Tax Time Frequently Asked Tax Questions
Call Us TodayWhy should I hire a tax preparer?
The simple fact of the matter is that taxes are complicated—not to mention boring! Preparing taxes, especially if you have multiple income streams or are self-employed, can be a nightmare. At Tax Time, our certified professionals are trained to take all the guesswork, research, and mistakes out of preparing your return. This means more time to focus on the things that are really important to you, and a higher return.
Will a professional get me a greater tax return than doing my taxes on my own?
A professional tax preparer knows which common mistakes and pitfalls to watch out for. There are countless small mistakes that can be made preparing your taxes that directly affect your return. It may be possible to get the maximum possible return filing your taxes yourself—but as anyone who has tried will tell you, this is often at a great loss of time and energy.
What do I need for Income tax preparation?
You will need the following information:
- Your social security number.
- Your spouse’s social security number.
- Social security numbers for any dependents.
- All W-2 forms from all of your employers from the tax year you’re working on.
- 1099 Forms for completed contract work that earned you more than $600
- Investment income information (interest, dividends, proceeds from stocks or bonds, and income from foreign or other investments).
- Business income information (for any and all businesses you own or have shares in).
- Unemployment income information.
- Rental property income information.
- Social security benefits.
- Miscellaneous income information (like anything you earned jury duty, winnings from lottery or gambling, prizes and awards, and information about anything you might have received from savings accounts for medical bills).
What happens if I owe back taxes?
That depends! There are federal penalties for failure to pay taxes, and they can be severe. These penalties can get worse the longer you fail to pay them. If you’re behind on your taxes, don’t panic. Our team is here to help you catch up, without judgement.
Do you have to file your taxes every year?
Contrary to popular belief, not everyone always has to file their taxes every year. Depending on many factors, like the type of income you earned, the total dollars you earned, your age, and your filing status, you may not have to file a federal tax return. Our tax preparers are trained to know whether you have to file a return or not. To ask us a question, call us now at (973) 207-1437.
What records should I keep along with my tax returns? How long should I keep them?
- You should keep duplicates of all tax papers filed somewhere safe. Keep them separated by year.
- You should keep personal records for 3 years after you filed your return, whether or not you filed for a credit or refund.
- If you file a claim for loss, or you had to set up some kind of debt management agreement, keep your returns for 7 years.
- If you do not file a return, made a mistake, or intentionally file a fraudulent return, keep your records on file for as long as possible.