FAQ

I filed my tax return with the IRS and I'm expecting a refund. How can I know my refund status?

You can access the IRS's secure Web site to find out if the IRS received your return and whether your refund was processed and sent to you. To get to your refund status, you'll need to provide the following information as shown on your return:

Your Social Security Number (or IRS Individual Tax Identification Number)
Your Filing Status, (Single, Married Filing Joint Return, Married Filing Separate Return, Head of Household, or Qualifying Widow(er))
The refund amount


I'm expecting a tax refund, but I have not filed my return and the deadline has passed. Will a late penalty be charged?

If there is a refund due to you, no penalty for late filing or late paying will be charged. The penalty is based on the unpaid taxes as of the due date of the return.


Do I still have to send in any money at filing for an extension, or can I pay taxes by the extension due date?

If you need an extension of time to file your tax return, you need to estimate how much tax you'll owe, and include that payment with your Form 4868 (Application for Automatic Extension of Time to File for U.S. Individual Income Tax Returns). the extension does not give you more time to pay the tax you owe; it is only an extension of time to file your return. If you owe an additional amount of tax when you file your return, you will be charged interest on the unpaid balance from the original due date of the return. You will also be charged a late payment penalty if the amount you owe is more than 10% of your actual tax liability.


What do I do if my employer has not provided me a W-2 form?

After January 31, if you want to file your tax return but have not received your W-2, you should contact your employer to find out if or when the W-2 was mailed. Make sure that your employer has your correct address. After contacting the employer, if you still do not receive your W-2, contact the IRS for assistance at 1-800-829-1040, but not before February 16. An IRS representative will complete a W-2 complaint on Form 4598. A copy of the Form 4598 will be sent to the employer and a copy to you along with Form 4852 (Substitute for a Missing Form W-2). When you call or visit an office of the IRS, please have the following information with you:

Your employer's name, complete address, and telephone number
Your employer's ID number, if known (see prior year's W-2 if you worked for the same employer)
An estimate of the wages you earned
Federal income tax withheld
Period you worked for the employer

If you receive your W-2 from your employer after filing your tax return and it does not agree with the income or withheld tax you reported on your return, please file an amended return on Form 1040X.


How long do I need to keep certain records?


Records such as receipts, canceled checks, and other documents that prove an item of income or a deduction appearing on your tax return should be kept at least until the statute of limitations expires for that return. Usually this is three years from the date the return was due or filed, or two years from the date the tax was paid, whichever is later. There is no period of limitations when a tax return is false or fraudulent or when no return is filed. You should keep some records indefinitely, such as property records, since you may need them to prove the amount of gain or loss if the property is sold.

If you are an employer, you must keep all your employment tax records for at least four years after the tax is due or paid, whichever is later.


Can a person claim a girlfriend as a wife if they have a child or do they have to be married?

You are considered married if you are living together with her in a common law marriage that is recognized in the state where you now live or in the state where the common law marriage began. If you are considered married, then you may file as married filing jointly. If you are not considered married, then you would have to file as single or head of household.


I sold my primary residence this year. What form do I need to file?

If you meet the ownership and use tests, you will generally only need to report the sale of your home in case your gain is more than $250,000 ($500,000 if married and filing jointly). During the five-year period ending on the date of the sale, you must have owned the home for at least 2 years (the ownership test), and lived in the home as your main home for at least 2 years (the use test). If you owned and lived in the property as your main home for less than 2 years, you may still be able to claim an exclusion in some cases. If you are required to report a gain, use Schedule D on Form 1040.


I purchased a computer last year to do online day trading from home for additional income. Can I deduct or depreciate the cost of the computer or Internet connection from my investment income?

You may deduct investment expenses (other than interest expenses) as miscellaneous itemized deductions on Form 1040, Schedule A. This would included depreciation on the portion of your computer used for investment purposes, and the portion of your Internet access charges used for investment purposes. However, you cannot claim Section 179 expensing of the computer since it is not a business asset.


Can I deduct Home Office Expenses without deducting depreciation so that when I sell my house, the basis won't be affected?

If you have qualified business use of your home, you are required to reduce your basis in the home by the amount of depreciation allowed or allowable.


We have incurred substantial repairs to our rental property. Can we depreciate those repair fees?

"Replacement" of roof, rain gutters, windows, and furnace on a residential rental property is considered to be a capital improvement to the structure. The items would be in the class of residential rental property with a recovery period of 27.5 years using the straight line method of depreciation.

"Repairs," such as repainting the house, are current expenses. A repair keeps your property in good operating condition, but in general, it does not materially add to the value of your property. If you make repairs as part of an extensive remodeling or restoration of your property, the whole job is an improvement and subject to depreciation.

All sources above are from National Association of Enrolled Agents.


Fraudulent trusts
Promoters of abusive trusts can lead innocent taxpayers to financial ruin. <details>

IRS warns of Social Security refund hoax

Expect tax refund? The IRS needs your new address.
Every year, refund checks were returned as undeliverable by the U.S. Postal Service. If you didn't get your expected refund because of your recent move, call 1-800-829-1040. When you move, notify the IRS of your new address using Form 8822.