These answers are general educational information, not advice for your specific situation. Dollar thresholds, credit amounts, and deadlines are adjusted almost every year and were affected by recent legislation, so confirm current-year figures with us before you act. As an Enrolled Agent firm, we can represent you before the IRS in all 50 state.
Filing Basics
Do I have to file a tax return?
It depends on your income, filing status, age, and the type of income you receive. Most people are required to file once their income exceeds the standard deduction for their filing status, but there are exceptions. You may need to file even below that threshold if you’re self-employed and earned more than $400 in net self-employment income, owe special taxes (such as the additional Medicare tax or tax on early retirement withdrawals), or received advance premium tax credits through the Health Insurance Marketplace. Even when you aren’t required to file, it often pays to — that’s the only way to claim a refund of amounts already withheld or refundable credits you qualify for.
What is my filing status, and does it matter?
Yes — it affects your standard deduction, tax brackets, and eligibility for many credits. The five statuses are Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Surviving Spouse. Head of Household generally gives a larger standard deduction and better brackets than Single, but you must be unmarried (or considered unmarried) and pay more than half the cost of a home for a qualifying person. We can check which status is most advantageous for you.
When are taxes due?
Individual returns are generally due April 15. If the 15th falls on a weekend or holiday, the deadline shifts to the next business day. Business entity deadlines differ — partnerships and S corporations are typically due March 15, and C corporations April 15 (for calendar-year filers).
What if I can’t file by the deadline?
File Form 4868 for an automatic six-month extension (to October 15) to file. Important: an extension gives you more time to file, not more time to pay. If you expect to owe, pay your estimate by the original deadline to avoid penalties and interest.
Refunds and Payments
When will I get my refund?
The IRS issues most refunds within about 21 days of accepting an e-filed return with direct deposit. Paper returns take significantly longer. Refunds that include the Earned Income Tax Credit or Additional Child Tax Credit are held until later in the filing season by law. You can track yours with the IRS “Where’s My Refund?” tool.
I owe more than I can pay. What are my options?
Don’t skip filing — the failure-to-file penalty is much steeper than the failure-to-pay penalty. File on time (or extend) and pay what you can. Then you can set up an IRS payment plan (installment agreement) online for many balances, and in some cases pursue an Offer in Compromise or temporary “currently not collectible” status. We can help you choose the right approach and set it up.
Why did I owe this year when I usually get a refund?
Common causes: changes in withholding, a raise or bonus, a second job or side income without withholding, loss of a dependent or credit, or investment and retirement distributions. A quick W-4 adjustment (or setting up estimated payments) usually fixes it going forward.
Deductions and Credits
Should I take the standard deduction or itemize?
Take whichever is larger. The standard deduction is a flat amount based on filing status and is what most taxpayers now use. You’d itemize only if your deductible expenses — mortgage interest, state and local taxes (subject to a cap), charitable contributions, and large medical expenses — add up to more than the standard deduction. Keep documentation either way; we’ll run the comparison for you.
What’s the difference between a deduction and a credit?
A deduction reduces the income you’re taxed on; a credit reduces your tax bill dollar-for-dollar. A $1,000 credit is worth more than a $1,000 deduction. Some credits are refundable (they can generate a refund even if you owe no tax), while others are nonrefundable (they can only reduce your tax to zero).
What are the most common credits for families?
The Child Tax Credit (for qualifying children under 17), the Credit for Other Dependents, the Child and Dependent Care Credit (for care expenses that let you work), the Earned Income Tax Credit (for lower-to-moderate income workers), and education credits (the American Opportunity and Lifetime Learning credits). Eligibility phases out at higher incomes and each has specific rules — worth reviewing every year as your situation changes.
Can I deduct my home office?
Only if you’re self-employed and use part of your home regularly and exclusively for business. W-2 employees generally can’t deduct a home office on their federal return, even when working remotely. If you qualify, you can use the simplified method (a flat rate per square foot) or the actual-expense method.
Self-Employment and Small Business
I do freelance/1099 work. What do I need to know?
You’re responsible for both income tax and self-employment tax (Social Security and Medicare) on your net profit. You’ll generally file a Schedule C and pay quarterly estimated taxes. The upside: you can deduct legitimate business expenses — supplies, software, mileage, a portion of your phone, professional fees, and more. Good recordkeeping is essential, and separating business and personal accounts makes tax time far easier.
What business expenses can I deduct?
Ordinary and necessary costs of running your business: supplies, advertising, business travel and mileage, professional services, a qualifying home office, health insurance premiums (for the self-employed), and retirement contributions to plans like a SEP-IRA or Solo 401(k). Meals are generally 50% deductible when they have a clear business purpose. Keep receipts and note the business reason.
Which business structure should I choose — LLC, S corp, or C corp?
It depends on your income, liability concerns, and growth plans. An LLC is flexible and simple; electing S corporation treatment can reduce self-employment tax once profits are high enough to justify a reasonable salary plus distributions; a C corporation may fit if you’re raising outside capital or reinvesting heavily. Each has trade-offs in taxes, payroll, and compliance. This is worth a planning conversation rather than a rule of thumb.
Do I need to send 1099s to people I paid?
Generally, if your business paid $600 or more during the year to an unincorporated service provider, you must issue a Form 1099-NEC. Collect a Form W-9 from vendors before you pay them so you have the information ready at year-end.
Estimated Taxes and Withholding
Do I need to pay quarterly estimated taxes?
If you have income that isn’t subject to withholding — self-employment, investments, rental income, or significant capital gains — you likely need to make estimated payments to avoid an underpayment penalty. The federal due dates are roughly April 15, June 15, September 15, and January 15 of the following year. A “safe harbor” (paying a set percentage of last year’s tax) can protect you from penalties even if your income rises.
How do I fix my withholding so I don’t owe next year?
Submit an updated Form W-4 to your employer. You can have additional tax withheld from each paycheck, which is often the simplest way to cover side income or prevent a surprise balance. We can help you calculate the right amount.
Life Events
I got married (or divorced) this year — how does that change things?
Marriage changes your filing status and can affect your bracket, credit eligibility, and whether joint or separate filing is better. Divorce raises questions about filing status, who claims the children, and the tax treatment of support payments. Update your W-4 and, if applicable, your name with the Social Security Administration before filing.
I had a baby / added a dependent.
You may qualify for the Child Tax Credit, the Child and Dependent Care Credit, and a more favorable filing status. Make sure the dependent has a Social Security number before you file, since credits depend on it.
I bought or sold a home.
Homeowners may deduct mortgage interest and property taxes if they itemize. When you sell your primary residence, you may exclude a large portion of the gain from tax if you owned and lived in it for at least two of the last five years. Keep records of your purchase price and improvements — they raise your cost basis and lower any taxable gain.
I withdrew from a retirement account.
Distributions are usually taxable, and withdrawals before age 59½ often carry an additional 10% penalty unless an exception applies. Roth accounts and certain hardship or first-home situations have special rules. Tell us before you withdraw — timing and account choice can make a meaningful difference.
IRS Notices and Audits
I got a letter from the IRS. What should I do?
Don’t panic, and don’t ignore it. Most IRS notices are routine — a math correction, a request for a document, or a balance reminder — and many can be resolved by mail. Read it carefully, note any deadline, and don’t send payment or sign anything before you understand it. Send us a copy; as an Enrolled Agent firm we can respond and represent you directly.
How likely am I to be audited, and what triggers one?
Audit rates are low for most taxpayers. Returns are more likely to draw attention when there are large deductions relative to income, unreported income the IRS already has on record (from a 1099 or W-2), significant Schedule C losses year after year, or math inconsistencies. Accurate reporting and good documentation are your best protection.
How long should I keep tax records?
Generally keep returns and supporting documents for at least three years, and up to seven in some situations (such as claiming a loss on worthless securities or bad debt). Keep records tied to property — purchase, improvements, and sale — for as long as you own the asset plus several years after you sell it. Records related to unfiled returns or fraud have no time limit, so when in doubt, keep them.
IRS CP14 Notice: What It Is, Why You Got One, and How to Avoid It
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State Taxes
Do I have to file a state return too?
Usually yes, if your state has an income tax. New Jersey does, and its rules and deadlines differ from the federal ones. If you live in one state and work in another, or moved during the year, you may need to file in more than one state — with credits available so you’re not double-taxed on the same income. We handle multi-state situations regularly.
Working With Us
What is an Enrolled Agent, and why does it matter?
An Enrolled Agent (EA) is a federally licensed tax practitioner authorized by the U.S. Department of the Treasury to represent taxpayers before the IRS — for audits, collections, and appeals — in all 50 states. EAs specialize in taxation and must meet ongoing continuing-education requirements. It means we can not only prepare your return but stand in for you if the IRS has questions.
What should I bring to my appointment?
Prior-year return, all income documents (W-2s, 1099s, K-1s), records of deductions and credits (mortgage interest, property tax, charitable gifts, tuition, childcare, medical), business income and expense summaries if you’re self-employed, and any IRS or state notices you’ve received. If anything major changed this year — marriage, a new child, a home, a new business — let us know so we can plan around it
How can I pay less tax legally?
Through planning, not just preparation. Retirement contributions, HSAs, timing of income and deductions, entity choice for business owners, and taking full advantage of the credits you qualify for can all reduce your bill. The biggest savings usually come from decisions made during the year, not at filing time — so the best move is a mid-year planning check-in.
Have a question that isn’t answered here? Contact Sure Financial and Tax Services LLC — we’re happy to help.