FREQUENTLY ASKED QUESTIONS
· I have an appointment to get my taxes done, what do I need to bring to you?
o If your a returning client, we already have your basic information, (such as names, social security numbers and birthdays of everyone listed on your return). If your a new client we'll need a list of everyone on the return (names, social security numbers and birthdays), it's helpful if you bring in a copy of last years taxes.
Make sure to provide your current address and any and all income statements (W-2's, 1099's, Unemployment, Social Security,Interest, Divident, Business Income, Stock sales, Jury Duty, Distributions,etc). With the most rescent tax law changes, most people will use the standard deduction (as it will be the larger between itemized vs standard). However just to be certain, homeowner you'll want to bring your mortgage statement(s), the amount of property taxes paid as well as the taxable value (from the city) of your home. You may be able to deduct other items (even with the new tax laws we suggest going over the numbers): Medical expenses (if they're 7.5% of your income), Personal Property Taxes, in Michigan (car license fee), Gifts to Charity's. Keep in mind you must keep written records of all deductions or they could be disallowed.There are other possible (less frequent) deductions, but this list covers the most widely used. When deciding to itemize or not, we compare your standard deduction, with your itemized amount and use the one most advantageous to you.
A few other popular credits, include:Out of pocket Education expenses (college), Student Loans, Child Care Expenses (so you'll want to bring those statements. Every taxpayer is different, there is no one size fits all, the best practice is to keep good records and all your paperwork in order!
·Can I claim _______________, as a dependent on my return? oThis can be tricky, there are a number of rules and guidlines that must be examined before"claiming" someone. The first rule is did you provide over half of their support? If you did, you MAY be able to claim them as either a"Qualifying Child" or a"Qualifying Relative".
·Is it better to file"Married Filing Joint" or "Married Filing Seperate"?oMost of the time your better off filing"Joint". There are many credits that those filing"Seperate" cannot take. Your filing status is based on your status on December 31 (married or single). If you do however file "Seperate", you still need to list your spouses name and social security number on your return.
·Can I deduct"Child Support" on my taxes? oNo you can not.
·I'm a retired senior, is Social Security taxed? oThe answer is maybe! Depending on your income Social Security can be, taxed partially, all or none. There is a work sheet that must be completed. As a rule of thumb:If your Income is $25,000 (if your single)/$32,000 (married) 50% ofyour Social Security benefits are taxable. If your income is $34,000 (single)/$44,000 (married) 85% of your Social Security benefits are taxable.
· My kid had a part time summer job, does he have to file taxes? oI Most of the time taxes would have been taken out, so he or she may be able to get a little refund. J & J Taxes and More generally only charges a nominal fee for a dependent's basic 1040 anyway, so I advise filing it!
·Grandma's on a very low fixed income, does she have to file taxes?oIf she's single, over 65 and had gross income less than the standard deduction, no. HOWEVER........ If she had any taxes with held, she may be looking at a refund. Also some states have property tax credits that she MAY qualify for.
·What tax bracket am I in? (2020)
37% for incomes over $518,400 ($622,050 for married couples filing jointly)
35%, for incomes over $207,350 ($414,700 for married couples filing jointly)
32% for incomes over $163,300 ($326,600 for married couples filing jointly)
24% for incomes over $85,525 ($171,050 for married couples filing jointly)
22% for incomes over $40,125 ($80,250 for married couples filing jointly)
12% for incomes over $9,875 ($19,750 for married couples filing jointly)
10% for incomes up to $9,875 ($19,750 for married couples filing jointly)
·What do I do if it's after January 31st andI haven't received my W-2 from an employer?
oThe first thing you need to do is contact the employer (sometimes they may not have a correct address for you). If you have not received it after February 15th, the IRS recommends that you contact them! There is a process, where the IRS will work with you, it can be a lengthy process (hopefully you saved your paystubs).
*What if I owe and can't pay the IRS? Don't panic! Even if you cannot pay what you owe, send in your return and try to send them "something!" (The IRS levies seperate penalties, failing to file and failing to pay. If you at least file your return, that will be one less penalty, you'll be charged.) After the return is filed (after the due date), you will receive a bill for your balance. At that time you can send in your balance or send in the "payment plan" application that will be sent with your bill.
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Hours by Appointment
J and J Taxes and More
29217 Ford Rd
Garden City, MI 48135