CLASE: 1 Cómo INICIARTE en el 2026 en el negocio de los taxes.

Welcome and Introduction

Opening Remarks

• The speaker greets the audience warmly, asking for confirmation of audio clarity.

• Participants are encouraged to share their locations in the chat, fostering a sense of community among attendees.

Audience Engagement

• A diverse group is acknowledged as connecting from various cities across the United States, including Pennsylvania, Maryland, Texas, New York, and more.

• The speaker expresses gratitude for the audience's presence and enthusiasm for the session.

Course Overview

Course Content

• The session is framed as a dual training opportunity focused on personal tax preparation and immigration forms. This is highlighted as a significant decision for participants' professional development.

• Emphasis is placed on how this training can lead to substantial career advancements in tax preparation within the U.S., marking it as an important step towards future success.

Importance of Decision-Making

• The speaker stresses that making informed decisions can lead to different outcomes in life; continuing with old habits yields unchanged results. Taking proactive steps can create new opportunities.

Personal Journey

Speaker's Background

• Claudia Patricia Domínguez shares her background: originally from Colombia but raised in Venezuela; she moved to the U.S. eight years ago and has been preparing taxes and immigration forms professionally since then.

• She highlights her entrepreneurial spirit and commitment to learning new skills that led her to establish LGM Consulting Group, which offers these services.

Encouragement for Participants

• Domínguez encourages participants by sharing her transformative journey from having a profession in another field to successfully working in tax preparation and immigration services after pursuing education in this area.

• She reassures attendees that they too can achieve similar or greater success through dedication and hard work during this course.

Preparation for Personal and Corporate Taxes

Overview of Tax Preparation Course

• The course aims to prepare participants for personal and corporate tax preparation, emphasizing that one does not need to be a CPA or accountant in the U.S. to become a tax preparer.

• Participants are encouraged to learn professionally and responsibly, highlighting the importance of having a PTIN (Preparer Tax Identification Number) for filing taxes.

Course Structure and Schedule

• The first class on January 7 will focus on effectively filling out Form 1040 and understanding key tax theories.

• The second class on January 8 will cover calculating taxes and using software for transmission.

• On January 10, the final class will teach effective completion of Form I-765 for work permits. Classes are scheduled at 7:30 EST, 6:30 CST, and 4:30 PST.

Advanced Course Information

• After the free course, an advanced course on taxes and immigration forms will be offered at a cost; however, participation in the initial three days is encouraged regardless of future enrollment.

• The instructor assures ongoing support during tax season, preparing students to start their careers as tax preparers.

Opportunities in Tax Preparation

• Students can expect to gain skills necessary for the upcoming tax season starting around January 26 or 27.

• There is potential for significant income through both personal tax preparation and immigration form services due to ongoing demand.

Professionalism in Tax Services

• Emphasizes the importance of professionalism when dealing with IRS (AAR Res) and DHS (Department of Homeland Security), ensuring proper training before offering services.

Certification and Software Use

• Details about certification will be provided later; classes will be recorded for review.

• The software used is Tatsac; participants will learn essential concepts related to U.S. fiscal systems including how to accurately fill out Form 1040.

Learning Outcomes

• By the end of this course, participants should understand each section of Form 1040 thoroughly—not just data entry but also its implications for clients.

Introduction to Personal Tax Declaration

Overview of the Course

• The session focuses on essential information needed for correctly filling out a personal tax declaration.

• Participants are encouraged to have their WordBook ready, which can be downloaded via links provided in the chat.

• Emphasis is placed on understanding how Form 1040 works, aiming to alleviate fears associated with tax declarations.

Learning Objectives

• The course aims to provide technical knowledge and practical insights into the role of a tax preparer in the U.S.

• Participants will learn about basic tax fundamentals and how to handle Form 1040, which is crucial for individual declarations.

Key Concepts in Tax Preparation

Understanding Tax Obligations

• The curriculum includes comprehending the U.S. tax system, identifying various types of income, deductions, and credits.

• Properly filling out Form 1040 and its attachments is a primary focus of the training.

Ethical Considerations

• Success in this profession relies not just on form-filling but also on understanding each taxpayer's financial context legally and ethically.

The Importance of Contextual Knowledge

Individual Tax Situations

• Each taxpayer's situation is unique; assumptions based on similar cases can lead to misunderstandings regarding taxes owed or credits available.

Legal Framework

• It's vital to base knowledge on legal guidelines as outlined by IRS regulations that may change annually.

Educational Goals and Professional Development

Pathway to Independence

• Education serves as a foundation for professional independence, enabling individuals to assist others in meeting legal obligations while achieving financial peace.

Introduction to Sustainable Tax Practices

Importance of Continuous Learning

• Emphasizes the need for ongoing education and updates in tax practices to ensure sustainable income generation without fear of IRS issues.

Overview of the Internal Revenue Service (IRS)

• Introduces the IRS as the federal agency responsible for administering and enforcing U.S. tax laws.

Functions of the IRS

• The primary role is to ensure fair, efficient tax collection in accordance with current legislation.

• Manages revenue distribution for public services such as infrastructure, healthcare, and education, contributing to overall quality of life.

Understanding Taxes

Definition and Purpose

• Defines taxes as mandatory contributions from individuals and businesses that fund government operations and societal benefits.

Types of Taxes in the United States

• Discusses various levels of taxation: federal, state, and local, each with distinct types applicable to different activities or incomes.

Income Tax

• Describes income tax as a major federal tax collected from individuals via Form 1040 based on annual earnings minus deductions.

Sales Tax

• Explains sales tax imposed by state and local governments on consumers' purchases calculated as a percentage of sale price.

Property Tax

• Details property taxes levied by local governments on real estate owners based on assessed property value.

Payroll Tax

• Outlines payroll taxes collected by the federal government from both employers and employees to fund social security programs.

Taxation Overview and Responsibilities of Tax Preparers

Types of Taxes Applicable to Employees and Self-Employed Individuals

• The Social Security tax is 6.2% and Medicare tax is 1.45%, applicable to employees as seen on their W-2 forms.

• Self-employed individuals pay a self-employment tax of 15.3% on business earnings, reported on Schedule SE in their tax returns.

• Examples of self-employed individuals include delivery drivers for Uber or DoorDash, mechanics, and childcare providers who do not work for an institution.

Additional Tax Categories

• Investment taxes apply to those selling assets or receiving dividends/interest, declared on Form 1040.

• Inheritance taxes have a federal threshold for gifts/donations set at $13,900 for the year 2025.

• Other common taxes include fuel taxes, hotel occupancy taxes, and excise taxes on alcohol, tobacco, and firearms.

Role of Tax Preparers

• A tax preparer assists taxpayers in preparing their returns while ensuring compliance with tax laws and maximizing legal benefits.

• To prepare federal returns professionally, one must obtain a PTIN (Preparer Tax Identification Number) issued by the IRS.

Responsibilities of Tax Preparers

• Key functions include gathering financial/personal information from clients through interviews and maintaining detailed records.

• Preparers must accurately complete official forms like Form 1040 while identifying applicable deductions and credits that may change annually.

Client Education and Ethical Obligations

• It’s essential to verify all data before submission; this includes checking names, Social Security numbers, and birth dates for accuracy.

• Educating clients about their rights and responsibilities is crucial; it fosters trust and ensures they understand their financial situations better.

Building Client Relationships

• By educating clients about potential refunds or payments due based on their filings, preparers can enhance client loyalty through informed service.

• The role extends beyond mere form-filling; understanding each client's unique economic story allows preparers to create precise declarations compliant with IRS regulations.

Ethical Standards in Practice

• Tax preparers hold ethical responsibilities towards both clients and the IRS; they must ensure the accuracy of received information while safeguarding sensitive documentation.

Tax Preparation Responsibilities and Ethics

Importance of Documentation in Tax Preparation

• It is crucial to maintain all documents for tax preparation, especially during audits. Signatures are necessary on declarations, particularly when charging for services.

• If a preparer offers courses or services without charging, they may not need to register; however, once fees are involved, proper registration and documentation become mandatory.

Legal Obligations and Client Confidentiality

• Preparers must sign their declarations to affirm the accuracy of the information provided. Submitting unsigned documents is unacceptable.

• All tax-related documents should be retained for at least three years to comply with regulations and protect client confidentiality.

Ethical Standards in Tax Preparation

• Professional ethics are foundational in tax preparation. Preparers must avoid fabricating deductions or false claims.

• It's essential to declare all income received by clients, even if there are no official documents available. This responsibility falls on the preparer.

Handling Client Situations Responsibly

• Preparers should guide clients about declaring all income sources accurately, regardless of documentation status.

• Declarations should never be submitted without client authorization. Additionally, preparers should refrain from providing legal advice unless qualified.

Consequences of Ethical Violations

• A single ethical misstep can damage a preparer's reputation significantly. Many unethical practices lead to temporary operations that eventually disappear.

• Offering inflated refunds or misleading promises can result in severe repercussions for both clients and preparers.

Understanding Tax Filing Requirements

Who Must File Taxes?

• Anyone generating income within the U.S., regardless of immigration status or employment type, may be required to file federal taxes.

Criteria for Filing Taxes

• The IRS has specific criteria determining who needs to file based on total annual income, age, marital status as of December 31st of the fiscal year, and type of income (e.g., employee vs contractor).

Misconceptions About Income Levels

• Preparers should not assume that low-income clients do not need to file taxes; filing might still be necessary for credits or recovering withholdings.

Understanding Tax Declaration Processes

Importance of Filing Tax Declarations

• It is crucial for tax preparers to recognize if clients have recoverable credits or federal withholdings, emphasizing that failing to file a declaration prevents recovery.

• Assumptions about a client's income should not lead to the conclusion that they do not need to declare; every situation must be evaluated individually.

The Flow of Tax Information

• Understanding the cycle of tax information from income to IRS forms is essential for accurately completing Form 1040.

• The session will cover practical cases illustrating how information flows into tax declarations, starting with an employee's W2 form.

Case Study: Employee with W2

• An employer completes a W4 form at the start of employment, which helps calculate federal withholdings for each paycheck.

• At year-end, employees receive a W2 detailing their earnings and withheld taxes, which they use to fill out their Form 1040.

• Example: Luis Herrera earned $48,000 in Orlando and had $4,000 withheld. His preparer checks if this amount covers his calculated tax liability.

Case Study: Independent Contractor with 1099

• Contractors fill out a W9 when starting work; unlike employees, they do not have federal taxes withheld from payments received.

• If contractors earn over $600 in a year, companies issue them a 1099 NEC form instead of a W2. This income is reported on Schedule C when filing taxes.

Self Employment Taxes and Deductions

• Example: Carla Gómez billed $25,000 as a marketing consultant. She deducts $3,500 in business expenses before calculating her self-employment tax obligations.

• It's important that deductible expenses are ordinary and necessary for the business activity being conducted.

Compliance and Reporting Deadlines

• Employers must issue W2 and 1099 NEC forms by January 31 each year. Accurate reporting is critical to avoid penalties or audits by the IRS.

• The IRS expects timely submission of Form 1040 reflecting all reported income from these forms before April 15th each year.

Understanding W4 and W2 Forms

Overview of Tax Forms

• The speaker emphasizes the importance of declaring all income received, whether through W2 or 1099 forms, as tax authorities are aware of earnings.

• A W4 form is introduced as a crucial document that generates a W2 for employees upon starting a job.

Details on the W4 Form

• The speaker explains that the W4 form collects basic personal information such as name, Social Security number, and address to ensure accurate processing of tax documents.

• It is highlighted that the accuracy of the address on the W4 is vital since it determines where the employee's W2 will be sent.

Modifications to the W4

• Employees can modify their W4 if there are significant life changes (e.g., marriage, moving, having children), which may affect their tax situation.

• The form allows individuals to indicate their marital status and how many dependents they have, impacting withholding amounts.

Impact of Marital Status on Withholding

• Single individuals typically have higher withholding rates compared to married individuals because they require less money in hand each pay period.

• Married employees generally have lower withholdings due to shared financial responsibilities with their partners.

Importance of Accurate Dependents Reporting

• Employees must accurately report their number of dependents; overstating this number can lead to insufficient tax withholding throughout the year.

• Misreporting dependents can result in owing taxes at year-end if too little was withheld from paychecks.

Recommendations for Clients

• Advising clients to report actual dependent numbers ensures proper withholding and avoids unexpected tax liabilities at year's end.

• It's crucial for clients to understand that claiming more dependents than they actually have will reduce withholdings but could lead to larger tax bills later.

Understanding W4 and W2 Forms

Importance of Properly Filling Out the W4 Form

• Advising clients on how to accurately complete the W4 form is crucial, as it directly impacts their tax withholdings and ultimately affects their W2.

• The form requires information such as marital status and number of dependents; children must be under 17 years old for credits that apply later in tax declarations.

Key Components of the W2 Form

• The W2 form contains essential details like the employee's Social Security number, employer's identification number, and total earnings during employment.

• It includes various boxes detailing income received (Box 1), federal tax withheld (Box 2), Social Security withholding (Box 4), and Medicare contributions (Box 5).

Recent Changes Affecting Tax Withholdings

• New legislation has introduced changes where tips up to $25,000 will be exempt from taxes; this does not mean they are not reported on the W2.

• Additional updates include exemptions for overtime pay up to $12,500 for individuals or $25,000 per couple if married.

Understanding State-Specific Tax Information

• For states with income taxes like Washington, additional information is filled starting from Box 15 onward; states without income taxes leave these boxes empty.

Exploring the W9 Form

Purpose of the W9 Form

• The W9 form is designed for self-employed individuals or independent contractors who need to report their earnings through a 1099 NEP form.

Required Information on the W9 Form

• Individuals must provide their name in Box 1; if operating under a business entity, they should also include their company name below it.

• In Box 3, filers indicate their business type—whether they are sole proprietors or corporations.

Understanding the W9 and 1099 Forms in Business Transactions

Importance of W9 Form

• The W9 form is crucial for identifying the type of business entity, such as a partnership or LLC. It specifies how the individual declares their business status (e.g., small corporation).

• Essential information on the W9 includes the contractor's full address and ZIP code, which will be used to generate a 1099 NET form.

• Contractors must provide either their Social Security Number or Employer Identification Number (EIN) on the W9 to ensure accurate reporting.

• The completion of these forms is straightforward but vital for understanding tax obligations and generating necessary documentation like the 1099 NET.

Generating Tax Documents

• After filling out the W9, contractors should confirm their understanding of its implications, particularly regarding income reporting through forms like 1099 NET.

• A correctly filled W9 generates a 1099 NET, which is essential for clients to justify payments made to contractors during tax filings.

Reporting Income

• Contractors need to fill out a new W9 each time they start a contract with a client; this ensures that all income received can be accurately reported via 1099 NET forms.

• The purpose of generating a 1099 NET is to support income claims made by contractors when filing taxes.

Understanding Gross Income

• Gross income encompasses all money, goods, or services received within a year before any deductions are applied. This serves as the basis for federal tax calculations.

• Examples include salaries from employment (reported on W2), independent contractor earnings (reported on 1099 NET), and various investment incomes.

Exclusions from Gross Income

• Certain items do not count towards gross income: donations, inheritances, some social security benefits, and state tax refunds are exempt from taxation.

• It's important to note that while many sources of income are taxable, specific exclusions exist under law that must be understood by taxpayers.

This structured overview provides clarity on how individuals engaged in self-employment or contracting should navigate tax documentation processes using forms like W9 and 1099.

Understanding Tax Reporting Requirements

Types of Income and Corresponding Forms

• Royalties are reported on a Schedule E for property owners, while retirement income is reported on a 1099-R for retirees. Unemployment benefits are documented via a 1099-G for unemployed workers.

• Miscellaneous income can include contest winnings, not limited to lotteries. For example, winning a car from a dealership's raffle would also require reporting through a 1099-MISC.

• All forms of prizes or awards must be reported as income, including items won in contests. Understanding the various tax forms is crucial for compliance.

Income Thresholds and Filing Obligations

• Each year, the IRS publishes minimum income thresholds that determine who must file tax returns based on age and marital status.

• A single individual under 65 must file if their gross income exceeds $14,600; this threshold increases to $16,500 for those over 65.

• Head of household filers have different thresholds: under 65 must file if earning over $21,200; over 65 requires filing if earnings exceed $23,850.

Special Cases and Considerations

• Married couples filing jointly need to report if their combined income exceeds $29,000; separate filings have lower thresholds starting at just $5.

• Qualified widows with dependents must file if they earn more than $29,200 (under 65) or more than $30,750 (over 65).

• Important note: Income thresholds adjust annually based on inflation. Certain taxpayers may still need to file even with lower incomes due to refundable tax credits or independent contractor taxes.

Importance of Filing Regardless of Status

• All individuals generating income in the U.S. are obligated to report it regardless of immigration status; the IRS does not consider this factor when enforcing tax laws.

• Individuals may need to file even if they earn below the threshold due to potential refunds from excess withholding or outstanding debts owed to the IRS.

Summary of Tax Filing Process

• The cycle begins with W2 or 1099 forms and concludes with submitting Form 1040. This process includes understanding gross income before deductions.

• Gross income encompasses all earnings prior to any deductions being applied. It's essential for determining filing obligations based on established thresholds.

Tax Structure Overview

General Framework of Income Tax Calculation

• Federal income taxes follow a logical sequence from total taxpayer earnings down to calculating owed taxes or potential refunds.

Understanding Taxable Income and Deductions

Overview of Tax Calculation Process

• The process begins with generating taxable income, which is subject to taxes. Deductions will be subtracted from this income.

• The next step involves calculating adjusted gross income (AGI) by subtracting either the standard deduction or itemized deductions based on the client's choice.

• Federal tax tables are then used to determine the amount owed, factoring in any withholdings, estimated payments, and applicable tax credits.

• A detailed understanding of this formula is essential for accurately calculating taxes owed or refunds; practical exercises will be conducted to reinforce learning.

• It's important to grasp where taxable amounts originate from and how they relate to overall financial narratives.

Components of Gross Income

• Gross income encompasses all earnings within a fiscal year before deductions, including wages, freelance payments, interest, rents, and prizes.

• Example: Carlos Méndez earned $40,000 through W2 employment and an additional $9,000 via 1099 freelance work for a total gross income of $49,000.

Adjustments to Income

• Adjustments include specific deductions allowed before calculating AGI; these can benefit even those who do not itemize deductions.

• Examples of adjustments include contributions to traditional IRAs, health savings accounts (HSAs), student loan interest payments, moving expenses for military members, and self-employed health insurance premiums.

• For instance: Sofia Torres had gross earnings of $60,000 but contributed $5,000 to her IRA; her adjusted gross income would thus be $55,000.

Standard vs. Itemized Deductions

• The choice between standard and itemized deductions varies annually; advisors must help clients select the most beneficial option based on their circumstances.

• Standard deductions are fixed amounts determined by filing status (e.g., single vs. married), while itemized deductions require listing eligible expenses according to IRS guidelines.

Filing Considerations for Married Couples

• When married couples file separately using different deduction types (standard vs. itemized), both must adhere to the same method—both must choose either standard or itemized deductions consistently.

Deducción Estándar para el Año Fiscal 2025

Montos de Deducción Estándar

• La deducción estándar para un soltero en el año fiscal 2025 es de 15,750.

• Para parejas casadas que declaran juntas, la deducción estándar es de 31,500.

• Las parejas casadas que declaran por separado tienen una deducción estándar de 15,750 cada uno.

• Un cabeza de familia tiene una deducción estándar de 23,625, definido como un soltero con dependientes calificados.

• Un viudo calificado puede declarar durante dos años después del fallecimiento del cónyuge y tiene una deducción estándar de 31,500 si tiene un hijo menor de 17 años.

Concepto de Deducción Estándar

• La deducción estándar permite a los contribuyentes no pagar impuestos sobre ingresos hasta el monto especificado; por ejemplo, un soltero con ingresos menores a 15,750 no pagará impuestos.

• Parejas casadas con ingresos combinados inferiores a 31,500 tampoco tendrán que pagar impuestos sobre esos ingresos.

Cambios en las Deducciones Adicionales

• Contribuyentes mayores de 65 años recibirán una deducción adicional de 6,000, y aquellos legalmente ciegos recibirán un crédito adicional de 2,000.

• Si ambos cónyuges son mayores de 65 años, se suman 12,000 a la deducción estándar total. Esto podría resultar en aproximadamente 40,000 libres de impuestos para parejas casadas.

Ley Retroactiva y Propinas

• La nueva ley firmada el 4 de julio del 2025 es retroactiva para trabajadores que reciben propinas o horas extras desde enero del mismo año; se les devolverá dinero retenido sobre esas propinas.

Deducciones Detalladas y Comparación

Tipos Comunes en Schedule A

• En Schedule A se incluyen intereses hipotecarios (límites establecidos por el IRS), impuestos estatales y locales (hasta $40,000), contribuciones caritativas (hasta el 60% del ingreso ajustado) y gastos médicos (solo si superan el 7.5% del ingreso ajustado).

Estrategia para Declaraciones Fiscales

• Es recomendable comparar las deducciones detalladas con la deducción estándar; si los gastos detallados superan la cantidad estándar aplicable al contribuyente debe optar por detallar sus deducciones.

Cálculo del Impuesto Sobre la Renta

Tasas Impositivas Progresivas

• El impuesto sobre la renta se calcula usando tasas progresivas donde diferentes tramos tienen distintos porcentajes:

• Hasta $11,925: tasa del 10%

• Desde $11,926 hasta $48,475: tasa del 12%

• Desde $48,476 hasta $103,650: tasa del 22%

• Desde $103,651 hasta $197,300: tasa del 24% [].(6389)

Tax Brackets and Calculations Explained

Understanding Tax Rates and Brackets

• The tax brackets are defined as follows: 32% for income from $197,300 to $250,525; 35% for income from $250,525 to $626,000; and 37% for income over $625,000.

• It's important to note that individuals do not pay the highest rate on their entire income but rather on portions of it according to these brackets.

• The IRS publishes updated tax rates annually based on inflation in the official review producer corresponding to each fiscal year.

Deductions and Credits

• After calculating total taxes owed, taxpayers can subtract amounts already paid or credits they qualify for. This understanding is crucial before filling out forms like the 1040.

• Retentions (withholdings), prepayments, and credits include amounts deducted from W2 wages and estimated payments made by self-employed individuals.

Types of Tax Credits

• Common tax credits include those for children (Child Tax Credit), earned income (Earned Income Credit), education (American Opportunity Credit), and others that directly reduce taxable income dollar-for-dollar.

• For example, if a taxpayer has a total tax liability of $3,800 but had $4,200 withheld throughout the year plus qualifies for a $500 credit, they may receive a refund of $900.

Importance of Accurate Withholding

• Proper withholding during the year is essential as it affects final tax outcomes significantly. Over-withholding can lead to refunds while under-withholding may result in owing taxes at year's end.

Impact of Recent Legislative Changes

• Recent changes in legislation have eliminated certain taxes on overtime hours and tips which could lead to higher refunds this year due to retroactive adjustments affecting prior withholdings.

Tax Deductions and Credits Overview

Understanding Tax Eligibility and Payments

• The eligibility for tax credits can improve based on income levels; lower incomes may qualify for more credits.

• The final tax balance or refund is determined by the combination of credits and withholdings.

Quarterly Payments for Contractors

• Contractors must open a personal account to make quarterly estimated payments based on projected annual earnings.

• For example, if a contractor estimates $45,000 in earnings, they calculate 15.3% for self-employment tax and divide this amount by four for quarterly payments.

Consequences of Not Making Payments

• Failure to make required quarterly payments results in penalties during tax declaration due to mandatory payment obligations.

W9 Form Requirements

• Service providers must fill out a W9 form, which is provided by the company hiring them; it reflects outgoing payments made by the company.

Employer Obligations Regarding W2 Forms

• Employers are legally required to issue W2 forms to employees; failure to do so necessitates action from the employee against the employer.

New Tax Schedules and Deductions

Reporting New Vehicle Interest Deductions

• New vehicle interest deductions will be reported on Schedule 1A starting this year, including standard deductions for seniors over 65 years old.

Handling Multiple Income Sources

• All income sources (W2 forms, 1099 net income) should be reported together in one tax return rather than separately.

Upcoming Classes and Software Training

Importance of Attendance

• Students are encouraged to attend the next class where they will learn how to calculate taxes using information gathered in previous sessions.

Practical Application with Software

• Tomorrow's session will include software demonstrations that students enrolled in advanced courses can use for practical exercises.

Final Remarks and Future Sessions

Encouragement for Engagement

• Participants are urged to promote their services as preparers on social media platforms while preparing taxes during the season.