The Answers You Need
CAN I ITEMIZE EXPENSES SUCH AS HEALTH EXPENSES, MORTGAGE INTEREST, CHARITY, ETC.?
It depends on whethere they total more than your standard deduction. For 2022, the standard deductions are: Single $12,950, Head of Household $19,400, and Married Filing Jointly $25,900. Unless you can exceed these amounts, it doesn't help you. The only exception to this would be for Arkansas residents. Arkansas deductions will take into account your total expenses and they might be more than the small standard deduction that Arkansas gives you. There is usually no benefit for Oklahoma residents as they do not allow you to itemize on your state return unless you itemize on your Federal return.
CAN I CLAIM WORK RELATED DEDUCTIONS IF I AM PAID AS A W-2 EMPLOYEE?
Basically, the answer is no. Unreimbursed employee expenses were removed from the schedule A some years ago.
SHOULD I FORM AN LLC?
This is the most common questions we field every year. It is not an easy answer. Some businesses with high rates of risk for laswuit probably should, but you should consult with your attorney. If you decide to form an LLC, use an attorney. It costs more, but is probably the only way to survive a lawsuit. One takeaway is that it is expensive, time consuming, and requires will power to do things right all the time, and not just at tax time. If you think you might have liability issues based on what you are doing, please speak to a lawyer.
WHEN DO I GET OLD ENOUGH TO QUIT PAYING TAXES?
Never. Whether or not you have to file taxes depends on your income level/filing status, not your age.
I AM SELF EMPLOYED AND/OR A FARMER. WHAT EXPENSES CAN I DEDUCT?
Anything that helps you make the money you are reporting should be deductible. Also, don't forget the space in your home that you use as an office. This allows you to deduct a part of your home expenses. Mileage is another expense, and your cell phone/internet service. If you use equipment or heavy vehicles, they can be depreciated over a number of years unless they are eligible for immediate deduction.
CAN THE IRS COME TO MY HOUSE IF I OWE BACK TAXES?
YES. They have announced their intention to go to personal residences and provide proof that they are from the IRS and collect. (Only if you owe back taxes). If this should happen to you, be very courteous. When you work with them they will usually work with you. Being harsh or hateful will only make matters worse.
MY EX FILED WITH THE KIDS AND MY RETURN IS BEING REJECTED FOR ELECTRONIC FILING. WHAT CAN I DO?
A paper return can be filed with the IRS. A great idea would be to send the proof that you can claim the dependents with the return. (You can only claim EITC if you are the custodial parent and the kids lived with you for more than 183 days that year). Send your court order, school records, utility bills, and anything else that proves you are providing for the dependent. A letter from a church pastor or local police department would also be helpful.
WHAT TYPE OF EVIDENCE DO I HAVE TO PROVIDE AS EVIDENCE OF MILEAGE DEDUCTIONS?
The IRS expects you to keep a log of mileage day by day. It must have beginning and ending mileage with what you did to constitute the deductibility of business miles. (ex-went to the supply house to pick up widgets). It is a good idea to keep your copies of oil changes and repair invoices to assist in proving the mileage on the vehicle. (Oil changes and repairs on vehicles are not deductible if you take the mileage deduction).
WHAT TYPE OF DOCUMENTATION DOES THE IRS REQUIRE TO PROVE THAT I CAN CLAIM MY CHILDREN FOR THE TAX CREDITS?
1. School letter showing you as the parent listed as the responsible parent with the child's address matching yours.
2. Have at least one utility bill, rent payment, or mortgage receipt with the same address as your tax return.
3. Make sure you have adequate documentation saved that proves your relationship to the dependent.
DOES THE IRS REQUIRE TO ME TO PROVE MY INCOME IF I CLAIM CHILD CREDITS?
Yes, yes, and yes. This is a regular audit question. If you are paid on a W2, that will work. If you receive a 1099, that will work. If you are self-employed but not receiving a 1099, you will need bank statements showing deposits that equal the amount you have reported or extensive records which document your income.
***It is very important that your employer or 1099 payer turns in their copies of the 1099 forms to the IRS by January 31st***
WHY HAS MY REFUND BEEN DELAYED?
1. Make sure your payer has filed their copies of your documentation with the IRS. If not, the IRS will not release your refund until they do.
2. Someone else may be trying to claim your dependents.
3. Someone else may be claiming your dependents for food stamps or other forms of government assistance.
4. You may owe back child support or a debt to a state or federal agency.
HOW CAN I CHECK ON THE STATUS OF MY REFUND?
GO TO IRS.GOV
CLICK: "WHERE'S MY REFUND?"
It will ask you three questions:
1. Social Security Number
2. Filing Status (Single, Head of Household, Married Filing Seperately, Married Filing Jointly).
3. The Amount of your Expected Refund