Frequently Asked Questions
For questions regarding Payroll Services, please see our Payroll FAQ >
Why is my return less than other people I work with?
Each return is different, based on all aspects of the tax return. If you are unsure about the refund, you should really consult someone for help. Be careful about your selection.
How do I know if I am having enough taxes taken out?
I offer a free tax analysis through the year, just give yourself enough time to make necessary changes to see your new refund.
I have not filed in several years, my friends say that I don’t have to file. True?
Again, every situation is different, but saying you don’t have to file requires some unique circumstances.
I want to start my own business, but have no clue of where to start or how to keep up with everything. Any suggestions?
Yes, give me a call.
My wife and I have two children and we are going to file separate returns this year. Can we each claim one child for the earned income credit?
In order to qualify for the earned income credit, your filing status cannot be married filing separately. If you are married, you usually must file a joint return to claim the earned income credit. However, if you are married and your spouse did not live in your home at any time during the last 6 months of the year, you may be able to file as head of household. In that case, you may be able to claim the earned income credit.
Is child support considered income when calculating the earned income credit?
No, for purposes of calculating the earned income credit, child support is not considered earned income. Earned income generally means wages salaries, tips, other taxable employee pay, and net earnings from self-employment. Employee pay is earned income only if it is taxable. Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. But there is an exception for nontaxable combat pay, which you can choose to include in earned income.
If both parents want to claim the earned income credit, who is entitled to it if there was no marriage?
If the child is a qualifying child of both parents, they may choose which one will claim the credit. If there are two qualifying children, each parent may claim the credit on the basis of one of the children or one parent may claim the credit with both children. If both actually claim the credit on the basis of the same child or children, the parent who is entitled to the credit is the parent with whom the child lived for the longest period of time during the tax year, or the parent with the higher adjusted gross income (AGI) if the child lived with each parent for the same amount of time during the year.
I don’t owe taxes. Can I file electronically after April 15th?
Yes, you can electronically file your return after April 15th. Electronically filed tax returns are accepted until October 15th. However, for your return to be considered timely after April 15, you must file Form 4868 (PDF), an Application for Automatic Extension of Time to File, on or before April 15th. If April 15th falls on a weekend or federal holiday, you have until midnight the following business day to submit your extension request or your tax return. With a timely filed extension request, you have until October 15th to timely file your return. If an extension of time to file has not been timely submitted you may be subject to a failure to file penalty if you file your return after April 15th.
My spouse and I are filing separate returns. How can we split our itemized deductions?
If you and your spouse file separate returns and one of you itemizes deductions, the other spouse will have a standard deduction of zero. Therefore, the other spouse should also itemize deductions. You may be able to claim itemized deductions on a separate return for certain expenses that you paid separately or jointly with your spouse. Deductible expenses that are paid out of separate funds, such as medical expenses, are deductible by the spouse who pays them. If these expenses are paid from community funds, the deduction may depend on whether or not you live in a community property state. In a community property state, the deduction is, generally, divided equally between you and your spouse.
How much does a student have to make before he or she has to file an income tax return?
If you are an unmarried dependent, you must file a tax return if your earned and/or unearned income exceeds certain limits.
If I moved out of my house on July 10, but was not divorced at the end of the year, can I file as head of household and take the earned income credit if I have a minor child? Can I also claim child care expenses?
You do not qualify for the head of household filing status because you and your spouse have not lived apart for the last 6 months of the taxable year and are not considered unmarried. Your filing status for the year will either be married filing separately, or married filing jointly. If it is married filing separately, you will not qualify for the Earned Income Credit and cannot claim a credit based on child care expenses. If you file a joint return with your spouse, you may be eligible to claim these credits.