Frequently Asked

Questions

Here are some frequently asked questions that we
commonly encounter with clients.

No. You can only claim charitable donations by itemizing your deductions.

Use Form 8822 (.pdf), Change of Address or Form 8822-B (.pdf), Change of Address or Responsible Party – Business.

To claim your child as your dependent, your child must meet the qualifying child test or the qualifying relative test.

A split refund lets you divide your refund, in any proportion you want, and direct deposit the funds into up to three different accounts with U.S. financial institutions. Use Form 8888 (.pdf), Allocation of Refund, to request to have your refund split.

You have until April 15 of the next year to file your state and federal taxes for the current year.

To file an extension, use Form 4868. You can download and print a copy here.

Please wait 72 hours after your return has been accepted by the IRS. If you filed on paper, please allow 3 to 4 weeks before checking on the status of your refund. Visit the Where’s My Refund Tool.

Normally, 50% of the cost of a meal is deductible when you are traveling away from home overnight for business. Meals that are considered business related entertainment are also 50% deductible. Be aware that there is additional substantiation required for business related entertainment.

Expenses that are “ordinary and necessary” to entertain a customer, client or employee are deductible if certain tests are met. The expense must be either directly related to business, the main purpose of the entertainment was to conduct business and business was conducted, or the entertainment was directly before or after a considerable business discussion.

An employer reimbursement for expense is not reportable as income so long as you give your employer the receipts and a detailed accounting of the expense. You must also return any advance money that was not used.

As a self-employed person, you may be able to deduct certain expenses associated with the business use of your home. The deduction includes the business portion of real estate taxes, mortgage interest, rent, casualty losses, utilities, insurance, depreciation, maintenance and repairs. To deduct these expenses you must use a designated part of your home regularly and exclusively for its business purpose.

When a corporation is formed it is automatically recognized as a C Corporation. This is the most common type of corporation and all publicly traded corporations operate as such primarily because there is no limitation on the number of shareholders. A C Corporation becomes an S Corporation when it files a Form 2553 (Election by a Small Business Corporation) with the IRS. Many small business owners make this election because all income, deductions and credits are taxed only at the shareholder level, thus avoiding the “double taxation” that C Corporations and their shareholders experience. S Corporations are often referred to as Subchapter S Corporations and are classified as pass-through entities.

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