Frequently Asked Questions
From understanding the documents required for small business tax preparation to maximizing deductions and credits, our FAQ page covers a wide range of topics. We provide insights on hiring tax professionals, staying updated on tax laws, and avoiding common mistakes during the tax preparation process.
What documents do I need for tax preparation?
Here’s a common list; W-2s, 1099-MISC, 1099R, 1099G, dependent care provider receipt, tuition forms 1098T, bank interest 1099-INT, dividend Interest, 1099-DIV, Health insurance 1095A/B/C, property tax and interest 1098. If you have a small business, you may have additional income and expenses not reported on any of the previous forms.
Do I need to add up my medical expenses?
Medical expenses are an itemized deduction. To qualify for the medical deduction expense in 2019, the total expense amount must be greater than 10% of your adjusted gross income (AGI). For example, if your AGI is 50,000, only the amount over $5,000 will be added in the total for itemized deductions.
Can I write off my unreimbursed work expenses?
Prior to 2018 unreimbursed work expenses could be deducted. As of 2018 however this is no longer the case.
Who can I claim on my tax return?
You can’t claim a dependent if they are claimed on another tax return. To claim the dependent, they must be a U.S. citizen, a national, a resident alien of the U.S., or a resident of Canada or Mexico. To be considered a dependent, they must be either a qualifying child (related to you- brother, aunt, foster parent, stepparent, half-sibling under the age of 19 or under the age of 24 if a student and does not provide more than half their own support); or qualifying relative (must live in your home a full year if not related, if closely related, such as a child, parent, grandparent, sibling, niece, nephew, and domestic partners, must earn less than $4,150 in 2018 and you provide more than half their support).
Where can I find my refund status?
For the Federal IRS refund go to: https://www.irs.gov/refunds. You will need the social security number or ITIN, filing status (single, married…), and your exact expected refund amount. Each state has their own refund status page. The easiest way to find the website for your states refund status is to Google: “(your state name)” where’s my refund.
What should I do if I get a letter from the IRS or state?
Feel free to contact YourVitualTaxPreparer for advice. For each tax year you have us prepare your return, you get a year of free advice.