Frequently asked questions

When do I have to file taxes?

Any time you make over $12,400 in a year (or over $400 technically if self employed)

Who can I claim as my dependent?

Anyone who lives with you for whom you have provided the majority of their support for (for over 6 months)

How far back can I claim my refund?

As of now (10/16/2021) the IRS allows you to claim the current tax year plus 2 years back.

What happens if I don't file or pay my taxes?

The late filing penalty, can be as high as 25% of the tax owed. If the return is more than 60 days late, the minimum late filing penalty is $435, or 100% of the tax owed, whichever is smaller. This is separate from the IRS’s late payment penalty, which is .5% of the balance of unpaid taxes each month they’re late. If a taxpayer ignores a tax bill from the IRS, they can eventually have their wages garnished, their bank accounts levied, and/or lose out on refunds in the future.

Can I deduct any expenses with a W2?

Typically not but there are certain expenses such as mortgage interest and real estate taxes that can be deducted on a Schedule A if applicable.

I'm a W2 employee making under $50K a year and I always owe the IRS, what am I doing wrong?

There might be a mistake on your payroll withholding, we can help you review that information to make sure you're where you need to be come tax season.

What can I do if someone claimed my dependents?

You'll have to gather up documentation proving your right to claim your dependent (school records, medical records showing the same address as you, divorce decree etc.) (see Form 886-H-EIC) and mail it all in to the IRS along with your tax returns.

What happens when you get audited by the IRS?

The IRS will notify you if this happens and they will request specific information. They'll review your information, possibly (most likely) request more information, and they either make no changes or decide that you over or underpaid, you can disagree with their findings and request a conference with an IRS manager.

What type of records do I need to maintain when I have small business?

You don't necessarily have to save all your receipts in a bag. There are more organized ways of managing records. A lot of small business owners choose QuickBooks, if you're old-school like me and prefer writing everything down check out my downloadable business expense worksheet which is perfect for self employed individuals.

How can I speak with a real person at the IRS office?

The IRS telephone number is 1-800-829-1040.
The first question the automated system will ask you is to choose your language.
Once you’ve set your language, do NOT choose Option 1 (regarding refund info). Choose option 2 for “Personal Income Tax” instead.
Next, press 1 for “form, tax history, or payment”.
Next, press 3 “for all other questions.”
Next, press 2 “for all other questions.”
When the system asks you to enter your SSN or EIN to access your account information, do NOT enter anything.
After it asks twice, you will be prompted with another menu.
Press 2 for personal or individual tax questions.
Finally, press 4 for all other inquiries. The system should then transfer you to an agent.