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Many people believe that filing a 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐂 (𝐏𝐫𝐨𝐟𝐢𝐭 𝐨𝐫 𝐋𝐨𝐬𝐬 𝐟𝐫𝐨𝐦 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬) will automatically increase their tax refund, even if they have low earnings. However, this isn’t always the case. Let’s break it down in simple terms.𝐖𝐡𝐚𝐭 𝐈𝐬 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐂? Schedule C is a tax form used by self-employed individuals and small business owners to report their income and expenses. While it allows you to deduct business-related expenses, it also comes with additional tax responsibilities.𝐖𝐡𝐲 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐂 𝐌𝐢𝐠𝐡𝐭 𝐍𝐨𝐭 𝐁𝐨𝐨𝐬𝐭 𝐘𝐨𝐮𝐫 𝐑𝐞𝐟𝐮𝐧𝐝 If your income is low, filing a Schedule C may not give you the refund boost you expect. Here’s why:✅ 𝐘𝐨𝐮 𝐌𝐮𝐬𝐭 𝐏𝐚𝐲 𝐒𝐞𝐥𝐟-𝐄𝐦𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭 𝐓𝐚𝐱𝐞𝐬 (𝟏𝟓.𝟑%) Unlike W-2 employees whose employers cover part of their Social Security and Medicare taxes, self-employed individuals must pay the full 15.3% themselves. Even if your earnings are low, this tax can significantly reduce your refund.💡 Example: If you earn $5,000 in self-employment income, you could owe about $765 in self-employment taxes.✅ You Might Not Qualify for a Higher Earned Income Credit (EIC) EIC is a tax credit for low-to-moderate-income workers. While self-employment income can help you qualify, reporting a loss or very low profits could reduce the amount you receive.💡 Example: If you show a $2,000 business loss on Schedule C, your total taxable income decreases, which could lower or eliminate your EIC eligibility.✅ 𝐓𝐡𝐞 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝 𝐃𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐌𝐢𝐠𝐡𝐭 𝐀𝐥𝐫𝐞𝐚𝐝𝐲 𝐑𝐞𝐝𝐮𝐜𝐞 𝐘𝐨𝐮𝐫 𝐓𝐚𝐱𝐚𝐛𝐥𝐞 𝐈𝐧𝐜𝐨𝐦𝐞 If your total income is already low, the standard deduction may reduce your taxable income to zero, meaning there’s no extra tax benefit from Schedule C deductions.💡 Example: If you earn $12,000 and claim the standard deduction ($14,600 for a single filer in 2024), your taxable income becomes zero, so business deductions won’t further increase your refund.✅ 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐋𝐨𝐬𝐬𝐞𝐬 𝐃𝐨𝐧’𝐭 𝐌𝐞𝐚𝐧 𝐀𝐮𝐭𝐨𝐦𝐚𝐭𝐢𝐜 𝐑𝐞𝐟𝐮𝐧𝐝𝐬 If your business expenses are higher than your income, you’ll have a business loss. While this can reduce taxable income, it won’t create an instant refund—it just offsets other income or carries forward to future years.💡 Example: If you show a $3,000 loss but have no other taxable income, you won’t owe taxes—but you also won’t receive a refund.✅ 𝐍𝐨 𝐓𝐚𝐱 𝐖𝐢𝐭𝐡𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐌𝐞𝐚𝐧𝐬 𝐍𝐨 𝐄𝐱𝐜𝐞𝐬𝐬 𝐓𝐚𝐱 𝐭𝐨 𝐑𝐞𝐟𝐮𝐧𝐝 Unlike W-2 jobs where taxes are automatically withheld from your paycheck, self-employed workers don’t have tax withholding. This means there’s no built-up overpayment to be refunded unless you made estimated tax payments during the year.💡 Example: A W-2 employee might get a refund because too much tax was withheld. A self-employed person, however, only gets a refund if they overpaid their taxes through estimated tax payments.𝐁𝐨𝐭𝐭𝐨𝐦 𝐋𝐢𝐧𝐞 Filing a Schedule C won’t necessarily increase your tax refund if you have low earnings. In fact, it may even lead to owing self-employment taxes instead. If you’re unsure about the best tax strategy for your situation, it’s always wise to consult a tax professional.🚀 𝐍𝐞𝐞𝐝 𝐇𝐞𝐥𝐩 𝐅𝐢𝐥𝐢𝐧𝐠 𝐘𝐨𝐮𝐫 𝐓𝐚𝐱𝐞𝐬? At 𝐈𝐧𝐬𝐩𝐢𝐫𝐚𝐭𝐢𝐨𝐧 𝐌𝐮𝐥𝐭𝐢-𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬, we provide expert guidance to help you file correctly and maximize your refund legally. Contact us today!

𝐖𝐡𝐲 𝐅𝐢𝐥𝐢𝐧𝐠 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐂 𝐖𝐨𝐧’𝐭 𝐀𝐥𝐰𝐚𝐲𝐬 𝐌𝐚𝐱𝐢𝐦𝐢𝐳𝐞 𝐘𝐨𝐮𝐫 𝐓𝐚𝐱 𝐑𝐞𝐟𝐮𝐧𝐝

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐂𝐡𝐢𝐥𝐝 𝐒𝐮𝐩𝐩𝐨𝐫𝐭, 𝐓𝐚𝐱 𝐃𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐜𝐲, 𝐚𝐧𝐝 𝐅𝐢𝐥𝐢𝐧𝐠 𝐓𝐚𝐱𝐞𝐬: 𝐂𝐥𝐞𝐚𝐫𝐢𝐧𝐠 𝐔𝐩 𝐭𝐡𝐞 𝐂𝐨𝐧𝐟𝐮𝐬𝐢𝐨𝐧 𝐟𝐨𝐫 𝐏𝐚𝐫𝐞𝐧𝐭𝐬 𝐓𝐡𝐢𝐬 𝐓𝐚𝐱 𝐒𝐞𝐚𝐬𝐨𝐧Tax season often brings confusion for parents, especially when child support, tax dependency, and tax credits come into play. Many parents wonder whether paying child support entitles them to claim their child as a dependent and how to navigate the Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), and other benefits. This blog post aims to clarify these issues and debunk common misconceptions, especially for new immigrants and parents unfamiliar with U.S. tax laws.𝐂𝐡𝐢𝐥𝐝 𝐒𝐮𝐩𝐩𝐨𝐫𝐭 𝐚𝐧𝐝 𝐓𝐚𝐱 𝐃𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐜𝐲: 𝐖𝐡𝐨 𝐆𝐞𝐭𝐬 𝐭𝐨 𝐂𝐥𝐚𝐢𝐦 𝐭𝐡𝐞 𝐂𝐡𝐢𝐥𝐝? The question of who can claim a child as a dependent is one of the most misunderstood aspects of tax law. Here are the key points to consider:𝐏𝐚𝐲𝐢𝐧𝐠 𝐂𝐡𝐢𝐥𝐝 𝐒𝐮𝐩𝐩𝐨𝐫𝐭 𝐃𝐨𝐞𝐬 𝐍𝐨𝐭 𝐀𝐮𝐭𝐨𝐦𝐚𝐭𝐢𝐜𝐚𝐥𝐥𝐲 𝐆𝐫𝐚𝐧𝐭 𝐃𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐜𝐲 𝐑𝐢𝐠𝐡𝐭𝐬 Under IRS rules, simply paying child support does not entitle a parent to claim the child as a dependent. The custodial parent—the parent with whom the child resides for more than half the year—is generally the one entitled to claim the child as a dependent.&nbsp;𝐄𝐱𝐜𝐞𝐩𝐭𝐢𝐨𝐧𝐬: 𝐅𝐨𝐫𝐦 𝟖𝟑𝟑𝟐 The custodial parent may release their claim to the dependency exemption by signing IRS Form 8332, "Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent." This form allows the non-custodial parent to claim the child, provided they meet all other IRS requirements.&nbsp;𝐓𝐢𝐞𝐛𝐫𝐞𝐚𝐤𝐞𝐫 𝐑𝐮𝐥𝐞𝐬 If both parents claim the child, the IRS applies specific tiebreaker rules. For example, the child’s dependency goes to the parent with the higher adjusted gross income (AGI), assuming all other conditions are equal.&nbsp;𝐓𝐚𝐱 𝐂𝐫𝐞𝐝𝐢𝐭𝐬 𝐟𝐨𝐫 𝐏𝐚𝐫𝐞𝐧𝐭𝐬: 𝐂𝐓𝐂, 𝐀𝐂𝐓𝐂, 𝐚𝐧𝐝 𝐌𝐨𝐫𝐞 Parents may qualify for significant tax credits, which can help reduce their tax liability or provide a refund. Let’s break down the major credits available:𝐂𝐡𝐢𝐥𝐝 𝐓𝐚𝐱 𝐂𝐫𝐞𝐝𝐢𝐭 (𝐂𝐓𝐂)❍ 𝐖𝐡𝐚𝐭 𝐈𝐭 𝐈𝐬: The CTC provides up to $2,000 per qualifying child under age 17.❍ 𝐖𝐡𝐨 𝐐𝐮𝐚𝐥𝐢𝐟𝐢𝐞𝐬: The child must be a U.S. citizen, national, or resident alien, and must meet the relationship, residency, age, and support tests.❍ 𝐈𝐧𝐜𝐨𝐦𝐞 𝐋𝐢𝐦𝐢𝐭𝐬: The credit begins to phase out for single filers with an AGI above $200,000 and married couples filing jointly with an AGI above $400,000.𝐀𝐝𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐂𝐡𝐢𝐥𝐝 𝐓𝐚𝐱 𝐂𝐫𝐞𝐝𝐢𝐭 (𝐀𝐂𝐓𝐂)❍ 𝐖𝐡𝐚𝐭 𝐈𝐭 𝐈𝐬: &nbsp;If the CTC exceeds your tax liability, you may be eligible for the ACTC, which allows you to receive a refund of up to $1,500 per child.❍ 𝐇𝐨𝐰 𝐈𝐭 𝐖𝐨𝐫𝐤𝐬: The ACTC is calculated based on earned income, with a portion refundable even if you owe no taxes.𝐄𝐚𝐫𝐧𝐞𝐝 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐂𝐫𝐞𝐝𝐢𝐭 (𝐄𝐈𝐓𝐂)❍ 𝐖𝐡𝐚𝐭 𝐈𝐭 𝐈𝐬: A refundable credit aimed at low- to moderate-income working parents. The amount depends on your income, filing status, and the number of qualifying children.❍ 𝐖𝐡𝐨 𝐐𝐮𝐚𝐥𝐢𝐟𝐢𝐞𝐬: To claim the EITC, you must have earned income and meet other specific requirements.𝐃𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭 𝐂𝐚𝐫𝐞 𝐂𝐫𝐞𝐝𝐢𝐭❍ 𝐖𝐡𝐚𝐭 𝐈𝐭 𝐈𝐬: This credit helps offset childcare costs for parents who work or are actively looking for work.❍ 𝐀𝐦𝐨𝐮𝐧𝐭: You can claim up to 35% of eligible expenses, with a maximum of $3,000 for one child or $6,000 for two or more children.&nbsp; 𝐂𝐨𝐦𝐦𝐨𝐧 𝐌𝐢𝐬𝐜𝐨𝐧𝐜𝐞𝐩𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐈𝐑𝐒 𝐂𝐥𝐚𝐫𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 ∅ 𝐌𝐢𝐬𝐜𝐨𝐧𝐜𝐞𝐩𝐭𝐢𝐨𝐧: &nbsp;Paying child support entitles you to claim the child as a dependent.✔ 𝐑𝐞𝐚𝐥𝐢𝐭𝐲: Only the custodial parent can claim the child unless Form 8332 is signed and filed.∅ 𝐌𝐢𝐬𝐜𝐨𝐧𝐜𝐞𝐩𝐭𝐢𝐨𝐧: Both parents can split the dependency exemption.✔ 𝐑𝐞𝐚𝐥𝐢𝐭𝐲: The IRS does not allow splitting a dependency exemption. Only one parent can claim the child in any given tax year.∅ 𝐌𝐢𝐬𝐜𝐨𝐧𝐜𝐞𝐩𝐭𝐢𝐨𝐧: &nbsp;The non-custodial parent can always claim the CTC.✔ 𝐑𝐞𝐚𝐥𝐢𝐭𝐲: The non-custodial parent can only claim the CTC if the custodial parent provides a signed Form 8332.&nbsp; 𝐓𝐢𝐩𝐬 𝐟𝐨𝐫 𝐏𝐚𝐫𝐞𝐧𝐭𝐬 𝐅𝐢𝐥𝐢𝐧𝐠 𝐓𝐚𝐱𝐞𝐬 𝐓𝐡𝐢𝐬 𝐒𝐞𝐚𝐬𝐨𝐧 Ⓐ 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐞 𝐄𝐚𝐫𝐥𝐲: Discuss tax dependency with the other parent to avoid disputes.Ⓑ 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭𝐬: Use Form 8332 if applicable, and keep it on file.Ⓒ 𝐂𝐨𝐧𝐬𝐮𝐥𝐭 𝐚 𝐓𝐚𝐱 𝐏𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥: If you’re uncertain about your eligibility for credits, seek professional guidance to avoid costly errors.Ⓓ 𝐊𝐞𝐞𝐩 𝐑𝐞𝐜𝐨𝐫𝐝𝐬: Maintain accurate records of custody arrangements, child support payments, and other relevant documentation.☞ 𝐆𝐞𝐭 𝐏𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥 𝐇𝐞𝐥𝐩 Filing taxes as a parent can be complex, but you don’t have to navigate it alone. At 𝐈𝐧𝐬𝐩𝐢𝐫𝐚𝐭𝐢𝐨𝐧 𝐌𝐮𝐥𝐭𝐢-𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬, we specialize in providing clear, accurate, and tailored tax services to families, new immigrants, and first-time filers. Let us help you maximize your tax benefits and avoid costly mistakes.𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐮𝐬 𝐭𝐨𝐝𝐚𝐲 𝐟𝐨𝐫 𝐚𝐬𝐬𝐢𝐬𝐭𝐚𝐧𝐜𝐞 𝐰𝐢𝐭𝐡 𝐲𝐨𝐮𝐫 𝐭𝐚𝐱𝐞𝐬!

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐂𝐡𝐢𝐥𝐝 𝐒𝐮𝐩𝐩𝐨𝐫𝐭, 𝐓𝐚𝐱 𝐃𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐜𝐲, 𝐚𝐧𝐝 𝐅𝐢𝐥𝐢𝐧𝐠 𝐓𝐚𝐱𝐞𝐬: 𝐂𝐥𝐞𝐚𝐫𝐢𝐧𝐠 𝐔𝐩 𝐭𝐡𝐞 𝐂𝐨𝐧𝐟𝐮𝐬𝐢𝐨𝐧 𝐟𝐨𝐫 𝐏𝐚𝐫𝐞𝐧𝐭𝐬 𝐓𝐡𝐢𝐬 𝐓𝐚𝐱 𝐒𝐞𝐚𝐬𝐨𝐧

𝐈𝐦𝐦𝐢𝐠𝐫𝐚𝐧𝐭 𝐑𝐢𝐠𝐡𝐭𝐬: 𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐓𝐫𝐮𝐦𝐩 𝐀𝐝𝐦𝐢𝐧𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧'𝐬 𝐈𝐦𝐦𝐢𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐏𝐨𝐥𝐢𝐜𝐢𝐞𝐬The Trump administration has introduced a series of immigration policies aimed at strengthening border security and enforcing immigration laws. While these measures are significant, it's essential for immigrants—both those with temporary status and undocumented individuals—to understand their rights and the legal landscape.𝐋𝐞𝐠𝐚𝐥 𝐃𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧 𝐨𝐟 "𝐀𝐥𝐢𝐞𝐧" 𝐢𝐧 𝐔.𝐒. 𝐈𝐦𝐦𝐢𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐋𝐚𝐰In U.S. immigration law, the term "alien" refers to any person who is not a citizen or national of the United States. This classification encompasses various categories, including lawful permanent residents, temporary visa holders, and undocumented individuals.𝐉𝐮𝐝𝐢𝐜𝐢𝐚𝐥 𝐒𝐜𝐫𝐮𝐭𝐢𝐧𝐲 𝐨𝐟 𝐀𝐥𝐢𝐞𝐧𝐚𝐠𝐞 𝐂𝐥𝐚𝐬𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬The U.S. Supreme Court applies different levels of scrutiny to laws affecting individuals based on their immigration status:𝐋𝐞𝐠𝐚𝐥 𝐀𝐥𝐢𝐞𝐧𝐬 (𝐋𝐚𝐰𝐟𝐮𝐥 𝐏𝐞𝐫𝐦𝐚𝐧𝐞𝐧𝐭 𝐑𝐞𝐬𝐢𝐝𝐞𝐧𝐭𝐬): Laws that discriminate against legal aliens are subject to strict scrutiny, the highest level of judicial review. This means the government must demonstrate that such laws serve a compelling state interest and are narrowly tailored to achieve that interest. 𝐔𝐧𝐝𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐞𝐝 𝐈𝐦𝐦𝐢𝐠𝐫𝐚𝐧𝐭𝐬: Regulations affecting undocumented immigrants are examined under the rational basis test, a more lenient standard. Here, the government only needs to show that the law is rationally related to a legitimate government interest. 𝐂𝐨𝐧𝐬𝐭𝐢𝐭𝐮𝐭𝐢𝐨𝐧𝐚𝐥 𝐏𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐈𝐦𝐦𝐢𝐠𝐫𝐚𝐧𝐭𝐬Regardless of immigration status, individuals in the U.S. are entitled to certain constitutional protections:𝐅𝐨𝐮𝐫𝐭𝐡 𝐀𝐦𝐞𝐧𝐝𝐦𝐞𝐧𝐭: Protects against unreasonable searches and seizures. Federal agents, including those from Immigration and Customs Enforcement (ICE), cannot arrest individuals without probable cause or reasonable suspicion. 𝐅𝐢𝐟𝐭𝐡 𝐚𝐧𝐝 𝐅𝐨𝐮𝐫𝐭𝐞𝐞𝐧𝐭𝐡 𝐀𝐦𝐞𝐧𝐝𝐦𝐞𝐧𝐭𝐬: Guarantee due process rights, ensuring that any person deprived of life, liberty, or property is afforded fair procedures and hearings. 𝐈𝐂𝐄 𝐀𝐫𝐫𝐞𝐬𝐭𝐬: 𝐖𝐚𝐫𝐫𝐚𝐧𝐭𝐬 𝐚𝐧𝐝 𝐋𝐢𝐦𝐢𝐭𝐚𝐭𝐢𝐨𝐧𝐬ICE agents have the authority to arrest undocumented individuals; however, there are limitations:𝐖𝐢𝐭𝐡𝐨𝐮𝐭 𝐚 𝐉𝐮𝐝𝐢𝐜𝐢𝐚𝐥 𝐖𝐚𝐫𝐫𝐚𝐧𝐭: ICE can issue administrative warrants, but these are not the same as judicial warrants signed by a judge. Without a judicial warrant, ICE's authority to enter homes or private spaces is restricted. 𝐒𝐞𝐧𝐬𝐢𝐭𝐢𝐯𝐞 𝐋𝐨𝐜𝐚𝐭𝐢𝐨𝐧𝐬: Previously, ICE had policies limiting enforcement actions at sensitive locations like schools, hospitals, and places of worship. However, recent policy changes have removed these protections, allowing for potential enforcement actions in these areas. 𝐓𝐫𝐮𝐦𝐩 𝐀𝐝𝐦𝐢𝐧𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧'𝐬 𝐈𝐦𝐦𝐢𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐏𝐨𝐥𝐢𝐜𝐢𝐞𝐬The administration's approach to immigration is multifaceted, aiming to address various national interests:𝐁𝐨𝐫𝐝𝐞𝐫 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲: Deployment of additional troops to the U.S.-Mexico border and resumption of border wall construction to prevent illegal crossings. 𝐃𝐞𝐩𝐨𝐫𝐭𝐚𝐭𝐢𝐨𝐧 𝐈𝐧𝐢𝐭𝐢𝐚𝐭𝐢𝐯𝐞𝐬: Plans to deport individuals with criminal records and those with final removal orders, emphasizing the removal of individuals deemed threats to public safety. 𝐏𝐨𝐥𝐢𝐜𝐲 𝐑𝐞𝐯𝐢𝐬𝐢𝐨𝐧𝐬: Rescinding previous guidelines that limited enforcement actions at sensitive locations, potentially increasing the scope of ICE operations. 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲 𝐟𝐨𝐫 𝐈𝐦𝐦𝐢𝐠𝐫𝐚𝐧𝐭𝐬Given the evolving policies, it's crucial for immigrants to be aware of their rights:𝐑𝐢𝐠𝐡𝐭 𝐭𝐨 𝐑𝐞𝐦𝐚𝐢𝐧 𝐒𝐢𝐥𝐞𝐧𝐭: You are not obligated to disclose your immigration status to federal agents. 𝐑𝐢𝐠𝐡𝐭 𝐭𝐨 𝐋𝐞𝐠𝐚𝐥 𝐑𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧: You have the right to consult with an attorney. Carry contact information for legal aid organizations. 𝐃𝐨 𝐍𝐨𝐭 𝐒𝐢𝐠𝐧 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐬 𝐖𝐢𝐭𝐡𝐨𝐮𝐭 𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠: Avoid signing any documents without legal counsel, as they may affect your ability to remain in the U.S. 𝐄𝐦𝐞𝐫𝐠𝐞𝐧𝐜𝐲 𝐏𝐥𝐚𝐧𝐧𝐢𝐧𝐠: Develop a plan for family members, including arrangements for childcare and financial matters, in case of detention. In conclusion, while the Trump administration's immigration policies are assertive, it's imperative for immigrants to stay informed and exercise their rights. Understanding the legal definitions, constitutional protections, and the scope of enforcement can help mitigate fear and uncertainty.&nbsp;

𝐈𝐦𝐦𝐢𝐠𝐫𝐚𝐧𝐭 𝐑𝐢𝐠𝐡𝐭𝐬: 𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐓𝐫𝐮𝐦𝐩 𝐀𝐝𝐦𝐢𝐧𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧'𝐬 𝐈𝐦𝐦𝐢𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐏𝐨𝐥𝐢𝐜𝐢𝐞𝐬

𝐖𝐡𝐲 𝐅𝐢𝐥𝐢𝐧𝐠 𝐓𝐚𝐱𝐞𝐬 𝐢𝐬 𝐄𝐬𝐬𝐞𝐧𝐭𝐢𝐚𝐥 𝐟𝐨𝐫 𝐓𝐏𝐒 𝐚𝐧𝐝 𝐇𝐮𝐦𝐚𝐧𝐢𝐭𝐚𝐫𝐢𝐚𝐧 𝐏𝐚𝐫𝐨𝐥𝐞 𝐇𝐨𝐥𝐝𝐞𝐫𝐬—𝐄𝐯𝐞𝐧 𝐢𝐟 𝐘𝐨𝐮 𝐄𝐚𝐫𝐧𝐞𝐝 𝐉𝐮𝐬𝐭 𝐎𝐯𝐞𝐫 $𝟔𝟎𝟎For immigrants living and working in the United States under Temporary Protected Status (TPS) or Humanitarian Parole, navigating the complexities of tax filing can feel overwhelming.&nbsp;Many wonder: Do I need to file taxes if I only earned a small amount? What if I got my Employment Authorization Document (EAD) late in the year?&nbsp;Yes, you likely need to file taxes, and doing so can bring significant benefits. Let’s break it down.◈ 𝑻𝒉𝒆 𝑳𝒆𝒈𝒂𝒍 𝑹𝒆𝒒𝒖𝒊𝒓𝒆𝒎𝒆𝒏𝒕 𝒕𝒐 𝑭𝒊𝒍𝒆 𝑻𝒂𝒙𝒆𝒔The IRS requires anyone earning income in the U.S. to file taxes if their income meets certain thresholds. While $600 is not the official threshold for most taxpayers, it’s important to understand that filing taxes is about more than just meeting a minimum income requirement. It’s about fulfilling a legal obligation as someone authorized to work in the U.S. Whether you earned $600 or $60,000, filing your taxes demonstrates compliance with federal law and helps you maintain a clean record with both the IRS and USCIS.☞ 𝑨𝒅𝒗𝒂𝒏𝒕𝒂𝒈𝒆𝒔 𝒐𝒇 𝑭𝒊𝒍𝒊𝒏𝒈 𝑻𝒂𝒙𝒆𝒔 Filing taxes isn’t just about avoiding penalties—it can also work in your favor. Here are some key advantages:✅ 𝑬𝒍𝒊𝒈𝒊𝒃𝒊𝒍𝒊𝒕𝒚 𝒇𝒐𝒓 𝑻𝒂𝒙 𝑪𝒓𝒆𝒅𝒊𝒕𝒔: You may qualify for tax benefits like the Earned Income Tax Credit (EITC), a refundable credit designed to help low- to moderate-income workers. For example, if you earned $8,000 in a year, you could potentially receive a refund through the EITC, even if you owe no taxes.✅ 𝑬𝒔𝒕𝒂𝒃𝒍𝒊𝒔𝒉𝒊𝒏𝒈 𝒂 𝑹𝒆𝒄𝒐𝒓𝒅 𝒐𝒇 𝑪𝒐𝒎𝒑𝒍𝒊𝒂𝒏𝒄𝒆: Filing taxes creates a paper trail that shows you are following U.S. laws. This can be beneficial for your immigration status, as USCIS may review your tax history when evaluating your case.✅ 𝑨𝒄𝒄𝒆𝒔𝒔 𝒕𝒐 𝑭𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝑶𝒑𝒑𝒐𝒓𝒕𝒖𝒏𝒊𝒕𝒊𝒆𝒔: A history of filing taxes can make it easier to apply for loans, mortgages, or other financial services in the future.𝑨 𝑯𝒚𝒑𝒐𝒕𝒉𝒆𝒕𝒊𝒄𝒂𝒍 𝑺𝒄𝒆𝒏𝒂𝒓𝒊𝒐 ✍ Let’s say Maria, a TPS holder, obtained her EAD in October and worked part-time for the remainder of the year, earning $8,000. At first, she’s unsure if she needs to file taxes because her income is relatively low. However, after consulting a tax professional, Maria learns that filing taxes is not only a legal requirement but also an opportunity to claim the EITC. By filing her taxes, Maria receives a refund of $1000, which helps her cover essential expenses. Additionally, she establishes a record of compliance, which could strengthen her immigration case in the future.💮 𝑻𝒉𝒆 𝑹𝒊𝒔𝒌𝒔 𝒐𝒇 𝑭𝒂𝒍𝒔𝒆 𝑫𝒆𝒄𝒍𝒂𝒓𝒂𝒕𝒊𝒐𝒏𝒔 While filing taxes is important, it’s equally critical to ensure that your tax return is accurate and truthful. Any false declarations or misleading information on your tax forms can have serious consequences, including penalties from the IRS and complications with USCIS. Remember, tax and immigration matters are federal issues, and dishonesty can jeopardize your ability to remain in the U.S.☞ 𝑫𝒐𝒏’𝒕 𝑵𝒂𝒗𝒊𝒈𝒂𝒕𝒆 𝑻𝒉𝒊𝒔 𝑨𝒍𝒐𝒏𝒆 Filing taxes can be complex, especially when immigration status is involved. That’s why it’s essential to seek guidance from professionals who understand both tax and immigration law. At 𝑰𝒏𝒔𝒑𝒊𝒓𝒂𝒕𝒊𝒐𝒏 𝑴𝒖𝒍𝒕𝒊-𝑺𝒆𝒓𝒗𝒊𝒄𝒆𝒔, our team of legal and tax professionals is here to help. We’ll work with you to ensure your taxes are filed accurately and on time, so you can focus on building a brighter future in the U.S.Don’t let uncertainty hold you back. Contact 𝑰𝒏𝒔𝒑𝒊𝒓𝒂𝒕𝒊𝒐𝒏 𝑴𝒖𝒍𝒕𝒊-𝑺𝒆𝒓𝒗𝒊𝒄𝒆𝒔 today to schedule a consultation. Let us help you meet your legal obligations and unlock the benefits of filing taxes with confidence.

𝑾𝒉𝒚 𝑭𝒊𝒍𝒊𝒏𝒈 𝑻𝒂𝒙𝒆𝒔 𝒊𝒔 𝑬𝒔𝒔𝒆𝒏𝒕𝒊𝒂𝒍 𝒇𝒐𝒓 𝑻𝑷𝑺 𝒂𝒏𝒅 𝑯𝒖𝒎𝒂𝒏𝒊𝒕𝒂𝒓𝒊𝒂𝒏 𝑷𝒂𝒓𝒐𝒍𝒆 𝑯𝒐𝒍𝒅𝒆𝒓𝒔-𝑬𝒗𝒆𝒏 𝒊𝒇 𝒀𝒐𝒖 𝑬𝒂𝒓𝒏𝒆𝒅 𝑱𝒖𝒔𝒕 𝑶𝒗𝒆𝒓 $600

𝐍𝐞𝐰 𝐈𝐑𝐒 𝐑𝐮𝐥𝐞 𝐟𝐨𝐫 𝟐𝟎𝟐𝟓 𝐓𝐚𝐱 𝐒𝐞𝐚𝐬𝐨𝐧: 𝐅𝐢𝐥𝐢𝐧𝐠 𝐓𝐚𝐱𝐞𝐬 𝐰𝐢𝐭𝐡 𝐃𝐮𝐩𝐥𝐢𝐜𝐚𝐭𝐞 𝐃𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭𝐬 𝐌𝐚𝐝𝐞 𝐄𝐚𝐬𝐢𝐞𝐫Starting in the 2025 tax season (for your 2024 tax returns), the IRS is introducing a new rule to help taxpayers who are claiming a dependent that someone else has already claimed. If you have an 𝐈𝐝𝐞𝐧𝐭𝐢𝐭𝐲 𝐏𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐨𝐧 𝐏𝐈𝐍 (𝐈𝐏 𝐏𝐈𝐍), you can now file your tax return electronically, even if your dependent’s Social Security Number (SSN) has been used on another return. This change is designed to make the process faster and reduce delays caused by paper filing.𝐖𝐡𝐚𝐭 𝐢𝐬 𝐚𝐧 𝐈𝐏 𝐏𝐈𝐍? An 𝐈𝐏 𝐏𝐈𝐍?is a 6-digit number given by the IRS to protect your identity and prevent tax-related fraud. If you have an IP PIN, you can use it to file your taxes electronically, even if there’s a duplicate dependent issue.𝐓𝐰𝐨 𝐂𝐨𝐦𝐦𝐨𝐧 𝐒𝐜𝐞𝐧𝐚𝐫𝐢𝐨𝐬 𝐟𝐨𝐫 𝐅𝐢𝐥𝐢𝐧𝐠 𝐰𝐢𝐭𝐡 𝐃𝐮𝐩𝐥𝐢𝐜𝐚𝐭𝐞 𝐃𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭𝐬𝐒𝐜𝐞𝐧𝐚𝐫𝐢𝐨 𝟏: 𝐘𝐨𝐮 𝐃𝐨𝐧’𝐭 𝐇𝐚𝐯𝐞 𝐚𝐧 𝐈𝐏 𝐏𝐈𝐍 If the IRS rejects your tax return because someone else has already claimed your dependent, you will need to get an IP PIN to file electronically. Here’s what to do:Use the 𝐆𝐞𝐭 𝐚𝐧 𝐈𝐏 𝐏𝐈𝐍 tool on the IRS website (www.irs.gov) to request your IP PIN. Once you have your IP PIN, include it on your tax return and file electronically. If you don’t get an IP PIN, you will need to print and mail your tax return to the IRS.𝐒𝐜𝐞𝐧𝐚𝐫𝐢𝐨 𝟐: 𝐘𝐨𝐮 𝐀𝐥𝐫𝐞𝐚𝐝𝐲 𝐇𝐚𝐯𝐞 𝐚𝐧 𝐈𝐏 𝐏𝐈𝐍 If you already have an IP PIN, you can file your tax return electronically, even if your dependent has been claimed by someone else. However, the IRS will not tell you right away that someone else claimed the same dependent. Instead, they will send you a notice later to let you know about the situation.𝐖𝐡𝐲 𝐓𝐡𝐢𝐬 𝐂𝐡𝐚𝐧𝐠𝐞 𝐌𝐚𝐭𝐭𝐞𝐫𝐬 This new rule makes it easier for taxpayers to file their returns electronically, even when there’s a dependent conflict. It also helps the IRS resolve these issues faster, so you can get your refund sooner.𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 𝐟𝐨𝐫 𝐍𝐞𝐰 𝐈𝐦𝐦𝐢𝐠𝐫𝐚𝐧𝐭𝐬𝐆𝐞𝐭 𝐚𝐧 𝐈𝐏 𝐏𝐈𝐍: If you don’t have one, use the IRS website to request it. This will allow you to file electronically.𝐅𝐢𝐥𝐞 𝐄𝐥𝐞𝐜𝐭𝐫𝐨𝐧𝐢𝐜𝐚𝐥𝐥𝐲: If you have an IP PIN, you can file your taxes online, even if someone else claimed your dependent. 𝐖𝐚𝐭𝐜𝐡 𝐟𝐨𝐫 𝐍𝐨𝐭𝐢𝐜𝐞𝐬: If someone else claimed your dependent, the IRS will send you a notice after you file.By following these steps, you can avoid delays and make the tax filing process smoother. If you need help, consult Inspiration tax professional services.

𝐍𝐞𝐰 𝐈𝐑𝐒 𝐑𝐮𝐥𝐞 𝐟𝐨𝐫 𝟐𝟎𝟐𝟓 𝐓𝐚𝐱 𝐒𝐞𝐚𝐬𝐨𝐧: 𝐅𝐢𝐥𝐢𝐧𝐠 𝐓𝐚𝐱𝐞𝐬 𝐰𝐢𝐭𝐡 𝐃𝐮𝐩𝐥𝐢𝐜𝐚𝐭𝐞 𝐃𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭𝐬 𝐌𝐚𝐝𝐞 𝐄𝐚𝐬𝐢𝐞𝐫

𝐇𝐨𝐰 𝐭𝐨 𝐅𝐢𝐥𝐞 𝐅𝐨𝐫𝐦 𝟏𝟏𝟐𝟎 𝐚𝐧𝐝 𝟏𝟏𝟐𝟎-𝐒 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐓𝐚𝐱 𝐒𝐞𝐚𝐬𝐨𝐧: 𝐀 𝐒𝐭𝐞𝐩-𝐛𝐲-𝐒𝐭𝐞𝐩 𝐆𝐮𝐢𝐝𝐞Filing taxes is a critical responsibility for businesses, and for corporations, this means navigating Form 1120 or 1120-S. Understanding the differences between these forms, gathering the required documents, and filing them correctly can save your business from potential penalties and maximize tax benefits. Here’s everything you need to know for this tax season.&nbsp;𝐖𝐡𝐚𝐭 𝐀𝐫𝐞 𝐅𝐨𝐫𝐦𝐬 𝟏𝟏𝟐𝟎 𝐚𝐧𝐝 𝟏𝟏𝟐𝟎-𝐒?𝐅𝐨𝐫𝐦 𝟏𝟏𝟐𝟎: This is the U.S. Corporation Income Tax Return used by C Corporations to report income, gains, losses, deductions, and credits. Corporations must calculate their tax liability and pay the applicable taxes.&nbsp;𝐅𝐨𝐫𝐦 𝟏𝟏𝟐𝟎-𝐒: This form is used by S Corporations to report income, deductions, and credits. Unlike C Corporations, S Corporations pass through income and losses to shareholders, who report them on their personal tax returns.&nbsp;The key difference between 𝐂 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧𝐬 and 𝐒 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧𝐬 lies in how they are taxed and structured:𝐂 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧:① Pays taxes on its profits as a separate legal entity.② Owners (shareholders) also pay taxes on any dividends they receive (double taxation).③ No limit on the number or type of shareholders.𝐒 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧:① Passes its profits and losses directly to the owners' personal tax returns (avoids double taxation).② Limited to 100 shareholders, all of whom must be U.S. citizens or residents.Both provide liability protection for their owners, but the S Corporation is more tax-efficient for small businesses, while the C Corporation suits larger businesses or those seeking outside investors.Here’s a simple breakdown of why an S Corporation is more tax-efficient for small businesses and a C Corporation is better for larger businesses or those seeking outside investors.𝐒 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧 (𝐒𝐦𝐚𝐥𝐥 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐅𝐫𝐢𝐞𝐧𝐝𝐥𝐲)☑️ 𝐏𝐚𝐬𝐬-𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧:The company's profits and losses go directly to the owners' personal tax returns. This avoids the "double taxation" seen in C Corporations (where the company is taxed, and then shareholders are taxed on dividends).☑️ 𝐍𝐨 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐓𝐚𝐱:Since profits are passed through, the business itself doesn’t pay federal income tax, saving money for small businesses.☑️ 𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐍𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬:S Corporations can have up to 100 shareholders, making them ideal for smaller, closely held businesses.☑️ 𝐎𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩 𝐑𝐞𝐬𝐭𝐫𝐢𝐜𝐭𝐢𝐨𝐧𝐬:Only U.S. citizens or residents can own shares, and there can only be one class of stock, simplifying operations for smaller companies.𝐂 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧 (𝐋𝐚𝐫𝐠𝐞𝐫 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬/𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐅𝐫𝐢𝐞𝐧𝐝𝐥𝐲)☑️ 𝐀𝐛𝐢𝐥𝐢𝐭𝐲 𝐭𝐨 𝐀𝐭𝐭𝐫𝐚𝐜𝐭 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬:C Corporations can have unlimited shareholders and issue multiple classes of stock, making them appealing for venture capital or public stock offerings.☑️ 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐓𝐚𝐱 𝐑𝐚𝐭𝐞𝐬:While the corporation itself is taxed, the recent lower corporate tax rates may make this manageable for high-earning businesses.☑️ 𝐑𝐞𝐭𝐚𝐢𝐧𝐞𝐝 𝐄𝐚𝐫𝐧𝐢𝐧𝐠𝐬:C Corporations can retain earnings in the business without passing them to shareholders, which helps fund growth or expansion.☑️ 𝐆𝐥𝐨𝐛𝐚𝐥 𝐎𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩:There are no restrictions on who can own shares, allowing for broader investment opportunities.In short, S Corporations save taxes for small businesses with fewer owners, while C Corporations offer flexibility for growth and attracting investors, despite higher tax obligations.𝐒𝐭𝐞𝐩 𝟏: 𝐃𝐞𝐭𝐞𝐫𝐦𝐢𝐧𝐞 𝐘𝐨𝐮𝐫 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐓𝐲𝐩𝐞&nbsp;Before filing, confirm whether your business is a C Corporation or an S Corporation. Your corporation’s type determines which form to file:&nbsp;<ul><li>C Corporations file Form 1120.&nbsp;</li><li>S Corporations file Form 1120-S. (Note: To be an S Corporation, your business must have filed Form 2553, Election by a Small Business Corporation, and been approved by the IRS.)&nbsp;</li></ul>𝐒𝐭𝐞𝐩 𝟐: 𝐆𝐚𝐭𝐡𝐞𝐫 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐝 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐬Having all necessary documents organized ensures a smooth filing process. Here’s a checklist of documents you’ll need.𝐅𝐨𝐫 𝐁𝐨𝐭𝐡 𝐂 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐒 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧𝐬:𝟏. 𝐄𝐦𝐩𝐥𝐨𝐲𝐞𝐫 𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐍𝐮𝐦𝐛𝐞𝐫 (𝐄𝐈𝐍): Your business’s unique identifier issued by the IRS.&nbsp;𝟐. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐒𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭𝐬: Income statement (profit and loss statement), Balance sheet&nbsp;𝟑. 𝐁𝐚𝐧𝐤 𝐒𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭𝐬: For the tax year to reconcile income and expenses.&nbsp;𝟒. 𝐏𝐚𝐲𝐫𝐨𝐥𝐥 𝐑𝐞𝐜𝐨𝐫𝐝𝐬: If applicable, including wages paid to employees and taxes withheld.&nbsp;𝟓. 𝐄𝐱𝐩𝐞𝐧𝐬𝐞 𝐑𝐞𝐜𝐨𝐫𝐝𝐬: Receipts and invoices for operational expenses, such as rent, utilities, and supplies.&nbsp;𝟔. 𝐃𝐞𝐩𝐫𝐞𝐜𝐢𝐚𝐭𝐢𝐨𝐧 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞𝐬: Details of any assets your corporation is depreciating.&nbsp;𝟕. 𝐋𝐨𝐚𝐧 𝐚𝐧𝐝 𝐃𝐞𝐛𝐭 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐬: Include interest paid during the tax year.&nbsp;𝟖. 𝟏𝟎𝟗𝟗 𝐅𝐨𝐫𝐦𝐬: For any independent contractors you’ve paid.&nbsp;𝐀𝐝𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐬 𝐟𝐨𝐫 𝐒 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧𝐬𝟏. 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫 𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧: Names, addresses, and Social Security Numbers (SSNs) of all shareholders. Shareholder’s ownership percentage.&nbsp;𝟐. 𝐊-𝟏𝐬 (𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐊-𝟏): This form reports each shareholder’s share of income, deductions, and credits.&nbsp;𝟑. 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐃𝐢𝐬𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧𝐬: Payments made to shareholders.&nbsp;𝐒𝐭𝐞𝐩 𝟑: 𝐅𝐢𝐥𝐥 𝐎𝐮𝐭 𝐭𝐡𝐞 𝐅𝐨𝐫𝐦𝐅𝐨𝐫𝐦 𝟏𝟏𝟐𝟎 (𝐂 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧𝐬)𝟏. 𝐁𝐚𝐬𝐢𝐜 𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧: Fill out your corporation’s name, address, EIN, and date of incorporation.&nbsp;𝟐. 𝐈𝐧𝐜𝐨𝐦𝐞 𝐒𝐞𝐜𝐭𝐢𝐨𝐧: Report total income, including sales, services, interest, and other revenue sources.𝟑. 𝐃𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧𝐬 𝐒𝐞𝐜𝐭𝐢𝐨𝐧: List operational expenses, such as salaries, rent, and depreciation.𝟒. 𝐓𝐚𝐱 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲: Calculate the corporation’s taxable income and applicable taxes.𝐅𝐨𝐫𝐦 𝟏𝟏𝟐𝟎-𝐒 (𝐒 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧𝐬)𝟏. 𝐁𝐚𝐬𝐢𝐜 𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧: Include your corporation’s name, address, EIN, and date of incorporation.𝟐. 𝐈𝐧𝐜𝐨𝐦𝐞 𝐚𝐧𝐝 𝐃𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧𝐬: Report income and expenses.𝟑. 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫 𝐃𝐢𝐬𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧𝐬: Use Schedule K to list shareholder allocations and attach Schedule K-1 for each shareholder. &nbsp;𝟒. 𝐓𝐚𝐱 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧: S Corporations generally do not pay taxes at the corporate level, but ensure all information passed through to shareholders is accurate.&nbsp;𝐒𝐭𝐞𝐩 𝟒: 𝐅𝐢𝐥𝐞 𝐭𝐡𝐞 𝐅𝐨𝐫𝐦𝟏. 𝐂𝐡𝐨𝐨𝐬𝐞 𝐚 𝐅𝐢𝐥𝐢𝐧𝐠 𝐌𝐞𝐭𝐡𝐨𝐝:<ul><li>𝐄-𝐟𝐢𝐥𝐢𝐧𝐠: The IRS encourages electronic filing for faster processing and refunds.</li><li>𝐌𝐚𝐢𝐥: If filing by mail, send the form to the appropriate IRS address for your state.</li></ul>𝟐. 𝐀𝐭𝐭𝐚𝐜𝐡 𝐍𝐞𝐜𝐞𝐬𝐬𝐚𝐫𝐲 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞𝐬 𝐚𝐧𝐝 𝐅𝐨𝐫𝐦𝐬:<ul><li>𝐂 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧𝐬: Include Schedule G, Schedule J, and others as applicable.</li><li>𝐒 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧𝐬: Include Schedules K and K-1.</li></ul>𝟑. 𝐑𝐞𝐯𝐢𝐞𝐰 𝐟𝐨𝐫 𝐀𝐜𝐜𝐮𝐫𝐚𝐜𝐲: Double-check all entries and calculations to avoid delays or penalties.&nbsp;𝐒𝐭𝐞𝐩 𝟓: 𝐌𝐞𝐞𝐭 𝐭𝐡𝐞 𝐃𝐞𝐚𝐝𝐥𝐢𝐧𝐞𝐃𝐞𝐚𝐝𝐥𝐢𝐧𝐞 𝐟𝐨𝐫 𝐅𝐢𝐥𝐢𝐧𝐠<ul><li>Calendar-year corporations must file by April 15, 2025. </li><li>Fiscal-year corporations must file by the 15th day of the fourth month following the end of their fiscal year. </li><li>Extension: If you need more time, file Form 7004 to request a six-month extension.</li></ul>𝐍𝐞𝐞𝐝 𝐇𝐞𝐥𝐩 𝐅𝐢𝐥𝐢𝐧𝐠? 𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐈𝐧𝐬𝐩𝐢𝐫𝐚𝐭𝐢𝐨𝐧 𝐌𝐮𝐥𝐭𝐢-𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬!𝐢𝐧𝐞 𝐟𝐨𝐫 𝐅𝐢𝐥𝐢𝐧𝐠.Filing Form 1120 or 1120-S can be complex, but you don’t have to do it alone. At Inspiration Multi-Services, we provide expert assistance to ensure your corporate tax return is accurate and timely. Contact us today to schedule a consultation and make this tax season stress-free!&nbsp;Visit our office or reach out online to see how our tax professionals can support your business. Services are better with Inspiration!&nbsp;

𝐇𝐨𝐰 𝐭𝐨 𝐅𝐢𝐥𝐞 𝐅𝐨𝐫𝐦 𝟏𝟏𝟐𝟎 𝐚𝐧𝐝 𝟏𝟏𝟐𝟎-𝐒 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐓𝐚𝐱 𝐒𝐞𝐚𝐬𝐨𝐧: 𝐀 𝐒𝐭𝐞𝐩-𝐛𝐲-𝐒𝐭𝐞𝐩 𝐆𝐮𝐢𝐝𝐞

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Inspiration Multi-Services provides various services such as notary public, immigration services, translation services, legal document preparation, and tax preparation, etc.

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