We Provide Best Tax Preparation Services in Rancho Santa Margarita California

An ITIN will serve as your identification number for filing your taxes. With certified tax professionals and Certified Acceptance Agents (CAAs), our office is well-equipped to guide you through the ITIN application.

So your ITIN tax ID not only helps you file a tax return, it ensures you get the refund you deserve as quickly as possible.

WHAT DOCUMENTS DO I NEED TO APPLY FOR AN ITIN NUMBER?

To begin the ITIN application process, you will need to bring:

• A complete IRS Form W-7
• A U.S. federal income tax return
• Your Passport or TWO (2) of the following documents: (including at least one identification with photo and one identification from your country):
  • National Identification Document (this must be current, and include your name, photo, address, date of birth, and expiration date)
  • U.S. driver's license
  • Foreign driver's license
  • Birth Certificate (required for a dependent unless a passport is being submitted and the passport has a date of entry into the U.S.)
  • State I.D.
  • Foreign Voter's Registration card
  • Visa issued by the Department of State
  • U.S Military ID card
  • Foreign Military ID card
  • U.S. Citizenship and Immigration Services photo I.D.
  • Medical (for dependents under age 6 only)
  • School records (for dependents under age 18 only)

We can fill out an application form for an ITIN for you, your spouse, and your dependents when you prepare your tax return with us.

GET HELPFUL ON-SITE VERIFICATION

While the ITIN application or renewal process can be done with any of our tax pros, using a Certified Acceptance Agent (CAA) makes the process a bit easier. Why? With this service, the CAA will verify your supporting documents. And, because they're verified on-site, your original documents may not need to be mailed to the IRS. Our CAA will submit copies of these documents, along with your ITIN application or renewal, to the IRS for you.

Tax Audit / Inquiry Assistance

With a simple phone call, you will receive the assistance you need with Federal and State Returns.

Identity Theft Restoration

24/7, 365 Access to Identity Theft Restoration Advocates who will provide comprehensive, personalized recovery services.

IRS Identity Theft Assistance

If you experience problems in filing your tax return due to a suspected identity theft incident, we will interact with the IRS on your behalf.

$2,500 Preparer Error Guarentee

If a legitimate preparer error is made during the filing of a return, you can be reimbursed to up to the first $2,500.*

Tax Credit / ITIN Assistance

We assist you with Denied Credits and Rejected ITINs.

*Subject to the terms, conditions, limitation and exclusions outlined in the Tax Reimbursement Program Terms and Conditions. An insurance policy has been issued to the participating tax preparers backing this guarantee and the designated administrator will reimburse taxpayers on behalf of the tax preparer

Schedule C-EZ Obsolete

Schedule C-EZ is the simplified version of IRS Schedule C, Profit or Loss from Business (Sole Proprietorship). For 2019, the IRS has discontinued Schedule C-EZ, so the long form most be used by all.

Social Security wage ceiling

The maximum amount of earned income on which you pay Social Security tax is now $132,900. When you reach that amount with one employer, they should stop withholding Social Security tax from your pay until the following year. If you work for more than one employer, and your total earnings are more than $132,900, TaxesToday.net calculates a credit for any overpayment of Social Security taxes.

Foreign earned income exclusion

If you qualify, you can exclude up to $105,900 of your foreign earned income from your taxable income for 2018. If you and your spouse both work in separate foreign countries and meet the qualifications, you may each be able to exclude up to $105,900.

Adoption Credit

You may qualify for a credit equal to up to $14,080 of your adoption expenses. If your employer provides adoption benefits, you may also be able to exclude up to the same amount from your income. Both a credit and exclusion may be claimed for the same adoption, but not for the same expense. The credit is permanent and indexed to inflation.

Child Tax Credit

The child tax credit remains $2,000 per qualifying child. Phase out also remains steady at $200,000 ($400,000 if married filing jointly). Qualifying children must have a Social Security Number (SSN). If a child has an ITIN but no SSN you may be able to claim the Other Dependent Credit instead.

Credit for Other Dependents

This credit, new last year, allows you to claim a credit of up to $500 for a dependent who does not qualify for the child tax credit. A qualifying relative may be considered a dependent for this credit.

Disaster Tax Relief

If you were one of the many Americans affected by hurricanes or wildfires in 2019, the IRS may be able to help. Visit the IRS Guidance for Those Affected by Disasters page to see if you qualify.

Moving Expenses

If you move in 2019, you are no longer able to deduct moving expenses unless you are an active military member and were ordered to move.

Mortgage Interest Deduction

You can still deduct mortgage interest in many cases, but new law changes impose stricter limitations. The new cap for qualified residence loans is $750,000 ($375,000 if married filing separate). This total can only include funds used to buy, build, or substantially improve a qualifying residence.

Qualified Opportunity Zone deduction (Form 8997)

If you invest in property in a designated qualified opportunity zone, you may be able to defer gains on that investment by filing Form 8997. This may apply to individuals, C corporations, S corporations, trusts, and estates. The IRS defines a qualified opportunity zone as a population tract that is a low-income community designated as a qualified opportunity zone. A list of qualified opportunity zones can be found on IRS Notice 2018-48 and Notice 2019-42.

New 1040 Design

The Again for 2019, the IRS redesigned Form 1040 and Schedules 1-6.

Form 1040, page one:

• Basic Information (name, address, SSN, etc.)
• Dependents
  • Wages, salaries, tips, etc.
  • Tax-exempt interest
  • Qualified dividends
  • IRAs, pensions, and annuities
  • Social security benefits
  • Capital gain or loss
  • Other income
• Adjustments to Standard Deduction
  • Qualified business income deduction
  • Taxable income

Form 1040, page two:

• Tax
• Child tax credit or credit for other dependents
• Other Taxes
• Federal withholding
• Other payments and refundable credits
• Earned income credit (EIC)
• Additional Child Tax Credit
• American Opportunity Credit
• Adjusted gross income
• Total Tax
• Refund/tax payment
• Amount owed
• Signature(s)
• Third Party Designee

Schedule 1 – Additional Income and Adjustments to Income

• Refunds, credits, or offsets
• Alimony received
• Business income
• Other gains or losses
• Rental, royalties, and pass-through income
• Farm income
• Unemployment compensation
• Other income
• Educator expenses
• Non-reimbursed employee expenses
• Health savings account deduction
• Moving expenses (Armed Forces)
• Deductible self-employment Tax
• Self-employed, SIMPLE, and qualified plans
• Self-employed health insurance deduction
• Penalty on early withdrawal of savings
• Alimony paid
• IRA deduction
• Student loan interest deduction
• Cryptocurrency sales

Schedule 2 – Tax

• Alternative minimum tax
• Excess advance premium tax credit
• Self-Employment Tax
• Unreported social security and Medicare tax
• Additional tax on IRAs
• Household employment taxes
• Repayment of first-time homebuyer credit
• Other taxes

Schedule 3 – Nonrefundable Credits

• Foreign tax credit
• Child and dependent care credit
• Education credits
• Retirement savings
• Residential energy credit
• Other credits
• Estimated tax payments
• Net premium tax credit
• Amount paid with extension request
• Excess social security and tier 1 RRTA tax withheld
• Credit for tax on fuels

Standard deduction

The standard amount you can deduct from income if you don't itemize your deductions is $12,200 ($24,400 for married couples filing jointly, or $18,350 if you file as head of household).

Alternative Minimum Tax

The Alternative Minimum Tax (AMT) exemption amount for individuals rises in 2019 to $71,700 and begins to phase out at $510,300. For married couples filing jointly, the exemption rises to ($111,700, with phase-out beginning at $1,020,600 for married couples filing jointly).

Earned Income Credit

If you have no children, your maximum Earned Income Credit for 2019 is $529. With two children, the maximum amount is $5,787, and with one child, it is $3,526. If you have three or more qualifying children, the maximum Credit you can receive for 2019 is $6,557 (up from $6,431 in 2018).

Education savings bond income limits

You may be able to exclude all or part of the interest from qualifying Series EE or Series I bonds if you use the income for qualified educational expenses. You cannot take this benefit if your modified adjusted gross income is $96,100 or more ($151,600 if you file jointly, or if you file as Qualifying Widow(er) with Dependent Child).

American Opportunity Tax Credit

The American Opportunity Tax Credit income limits remain unchanged for 2019. You can claim this benefit even if the student doesn't receive Form 1098-T from the education institution. Make sure to have your TIN ready by the time you file - you can't claim the credit without it.

Lifetime Learning Credit

The income limits increase this year to $68,000 ($136,000 if married filing jointly).

Individual Shared Responsibility Provision

This mandate expired December 31, 2018.

Limitation on itemized deductions

The Pease provision that outlined limits on itemized deductions for high-income households has been eliminated for 2018.

Personal exemption phase-out (PEP)

Since the Tax Cuts and Jobs Act removed personal exemptions, the phase-outs are gone as well.

Death tax rate

For persons who died in 2019, the federal estate tax rate remains at 40%. This tax only applies to estates larger than $11,400,000.

Standard mileage

The standard mileage rate for the use of your car or other vehicle jumps to 58 cents per mile for business (up from 54.5 cents for 2018) and up to 20 cents per mile driven for medical or moving purposes (up from 18 cents for 2018). The rate for charitable travel remained the same at 14 cents per mile.

Contribution limits for flexible spending accounts

The most you can contribute to one of these plans increases to $2,700. Your spouse can also contribute $2,700 if he or she meets the qualifications. For certain FSAs, up to $500 can still be carried over to the next year.

Medical Savings Accounts

(1) Self-only coverage. The term "high deductible health plan" as defined in Sec. 220(c)(2)(A) means, for self-only coverage, a health plan that has an annual deductible that is not less than $1,350 and not more than $3,500, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $6,650.

(2) Family coverage. The term "high deductible health plan" means, for family coverage, a health plan that has an annual deductible that is not less than $2,700 and not more than $7,000, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $13,500.

Domestic Production Activities Deduction

This deduction was repealed, making it no longer available after December 31, 2017, except for certain limited situations.

Qualified Business Income Deduction

This new deduction allows some taxpayers with business income to deduct up to 20% of qualified business income (QBI), in addition to itemized deductions (or the standard deduction), If you have qualified real estate investment trust dividends and publicly traded partnership income, you may be able to deduct 20% of that as well. This deduction is reported on Form 1040, line 9.

Social Security wage ceiling

The maximum amount of earned income on which you pay Social Security tax is now $128,400. When you reach that amount with one employer, they should stop withholding Social Security tax from your pay until the following year. If you work for more than one employer, and your total earnings are more than $128,400, TaxesToday.net calculates a credit for any overpayment of Social Security taxes.

Foreign earned income exclusion

If you qualify, you can exclude up to $103,900 of your foreign earned income from your taxable income for 2018. If you and your spouse both work in separate foreign countries and meet the qualifications, you may each be able to exclude up to $103,900.

Adoption Credit

You may qualify for a credit equal to up to $13,810 of your adoption expenses. If your employer provides adoption benefits, you may also be able to exclude up to the same amount from your income. Both a credit and exclusion may be claimed for the same adoption, but not for the same expense. The credit is permanent and indexed to inflation.

Child Tax Credit

The child tax credit is now $2,000 per qualifying child. You can also make more and still qualify for the credit, with phase out beginning at $200,000 ($400,000 if married filing jointly). Qualifying children must have a Social Security Number (SSN). If a child has an ITIN but no SSN you may be able to claim the Other Dependent Credit instead.

Credit for Other Dependents

This new credit allows you to claim a credit of up to $500 for a dependent who does not qualify for the child tax credit. A qualifying relative may be considered a dependent for this credit.

Disaster Tax Relief

If you were one of the many Americans affected by hurricanes or wildfires in 2018, the IRS may be able to help. Visit the IRS Guidance for Those Affected by Disasters page to see if you qualify.

Moving Expenses

If you move in 2018, you are no longer able to deduct moving expenses unless you are an active military member and were ordered to move.

Mortgage Interest Deduction

You can still deduct mortgage interest in many cases, but new law changes impose stricter limitations. The new cap for qualified residence loans is $750,000 ($375,000 if married filing separate). This total can only include funds used to buy, build, or substantially improve a qualifying residence.

New 1040 Design

IRS Forms 1040, 1040A, 1040EZ have been combined into one simplified individual tax form. The new design consists of a two-sided, half-page form. Some sections from the previous design were moved to supporting schedules.

Form 1040, page one:

• Basic Information (name, address, SSN, etc.)
• Standard Deduction
• Dependents
• Signature(s)

Form 1040, page two:

• Wages, salaries, tips, etc.
• Tax-exempt interest
• Qualified dividends
• IRAs, pensions, and annuities
• Social security benefits
• Additional income and adjustments to income
• Adjusted gross income
• Standard Deduction
• Qualified business income deduction
• Taxable income
• Tax
• Nonrefundable credits
• Other Taxes
• Total Tax
• Federal withholding
• Refundable credits
• Refund/tax payment
• Amount owed

Schedule 1 – Additional Income and Adjustments to Income

• State and local income taxes
• Alimony received
• Business income
• Capital gain or (loss)
• Other gains or losses
• Rental, royalties, and pass-through income
• Farm income
• Unemployment compensation
• Other income

Schedule 2 – Tax

• Child's unearned income
• Lump-sum distributions
• Other taxes
• Alternative minimum tax
• Excess advance premium tax credit

Schedule 3 – Nonrefundable Credits

• Foreign tax credit
• Child and dependent care credit
• Education credits
• Retirement savings
• Child tax credit
• Residential energy credit
• General business credit

Schedule 4 – Other Taxes

• Self-employment tax
• Social security and Medicare tax on tip income
• Uncollected social security and Medicare tax
• Additional tax on IRAs
• Household employment taxes
• First-time homebuyer credit
• Individual responsibility (health care)
• Additional Medicare tax, net investment income tax
• Section 965 net tax

Schedule 5 – Other Payments and Refundable Credits

• Estimated tax payments
• Net premium tax credit
• Extension
• Social security and tier 1 tax withheld
• Fuel tax credit
• Health coverage tax credit

Schedule 6 – Foreign Address and Third Party Designee

Itemized Deductions

The Tax Cuts and Jobs Act (commonly known as the tax reform bill) suspended or changed many miscellaneous deductions you may have taken in the past.

New limits apply to:

• Casualty and theft losses
• State and local taxes deductions
• Home mortgage interest deduction

Other deductions were eliminated:

• Employee business expenses
• Tax preparation fees
• Investment expenses
• Some educational expenses
• Job search expenses
• Hobby losses
• Safe deposit box fees
• Investment expenses from pass-through entities

Because of these changes, Form Schedule A has changed from 30 lines in 2017 to 18 for the new tax year.

Standard deduction

The standard amount you can deduct from income if you don't itemize your deductions is $12,000 ($24,000 for married couples filing jointly, or $18,000 if you file as head of household).

Personal exemptions

The personal exemption deductions have been eliminated for tax year 2018.

Alternative Minimum Tax

The Alternative Minimum Tax (AMT) exemption amount for individuals rises in 2018 to $70,300 and begins to phase out at $500,000. For married couples filing jointly, the exemption rises to ($109,400, with phase-out beginning at $1,000,000 for married couples filing jointly).

Earned Income Credit

If you have no children, your maximum Earned Income Credit for 2018 is $519. With two children, the maximum amount is $5,716, and with one child, it is $3,461. If you have three or more qualifying children, the maximum Credit you can receive for 2018 is $6,431 (up from $6,318 in 2017).

Education savings bond income limits

You may be able to exclude all or part of the interest from qualifying Series EE or Series I bonds if you use the income for qualified educational expenses. You cannot take this benefit if your modified adjusted gross income is $94,550 or more ($149,300 if you file jointly, or if you file as Qualifying Widow(er) with Dependent Child).

American Opportunity Tax Credit

The American Opportunity Tax Credit income limits remain unchanged for 2018. You can claim this benefit even if the student doesn't receive Form 1098-T from the education institution. Make sure to have your TIN ready by the time you file - you can't claim the credit without it.

Lifetime Learning Credit

The income limits increase this year to $67,000 ($134,000 if married filing jointly).

Individual Shared Responsibility Provision

In 2018, each individual taxpayer must still carry the required "minimum essential coverage" each month, qualify for an exemption, or pay mandatory taxes. The minimum amount of insurance coverage you must carry is calculated per family member and then added together. The fee for not having health insurance is the higher between 2.5% of household income or $695 per adult ($347.50 per child under 18, with a maximum of $2085 per family). This mandate is scheduled to expire December 31, 2018.

Limitation on itemized deductions

The Pease provision that outlined limits on itemized deductions for high-income households has been eliminated for 2018.

Personal exemption phase-out (PEP)

Since the Tax Cuts and Jobs Act removed personal exemptions, the phase-outs are gone as well.

Death tax rate

For persons who died in 2018, the federal estate tax rate remains at 40%. This tax only applies to estates larger than $11,180,000 - up considerably from $5,490,000 in 2017.

Standard mileage

The standard mileage rate for the use of your car or other vehicle jumps to 54.5 cents per mile for business (up from 53.5 cents for 2017) and up to 18 cents per mile driven for medical or moving purposes (up from 17 cents for 2017). The rate for charitable travel remained the same at 14 cents per mile.

Contribution limits for flexible spending accounts

The most you can contribute to one of these plans increases to $2,650. Your spouse can also contribute $2,650 if he or she meets the qualifications. For certain FSAs, up to $500 can still be carried over to the next year.

Medical Savings Accounts

(1) Self-only coverage. The term "high deductible health plan" as defined in Sec. 220(c)(2)(A) means, for self-only coverage, a health plan that has an annual deductible that is not less than $1,350 and not more than $3,450, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $6,650.

(2) Family coverage. The term "high deductible health plan" means, for family coverage, a health plan that has an annual deductible that is not less than $2,700 and not more than $6,900, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $13,300.

Social Security wage ceiling

The maximum amount of your earned income on which you pay Social Security tax is now $118,500. When you reach that amount with one employer, they should stop withholding Social Security tax from your pay until the following year. If you work for more than one employer, and your total earnings are more than $118,500, we calculates a credit for any overpayment of Social Security taxes.

Foreign earned income exclusion

If you qualify, you can exclude up to $101,300 of your foreign earned income from your taxable income for 2016. If you and your spouse both work in a foreign country and meet the qualifications, you may each be able to exclude up to $101,300.

Adoption Credit

You may qualify for a credit equal to up to $13,460 of your adoption expenses. If your employer provides adoption benefits, you may also be able to exclude up to the same amount from your income. Both a credit and exclusion may be claimed for the same adoption, but not for the same expense. The credit is now permanent and indexed to inflation.

Child Tax Credit

Starting in 2015, if you claim a foreign earned income or housing exclusion, you cannot claim the refundable portion of the child tax credit, also known as the additional child tax credit.

Canceled debt exclusion

The canceled debit exclusion provides tax relief on canceled debt for many homeowners involved in the mortgage foreclosure crisis. You may exclude up to $2,000,000 ($1,000,000 if married filing separately) of canceled qualified principal residence indebtedness from taxable income.

Standard deduction

The standard amount you can deduct from income if you don't itemize your deductions is $6,300 ($12,600 for married couples filing jointly, or $9,300 if you file as head of household).

Personal exemptions

The personal exemption for 2016 is $4,050, up from $4,000.

Marriage penalty relief

This provision increases the standard deduction for married taxpayers filing jointly, and expands the 15% tax bracket.

Alternative Minimum Tax

The Alternative Minimum Tax (AMT) exemption amount rises in 2016 to $53,900 ($83,800, for married couples filing jointly).

Earned Income Credit

If you have no children, your maximum Earned Income Credit for 2016 is $756. With two children, the maximum amount is $5,572, and with one child, it is $3,373. If you have three or more qualifying children, the maximum Credit you can receive for 2016 is $6,269 (up from $6,242 in 2015).

Education savings bond income limits

You may be able to exclude all or part of the interest from qualifying Series EE or Series I bonds if you use the income for qualified educational expenses. You cannot take this benefit if your modified adjusted gross income is $92,550 or more ($146,300 if you file jointly, or if you file as Qualifying Widow(er) with Dependent Child).

American Opportunity Tax Credit

The American Opportunity Tax Credit expanded on the Hope Credit. The income limits are higher, the credit is available for more qualified expenses, and you can use the credit for four years of post-secondary education instead of just two. In addition, you can even get a refund if you don't owe any tax for up to 40% of the credit ($1,000).

The Affordable Care Act (ACA)

The majority of taxpayers will see minimal impact on their 2016 federal taxes. We offer tools and information to help you understand the impact of the Affordable Care Act on your taxes. Resources include year-by-year guidance and calculators to estimate your eligibility for the premium tax credit or your tax penalty for being uninsured.

Health Insurance Premium Tax Credit

If individuals or families purchase health insurance through the Health Insurance Marketplace, they may qualify for the new Health Insurance Premium Tax Credit. To qualify for the credit, your household income must fall between 100 percent and 400 percent of the federal poverty line, you may not be claimed as a dependent on any other taxpayer's return, and (if married), you must file jointly. In the case of spousal abuse or abandonment, this requirement may be waived.

Individual Shared Responsibility Provision

In 2016, each individual taxpayer must carry the required "minimum essential coverage" each month, qualify for an exemption, or pay mandatory taxes. For those facing this new penalty, relief provisions have been written into the tax laws to help taxpayers transition into these new requirements. The minimum amount of insurance coverage you must carry is calculated per family member and then added together.

Limitation on itemized deductions

If you have a high adjusted gross income, you may not be able to take all your itemized deductions, thanks to the Pease provision. Itemized deductions start to phase out at $155,650 if you are married filing separately ($259,400 for individuals, $285,350 if head of household, or $311,300 if filing jointly). Your itemized deductions are reduced by 3% of your adjusted gross income over these amounts, but they are never reduced by more than 80% of your otherwise allowable deductions.

Personal exemption phaseout (PEP)

Your personal exemptions for yourself, your spouse, and your dependents reduce your taxable income by $4,050 each. If your adjusted gross income is over $259,400 ($155,650 if married filing separately, $311,300 if filing jointly, or $285,350 if filing as head of household), your personal exemptions are reduced by 2% for each $2,500 or portion over these amounts. The exemption phases out completely at $381,900 ($433,800 if filing jointly, $216,900 if filing separately, $407,850 if filing as head of household).

Death tax rate

For persons who died in 2016, the federal estate tax rate remains at 40%. This tax only applies to estates larger than $5,450,000 - up from $5,430,000 in 2015.

Standard mileage

The standard mileage rate for the use of your car or other vehicle is up to 54 cents per mile for business (down from 57.5 cents for 2015) and down to 19 cents per mile driven for medical or moving purposes (down from 23 cents for 2015). The rate for charitable travel remained the same at 14 cents per mile.

Contribution limits for flexible spending accounts

The most you can contribute to one of these plans remains at $2,550. Your spouse can also contribute $2,550 if he or she meets the qualifications. For certain FSAs, up to $750 can now be carried over to the next year.

Medical Savings Accounts

(1) Self-only coverage. For taxable years beginning in 2014, the term "high deductible health plan" as defined in Sec. 220(c)(2)(A) means, for self-only coverage, a health plan that has an annual deductible that is not less than $2,250 and not more than $3,350, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $4,450.

(2) Family coverage. For taxable years beginning in 2015, the term "high deductible health plan" means, for family coverage, a health plan that has an annual deductible that is not less than $4,450 and not more than $6,700, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $8,150.