Frequently Asked Questions

What types of tax services do you offer?

We provide tax services for individuals, families, and small businesses. Whether you need personal tax filing, business tax preparation, or assistance with self-employment taxes, we’ve got you covered.

What documents do I need to provide for tax filing?

You’ll typically need the following: W-2s, 1099 forms, proof of identity (ID or Social Security Number), receipts for deductions (e.g., charitable donations), and other relevant financial documents.

How secure is the document upload process?

We use advanced encryption technology to securely upload and process your documents. This ensures that your sensitive information is fully protected during transmission and storage. We are committed to maintaining your privacy and keeping your data safe throughout the process.

How long does it take to get my tax refund?

Typically, if you e-file and opt for direct deposit, expect your tax refund within 21 days. Factors like paper filing or processing errors may extend the timeframe.

What is the difference between a tax deduction and a tax credit?

A tax deduction reduces your taxable income, lowering the amount of income subject to taxation. On the other hand, a tax credit directly decreases your tax liability, providing a dollar-for-dollar reduction in the actual amount of taxes owed. Deductions affect the amount of income taxed, while credits directly impact the amount of tax owed.

How do recent tax law changes affect me?

Recent tax law changes, including adjustments to tax brackets, standard deductions, and credits like the Child Tax Credit, may impact your tax liability. Business owners should be aware of modifications in business tax provisions. To navigate these changes effectively, seek personalized advice from a tax professional familiar with the latest regulations.

What is the Child Tax Credit, and who is eligible?

The Child Tax Credit is a financial benefit offering up to $2,000 per qualifying child under 17. To be eligible, the child must have a valid Social Security number, meet residency requirements, and be claimed as a dependent. Income limits apply, and a portion of the credit may be refundable for eligible families.

Do I need to file taxes if I'm self-employed?

Yes, if you are self-employed, you are generally required to file taxes. Self-employed individuals must report their income and expenses on Schedule C of Form 1040. Additionally, you may be required to pay self-employment taxes, which cover Social Security and Medicare contributions. It's important to review IRS guidelines and consult with a tax professional to ensure compliance with tax obligations as a self-employed individual.

How do I track my business expenses for tax purposes?

To effectively track business expenses for tax purposes as a self-employed individual, start by maintaining a separate business account and using dedicated cards. Keep detailed records, categorize expenses into relevant categories, and consider utilizing accounting software for streamlined tracking. Regularly reconcile your accounts, maintain a log or spreadsheet with key details, and ensure you understand tax-deductible business expenses. Additionally, consult with a tax professional for guidance on compliance and maximizing eligible deductions.

What is the standard deduction, and should I take it?

The standard deduction is a fixed amount that reduces taxable income, simplifying tax filing. Consider taking the standard deduction if your itemized deductions are lower than the standard deduction amount. It's typically advantageous when your specific deductions don't exceed the standard deduction. Consult with a tax professional to determine the best approach for your individual financial circumstances.

What is the deadline for filing taxes?

The standard deadline for filing federal income taxes in the U.S. is April 15th. If this date falls on a weekend or holiday, the deadline extends to the next business day. Be aware of specific deadlines for extensions or state taxes and consult with the IRS or a tax professional for the latest information.

How long should I keep my tax records?

Keep income and business expense records for at least three years after the tax filing deadline. Retain asset records until three years after selling or disposing of the asset, and hold tax returns and supporting documents for the same period to align with the IRS statute of limitations for audits. Special circumstances, such as unreported income or fraud, may warrant keeping records indefinitely.

What do I need to know about cryptocurrency and taxes?

Cryptocurrency transactions, including selling or exchanging, are taxable events that may result in capital gains or losses. Accurate reporting on tax returns is essential, and maintaining detailed records of transactions is crucial. Different tax implications apply to mining, staking, gifts, and donations of cryptocurrency, and it's advisable to seek guidance from a tax professional familiar with cryptocurrency regulations.

What happens if I miss the tax filing deadline?

Missing the tax filing deadline can result in penalties and interest on unpaid taxes. The late filing penalty is typically 5% of unpaid taxes per month, up to 25%, while the late payment penalty is 0.5% per month, up to 25%. Filing as soon as possible or requesting an extension can help minimize penalties, and if taxes are owed, consider making a payment to reduce interest charges.