Here are some of the more frequently asked tax and accounting questions we get at HT&A.
For tax year 2012:
Deduction Exemption Total
Single or MFS -
$5,950 $3,800 $9,750
Married Filing Joint -
$11,900 $7,600 $19,500
Qualified Widowers -
$11,900 $7,600 $19,500
Head of Houshold -
$8,700 $3,800 $12,300
$0 $3,800 $3,800
Age 65+ or blind add $1,150 per person if MFJ,
QW or MFS.
Age 65+ or blind add $1,450 if Single or HOH.
We take Visa, Mastercard, Cash and Personal or Business Checks.
We can also take our tax preparation fees out of your refund check if you qualify for a Refund Transfer. Because this is a bank product, there are additional fees associated with it and can cost up to $100 extra.
In most cases, yes. Normally, when a W2 cannot be obtained from an employer, we can prepare the tax return using the final paystub(s).
However, the IRS will not accept electronically filed returns without a W2 until February 15th.
All businesses have until January 31 to mail their W2s and 1099s. The IRS just wants to give the businesses time to produce the forms. In most cases, it's better to wait for the forms, just in case some figures don't match up with the final paystub.
Yes & No. Unfortunately, there is no short answer to this one. It just depends on the circumstances. So we have given some examples also.
Any taxpayer may claim any other legal US resident as a dependent on their tax return if they lived in the same household and provided more than half of their support.
A taxpayer may also claim his/her immediate family (see notes #1) as a dependent even if they did not live together, as long as they provided more than half their support.
A taxpayer may claim certain qualified children (see note #2) on thir tax return and qualify for Earned Income Credit even if they are not their own children.
Note #1: Immediate Family means siblings, parents, grandparents, neices, nephews, children, grandchildren and inlaw siblings and parents.
Note #2: Qualified Children means under age 19, must have lived with the taxpayer in the US for more than half the year, valid social security number and be related as one of the following, son, daughter, stepchild, fosterchild, brother, sister, stepbrother, stepsister, grandchild, neice or nephew.
Example: Joe and John are brothers. Joe, his wife and their two kids lived with John all year, and did not work. John paid all the bills in the house. John may claim his brother, his wife and their children as dependents. If John's income is under the income limits, he might also qualify for Earned Income for the two children.
Example: Joe and John are brothers. Joe, his wife and their two kids lived with John all year, but Joe also worked and earned more money than John. Joe and his wife would file as MFJ and claim their own children as dependents. John would file on his own.
Believe it or not, April 15th is not the only deadline for filing.
For individual tax returns, April 15th of each year for the prior year, unless that date falls on a holiday or weekend.
The deadline for this tax season is Mondy, April 15.
The extension deadline for individuals is October 15th of the same year. Extensions are for filing only, not for taxes owed. Any tax owed will accrue interest and possibly penalties.
For individuals in the military in a combat zone, 180 days after the taxpayer departs the zone or release from continuous hospitalization resulting from their service in a combat zone.
For most corporations, those on a regular calendar year, March 15th of each year for the prior year. All others is the 15th day of the 3rd month after the end of their tax year.
For non-profit organizations, May 15th of each year for the prior year, unless using a different year end.
Electronic filing closes on October 15th for the most recent year. Prior years are not accepted in efile.
Bank products, such as RTs (2 weeks), are only available until the end of April each year.
Filing all unfiled prior year tax returns is required by law, but taxpayers are only entitled to a refund, if due, for the most recent three (3) years.
Anyone starting a new business should be aware of their federal tax responsibilities. Here are some things to know if you plan on opening a new business this year.
Business 55.5 cents per mile
Medical 23 cents per mile
Charitabe 14 cents per mile
Standard deduction for meals in the U.S.
High Cost Localities $65/day
Low Cost Localities $52/day
Transportation Workers $59/day
Remember...the only stupid question is the one you didn't ask!