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Top 7 FAQs About Tax Season
When the tax season comes, most people have a lot of questions for their tax professional. If you are equally confused and seek answers, know that you’re not alone. Here are the seven questions our clients ask most frequently. 1. What Is the Minimum Income Level Required for Taxes? Unfortunately, we don’t have an exact answer; it all depends on factors like income source, and filing status. In the most general terms, if your total income surpasses $12,000, then you will have to pay federal taxes. The number is much worse for freelancers, who have to pay taxes if they earn more than $600. 2. When Should I File My Taxes? Whenever you want — as long as it’s before the deadline. It’s always recommended to start a month or more in advance because there’s still that slight chance something will go wrong. 3. When Are My Taxes Due? The deadline is always the same for everyone and usually falls on April 15. But if it’s a Sunday or a holiday, the day is moved to the next one. For example, in 2018, the 15th was a Sunday and the 16th was a holiday, so the deadline was pushed to April 17.
this question is undoubtedly a pervasive one. Also, almost everything can expense as long as it was purposed for business.
5. Do Tax Audits Affect My Credit? It doesn’t affect your credit if you merely owe money to the IRS, but how you choose to pay your taxes certainly does. 6. What’s the Earned Income Tax Credit and Do I Qualify? The EITC is a tax benefit reserved for low-income families and some middle- income families. You need to meet several requirements to qualify for this benefit, most of which are quite complicated to understand. As each case is different, you can always seek the help of a skilled professional who will see if you qualify or not. 7. Do I Need to Keep My Tax Documents and for How Long? Yes, you most certainly should keep your tax documents, and it’s generally recommended to do so for seven years. If the IRS decides they want to audit you, they will ask you for the last three years’ worth of documents, and they can even extend it to six years. You should keep the tax returns themselves forever. So, that about covers all the main questions most people have. If you still have questions, you can always contact Golden Tax Relief! We will be more than happy to help you and give you all the additional advice you need. 32850 US-43 STE. B, THOMASVILLE, AL 36784
4. What Can You Expense? Taxes are a bit tricky when you’re a freelancer. And since 36 percent of the U.S. workforce freelances,
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