FAQ's
Do you have questions regarding business and personal income taxes? ….retirement and social security?.....HSA or 401K? Here are some frequently asked questions. If yours is not here, please email us and we promise to respond to your questions in a timely manner.
Question: Where's my money/When do I get my money?
Answer: First, you have to file! E-file for direct deposit for the fasted refund. Direct deposits for state takes about 5 days. Direct deposits for Federal takes 7-10 days. Having a check mailed you to adds an extra 7 days.
Question:What are the current mileage rates?
Answer:
- 2016:
$.54 cents/mile business
$.19 cents /mile medical or moving
$.14/mile for charity - 2017
Business = .53/mile
Charitable = .14/mile
Medical/Moving = .17/mile - 2018
Business = 54.5/mile
Charitable = .14/mile
Moving/Medical = .18/mile - 2019
Business = .58/mile
Charitable = .14/mile
Medical/Moving = .20/mile - 2020
Business = 57.5/mile
Charitable = .14/mile
Medical/Moving = .17/mile - 2021
Business = .56/mile
Charitable = .14/mile
Medical/Moving = .16/mile - 2022
Business 1/1/22 to 6/30/22 = .58.5/mile
Business 7/1/22 to 12/31/22 = .62.5/mile
Charitable (entire year) = .14/mile
Medical/Moving 1/1/22 to 6/30/22 = .18/mile
Medical/Moving 7/1/22 to 12/31/22 = .22/mile - 2023
Business = .65.5/mile
Charitable = .14/mile
Medical/Moving = .22/mile - 2024
Business = .67/mile
Charitable = .14/mile
Medical/Moving = .21/mile
Question:If I take standard miles do I still need a log?
Answer: Yes. If the auto is not 100% business, we need to know the total miles and business miles. These two numbers will give us a % to use for business.
Question: If I use standard mileage is there anything else I can use?v
Answer: Yes, parking, and a % of your interest paid on your vehicle loan may all be deductible.
Question: What about a topper for my work truck so I can take my tools to job sites?
Answer: A topper would be a separate piece of equipment and you would have a chance to depreciate it over five years or take it all at once under Section 179.
Question: I sold some stock this year, what do I need to do?
Answer: You need to know the date you got the stock, (whether you purchased it, inherited it or if it was gifted to you) as well as the date you sold it. You also need the number of shares bought/sold and the price(s) you bought/sold it for.
Question: We sold our house, what do we need to know?
Answer: Your tax preparer needs to see the HUD Settlement Statement that you received at closing. Then they need to know how long you lived there. In most cases, if you lived in it 2 out of the last 5 years, you will most likely have received tax free money!
Question: I received money from another country, what should I do?
Answer: Tell your preparer. Most often sources from another country will not be taxable, but if you received over $10,000 and don't disclose it, you could get a 50% penalty, even if the money is not taxable. If you have a foreign bank account, you need to tell your preparer.
Question: We got married this year, how should we file?
Answer: Whatever your marital status is on December 31st, the IRS considers you were that the entire year. So, you'll probably file Married Filing Joint (MFJ), but if one person had large medical bills and the other didn't, you might file Married Filing Separate (MFS). It is best to come together and let your preparer show you how each filing status would effect you. Now that you're married, you are no longer eligible to file head of household or single.
Question: Why do my children need Social Security #s, they are too little to work?
Answer: In order to claim an exemption, each person must have a valid SS#.
Question: Is it true that I'll loose more than just the exemption if I let my ex claim the kids this year?
Answer: Yes, now H.O.H., EIC, Child Credits, Childcare Credits, Working Family Credits are tied together differently - check with your preparer before you decide this year.
Question: How is donating a car this year different?
Answer: Up until December 31, 2004, you were able to donate a vehicle and take a charitable donation deduction for the FMV of the vehicle (Blue Book was usually accepted). Starting January 1, 2005, the charity must inform you after they sell the vehicle, what was received for it and then your deduction is limited to that amount (example: they scrap it for $75.00 - your deduction is only $75.00! NOT BLUE BOOK). (Since you can still use Blue Book fair market value if the non-profit you donate to uses the vehicle, a great place to donate is Newgate Education Center (Tuition-free auto body and auto mechanical school, 2900 E Hennepin Ave, Mpls, MN 55413, 612-378-0177, www.newgateschool.org), since they use the vehicles to train at-risk youth and young adults for future employment.)
Question: Can we split daycare if both the father and the mother of the child pays half - (either they're not married or are separated and do not live together).
Answer: NO - only one person gets the daycare per child social security number. It should go to the one the child lives with. If joint custody - with equal time - work it out between yourselves first (or both come in and see which way will work out the best) - only one will get it.
Question: How important are my receipts - I don't think the IRS has been doing many audits?
Answer: VERY IMPORTANT! - the IRS has been doing more and more audits lately - RECEIPTS, RECEIPTS, RECEIPTS!
Question: What about bills and bank statements?
Answer: Save them all for the current year, plus 4 years back. (So in 2013, you'll save 2009, 2010, 2011 and 2012. But don't throw 2008 out until after April 16, 2014.)
Question: I went to look at my receipts and I can't read them - (the aliens took the ink off them for their spare socks!)
Answer: That's right - on a lot of receipts the ink disappears after a few months. Unfortunately, you need proof for 4 years. The Solution - purchase an inexpensive copy machine and make copies right away (like once a week or month). Keep an envelope by your copier to keep receipts in that need to be copied.
Question: Why do I need a receipt for my charitable contribution - I have my canceled check?
Answer: You need to keep your canceled check to prove you paid it. A new law is in effect as of 2007, you need a statement/receipt from the charitable organization stating that you made a donation, the date the donation was made and the amount that was given. For non-cash donations, you need to keep a receipt and a list of the items donated. It is still in effect that you need your receipt letters from the non-profits along with proof of payment (credit card statement, canceled check, etc.)
Question:What is the difference between Cash Basis and Accrual Basis?
Answer: Cash Basis - You count Income when you receive it, and you count an Expense when you purchase it. Accrual Basis - You count income when you bill it out, and count expenses as they accrue. NOTE: Cash basis doesn't count your accounts receivable not paid yet. Accrual basis counts invoices sent out but not paid to you yet.
