Taxes

Income tax Identity theft

Your were a victim of Identity theft last year and need to file your income tax now, don't worry, if the letter the IRS sends you with a special protection pin to file got lost, or you think you can use last years pin, Stop and get a new pin from the IRS before you file or your check will be stolen once again.

WHAT IS TAX-RELATED IDENTITY THEFT?
We know identity theft is a frustrating process for victims. We are committed to working with you to resolve your case as quickly as possible.

Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund.

Generally, an identity thief will use your SSN to file a false return early in the year. You may be unaware you are a victim until you try to file your taxes and learn one already has been filed using your SSN.

Know the warning signs

Be alert to possible identity theft if you receive an IRS notice or letter that states that:

  • More than one tax return was filed using your SSN;
  • You owe additional tax, refund offset or have had collection actions taken against you for a year you did not file a tax return;
  • IRS records indicate you received wages from an employer unknown to you.

Steps to take if you become a victim

  • File a report with law enforcement.
  • File a complaint with the Federal Trade Commission atwww.identitytheft.gov or the FTC Identity Theft Hotline at 1-877-438-4338 or TTY 1-866-653-4261.
  • Contact one of the three major credit bureaus to place a ‘fraud alert’ on your credit records:
    • Equifax, www.Equifax.com, 1-800-525-6285
    • Experian, www.Experian.com, 1-888-397-3742
    • TransUnion, www.TransUnion.com, 1-800-680-7289
  • Contact your financial institutions, and close any accounts opened without your permission or tampered with.
  • Check your Social Security Administration earnings statement annually. You can create an account online at www.ssa.gov.
     

ADDITIONAL  STEPS:

  • Respond immediately to any IRS notice; call the number provided
  • Complete IRS Form 14039, Identity Theft Affidavit. Use a fillable form at IRS.gov, print, then mail or fax according to instructions.
  • Continue to pay your taxes and file your tax return, even if you must do so by paper.
     

If you previously contacted the IRS and did not have a resolution, contact the Identity Protection Specialized Unit at 1-800-908-4490. We have teams available to assist.

How to reduce your risk

  • Don’t routinely carry your Social Security card or any document with your SSN on it.
  • Don’t give a business your SSN just because they ask – only when absolutely necessary.
  • Protect your personal financial information at home and on your computer.
  • Check your credit report annually.
  • Check your Social Security Administration earnings statement annually.
  • Protect your personal computers by using firewalls, anti-spam/virus software, update security patches and change passwords for Internet accounts.
  • Don’t give personal information over the phone, through the mail or the Internet unless you have either initiated the contact or are sure you know who is asking.


The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

 

 

Deductions

 

   The following list of items should be of help to prepare for a good income tax result for Photography, Graphic Design and many other Freelance businesses.

  • Your mileage on all work related travel for purchases, deliveries, photo shoots, if you  purchased items to re-touch a person (such as make up, hair dressing etc) items are deductible.

  • Advertising, promotional gifts,  

  • Did  you hire help?  ..the most you can deduct without issuing a 1099 is $600.00 (on an assistant, help , etc)

  • Camera, lenses, and accessories, back drop, lights, cables bulbs, stands,.

  • Working out of home?...get sq footage of your home.

  • Have you obtained a loan for your business in which you pay interest?

  • Legal and professional services, such as notarized business documents, filing of permits, obtaining an entity “name” ( fictitious name  filing in news paper)

  • Office expenses, such as: pens, paper, printing, computer supplies, repairs, staples, rubber bands, paper clips...etc

  • Repairs and maintenance of your equipment.

  • Rental of equipment.

  • Supplies taxes and licenses

  • Travel, meals, lodging and entertainment….networking expenses.

  • Utilities if renting office or using home.

  • Cell/ phones, internet. parking.

  • Educational, seminars, workshops, research.

 

10 Important Deductible Expenses - For Freelancers

  • All Marketing and Promotion on shows and presentations.
  • Booth design expenses, all fees to set up and remove, parking, permits, materials.
  • Staying at a hotel? Hotel expenses are deductible when used for business.
  • Promotional gifts to clients, suppliers, contractors etc.
  • Travel and transportation, plane tickets, car car rental, entertainment and research.
  • Meals to crew, assistants, clients and business meetings, purchased b you.
  • Camp, conventions, seminars, cable and internet for webinars and research.
  • Home office space used for business, rent, mortgage, utilities and keep up.
  • Work equipment and supplies, software, camera, computer, phone, fax, paper and ink, accessories and repairs.
  • Mileage or  Auto expenses.