tax return. Simply give us a call at 803 732-4288 and we will take it from there.

Following Recent Statewide Tax Preparer Arrests, NYS Tax Department and the NYS Division of Consumer Protection Issue Alert

Tax Department launches new webpage and checklist for taxpayers who are considering hiring a tax preparer.

The New York State Department of Taxation and Finance and the Division of Consumer Protection today issued a consumer warning to the seven million taxpayers who have yet to file income tax returns.

“In light of the recent arrests of tax preparers across New York State, we’re urging taxpayers to ask the right questions before trusting someone with their private information,” said New York State Commissioner of Taxation and Finance Jerry Boone. “Each year, we receive thousands of tax returns based on stolen identities, some of which are submitted by unethical tax preparers. If you choose to hire a tax preparer, follow these easy steps to ensure that the preparer is honest and qualified.”

“The Division of Consumer Protection strongly urges all New Yorkers to practice due diligence when selecting a tax preparer,” said Acting NYS Secretary of State Rossana Rosado. “Always get the terms and total cost of the service in writing. Avoid any tax preparer who charges a percentage of your tax refund as part of the fee. Most important, if you suspect you’re being defrauded by a tax preparer, report that individual to the Tax Department immediately.”

While millions of New Yorkers prepare their taxes without the services of a paid tax preparer, the Tax Department and Division of Consumer Protection encourage taxpayers who are considering a paid preparer to ask these four questions:

Taxpayers can also contact the Better Business Bureau to see whether a tax preparer has a history of consumer complaints.

New York is one of only four states to regulate the tax preparer industry. While most tax preparers are honest and provide excellent service to their clients, taxpayers must remain vigilant to protect themselves from individuals who file fraudulent returns or misuse personal information.

To help taxpayers screen potential tax preparers, the Tax Department published a new checklist available at its Tips for hiring a tax preparer webpage. Before hiring a tax preparer, use the checklist as a guideline when visiting or calling prospective preparers.

If you’re aware of a tax preparer who has engaged in illegal or improper conduct, contact the NYS Tax Department’s Office of Professional Responsibility at (518) 530-HELP (option #2) or file a tax preparer complaint online. The Tax Department will review your complaint promptly and, where appropriate, take corrective action, which may include sanctions.

If you’re preparing for summer nuptials, make sure you do some tax planning as well. A few steps taken now can make tax time easier next year. Here are some tips from the IRS to help keep tax issues that may arise from your marriage to a minimum:

Even if you don’t have room on your guest list for us, still make sure you give us a call at 803 732-4288 so we can help you with all the tax items on your check list. Tax On Wheels, LLC specializes in helping new couples coordinate their finances so there’s one less thing for you to worry about.