Here are the answers to some of the most Frequently Asked Questions our firm receives.
Q. How do I check the status of my refund?
A. The easiest way is to click the Where Is My Refund link on this page. Otherwise – Federal: Information is available 72 hours after electronic filings and 4 weeks after paper filings. You will need the first social security number on the return, filing status and whole dollar amount of refund. Then logon to www.irs.gov and click on the Where’s My Refund link or call 1-800-829-4477. New York: Logon to www.tax.ny.gov and click on the Check Refund link or call 518-457-5149. Other states, please click the Where Is My Refund link on this page.
Q. How do I file – live and work in different states?
A. Both states have a tax claim on your income. However, you can easily and legally avoid double taxation. First, prepare the return for your work state. Determine the tax liability. Then prepare the return for your home state. Determine the tax liability. A credit for up to 100% of the work state tax liability can be taken on your home state return. Some restrictions apply, so check with your state or call us. Be sure to send a copy of the work state return with the home state return. We have experience filing in most states and will be happy to help you.
Q. What business expenses can I deduct?
A. Most job-related expenses that are not reimbursed may qualify as deductible business expenses. They must be ordinary in the performance of your job and cannot be extravagant for the locale. You will need to file Form 2106 “Employee Business Expenses” and Schedule A “Itemized Deductions” with the federal return to claim the amount paid. There is an exclusion equal to 2% of your adjusted gross income.
Q. How do I pay estimated taxes?
A. Individuals: Income from self-employment, interest, dividends, capital gains, etc. may have tax liability. To cover that liability you are allowed to make 4 installment payments during the year which are based on the estimated amount due. We have the forms and can calculate the amounts due for you. Businesses: If you expect to make a profit, estimated income taxes must be paid during the year to avoid possible penalties and interest. We have the forms and can calculate the amount for you.
Q. Do I need an attorney to incorporate/organize a new business?
A. You do not need an attorney to incorporate/organize a business. Our firm’s consultants can explain the advantages and disadvantages of different structures so that you can make an informed choice that best satisfies your goals and objectives. We can prepare the necessary filings, obtain the stock or member certificates, corporate seal and explain on-going obligations also.
Q. Do I need a federal tax identification number?
A. Employers, including household, are required to have a federal tax identification number. Self-employed individuals who want to establish a retirement plan must have an ID number. Additionally, these groups need an ID number even if they do not have employees – partnerships, estates, trusts, non-profit organizations, plan administrators, farmer’s cooperatives and any entity paying excise taxes. If your organization changes structure, e.g. proprietor to corporation, a new ID number is required.