Question 1

WHAT SHOULD I DO IF I RECEIVE AN IRS NOTICE?

Accepted Answer

Don’t ignore it. Read it carefully, respond by the deadline, and keep copies of all correspondence. Seek professional help if needed.

Question 2

DO I HAVE TO FILE TAXES IF I LIVE IN ANOTHER COUNTRY?

Accepted Answer

Yes, U.S. citizens and residents must report worldwide income, but foreign tax credits and exclusions may apply.

Question 3

HOW LONG SHOULD I KEEP MY TAX RECORDS?

Accepted Answer

Generally, keep records for at least 3 years. For certain situations, keep them up to 7 years.

Question 4

CAN THE IRS TAKE MY REFUND?

Accepted Answer

Yes, for debts such as unpaid taxes, child support, or federal student loans.

Question 5

WHAT HAPPENS IF I FILE LATE?

Accepted Answer

You may face a failure-to-file penalty (5% per month of unpaid taxes, up to 25%) and interest. Filing an extension can help avoid this penalty.

Question 6

CAN I CLAIM EDUCATION EXPENSES?

Accepted Answer

Yes, credits like the American Opportunity Credit or Lifetime Learning Credit may apply.

Question 7

CAN I DEDUCT MEDICAL EXPENSES?

Accepted Answer

Yes, if you itemize and your unreimbursed medical expenses exceed 7.5% of your adjusted gross income.

Question 8

CAN I STILL CLAIM THE CHILD TAX CREDIT?

Accepted Answer

Yes, if you have a qualifying child under age 17, meet income limits, and meet relationship and residency requirements.

Question 9

HOW LONG WILL IT TAKE TO GET MY REFUND?

Accepted Answer

E-filed returns with direct deposit usually arrive within 21 days. Paper returns take longer.

Question 10

WHAT'S THE DIFFERENCE BETWEEN A TAX CREDIT AND A TAX DEDUCTION?

Accepted Answer

Credit: Reduces your tax bill dollar-for-dollar (e.g., Child Tax Credit). Deduction: Reduces taxable income (e.g., mortgage interest).

Question 11

WHAT EXPENSES CAN I DEDUCT AS A SMALL BUSINESS OWNER?

Accepted Answer

Common deductions include rent, utilities, advertising, insurance, business travel, office supplies, and professional services.

Question 12

DO I NEED TO MAKE QUARTERLY ESTIMATED TAX PAYMENTS?

Accepted Answer

Yes, if you expect to owe $1,000 or more in taxes for the year and your withholding isn’t enough.

Question 13

CAN I WRITE OFF MY CAR FOR BUSINESS ?

Accepted Answer

If used for business, you can deduct actual expenses or the standard mileage rate (IRS sets rate annually). Keep mileage logs and receipts.

Question 14

WHEN ARE BUSINESS TAXES DUE?

Accepted Answer

Partnerships & S-Corps: March 15 (Form 1065 or 1120-S). C-Corps & Sole Proprietors: April 15 (Form 1120 or Schedule C). Extensions available, but payments still due by original deadline.

Question 15

WHAT'S THE DIFFERENCE BETWEEN AN LLC, S-CORP, AND C-CORP FOR TAXES?

Accepted Answer

LLC: Pass-through taxation unless you elect otherwise. S-Corp: Pass-through taxation with possible payroll tax savings for owners. C-Corp: Separate entity taxed at 21% corporate rate, may face double taxation on dividends.

Question 16

DO I HAVE TO REPORT CASH INCOME?

Accepted Answer

Yes. All income, including cash, tips, and side jobs, must be reported

Question 17

CAN I DEDUCT MY HOME OFFICE EXPENSES?

Accepted Answer

If you’re self-employed and use a portion of your home regularly and exclusively for business, you may deduct expenses. Employees cannot deduct home office expenses due to current tax law changes (2018–2025).

Question 18

WHAT DOCUMENTS DO I NEED TO FILE MY TAXES?

Accepted Answer

Common documents include W-2s, 1099s, Social Security statements, interest/dividend statements, prior year return, and receipts for deductions or credits.

Question 19

DO I HAVE TO FILE TAXES IF I DIDN'T EARN MUCH INCOME?

Accepted Answer

It depends on your filing status, age, and income type. For 2024, single taxpayers under 65 generally must file if they earned $13,850 or more. Even if not required, filing may be beneficial to claim refunds or credits.

Question 20

WHEN IS THE TAX FILING DEADLINE?

Accepted Answer

For most taxpayers, the deadline is April 15. If it falls on a weekend or holiday, the deadline is the next business day. Extensions can be filed for an additional six months, but taxes owed are still due by April 15.