Why Pay and Prepare Your Taxes

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Tax Preparation Service Near Me

We provide tax preparation service to the citizens of Encino and surrounding cities and counties.

Tax Preparation Service in LA County Cities and other areas:

Agoura Hills, Alhambra, Altadena, Arcadia, Artesia, Avalon, Azusa, Baldwin Hills, Baldwin Park, Bell, Bell Gardens, Beverly Hills, Bradbury, Burbank, Calabasas, Carson, Castaic, Cerritos, Claremont, Commerce, Covina, Cudahy, Culver City, Diamond Bar, Duarte, East Los Angeles, El Monte, El Segundo, Glendale, Glendora, Hawaiian Gardens, Hawthorne, Hermosa Beach, Inglewood, Irwindale, La Cañada-Flintridge, La Habra Heights, La Mirada, La Puente, La Verne, Lawndale, Lennox, Lomita, Malibu, Manhattan Beach, Marina del Rey, Maywood, Monrovia, Montebello, Monterey Park, Pasadena, Pico Rivera, Pomona, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, Rosemead, San Dimas, San Fernando, San Gabriel, San Marino, Santa Fe Springs, Sierra Madre, Signal Hill, South El Monte, South Pasadena, Stevenson Ranch, Temple City, Torrance, Walnut, West Covina, West Hollywood, Westlake Village, Whittier, and other Unincorporated Los Angeles County.

​​San Gabriel Valley: Alhambra, Altadena, Arcadia, Azusa, Baldwin Park, Bradbury, Covina, Duarte, East LA, El Monte, Glendale, Glendora, Irwindale, Monrovia, Montebello, Monterey Park, Pasadena, Pico Rivera, Rosemead, San Gabriel, San Marino, Sierra Madre, South El Monte, South Pasadena, Temple City, West Covina, Whittier

Ventura County includes the cities of: 

Camarillo, Fillmore, Moorpark, Ojai, Oxnard, Port Hueneme, Santa Paula, San Buenaventura, Simi Valley, Thousand Oaks, and Unincorporated Ventura County 

Who Must File a Tax Return

Generally, if you are pay more than $600, you must file a tax return. The IRS says you must earn more than the standard deductions. See table below.

Table 1. 2021 Filing Requirements Chart for Most Taxpayers

IF your filing status is…AND at the end of 2021 you were…*THEN file a return if your gross income was at least…**
Singleunder 65 | $12,550
Single65 or older|$14,250
Head of householdunder 65 | $18,800
Head of household65 or older|$20,500
Married, filing jointlyunder 65 (both spouses)$25,100
Married, filing jointly65 or older (one spouse)$26,450
Married, filing jointly65 or older (both spouses)$27,800
Married, filing separatelyany age$5
qualifying widow(er)under 65 $25,100
qualifying widow(er)65 or older|$26,400
* If you were born before January 2, 1957, you’re considered to be 65 or older at the end of 2021. (If your spouse died in 2021, see Death of spouse, later. If you’re preparing a return for someone who died in 2021, see Death of taxpayer, later.
** Gross income means all income you receive in the form of money, goods, property, and services that isn’t exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Don’t include any social security benefits unless (a) you’re married filing a separate return and you lived with your spouse at any time during 2021, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the Form 1040 and 1040-SR instructions to figure the taxable part of social security benefits you must include in gross income. Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Gross income from a business means, for example, the amount on Schedule C, line 7; or Schedule F, line 9. But in figuring gross income, don’t reduce your income by any losses, including any loss on Schedule C, line 7; or Schedule F, line 9.
*** If you didn’t live with your spouse at the end of 2021 (or on the date your spouse died) and your gross income was at least $5, you must file a return regardless of your age.

IRS Rules for Divorced Parents Claiming a Dependent

Parents who are divorced, separated, never married or live apart and who share custody of a child with an ex-spouse or ex-partner need to understand the specific rules about who may be eligible to claim the child for tax purposes. This can make filing taxes easier for both parents and avoid errors that may lead to processing delays or costly tax mistakes.

Only one person may be eligible to claim the qualifying child as a dependent.

Only one person can claim the tax benefits related to a dependent child who meets the qualifying child rules. Parents can’t share or split up the tax benefits for their child on their respective tax returns.

It’s important that each parent understands who will claim their child on their tax return. If two people claim the same child on different tax returns, it will slow down processing time while the IRS determines which parent’s claim takes priority.

Custodial parents generally claim the qualifying child as a dependent on their return.

  • The custodial parent is the parent with whom the child lived for the greater number of nights during the year. The other parent is the noncustodial parent.
  • In most cases, because of the residency test, the custodial parent claims the child on their tax return.
  • If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income.

Tie-breaker rules may apply if the child is a qualifying child of more than one person.

  • Although the child may meet the conditions to be a qualifying child of either parent, only one person can actually claim the child as a qualifying child, provided the taxpayer is eligible.
  • People should carefully read Publication 504, Divorced or Separated Individuals to understand who is eligible to claim a qualifying child.

Noncustodial parents may be eligible to claim a qualifying child.
Special rules apply for a child to be treated as a qualifying child of the noncustodial parent.


More information:
Publication 501, Dependents, Standard Deduction, and Filing Information
Whom May I Claim as a Dependent?

Share this tip on social media — #IRSTaxTip: Claiming a child as a dependent when parents are divorced, separated or live apart. https://go.usa.gov/xJ7Kb

IRS sends CP2100 and 2100A Notices

In April, the IRS sent CP2100 and CP2100A notices to banks, credit unions, businesses or payers who filed returns that don’t match IRS records.

These information returns include:

  • Form 1099-B, Proceeds from Broker and Barter Exchange Transactions
  • Form 1099-DIV, Dividends and Distributions
  • Form 1099-G, Certain Government Payments
  • Form 1099-INT, Interest Income 
  • Form 1099-K, Payment Card and Third-Party Network Transactions
  • Form 1099-MISC, Miscellaneous Income
  • Form 1099-NEC, Nonemployee Compensation
  • Form 1099-OID, Original Issue Discount
  • Form 1099-PATR, Taxable Distributions Received from Cooperatives
  • Form W-2G, Certain Gambling Winnings

The IRS mails these notices out twice a year, in September and October and again in April of the following year. The notices tell payers that the information return they submitted is missing a Taxpayer Identification number or has an incorrect name or both.

Each notice has a list of payees with identified TIN issues. Payers need to compare the accounts listed on the notice with their account records and correct or update their records, if necessary. This can also include correcting backup withholding on payments made to payees.

The notices also tell payers that they are responsible for backup withholding. Payments reported on the information returns listed above are subject to backup withholding if:

  • The payer doesn’t have the payee’s TIN when making the reportable payments.
  • The payee doesn’t certify their TIN as required for reportable interest, dividend, broker, and barter exchange accounts.
  • The IRS tells the payer that the payee gave an incorrect TIN, and the payee doesn’t certify their TIN as required.
  • The IRS tells the payer to begin backup withholding because the payee didn’t report all their interest and dividends on their tax return.

Payers are responsible for the amount they failed to backup withhold and penalties may apply.

More information
Publication 1281, Backup Withholding on Missing and Incorrect Name/TINs

Tax Tips for Federal Withholdings | W-4

The most common reason why you may not received a tax refund when filing your taxes is because your withholding is wrong. This applies to most W-2 filers only. Getting your withholding right enables you to receive a refund. Below is what the IRS suggest you do to ensure you have selected the correct withholding.

All taxpayers should review their federal withholding each year to make sure they’re not having too little or too much tax withheld. Doing this now can help protect against facing an unexpected tax bill or penalty in 2023. The sooner taxpayers check their withholding, the easier it is to get the right amount of tax withheld.

Taxpayers whose employers withhold federal income tax from their paycheck can use the IRS Tax Withholding Estimator to help decide if they should make a change to their withholding. This online tool guides users through the process of checking their withholding to help determine the right amount to withhold for their personal situation. Taxpayers can check with their employer to update their withholding or submit a new Form W-4, Employee’s Withholding Certificate.

Adjustments to withholding
Individuals should generally increase withholding if they hold more than one job at a time or have income from sources not subject to withholding. If they don’t make any changes, they may owe additional tax and possibly penalties when filing their tax return.

Individuals should generally decrease their withholding if they qualify for income tax credits or deductions other than the basic standard deduction.

Either way, those who need to adjust their withholding must prepare a new Form W-4, Employee’s Withholding Certificate. They need to submit the new Form W-4 to their employer as soon as possible since withholding occurs throughout the year.

Individuals who should check their withholding include those:

  • who experienced a marriage, divorce, birth or adoption of child, purchase of a new home or retirement
  • who are working two or more jobs at the same time or who only work for part of the year
  • who claim credits such as the child tax credit
  • with dependents age 17 or older
  • who itemized deductions on prior year returns
  • with other personal and financial changes

Tax Withholding Estimator benefits
The IRS Tax Withholding Estimator can help taxpayers:

  • determine if they should complete a new Form W-4.
  • know what information to put on a new Form W-4.
  • save time because the tool completes the form worksheets.

Taxpayers should prepare before using the Tax Withholding Estimator by having their most recent pay statements, information for other income sources and their most recent income tax return. The tool does not ask for sensitive information such as name, Social Security number, address, or bank account numbers.

Taxpayers shouldn’t use the Tax Withholding Estimator if:

  • They have a pension but not a job. They should estimate their tax withholding with the new Form W-4P.
  • They have nonresident alien status. They should use Notice 1392, Supplement Form W-4 Instructions for Nonresident Aliens.
  • Their tax situation is complex. This includes alternative minimum tax, long-term capital gains or qualified dividends. See Publication 505, Tax Withholding and Estimated Tax.


More information:
Tax Withholding Estimator FAQs

Friendly Tax Services

LA PREMIER Tax dba Friendly Tax Services is the premier income tax preparation firm for individuals, families, small business owners and the self-employed; Uber, Lyft, Taxi, and Limousine drivers; Actors, Independent Contractors and Entrepreneurs. We have empathy and understand the toll driving takes on Uber, Lyft, Taxi, and Truck drivers. That driving is time consuming. Uber drivers just don’t have the time it takes time to keep track of those business-related expenses.


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