Don’t ignore it. Read it carefully, respond by the deadline, and keep copies of all correspondence. Seek professional help if needed.
02
Yes, U.S. citizens and residents must report worldwide income, but foreign tax credits and exclusions may apply.
03
Generally, keep records for at least 3 years. For certain situations, keep them up to 7 years.
04
Yes, for debts such as unpaid taxes, child support, or federal student loans.
05
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.
06
Yes, credits like the American Opportunity Credit or Lifetime Learning Credit may apply.
07
Yes, if you itemize and your unreimbursed medical expenses exceed 7.5% of your adjusted gross income.
08
Yes, if you have a qualifying child under age 17, meet income limits, and meet relationship and residency requirements.
09
E-filed returns with direct deposit usually arrive within 21 days. Paper returns take longer.
10
Credit: Reduces your tax bill dollar-for-dollar (e.g., Child Tax Credit). Deduction: Reduces taxable income (e.g., mortgage interest).
11
Common deductions include rent, utilities, advertising, insurance, business travel, office supplies, and professional services.
12
Yes, if you expect to owe $1,000 or more in taxes for the year and your withholding isn’t enough.
13
If used for business, you can deduct actual expenses or the standard mileage rate (IRS sets rate annually). Keep mileage logs and receipts.
14
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.
15
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.
16
Yes. All income, including cash, tips, and side jobs, must be reported
17
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).
18
Common documents include W-2s, 1099s, Social Security statements, interest/dividend statements, prior year return, and receipts for deductions or credits.
19
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.
20
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.
