FAQ

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.

Income:

- Wage statements (Form W-2)
- Pension, or retirement income (Forms 1099-R)
-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

General:

- Dependents' Social Security numbers and dates of birth
- Last year's tax return
-Estimated taxes or foreign taxes paid

Expenses:

- Information on education expenses
- Medical and dental expenses
- Real estate and personal property taxes
- 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.

What do I do if I receive a notice from the IRS about my taxes?
Don’t panic! the first thing to do is carefully read the notice—to determine why it was sent, what the IRS is requesting, and what they want you to do. It may be nothing of importance; it may even be a notice in your favor. After reading it you should bring it to our attention.

What is the child tax credit?
The child tax credit is a credit of $1000 per child from the IRS. In order to qualify the child must:

Be under 17 at the end of the tax year
Be a citizen of the United States
Be your child
Live with you for more than half the year
Not be treated as the qualifying child of someone else.

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 differences between a Roth and a conventional IRA?
A traditional IRA lets you deduct contributions in the year you make them, and the distributions are included as income on your return when you withdraw from the IRA after reaching age 59½. A Roth IRA does not let you deduct the contributions, but you also do not report the distributions as income, no matter how much the Roth account has appreciated. With a Roth, you can exclude the income earned in the account from being taxed.

Is my social security taxable?

Usually if your income including social security benefits is less than $25,000 if single or $32,000 if married, your benefits are not taxable. If your income is higher than those limits, there are formulas to determine what percentage of your social security is taxable. Currently up to 85% of your social security may be taxable.