Frequently Asked Questions
How many exemptions should I claim on my W2?
Knowing how many exemptions/allowances to claim depends on how many people are in your household, how many of those people are working, and how many jobs each person holds. These number of people only pertain to the dependents on your individual tax return. The best way to figure out your allowances is to complete the IRS Form W-4. If completed correctly, this form will assist you in deducting the least amount of income of tax for your situation to receive a minimal refund. Rule of Thumb: The lower the allowance, the more federal income tax is withheld from your paycheck. The higher the allowance, the amount of income tax withheld from your paycheck reduces.
Can I Itemize?
The only reason you should itemize is if your itemized deductions are greater than your standard deduction. Common expenses that count toward itemizing are medical and dental expenses, sales tax, vehicle registration, property tax, mortgage interest and insurance, cash and non-cash charitable contributions, and unreimbursed employee expenses, just to name a few.
What are the benefits of married filing joint versus married filing seperate?
Married Filing Joint allows you to receive the highest standard deduction approved by the IRS, which can maximize any possible refund. Married Filing Separate is one of the lowest filing status’ next to filing as Single. Many credits and deductions are disallowed when filing as Married Filing Separate.
How can I get the status of my refund?
The easiest way to verify the status of your refund is to visit the IRS website and click on the “Where’s My Refund?” link. Be sure to have your social security number, filing status, and your exact refund amount available.
– IRS Refund Link – https://www.irs.gov/refunds
How long will it take for my refund to reflect in my account after filing?
When using direct deposit via the IRS (not including any tax professional bank products), the turn-around-time is generally 10 – 21 days from the date of approval.
How soon can I file my taxes?
File your taxes as soon as you have received all the tax year’s W2’s, 1099’s, 1098’s, K-1’s and any other tax documents your tax preparer will need to accurately prepare your taxes.
What is the latest date I can file without getting penalized?
The latest date you can file is generally April 15th unless you have requested an extension to file. Extensions are generally due by Oct 15th.
What are the common penalties taxpayer face?
The most common penalties taxpayers face are Failure-to-File, which is normally 5% of the unpaid tax for each month (no pro-ration) up to 25% of the unpaid tax and Failure-to-Pay, which is a minimum of $135 or 100% of the unpaid tax after 60 days in addition to 5% of the unpaid tax per month (no pro-ration).
Can I claim mileage?
You can only claim mileage if the mileage is in connection to working (voluntarily or non-voluntarily). Commuting mileage is not deductible and cannot be claimed.
What forms do I need to file?
There are multiple federal tax forms. The most common tax forms are the 1040, 1040A, and the 1040EZ, which slightly differ. Check with your tax professional for additional forms that most likely will be required to complete your tax return. You can also visit the IRS Tax Topic 352 “Which Form – 1040, 1040A or 1040EZ?”.
– IRS Tax Topic Link – https://www.irs.gov/uac/what-to-know-about-late-filing-and-late-paying-penalties