Frequently Asked Questions
FAQ's
The IRS Refund pages will give you all the information you need to check the status of your refund.
What You Will Need
- Social security number or ITIN
- Your filing status
- Your exact refund amount
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Is my social security taxable?
If your income is higher than the Social Security earned income limits, there are formulas to determine what percentage of your social security is taxable. Currently, up to 85% of your social security may be taxable.
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How long do I keep my records and tax returns?
You should keep your records and tax returns for a minimum of three years from the date the return was filed or the date the return was required to be filed, whichever is later. We highly recommended that you keep these records for at least seven years, if possible.
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What college expenses may I deduct?
There are several ways you can claim deductions for college expenses on your tax return. They are the tuition deduction, the HOPE credit and the Lifetime Learning Credit. If we are preparing your return we will determine which ones you qualify for and which one gives you the greatest tax benefit.
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What medical expenses are deductible?
A deduction is allowed only for expenses paid for the prevention or alleviation of a physical or mental defect or illness. Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or treatment affecting any structure or function of the body. Except for insulin, only prescription drugs are deductible. The cost of health insurance is deductible. You may also deduct the cost of traveling to and from the care provider. You can deduct only the part of your medical and dental expenses that exceeds 7.5% of your adjusted gross income.
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How should I keep records for my business driving?
Keep a log in your vehicle or use a mileage tracking app to record the purpose and mileage of each trip. You also need to record the odometer readings at the beginning and end of each year, as the IRS will ask you for total miles driven during the year. Keep your repair bills as these normally record odometer readings when the car is serviced.
_____________________________________________________________________________
My employer tells me I will receive a 1099. What does this mean for my taxes?
When you receive a 1099, it means you are considered an independent contractor. You will not have any withholding or payroll taxes deducted from your pay. You should keep track of all business expenses and a journal of your mileage driven for work. If the amount you expect to receive is substantial, you should probably be making estimated tax payments. Please contact us if you have any questions about this.
_____________________________________________________________________________
I received tax statements from my employer or bank after I filed my tax return. What should I do?
If we filed your return, bring the new tax documents to our office. We will determine if it is necessary for you to file an amended return.
_____________________________________________________________________________
What is an amended return, and when should I file one?
An amended return is simply a return filed with the IRS and/or state because of an error or an omission on your original return. You should file an amended return if there is a material difference between the original return and your new changes. Generally to claim a refund, your amended return must be filed within 3 years from the date of your original return or within 2 years from the date you paid the tax, whichever is later.
_____________________________________________________________________________
I haven’t been filing my tax returns what should I do?
First, you must determine if you were required to file in the years you did not file. There are many different items that could figure into this—such as your filing status, your sources of income, whether you had any tax withheld, etc. This is a link to the IRS instructions for filing requirements: Do I need to file? If you determine you should have filed, contact us and we can handle all of your prior year filings. It is very important that you do not just continue to not file. If you owe money, the penalties for not filing are high. If you are owed a refund, you will lose your claim to it 3 years after the due date of the return.
_____________________________________________________________________________
What do I do if I receive a notice from the IRS about my taxes?
Don’t panic! the first thing to do is carefully read the notice—to determine why it was sent, what the IRS is requesting, and what they want you to do. It may be nothing of importance; it may even be a notice in your favor. After reading it, upload it to the Portal. We'll review it and let you know what action you need to take.
_____________________________________________________________________________
What is the difference between a C and an S corporation?
A C Corporation and an S Corporation are exactly the same in respect to liability protection. The difference is in how you are taxed. A C Corporation has what is referred to as a double taxation. First the corporation is taxed, and secondly the dividends are taxed on the shareholders’ tax returns. An S Corporation is not taxed at the corporate level, only at the shareholder level. Most small businesses are eligible to file as S corporations. But the appropriate election must be made.
Is my social security taxable?
If your income is higher than the Social Security earned income limits, there are formulas to determine what percentage of your social security is taxable. Currently, up to 85% of your social security may be taxable.
_____________________________________________________________________________
How long do I keep my records and tax returns?
You should keep your records and tax returns for a minimum of three years from the date the return was filed or the date the return was required to be filed, whichever is later. We highly recommended that you keep these records for at least seven years, if possible.
_____________________________________________________________________________
What college expenses may I deduct?
There are several ways you can claim deductions for college expenses on your tax return. They are the tuition deduction, the HOPE credit and the Lifetime Learning Credit. If we are preparing your return we will determine which ones you qualify for and which one gives you the greatest tax benefit.
_____________________________________________________________________________
What medical expenses are deductible?
A deduction is allowed only for expenses paid for the prevention or alleviation of a physical or mental defect or illness. Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or treatment affecting any structure or function of the body. Except for insulin, only prescription drugs are deductible. The cost of health insurance is deductible. You may also deduct the cost of traveling to and from the care provider. You can deduct only the part of your medical and dental expenses that exceeds 7.5% of your adjusted gross income.
_____________________________________________________________________________
How should I keep records for my business driving?
Keep a log in your vehicle or use a mileage tracking app to record the purpose and mileage of each trip. You also need to record the odometer readings at the beginning and end of each year, as the IRS will ask you for total miles driven during the year. Keep your repair bills as these normally record odometer readings when the car is serviced.
_____________________________________________________________________________
My employer tells me I will receive a 1099. What does this mean for my taxes?
When you receive a 1099, it means you are considered an independent contractor. You will not have any withholding or payroll taxes deducted from your pay. You should keep track of all business expenses and a journal of your mileage driven for work. If the amount you expect to receive is substantial, you should probably be making estimated tax payments. Please contact us if you have any questions about this.
_____________________________________________________________________________
I received tax statements from my employer or bank after I filed my tax return. What should I do?
If we filed your return, bring the new tax documents to our office. We will determine if it is necessary for you to file an amended return.
_____________________________________________________________________________
What is an amended return, and when should I file one?
An amended return is simply a return filed with the IRS and/or state because of an error or an omission on your original return. You should file an amended return if there is a material difference between the original return and your new changes. Generally to claim a refund, your amended return must be filed within 3 years from the date of your original return or within 2 years from the date you paid the tax, whichever is later.
_____________________________________________________________________________
I haven’t been filing my tax returns what should I do?
First, you must determine if you were required to file in the years you did not file. There are many different items that could figure into this—such as your filing status, your sources of income, whether you had any tax withheld, etc. This is a link to the IRS instructions for filing requirements: Do I need to file? If you determine you should have filed, contact us and we can handle all of your prior year filings. It is very important that you do not just continue to not file. If you owe money, the penalties for not filing are high. If you are owed a refund, you will lose your claim to it 3 years after the due date of the return.
_____________________________________________________________________________
What do I do if I receive a notice from the IRS about my taxes?
Don’t panic! the first thing to do is carefully read the notice—to determine why it was sent, what the IRS is requesting, and what they want you to do. It may be nothing of importance; it may even be a notice in your favor. After reading it, upload it to the Portal. We'll review it and let you know what action you need to take.
_____________________________________________________________________________
What is the difference between a C and an S corporation?
A C Corporation and an S Corporation are exactly the same in respect to liability protection. The difference is in how you are taxed. A C Corporation has what is referred to as a double taxation. First the corporation is taxed, and secondly the dividends are taxed on the shareholders’ tax returns. An S Corporation is not taxed at the corporate level, only at the shareholder level. Most small businesses are eligible to file as S corporations. But the appropriate election must be made.
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