Taxes can be very confusing, and laws change from year to year it's hard to keep up with it all. As our lives change, things happen and questions arise about how they will affect us during tax time. Below are some frequently asked questions about tax returns, however, if you can't find your answer here, please contact us and we will do our best to
answer your questions.
i FILED MY TAX RETURN, BUT I HAVEN'T RECEIVED MY REFUND YET, HOW DO I FIND OUT WHERE MY REFUND IS?
Typically the IRS takes about 7-10 business days to process your electronic refund, longer if you are receiving a paper check. You can go to the IRS website and click on "Where's My Refund" or CLICK HERE. Once you are on the site, you will need your Social Security Number, your filing status (Married Filing Joint, Single, etc.) and your refund amount to search for your refund.
My return has been filed for extension, what does that mean and when do
i need to file?
i need to file?
An extension is filed because there wasn't enough time to file your completed return. If an extension of time is required, any tax due with these returns must be paid with that extension. PLEASE NOTE THAT AN EXTENSION IS AN EXTENSION OF TIME NOT AN EXTENSION TO PAY TAXES DUE. Any amounts not paid by the filing deadline may be subject to interest and late payment penalties. Below is a list of due dates and extension due dates for deadlines in 2023:
1040 Individual Returns ..................... Due Date - April 18th ................ Extension Due Date - October 16th
1041 Trust/Estate Returns ................. Due Date - April 18th ................ Extension Due Date - October 2nd
1065 Partnership Returns .................. Due Date - March 15th .............. Extension Due Date - September 15th
1120C - Corporate Returns ................ Due Date - April 18th ................. Extension Due Date - October 16th
1120S - Corporate Returns ................ Due Date - March 15th ............... Extension Due Date - September 15th
1040 Individual Returns ..................... Due Date - April 18th ................ Extension Due Date - October 16th
1041 Trust/Estate Returns ................. Due Date - April 18th ................ Extension Due Date - October 2nd
1065 Partnership Returns .................. Due Date - March 15th .............. Extension Due Date - September 15th
1120C - Corporate Returns ................ Due Date - April 18th ................. Extension Due Date - October 16th
1120S - Corporate Returns ................ Due Date - March 15th ............... Extension Due Date - September 15th
What is the Standard Mileage Rate?
When you use your vehicle for business purposes the IRS allows you to deduct your mileage. The mileage rate changes from year to year. CLICK HERE to see the changes over the past 20 years. The basic Standard Mileage Rates listed below for the year 2023:
Business .......................... $0.655
Medical/moving ............ $0.22
Charitable ....................... $0.14
Business .......................... $0.655
Medical/moving ............ $0.22
Charitable ....................... $0.14
When, how, and to whom Do I need to Send a 1099?
As a general rule, a 1099 must be sent to each person whom you have paid at least $600 in rents, services (including parts and materials), veterinary services, prizes and awards, attorneys or other income payments. You do not need to issue a 1099 for personal purposes. By law, a 1099-MISC must be issued by January 31st.
CLICK HERE to get a 1099-MISC form.
CLICK HERE to get a 1099-MISC form.
What can be classified as a deduction?
A deduction is any item or expenditure subtracted from gross income to reduce the amount of income subject to income tax. There are many options for deductions on your tax return. Below is a list of possible deductions:
Medical Deduction
Taxes (Income Tax, Real Estate Tax, Personal Property Tax)
Interest (Student Loan Interest, Mortgage Interest, etc.)
Investment Interest
Mortgage Interest
Charitable Contributions
Work-Related Education Cost
Legal Fees
Medical Deduction
Taxes (Income Tax, Real Estate Tax, Personal Property Tax)
Interest (Student Loan Interest, Mortgage Interest, etc.)
Investment Interest
Mortgage Interest
Charitable Contributions
Work-Related Education Cost
Legal Fees
what is the standard deduction?
Standard Deduction is a dollar amount that is allotted by the IRS that decreases the amount of income which you are taxed. The amount depends on your filing status. There is also an additional standard deduction for individuals who are blind or over 65. A standard deduction CANNOT be taken if you are itemizing on your tax return. Below is a guide to help better answer your question:
2023
Married Filing Joint .............................. $ 27,700
Single .......................................................$ 13,850
Head Of Household ................................$ 20,800
Married Filing Separate ........................$ 13,850
Dependent ...............................................$ 1,150
2023
Married Filing Joint .............................. $ 27,700
Single .......................................................$ 13,850
Head Of Household ................................$ 20,800
Married Filing Separate ........................$ 13,850
Dependent ...............................................$ 1,150
Who can I claim as a dependent?
The short answer is that you can claim a "qualifying child" or "qualifying relative" if they meet specific requirements related to residence, relationship to you, age, financial support provided and income. Even significant others or friends can qualify in some cases. Divorced parents who file separately, can't claim the same dependent.
Are Unemployment benefits taxable?
Yes, unemployment income is taxable income.
Can I deduct the cost of searching for a job? Are moving expenses for my new job tax-deductible?
Job search and moving expenses may be tax-deductible depending on distance and other factors. Make sure to let your accountant know if you have moved for a job and they will help you find out how it affects your tax return.
What are the tax implications of withdrawing money early from a retirement account?
Withdrawing money early from a retirement account comes with a 10 percent tax penalty plus regular income tax on the amount withdrawn. Watch out if that additional retirement money bumps you into the next tax bracket, which could affect Social Security taxes and other considerations.
What are qualified education expenses? And when can I file?
There are a number of education credits and deductions, including the American Opportunity Credit. It benefits full-time and part-time college students with a maximum $2,500 credit per student, based on income requirements.
The Lifetime Learning Credit is a $2,000 credit for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate and professional degrees and there is not limit on the number of years you can claim the credit.
The Lifetime Learning Credit is a $2,000 credit for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate and professional degrees and there is not limit on the number of years you can claim the credit.
I was impacted by a natural disaster. What tax breaks are
available to me?
available to me?
It's possible to take a tax deduction for property loss claims not compensated by insurance company. These are known as casualty losses and include hurricanes, floods, earthquakes, tornadoes, fire, terrorist attacks -- even thefts, vandalism and shipwrecks.
Still have questions.... Please feel free to contact us or you could visit the IRS website for a lot of your questions.