FAQ

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.

  • Wage statements (Form W-2)
  • Pension, or retirement income (Forms 1099-R)
  • Dependents' Social Security numbers and dates of birth
  • Last year's tax return
  • Information on education expenses
  • Information on the sales of stocks and/or bonds
  • Self-employed business income and expenses
  • Lottery and/or gambling winnings and losses
  • State refund amount
  • Social Security and/or unemployment income
  • Income and expenses from rentals
  • Record of purchase or sale of real estate
  • Medical and dental expenses
  • Real estate and personal property taxes
  • Estimated taxes or foreign taxes paid
  • Cash and non-cash charitable donations
  • Mortgage or home equity loan interest paid (Form 1098)
  • Unreimbursed employment-related expenses
  • Job-related educational expenses
  • Child care expenses and provider information
  • And any other items that you think may be necessary for your taxes.
How long do I keep my records and tax returns?
You should keep your records and tax returns for at least 3 years from the date the return was filed or the date the return was required to be filed, whichever is later. It is recommended that you keep these records longer if possible.

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.