Paying taxes can be a bit of a drag, so we’ve sorted some of the top Tax Relief Center and FAQs straight from the Internal Revenue Service. As Uncle Ben from Spiderman said, “With great power comes great responsibility,” and as your buying power increases, it is important to keep track of your obligations to the State as well.
Tax Help and FAQs | Find the Answers You Need Here
1. I changed my address, what do I do?
Updating the IRS of your address is a must. So, what do you need to do to keep your records up to date? Fill up Form 8822 also known as the Change of Address or the Form 8822-B if changes needed involves address or responsible party for business. You may also do it via written or oral notification. The information you must include in a written statement is your full name, previous and new address, and social security number.
An oral notification requires you to state your full name, address, date of birth, and social security number. If you can’t submit the documents yourself, the representative must have Form 2848 (Power of Attorney and Declaration of Representative).
2. Is there an age limit for claiming children as dependents?
As long as the child meets either of these requirements, he/she will be eligible for this program:
Qualifying Child Test – He/she must be below 19 years of age or be a student younger than 24 years.
Qualifying Relative Test – Age limit is waived if the child is “permanently and totally disabled.”
Aside from the two tests mentioned above, they will also have to undergo the dependent taxpayer test, citizen or resident test, and joint return test.
3. What is a Split Refund?
A split refund lets you allocate your refund and deposit the money into three separate accounts, no matter the amount. These accounts must be approved by the U.S. financial institutions. You can avail this using Form 8888 (Allocation of Refund) and indicate that you want your refund split or even use it all to buy $5,000 in U.S. Series I Savings Bonds.
4. How to determine if you need to file quarterly individual estimated payments?
You must make an estimated tax payment if you’re anticipating at least $1,000 in tax after deducting refundable credits and withholding tax. But, rules may vary for the following occupations or business set-up:
- Farmers and fishermen
- Certain household employers
- Some higher-income taxpayers
- Non-resident aliens
5. I made a mistake after filing the Federal returns, what do I do now?
If it’s a simple computation error, the IRS corrects it themselves, so nothing to worry about. But, you are required to file the correct filing status. You must also update information on your income, deductions, or credits to avoid any discrepancy. You can do this by filling out Form 1040X (Amended U.S. Individual Income Tax Return).
When filing a 1040X, you need to attach a copy of forms and schedules must be updated or was not included in your initial submission. It usually takes 16 weeks for the IRS to process the amended return.
6. How to qualify for Head of Household status?
The applicant must have a qualifying child or dependent to be deemed eligible for head of household status. A custodial parent may also qualify in this category and be able to claim head of household even if the claim to exemption for the child was already foregone.
7. What are the tax changes for 2018?
In case you missed it, the new administration implemented significant changes, and here are the changes you need to be aware of:
- Standard Deductions has drastically increased in 2018. Married couples who are filing jointly now have an increased deduction from $13,000 to $24,000. Single taxpayers are now eligible for $12,000 deduction, up by $5,500. Heads of households are entitled to $18,000 deduction, which was previously set at $9,550.
- Personal Exemption is eliminated in the recent tax reform bill.
- Top Income Tax Rate is in effect. Those earning $500,000 above are now subject to higher income tax.
- Estate Tax exemption is now at $11.2 million per single taxpayers and $22.4 million per couple.
Check out this series of tax FAQs from an expert’s perspective courtesy of Samera Business Advisors:
Filing your tax papers and keeping up with the constant changes in rules and policies might be a lot to handle, especially when you have a hectic schedule. Now you know the common questions in filing taxes, this knowledge will save you lots of time from scouring the net for answers. Be sure to visit the site often for the latest tax help and solutions.
Do you need more tax help? Feel free to let us know which areas you need help with in the comments section below!