As the new year starts, individuals and businesses alike find themselves immersed in the annual ritual of filing taxes. Navigating the complexities of the tax season does not need to be overwhelming, understanding some of the most frequently asked questions (FAQs) can help ease the process. In this blog post, we will address some of the common questions our clients have during tax season:
What documents do I need to gather for my tax return?
You'll typically need W-2s, 1099s, receipts for deductible expenses, and documentation for any other income or deductions. If you are a business, we will need a copy of your financial statements or access to your Accounting/Bookkeeping software.
How can I maximize my deductions and credits?
Keep thorough records, explore eligible credits, and consider consulting a tax professional for personalized advice.
What is the deadline for filing my taxes?
The deadline for forms 1040 and 1120 is April 15th, but it may vary based on if it falls on a business day. The deadline for Forms 1065 for partnership returns and 1120-S for S-corporations is March 15th. However, we have an internal deadline of April 1st and March 1st for clients to submit any documents requested.
Can I e-file my tax return, and is it secure?
All returns filed with Creatives Accountant are e-filed. We do not offer paper filings, except for specific circumstances.
What are the key changes in tax laws this year?
Tax laws can change annually. Stay informed through IRS publications, and tax software updates, or consult with our tax professionals for the latest changes.
Do I qualify for any tax breaks or credits?
Your eligibility depends on various factors. Our Tax professionals will evaluate your specific circumstance and will inform you of the tax breaks and credits that will be beneficial to you.
What is the difference between a tax deduction and a tax credit?
A deduction reduces your taxable income, while a credit directly reduces the amount of tax you owe.
How can I track the status of my tax refund?
Use the IRS "Where's My Refund?" tool online or contact the IRS directly for updates.
I had a major life event (e.g., marriage, birth, divorce) – how does this affect my taxes?
Life events can impact your filing status, deductions, and credits. If you experience any major life events in the past year notify us.
Can I deduct expenses related to working from home?
Depending on your situation, you may be eligible for a home office deduction. Our tax professionals will evaluate if you are eligible for this deduction.
I have income from multiple sources; how do I report this on my tax return?
Report each source of income accurately, and consult with a tax professional if you have complex income sources.
What records should I keep for tax purposes?
Keep records of income, expenses, receipts, and any supporting documentation for at least three years. If you are a business owner we suggest using an accounting software like Quickbooks.
What happens if I miss the tax filing deadline?
File as soon as possible to minimize penalties. The IRS may assess late-filing fees and interest on any unpaid taxes.
How can I amend my tax return if I make a mistake?
You will need to file an amended return (Form 1040X) to correct errors. Consult with a tax professional for guidance.
For additional information on when you should file a Form 1040X click this link:
What is the difference between a tax preparer and a tax advisor?
A tax preparer helps with the actual filing, while a tax advisor offers broader financial advice and tax planning. At Creatives Accountant our goal is to ensure that we not only offer tax preparation services but also identify new opportunities for our clients to strategize on ways we can use the tax code to their advantage.
How can I reduce my tax liability legally?
The tax code offers many different ways that you can reduce your tax liability. To find what may be available to you contact our CPA’s and tax professionals.
If you have any questions that are not addressed above, please contact our CPA’s. Remember, it's crucial to seek personalized advice from a tax professional based on your specific financial situation and any recent changes in tax laws.
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