Tax FAQs:

 

1. Am I required to file a return?

2. What is the most I can earn and still receive an Earned Income Credit?

3. What information should I bring to my tax appointment?

4. How much of my day care expenses can I get a child care credit for?

5. Is Social Security Income taxable?

6. What is the amount I can deduct for each dependent?

7. How much can I contribute to my IRA for 2008/2009?

8. How much can I contribute to an educational savings account?

9. How can I check on my tax refund?

10. How can I get a copy of my return if I lose it?

11. What can I deduct for day care expenses?

12. What can I contribute to my child's Education Saving Account?

13. How much in medical expenses must I have before I can deduct them from my taxable income?

14. Can I pay the IRS by credit card?

 

 

 

Tax Answers:

 

1. Am I required to file a return?

    

If your income exceeds the following limits you must file.

2008 FILING REQUIREMENTS

 

 

2. What is the most I can earn and still receive an Earned Income Credit?

 

The maximum is listed below, but the closer you get to the limit, the lower the amount of your earned income credit.

 

 

3. What information should I bring to my tax appointment?

 

All clients should bring the following:

• EMAIL address where we can send a copy of the tax return!

• Bank Info (copy of check) for each accounts you want any refunds direct deposited into

• W2's for wages

• Amount of stimulus payment received in 2008

• 1099R's for pensions and IRA's

• W2G's for Gambling/Lottery winnings

• 1099's for unemployment and social security

• 1099's for interest or dividend income

• Amount of alimony paid or received

• Social Security number and date of birth for each taxpayer and dependent

• Statements for all IRA accounts

• Details of all stock and securities sales including purchase data & cost

• Details of any college expenses paid including school name and address

• Statements of interest paid on college loans

• Home sale information

• Child care expenses including name and federal ID number of provider

• Any early withdrawal penalties charged by banks

• Landlords name and rent paid during the year

• Record of any estimated taxes paid by you

• Cost of: insulation, windows, storm windows & doors, and metal roofs installed in 2006

• Info on Hybrid vehicle - date of purchase and precise model

Taxpayers with itemized deductions:

• Medical expenses that exceed 7.5% of adjusted gross income

• Real estate taxes

• Auto excise taxes

• Mortgage statements from all mortgages & equity loans

• Charitable contributions - please total your contributions by check, cash or non-cash documentation for cash and/or non-cash

• Investment expenses & Tax preparation fees

• Work expenses such as union dues, equipment, use of your vehicle, ect.

Business and Rental Activities:

• All income and expenses from that activity - total each category. We do not need to see receipts unless you have a question on it!

New Clients should provide:

• A copy of last year's tax return whenever possible

• Photo ID to E-File

All clients should have a list of questions:

• Estate taxes, inheritances, probate

• Investments, 401K's, college funding, retirement issues

• Annuities, Life insurance, Medicaid planning

• Any other concerns you may have!

Circuit Breaker:

 

If you are over 65, not in subsidized housing, and have limited income:

• Real Estate taxes, water bill, assessed value of home

                                        or

• Rent paid and landlord's name & address

 

4.  How much of my day care expenses can I get a child care credit for?

 

$3,000 per child for up to two children.

 

5. Is Social Security income taxable?

 

Maybe! If your other income plus one-half of your social security income exceeds $25,000 or $32,000 if married filing joint, up to 85% of social security income is taxable.

 

6. What is the amount I can deduct for each dependent?

 

Each exemption is $3,500 unless limited for higher income taxpayers.

 

7. How much can I contribute to my IRA for 2008/2009?

 

$5,000 per person, unless you are over the age of 50 which increases your contribution limit to $6,000. You have until 4/15/2009 to make your 2008 contribution.

 

8.  How much can I contribute to an educational savings account?

 

$2,000 per child in a coverdell e.s.a. and more into an 529 plan.

 

9. How can I check on my tax refund?

 

Federal return - call (800) 829-4477

Massachusetts return - (800) 392-6089

 

Have a copy of your return in front of you when you call, to provide the needed info.

 

10. How can I get a copy of my return if I lose it?

 

If we prepared your return, we can provide it under most circumstances, at a cost of $5.00 per copy per year. We will e-mail it to an e-mail address that we have on file or mail it to the address printed on the return. The other option is to pick it up at our office. You may be asked to provide ID when you pick it up. 

 

You may also request copies from the IRS on form 4506.

 

11. What can I deduct for day care expenses?

 

 

 

14. Can I pay the IRS by credit card?

 

Yes, call or log on to:

 

Official Payments Corp.

800-272-9829

www.officialpayments.com

 

LINK2GOV Corp.

888-729-1040

www.pay1040.com