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Frequently Asked Questions

Depending on your filing status you should bring any pertinent documentation that may support your claim. This may include w2’s, check stubs, prior year tax returns, or personal identification.
Great question. As every case is different, we generally base the fee off of the amount of return or work that needs to be done to either a) resolve the issue and keep you out of trouble with the its or b) get you a maximum refund back.
Generally, to qualify for head of household, you must have a qualifying child or dependent. However, a custodial parent may be able to claim head of household filing status with a qualifying child even if he or she released a claim to exemption for the child.
Per the laws of IRS, there must be proof that the tax filer has been taking care of the dependent. This can be done by submitting daycare forms, social security cards, birth certificates, etc. Schedule a consultation!
No, one of the conditions of your installment agreement is that any refund due to you, the IRS will automatically apply against taxes you owe. Because your refund isn’t applied toward your regular monthly payment, continue making your installment agreement payments as scheduled. If your refund exceeds your total balance due on all outstanding liabilities including accruals, and you don’t owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support, you’ll receive a refund of the amount over and above what you owe. For more information on these non-IRS refund offsets, you can call the Bureau of the Fiscal Service (BFS) at 800-304-3107 (toll-free).
Social security benefits include monthly retirement, survivor and disability benefits. They don’t include supplemental security income (SSI) payments, which aren’t taxable. The net amount of social security benefits that you receive from the Social Security Administration is reported in Box 5 of Form SSA-1099, Social Security Benefit Statement, and you report that amount on your income tax return (Form 1040, line 20a or Form 1040A, Line 14a). The taxable portion of the benefits that’s included in your income and used to calculate your income tax liability depends on the total amount of your income and benefits for the taxable year. You report the taxable portion of your social security benefits on Form 1040, line 20b or Form 1040A, line 14b. To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of: One-half of your benefits; plus All of your other income, including tax-exempt interest. The base amount for your filing status is: $25,000 if you’re single, head of household, or qualifying widow(er), $25,000 if you’re married filing separately and lived apart from your spouse for the entire year, $32,000 if you’re married filing jointly, $0 if you’re married filing separately and lived with your spouse at any time during the tax year. If you’re married and file a joint return, you and your spouse must combine your incomes and social security benefits when figuring the taxable portion of your benefits. Even if your spouse didn’t receive any benefits, you must add your spouse’s income to yours when figuring on a joint return if any of your benefits are taxable.
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 younger than you and 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, your child must also meet all of the other tests for claiming a dependent: Dependent taxpayer test Citizen or resident test, and Joint return test.
No, a dependency exemption for a child may only be claimed on one return in a tax year.
There are two sets of tax rates in America: one is imposed on ordinary income, and the other on capital gain income. Ordinary income is the most common type of income and includes for example wages, interest, and rental income. The ordinary income tax rates range 10% to 39.6% depending upon your total income. Capital gain income typically is the result of selling property owned for a year or longer. When the sales price exceeds what you originally paid for the property that excess (i.e., the gain) is tax at the capital gains tax rates. These rates range from 0% to 20% also depending upon your total income. On the other hand, gains from the sale of property owned for less than a year, or sales that result in losses, are treated as ordinary income.
The answer to this question depends upon your level of comfort. It is inevitable that as you advance through your life and career, your taxes will get more complex. What may be a single-page Form 1040-EZ one year can easily become a daunting voluminous series of tax forms the next. This is where GWB & Associates is here to help as we have years of experience in professional accounting.