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Tax preparation can be overwhelming, especially for a young person entering the workforce, growing families, the self-employed, and even individuals going through life changes, such as divorce or the loss of a partner. Below are a list of the most frequently asked tax return questions to keep in mind when handling your tax planning for 2018.

4 Frequently Asked Tax Preparation Questions

1. Who Needs to File a Tax Return?

The answer to this question can be found by referencing the IRS’ annual Publication 17, which identifies who does and doesn’t need to file a tax return. As of 2017, single taxpayers were required to file a tax return if they made at least $10,400 (under 65) or $11,950 (over 65).

Married couples filing jointly were required to complete a tax return if they made at least $20,800 (both spouses under 65), $22,050 (one spouse 65 or older), or $23,300 (both spouses 65 or older). Those who have sold a home, made over $400 in self-employed income, or received wages/tips not subject to withholding from Social Security or Medicare are also required to file a tax return.

2. What Happens If You Fail to File a Tax Return?

tax preparationCPAs and tax planning expert will never recommend neglecting to file a tax return due to the variety of serious consequences associated with this decision. Taxpayers who don’t file will incur a 5% penalty fee on all taxes due, which can increase monthly up to 25%. Any refunds you may be entitled to can no longer be claimed, and you can even face jail time and fines of up to a quarter of a million dollars.

3. What Happens If You Lost Or Never Received Your Tax Documents?

You’ll need any relevant W-2 and 1099 tax forms associated with employment in order to file your taxes. Companies are required to mail these out to the addresses they have on file for all employees. If you didn’t receive yours or you lost it, contact the company and ensure your address is up to date. Since most organizations keep tax records for seven years or more, they should be able to provide you the information you need. If they don’t, you can contact the IRS for your official transcripts via their website.

4. Do You Need to File a Tax Return if You Don’t Owe the IRS?

Even if you don’t owe money to the IRS, it’s still a good idea to complete a tax return each year. Annual tax preparation and filing ensures you receive any refunds owed to you, which can add up to a nice paycheck after the holidays. It also helps you avoid the unfortunate consequences mentioned above.

 

Looking for a friendly tax preparation expert to help walk you through the process and ensure you receive any money owed to you? Thousands of customers throughout the Jordan, MN, area turn to Cheryl Hawkins Tax and Accounting for personable, expert assistance with a wide variety of tax issues. With over 20 years of experience with every aspect of the tax law, this experienced professional can help get your taxes filed accurately and on time. To take the stress out of filing your annual returns, call Cheryl today at (952) 222-8272 to schedule an appointment. You can also visit her website to learn more about her wide variety of financial and tax services.

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