How do I find out about my refund?
The
best way is to use the Check Your Refund link from from any page
of our website! To look up the status of your federal or
state refund, you will need your social security number,
filing status, and exact amount you’re expecting back.
What do I need to bring when I am having my taxes
prepared?
Following is a list of the more common
items you should bring if you have them.
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What are the consequences of early withdrawals from
my retirement plans?
There is a 10% penalty on
the taxable amount. The main exceptions that let you withdraw
money early without penalty are as follows: • Qualified
retirement plan distributions if you separated from service
in or after the year you reach age 55 (does not apply to
IRAs). • Distributions made as a part of a series of
substantially equal periodic payments (made at least
annually) for your life or the joint lives of you and your
designated beneficiary. • Distributions due to total
and permanent disability. • Distributions due to death
(does not apply to modified endowment contracts) •
Qualified retirement plan distributions up to (1) the amount
you paid for unreimbursed medical expenses during the year
minus (2) 7.5% of your adjusted gross income for the year.
• IRA distributions made to unemployed individuals for
health insurance premiums. • IRA distributions made for
higher education expenses. • IRA distributions made for
the purchase of a first home (up to $10,000). •
Distributions due to an IRS levy on the qualified retirement
plan. • Qualified distributions to reservists while
serving on active duty for at least 180 days.
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.
What is a 529 plan?
A Qualified Tuition
Program (QTP), also called a "529 plan," is established and
maintained to let you either prepay or contribute to an
account established for paying a student's qualified higher
education expenses at an eligible institution. States and
eligible educational institutions can establish and maintain
a QTP. You do not get any federal deductions for the account,
but any income earned in it is tax-free. One of the big
advantages of a 529 plan is that many states allow you to
deduct some contributions to the plan from your state tax
return.
What are the tax consequences of selling a
home?
If you sell your personal residence you can
totally exclude from income up to $250,000 of gain if you are
single, or $500,000 if married, regardless of your age at the
time of the sale—if during the 5 years before the sale
you owned the home and lived in it for a total of any 24
months. The exclusion is not a one-time election; instead it
is available once every 2 years. Recent tax law has adversely
changed the handling of gains on the sale of a home if you
rented the property before you made it your personal
residence. Please contact our office if you believe this
situation will affect you.
I owe the IRS money. What are my
options?
If you can afford to pay the amount you
owe, it should be paid. But many times that is not the case.
If you cannot afford to pay, you have several options.
Ignoring the IRS should not be one of them! § The first
option is to enter into an installment agreement with the
IRS. To do this you need to fill out Form 9465, Installment
Agreement Request. This form is fairly easy to complete, but
we strongly recommend that if you owe a substantial amount of
money you work with us to secure your agreement. § The
second option, which is much harder to get approved, is an
offer in compromise. The IRS will be reluctant to do this if
they feel you have the resources to eventually pay. You
should not attempt an offer in compromise without
professional help you can trust. The IRS has also issued a
consumer alert, advising taxpayers to beware of
promoters’ claims that tax debts can be settled for
“pennies on the dollar” through the Offer in
Compromise Program.