Section: Tax Services
Q:
My son who 16 and in high school worked at Ingles this year. He made about $2500 and they took out about $100 in federal taxes and about $30 in state taxes. I'm claiming him on my taxes. Does he need file a tax return?
A:
Basically, he just needs to file a 1040EZ to get back the amount that was taken out in federal taxes and state taxes. 1040EZs are rather simple. But, any tax service can do them for you. Unfortunately, most services charge more for the 1040EZ than the person is getting back. So, choose a service wisely. For example, here at Rapid Tax Services we have a discount program for high school students. We charge high schoolers a very small flat rate that never exceeds what they get back.
Was this answer helpful?
Yes |
No
(2) people have found this answer helpful.
Section: Tax Services
Q:
What is the deadline for filing my S-Corp return?
A:
The deadline is March 15th. But, you can file for an automatic extension til September 15th.
Was this answer helpful?
Yes |
No
(1) person has found this answer helpful.
Section: Tax Services
Q:
I got my taxes filled out and received a RAL? Can you explain the fees associated with a RAL and why they are higher than waiting for a 2 week check?
A:
A RAL is a refund anticipation loan. It’s a loan based on the anticipated amount of your refund. Usually a taxpayer receives a RAL within 24-48 hours after completing his/her tax return IF the bank approves the RAL application. The reason the fees are so high is because the bank that “backs” the loan charges fees for you get your money fast. The advantage to getting a RAL verses a “2 week” (known as an Electronic Refund Check - ERC) is that you get your money faster, but you also pay for it.
If you can wait the 7-14 day time frame (“2 weeks”), you can get the ERC which tends to be a lot cheaper because you will not pay the loan fees associated with a RAL. And, with both the RAL and ERC, you can have your tax preparation fees withheld from your refund so you will not pay anything out of pocket.
Just be careful there are tax services out there that will rip you off in fees.
Was this answer helpful?
Yes |
No
(4) people have found this answer helpful.
Section: Tax Services
Q:
The only income I have for 2009 is unemployment? I went to have my taxes filled out and I was told that my unemployment compensation was taxable. And, I didn’t qualify for any earned income credit. I don’t think that is right. Why is my unemployment taxable when I pay for it and why was I told I didn’t qualify for earned income credit when I have 2 children under the age of 10 and only received $17,600?
A:
Well, unfortunately your unemployment compensation is taxable on your tax return. When you file for unemployment, you are giving the option of having federal and state taxes withheld. As far as not receiving the earned income credit, you must have earned income (wages, salaries, and tips; long-term disability benefits received prior to minimum retirement age; or net earnings from self-employment). Examples of income that is not considered earned are interest and dividends; pensions; social security; unemployment benefits; alimony; and child support.
The good news is that for 2009 under the Recovery Act, every person who receives unemployment benefits during 2009 is eligible to exclude the first $2,400 of these benefits when they file their federal tax return.
Was this answer helpful?
Yes |
No
(3) people have found this answer helpful.
Section: Tax Services
Q:
I purchased my first home in November 2009. I understand there is a credit for buying a house. Can you tell me about it?
A:
Yes, If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit. But, there are a couple of things you need to know about the credit. First, to be considered a first-time homebuyer, you and your spouse – if you are married – must not have jointly or separately owned another principal residence during the three years prior to the date of purchase. Secondly, the maximum credit for a first-time homebuyer is $8,000. Third, you must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit with additional documents to verify the purchase. Therefore, if you claim the credit you will not be able to file electronically. And, finally, new homebuyers must attach a copy of a properly executed settlement statement used to complete such purchase.
Please check the IRS website for other limitations.
Was this answer helpful?
Yes |
No
(3) people have found this answer helpful.
