FAQ

HOW LONG WILL IT TAKE TO GET MY REFUND?

Once your return has been accepted, the IRS issues most refunds within 21 days. However, it may take longer if your return requires additional review. Early filers must also keep in mind that if they claim the Earned Income Tax Credit or the Additional Child Tax Credit, their refund will not be issued before mid-February.

HOW LONG SHOULD I KEEP MY TAX RECORDS FOR?

Most taxpayers can shred their tax records three years after they’ve filed. Three is the magic number because that’s the amount of time the IRS has to audit you. It’s also the time limit for filing an amended return if you noticed a mistake after your return was accepted. However, there are some exceptions to the rule. If you file a fraudulent return or don’t bother to file at all, hold on to your records indefinitely. If you don’t report all your earnings and it’s more than 25% of the gross income displayed on your return, keep your records for 6 years. Finally, if you file a claim for a loss from a bad debt deduction or worthless securities, keep your records for 7 years.

I’VE BEEN WORKING FROM HOME THIS YEAR. CAN I TAKE THE HOME OFFICE DEDUCTION?

Only if you’re self-employed. After a 2018 tax-law change, employees who work for an employer can no longer deduct home office expenses, even if they spent the year working remotely.
Self-employed people, however, can deduct their home office expenses if they use part of their home “regularly and exclusively” for business.

IS SOCIAL SECURITY TAXED?

It's possible. Depending on your income, up to 85% of Social Security benefits may be taxable.

WHAT HAPPENS IF I FILE LATE?

If you can’t file by the deadline and expect to have a balance due, you may be slapped with two penalties. The first is a failure-to-pay penalty which is 0.5% of your owed taxes for every month it’s late, up to 25%. The second is a failure-to-file penalty which is 5% of your owed taxes for each month its late, up to 25%. Your balance will also accumulate daily interest. The interest rate is the federal short-term rate plus 3 percent. Even if you can’t pay by the deadline, at least file on time or request a filing extension.

HOW DO I FILE A TAX EXTENSION?

If you need more time to do your taxes, we can submit Form 4868 to the IRS before April 15th. This will give us an additional six months to prepare your tax return. Keep in mind that requesting an extension only gives you more time to file without penalty, it does not give you additional time to pay.

IS THERE AN AGE LIMIT ON CLAIMING MY CHILD AS A DEPENDENT?

To claim your child as your dependent, your child must meet either the qualifying child test or the qualifying relative test:

To meet the qualifying child test, your child must be either younger than 19 years old or be a "student" younger than 24 years old as of the end of the calendar year.
There's no age limit if your child is "permanently and totally disabled" or meets the qualifying relative test.
In addition to meeting the qualifying child or qualifying relative test, you can claim that person as a dependent only if these three tests are met:

Dependent taxpayer test
Citizen or resident test, and
Joint return test

CAN MY KIDS CONTRIBUTE TO A ROTH IRA?

Yes, if they earned any income from working they can contribute to a Roth IRA. It’s a great way to build tax-free savings for the future that they can also tap earlier. They can withdraw the earnings tax-free after age 59 1/2, and they can take the contributions at any time without penalties or taxes for any reason – which can help for a house down payment, car purchase or emergency fund.

They can contribute up to the amount they earned from working for the year, with a $6,000 maximum.