F.A.Q.

To get an IP PIN that is lost, forgotten, or never arrived in a CP01A Notice, use the IP PIN request portal at IRS.gov. If you can’t access your IP PIN online, call (800) 908-4490 for help getting your IP PIN reissued.

Anyone who has been a victim of identity theft is automatically assigned an IP PIN. If you are not a victim but would like to request an IP PIN, you can apply at the same IP PIN request portal.

Notice: An IP PIN is an additional security measure for eligible taxpayers to prevent fraudulent use of their Social Security Numbers. An IP PIN is not the same thing as a taxpayer identification number, such as a Social Security Number, individual taxpayer ID, or an Adoption Taxpayer Identification Number (ATIN).

If you make more than the standard deduction for your filing status, you’re required to file a tax return and pay any taxes owed.
Standard deductions for 2020:

• Single: $12,400
• Married Filing Jointly: $24,800
• Head of Household: $18,650
• Qualifying Widow(er): $24,800

For anyone 65 or older, you can add $1,300 per spouse if they're married, or $1,650 if they're single or file as head of household.

Taxpayers only need a Form 1040 and any additional schedules or forms to file their taxes; Forms 1040-A and 1040EZ have been retired due to Congress simplifying the Form 1040.

The Form 1040 was simplified in hopes of reducing the form to the size of a postcard, easing the burden of tax filing for millions of working Americans. The new Form 1040 uses a “building blocks” system of extra forms and schedules to report information not included on the main form. However, e-filing is still the easiest way to file with the least likelihood of calculation errors.

To track your federal refund, use the IRS “Where’s My Refund?” tool. To track your state refund, use your state’s “Where’s My Refund?” tool.

All refund trackers will require you to enter your Social Security Number, and most will also require additional information, like your expected refund amount or filing status. Be sure to have your tax return on hand to easily enter this information.

The IRS issues more than 9 out of 10 refunds in less than 21 days. Each state sets its own refund processing schedule – some are similar to the IRS, while others are different. Due to the recent surge of tax-related identity theft and fraudulent refund claims, many states are taking longer to scrutinize returns prior to releasing refunds.

The fastest way to receive your refund is to e-file your return and choose direct deposit. E-filed returns are received more quickly than mailed returns, and direct deposit allows the IRS to issue your refund to your bank account as soon as it is approved.

The “Where’s My Refund?” tool on the IRS.gov site is the best way to track your income tax return. States with an income tax usually have a similar tool as well, which can be found on your state’s official government website for revenue or taxation.

You’ll need your Social Security Number and some additional information from the tax return you filed to prove your identity when you use online tracking tools.

If you need a copy of a tax return from past years, go to the IRS Get Transcript page. You can order a tax transcript to arrive in the mail by providing your Social Security Number, birthdate and mailing address. Transcripts are delivered to the address the IRS has on file for you, usually within 5 to 10 days.

You can also get your transcripts online, but it requires some additional personal information for verification, including a financial account number from a loan service (like a credit card or car loan) and a mobile phone number.

When you file online, you don’t have to worry about the forms themselves. Filing with Tax Office & Associates means you’ll simply provide you information, and we’ll fill the forms based on your documents.

The 1040-EZ and 1040A were retired in 2017, so now there is only one (shortened) Form 1040. This form is the hub of your tax-filing wheel, and you can add as many schedules as you need to report all your income and deductions.

The information on your Form 1099-MISC will usually go on a Schedule C – Profit or Loss from Business, which documents all your income, profit and loss from self-employment.

Note: Freelancers who earned more than $600 from a client over the course of the year will no longer receive Form 1099-MISC detailing the exact income amount—instead, that information will be reported on Form 1099-NEC. You don’t actually file Form 1099-NEC, since it serves a similar purpose as a W2; it provides information you’ll need to fill out your tax return.

You’ll also file Schedule SE, Self-Employment Tax, to pay your Social Security and Medicare taxes. When you file your taxes with Tax Office & Associates, we’ll complete all the necessary forms to report your freelance income.

Freelancers who earned more than $600 from a client over the course of the year will receive a 1099-NEC detailing the exact income amount. You don’t actually file a 1099-NEC, since it serves a similar purpose as a W2; it provides information you’ll need to fill out your tax return.

The information on your 1099-NEC will usually go on a Schedule C – Profit or Loss from Business, which documents all your income, profit and loss from self-employment.

You’ll also file Schedule SE, Self-Employment Tax, to pay your Social Security and Medicare taxes.

When you file your taxes with Tax Office & Associates, we’ll complete all the necessary forms to report your freelance income.

To pay your quarterly estimated taxes, use the estimated tax worksheet provided by the IRS to figure out how much you’ll need to pay every quarter. Once you know the amount to pay, you can either send a check with the payment vouchers in the worksheet to the Department of the Treasury, or you can pay your taxes online on the IRS.gov payments page.

You’ll know that another person filed a tax return in your name if you try to file and the IRS rejects your return. The IRS will explain in the rejection that a return associated with your Social Security Number has already been filed.

Why would someone do this? In extremely rare cases, it could be accidental. But most of the time this is intentionally done by crooks who use stolen identities to collect fraudulent refunds.

Once you’re aware that someone has filed in your name, fill out and send a Form 14039 immediately. This form will alert the IRS of the fraudulent return and begin the process of restoring your identity.

To access your 1040 online, check with the e-filing provider you used for the year in question (e.g., your 2019 tax return that you filed in 2020).

If you filed through a tax preparer or CPA, they can provide a printed or electronic copy of your tax return.

Ready to file your tax return for this year? Contact Tax Office & Associates to get started.

To find your prior-year Adjusted Gross Income (AGI), look on a copy of the tax return you filed last year.
For years before 2018:

• On a Form 1040EZ, your AGI will be on Line 4.
• On a Form 1040A, your AGI will be on Line 21.
• On a Form 1040, your AGI will be on Line 37.

For 2018 to the present:

• On Form 1040, your AGI will be on Line 7.

If you filed with 1040.com, we’ll automatically carry forward your prior-year AGI to validate your identity when you file this year. You can also sign in and view a completed copy of your return from last year. In the upper left-hand corner of the PDF, you will see which main tax form your return was filed on.

When you file with Tax Office & Associates, we’ll keep you updated on your tax return status by email. We’ll let you know when your return has been accepted by the IRS, and in the meantime, you can always call our office to check your status to make sure everything is in order.

If you didn’t file with Tax Office & Associates, check with your tax e-file provider, whether online or tax professional, to get the latest status.

When you electronically file your taxes, the IRS confirms each tax return with an Acknowledgement Record. It will either indicate “Accepted” or “Rejected.”

A “Rejected” status will include a description of what needs to be fixed on the return. A rejected return must be resubmitted.

An accepted return is confirmation that the government received your return and accepted it for processing. Your e-file provider, whether software or tax professional, receives the Acknowledgment Record and can inform you of the status.

As soon as we get word that your tax return has been reviewed and accepted by the IRS, we’ll email you to let you know that your return is officially accepted. This process typically occurs within minutes, which means your tax refund should be on its way in the next few weeks!

While processing times vary from taxpayer to taxpayer, the fastest way to receive your tax refund is to e-file your tax return and have your refund direct deposited to your bank account. That way, the IRS can drop your money into your lap as soon as the amount is ready to be issued.

To choose direct deposit instead of a mailed check, make sure to specify how you would like to receive your refund when you file.

Since all amended returns are required to be mailed instead of e-filed, Tax Office & Associates is unable to keep you posted on the status of your corrected return. But as soon as you’ve sent your amended return in the mail to the IRS, you can check on your amended return status on the IRS site. Use the IRS “Where’s My Amended Return” page to see if your amended return is pending, processing or approved.

Because the IRS is separate from your state’s Department of Revenue, sometimes you will receive your federal refund before your state refund, or vice versa.

If your state refund is taking longer to arrive than your federal refund, remember that each state has its own processing protocols and security measures, some of which may require more time than the federal process.

To check on the status of your state refund, go to your state’s Department of Revenue site and use its refund tracking tool.

While anyone can itemize deductions, it may not save you the most money on your taxes. Each taxpayer will either claim the standard deduction based on their filing status or itemized deductions, whichever is higher. Many times, even if you have certain itemized deductions, it’s still doesn’t add up to more than your standard deduction.

Some tax breaks are only available if you itemize deductions, such as tax breaks for charitable donations, mortgage interest, property taxes and unreimbursed business expenses. Schedule A is used to report itemized deductions. There are other deductions that don’t require you to itemize (student loan interest and educator expenses, for example), so you could claim those deductions and still use the standard deduction for your filing status.

If you file with 1040.com, we’ll automatically calculate the standard deduction and itemized deductions to see which is the best option for your tax situation.

Updated January 2021

The rules for filing with the Head of Household status are designed to help single persons with dependents, but in some cases, married persons can claim the head of household filing status.

To qualify for the head of household filing status while married, you must:

• File your taxes separately from your spouse
• Pay more than half of the household expenses
• Not have lived with your spouse for the last 6 months of the year
• Provide the principal home of a qualifying dependent
• Claim an exemption for your dependent

If you meet all of these requirements, you may file as head of household while married.

Filing with the head of household status is beneficial for increasing how much of the Earned Income Credit (EIC) you qualify for, since having a child dependent qualifies you for a greater tax break—you can read more about filing as head of household in our Tax Guide.

If the amount of money you made last year is higher than your standard deduction (which depends on your filing status: single, married filing jointly, etc.), you may have to file a tax return this year.

Some people file a tax return even if their income was less than their standard deduction, though: This happens when you had money held from your paychecks to cover your taxes. If you don’t end up owing taxes, you’ll want to file a tax return to get that money back in a refund.

You shouldn’t file your return without an official Form W-2 because it’s likely that the information included on your last paystub isn’t complete. You can use your last paystub to start the filing process, but you shouldn’t send your return until you’ve received your W-2, to check that the information is correct.

If you don’t have your W-2 by January 31, contact your employer. If you still don’t have it by February 14, contact the IRS at 800-829-1040 with:

• Your name, address, Social Security Number and phone number
• Your employer’s name, address and phone number
• The dates you worked for the employer
• An estimate of your wages and federal income tax withheld

A personal exemption was an automatic tax deduction for each person on your tax return. The Tax Cuts and Jobs Act of 2017 (TCJA) repealed the personal exemption, however, in favor of raising the standard deduction. The standard deduction also reduces your taxable income but only applies to each filer, not each person in the household.

When you file with Tax Office & Associates, we’ll calculate all your tax breaks (including the standard deduction) based on your filing status and income.

You need earned income to qualify for the Earned Income Tax Credit. There are two ways to get earned income: You work for someone who pays you, or you own (or run) a business or farm.

Earned income does NOT include:

• Interest and dividends
• Retirement income, including Social Security benefits
• Unemployment benefits
• Alimony or child support
• Pay for work while an inmate in a jail or prison

If you file as married filing separately, or if you’re considered a qualifying child of another taxpayer, you don’t qualify for the EIC.

When you file with Tax Office & Associates, the EIC will appear on your return if you qualify, based on your interview answers.

To determine whether to itemize deductions or take the standard deduction, add up your itemized deductions and compare the total amount to your standard deduction (which is based on your filing status).

Whichever amount is higher will save you the most on your taxes.

A tax return is a report of four main pieces of information: how much you earned last year, how much taxes you owed last year, how much taxes you paid, and where you stand after applying any credits and deductions. If you didn’t pay enough taxes, now you pay what was left. If you paid too much tax, the government gives you back the excess.

An individual tax return is a filing obligation administered by the federal Internal Revenue Service (IRS) and most state governments: It’s used to calculate and reconcile your tax liability for the prior tax year (when you file your taxes in 2020, for example, you’re reporting 2019’s information). In the process, you report all income amounts and claim available tax breaks using a series of government-prescribed forms.

Filing a tax return each spring ensures that you’ve paid enough tax over the course of the year. If you’ve overpaid your tax liability, you will have any extra money returned to you in a refund. If you’ve underpaid, you will owe the additional tax to the government by the prescribed due date, usually the 15th day of the 4th month of the filing year, or April 15.

Your main tax return form will be the Form 1040—any other schedules you need can be filled out and attached as needed. When you file with Tax Office & Associates, we’ll automatically choose the right form for your tax situation.

You can’t deduct work-related expenses, such as gas or mileage on your work commute, unless you are self-employed. Any tax breaks for unreimbursed business travel expenses were cut by the Tax Cuts and Jobs Act of 2017 (the TCJA or “tax reform).

Yes, a married person can claim the Head of Household filing status if they have not been living with their spouse for at least 6 months out of the year and provided more that 50% care to a dependent during the year. They must also have provided more than half of the maintenance costs of the home where they and the dependent lived.

The penalty for filing a tax return after the deadline is 5% of your total taxes owed each month. The penalty won’t exceed 25% of your unpaid taxes within 60 days after the deadline, but after 60 days the minimum penalty is either $130 or 100% of your taxes owed (whichever is smaller).

Even if you know you can’t afford to pay your taxes, you should definitely go ahead and file your tax return. The penalty for not filing your tax return can be 10 times more than the penalty for not actually paying the taxes you owe, and interest accrues for your total balance (penalties + taxes owed).

If you need help paying your taxes owed, the IRS has several programs to help taxpayers manage their debt.

If you have filed your taxes but not paid your taxes due, the failure-to-pay penalty is 0.5% (yes, that’s half a percent) per month on your unpaid taxes, and it can build up to as much as 25% of your unpaid taxes.

If you also haven’t filed your tax return, you’ll simply pay the 5% failure-to-file penalty—the penalties do not stack up.

Requesting an extension of time to file by the due date and paying at least 90% of the tax you owe may exempt you from the failure-to-pay penalty. You will have to pay the remaining balance when you file your return by the extension due date, and interest will apply on the balance.

If you are an employee, you cannot deduct gas mileage as an unreimbursed expense on your tax return; if you’re self-employed or an independent contractor, however, you can deduct mileage used solely for business purposes as a business-related expense.

Business expenses for employees are generally non-deductible as of the Tax Cuts and Jobs Act of 2017 (TCJA), commonly referred to as tax reform. For more information, see our Tax Guide page on taxes and your job.

The simplified home office deduction, also known as the safe-harbor method, is a standard deduction of $5 per square foot of the home used solely for business purposes for up to 300 square feet ($1,500 max deduction).

The safe-harbor method is an alternative to the more complex Form 8829, which uses the square footage of the entire home versus the office (among other criteria) to allocate eligible expenses for the home office deduction.

For more information, see our Tax Guide page on deducting your home office.

Contract workers can only deduct expenses that were used exclusively for business. Some equipment (also known as assets) purchased for your business may be depreciable, too, so you can spread out the expense deduction over the life of the asset.

You’ll need receipts and records to validate business-related expenses, and if the expense was directly related to your business, generally you can deduct the whole amount.

You may also be able to deduct a percentage of an expense used both for business and personal use. Here, you’re required to keep track of the percent of business use so you can accurately apportion the expense. Having separate bank and credit accounts for your business makes tracking these expenses even easier.

Form 1099-MISC reports business payments for items such as rent, prizes and awards, medical and health care, and more.

The IRS has instructions for filling out a 1099-MISC on its site.

Note, January 2021: Form 1099-MISC is no longer for nonemployee income like independent contracting or freelance wages. That information will now be reported on Form 109-NEC.

If you are an independent contractor receiving Form 1099-NEC, you will still report that nonemployee compensation, along with other compensation received for your business, on Schedule C, Profit and Loss from Business, when you file your taxes.

If you pay an independent contractor more than $600 in the tax year, you’re required to report total annual compensation paid to the contractor on Form 1099-NEC. The form records nonemployee compensation for tax purposes and is provided to the IRS and the independent contractor.

The IRS has instructions for filling out a 1099-NEC on their site.

If you are an independent contractor receiving a Form 1099-NEC you will report that nonemployee compensation, along with other compensation received for your business, on a Schedule C, Profit and Loss from Business, when you file your taxes.

Yes: Any income you earn is subject to tax, even if you work for multiple clients as a freelancer. It’s important to note that conducting a  hobby, activity or project as if it were a business qualifies you as self-employed.

Self-employed persons who expect to owe tax of $1,000 or more when they file are generally required to make estimated tax payments on a quarterly basis. In addition, you generally must pay self-employment tax (Social Security and Medicare taxes for the self-employed) as well as income tax.

As a freelancer, you can file your annual income tax return online or in person with a tax preparer, but you must also make quarterly estimated tax payments if you expect to owe tax of $1,000 or more at the end of the year. These estimated payments ensure your tax liability is covered during the year.

To file your quarterly estimated taxes, refer to Form 1040-ES, Estimated Tax for Individuals.

To file your annual tax return, you can get started with Tax Office & Associates in January when your 1099-MISC forms come in.

You’ll need all your business records from the year to report income and expenses. These records will help calculate your tax liability and your net income (or loss) after any credits or deductions.

For examples of business records, see our Tax Guide page on Taxes for the Self-Employed.

In addition to filing a tax return, make sure you also pay your quarterly estimated taxes to avoid underpaying and being given a large tax bill at the end of the year. Generally, you must make quarterly estimated tax payments if you expect to owe tax of $1,000 or more when you file your taxes.

As a rule of thumb, it’s easiest to deduct business expenses that were used exclusively for your business or project. You will need receipts and records to validate the expenses, but you won’t have to calculate how much of the expenses to deduct — generally you can take 100%. Having separate bank and credit accounts for your business makes tracking these expenses even easier.

You may also be able to deduct a percentage of an expense used both for business and personal use. Here, you’re required to keep track of the percent of business use so you can accurately apportion the expense. Some equipment (also known as assets) purchased for your business may be depreciable, so you can spread out the expense deduction over the life of the asset.

An excise tax is levied on certain specific goods in addition to sales tax. Gas, airline tickets and some health-related goods have an excise tax, and you can deduct an excise tax if the goods or commodities were purchased for business.

Excise taxes are usually included in the price of the good or commodity, so to deduct the tax, you must calculate how much of the price is excise tax and have the records to prove it.

If you’re self-employed, you’ll need to estimate your taxes for the year so you can make quarterly estimated payments. To calculate your quarterly estimated tax, figure your amount for the entire year, then divide that into four payments. You can use our Tax Calculator or walk through the IRS worksheet on estimated taxes.

Once you have your four amounts for the year, make sure you pay those amounts by the deadlines: April 15, June 15, September 15, and January 15 of the following year. The deadline will be the next business day if any of these dates should fall on a holiday or weekend.

Quarterly estimated taxes are generally paid by people who have self-employment income or any other income that doesn’t have taxes withheld. Quarterly estimated taxes function like withholding to make sure enough tax is paid throughout the year to avoid tax underpayment penalties.

If you receive income that hasn’t been taxed and you expect your taxes on that income to be $1,000 or greater, you generally should make quarterly estimated tax payments.

To figure out your tax liability, use our Tax Calculator or walk through the IRS worksheet on estimated taxes.

As an independent contractor, you are considered self-employed for tax purposes. The amount you’ll owe for self-employment taxes depends on your net income, which is figured from your revenue and deductible business expenses.

To find out how much you must pay, gather as much information as you can on your business expenses, then use the IRS worksheet for independent contractors or our free Tax Calculator.

Phishing is a tactic used by scammers to gain your personal information online via email or website. Phishing schemes can operate by posing as friends, organizations, or government agencies and demanding personal information like passwords, credit card numbers, addresses, or Social Security Numbers.

If you ever receive an email claiming to be from the IRS that demands any personally identifiable information (PII), you can confidently ignore it; the IRS never initiates communication with taxpayers by email. If you aren’t sure, call the IRS at (800) 829-1040.

Two-factor authentication is the official term for a security system that requires 1) authentication from something only you own, and 2) authentication from something only you know. It is usually a combination of a physical identifier and a piece of information, like using a debit card and PIN at an ATM.

Two-step verification is a simple way to make your account information more secure. By requiring both a username/password combo and a confirmation code sent to your personal device, your online account is much harder for scammers to hack into.

Personally identifiable information (PII) is any information that can be used to authenticate your identity. This includes social security numbers, passwords, tax ID numbers, credit or debit card numbers, date of birth, prior-year AGI, and so on.

You can never be too careful about protecting your PII. Make sure that websites you share PII on have security measures in place, like two-step verification and encryption certifications.

The IRS Taxpayer Advocate Service is an independent organization within the IRS created by Congress and established to protect taxpayer rights and provide help for unresolved tax issues.

Common issues include:

• Inability to pay taxes
• Identity theft
• Choosing a reputable tax preparer
• Needing additional time to file a return
• Correcting a tax return

The Taxpayer Advocate Service has gone to great lengths to address concerns, educate on actual procedures, and give filers a fair say.

The Republican tax bill, The Tax Cuts and Jobs Act, eliminates the personal exemption (worth $4,050 per person) for filers, their spouses, and their dependents, and increases the standard deduction amount.

For more information about why the personal exemption was cut and how it affected the new standard deduction amounts, head to the Tax Reform page on the Tax Guide.

The GOP tax bill, the Tax Cuts and Jobs Act, lets taxpayers deduct up to $10,000 of their state and local income taxes – or sales taxes – on their federal tax return if they itemize deductions.

The state and local tax deduction continues to be offered on Schedule A, meaning a taxpayer must file itemized deductions in order to claim the deduction.

The Tax Cuts and Jobs Act lets parents take a $500 credit for dependents who are 17 or older. This also applies to other non-child dependents, such as elderly family members or adult children with disabilities. The credit is non-refundable.

Remember: These changes go into effect beginning with the 2018 tax year.

No, the Tax Cuts and Jobs Act did not cut medical expense deductions. The medical expense deduction lives on and, in fact, is expanded through Tax Year 2019 (the 2020 filing year).

Medical expenses exceeding 7.5% of adjusted gross income (AGI) can be deducted on Schedule A in 2020.

No, the Tax Cuts and Jobs Act did not cut or change the student loan interest deduction.

No, he Tax Cuts and Jobs Act did not cut the (up to) $250 educator expense deduction for classroom supplies bought out of pocket by teachers.

No, the Tax Cuts and Jobs Act did not cut the tax-free status of tuition waivers for graduate students.

The Tax Cuts and Jobs Act removed the federal requirement for health insurance coverage. While there is no fine on the federal level for not being covered, individual states may impose a mandate for health care coverage and could fine taxpayers for not meeting the state requirement.

Mortgage points usually cost 1% of your mortgage loan, and they can be used to raise or lower your loan interest. Positive mortgage points, or discount points, lower your interest rate; negative mortgage points, or rebate points, raise your interest rate.

Buying positive mortgage points allows you to essentially prepay your loan interest, and buying negative mortgage points allows you to exchange some mortgage fees for a higher interest rate.

Yes, since owning a home comes with a host of expenses, there are several tax breaks available so that homeowners can reduce their taxes owed. These tax breaks are only available if you itemize deductions, and include:

• Mortgage interest
• Home equity interest
• Real estate taxes
• Private mortgage insurance
• Mortgage points

For more information, see our Tax Breaks for Homeowners page on the Tax Guide.

You must meet the following requirements to take the mortgage interest deduction:

• You make monthly mortgage payments for your home.
• You must have taken the loan to buy, build or seriously improve a home.
• The loan must also be secured, meaning that you signed a mortgage agreement, deed or land contract.
• For loans secured before December 15, 2017, you may deduct the interest if the combined mortgages, for either one or two homes, is $1,000,000 or less. If married filing separately, the maximum home debt is $500,000.
• For loans secured on or after December 15, 2017, the maximum is $750,000 ($375,000 for married filing separately).

If you got the loan from family or friends, they must take the legal steps to secure the loan, or you can't deduct the interest.

You may take the deduction on up to two homes that you own.

For more information, see our Tax Breaks for Homeowners page on the Tax Guide.

Look for a Form 1098 in the mail or in your email inbox if you have elected to receive electronic tax forms with your loan provider. The form will state how much interest you paid for the year.

For more information, see our Tax Breaks for Homeowners page on the Tax Guide.

Yes: provided the loan is to buy, build or substantially improve your home, you may be able to deduct home equity loan interest. Also, your loan must not exceed $100,000 if single (if married filing separately, the maximum is $50,000).

For more information, see our Tax Breaks for Homeowners page on the Tax Guide.

No, borrowing against your home for any purpose other than buying, building, or substantially improving is no longer deductible. That includes paying down credit card and various other debts—you will not be able to deduct those borrowed amounts.

For more information, see our Tax Breaks for Homeowners page on the Tax Guide.

Yes, real estate tax is deductible for homeowners, but the amount you can deduct may be limited, based on the total amount of state and local taxes you claim on Schedule A. Beginning with 2018 returns, the total of all state and local taxes—income taxes or sales taxes, real property taxes and personal property taxes—is limited to $10,000 ($5,000 if married filing separately).

If the tax for your home is included in your mortgage payment, your mortgage holder will hold and pay the tax on your behalf. You should receive a statement showing how much real estate tax was paid for your property at the end of the year.

For more information, see our Tax Breaks for Homeowners page on the Tax Guide.

Yes, through tax year 2020, private mortgage insurance (PMI) premiums are deductible as part of the mortgage interest deduction.

Be aware of the phaseout limits, however. The deduction begins to phase out at an AGI amount of $100,000, and phases out completely once AGI reaches $109,000 (if married filing separately, the phaseout begins at $50,000 and phases out completely at $54,500).

The PMI deduction had expired at the end of 2017, but has been extended through the 2020 tax year. It is not clear yet whether it will be extended for tax year 2021.

For more information, see our Tax Breaks for Homeowners page on the Tax Guide.

Yes, you can deduct mortgage points. You can also decide when to deduct them, whether you want to do it all at once or stretch them out by deducting a percentage each year you have the mortgage.

For more information, see our Tax Breaks for Homeowners page on the Tax Guide.

File your tax extension electronically with Tax Office & Associates using the official IRS Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return).

Remember: Extension applications are due by April 15 (or the next business day, if the 15th falls on a holiday or weekend), and any taxes you owe are also due on that date. With an extension, your return will be due by October 15 (or the next business day, if the 15th falls on a holiday or weekend). For those in the military or living outside the U.S, special rules may apply.

You can file your tax return any time on or before October 15.

You can choose whether to file for your IRS Form 4868 extension online or through the mail. If you file online, you can use Tax Office & Associates, an official provider of IRS e-file services for 1040 returns and 4868 extensions.

If you choose to file through the mail, fill out Form 4868 and send to the address shown on page 4 of the form.

Remember: Extension applications are due by April 15 (or the next business day, if the 15th falls on a holiday or weekend), and any taxes you owe are also due on that date. With an extension, your return will be due October 15 (or the next business day, if the 15th falls on a holiday or weekend). For those in military or living outside the U.S, special rules may apply.

There are a number of ways to pay your taxes online: Payment options include paying directly from your bank account, paying with a debit/credit card, or setting up a payment plan. Here’s more information on these payment options.

Remember: Even if you file a tax extension, any taxes owed are still due on April 15 (or the next business day, if the 15th falls on a holiday or weekend). With an extension, your return will be due October 15 (or the next business day, if the 15th falls on a holiday or weekend). For those in military or living outside the U.S, special rules may apply.

For more information, see our Taxes for the Military page on the Tax Guide.

Anyone can file an official tax extension with Tax Office & Associates.  our office will electronically file the official IRS Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return). For more information, head over to our Tax Guide.

Remember: Even if you file a tax extension, any taxes owed are still due on April 15 (or the next business day, if the 15th falls on a holiday or weekend). With an extension, your return will be due October 15 (or the next business day, if the 15th falls on a holiday or weekend). For those in military or living outside the U.S, special rules may apply.

The last day to file your taxes without penalty for those who filed an extension using IRS Form 4868 is October 15 (or the next business day, if the 15th falls on a holiday or weekend).

Contact us to file your taxes with Tax Office & Associates.

Yes, you are required to file your tax return by October 15 if you filed for a six-month extension. A tax extension, filed using IRS Form 4868, is simply a notification to the IRS that you were not able to file a complete return by the deadline; you do not have to provide a reason.

Remember that this is only an extension of time to file, not to pay. If you owe any tax, payment is still due by April 15 (or the next business day, if the 15th falls on a holiday or weekend). In order to avoid late-filing penalties, you must file your tax return prior to your extended deadline of October 15 (or the next business day, if the 15th falls on a holiday or weekend).

Contact us to file your taxes with Tax Office & Associates.

Yes, you are required to file your tax return by October 15 if you filed for a six-month extension. A tax extension, filed using IRS Form 4868, is simply a notification to the IRS that you were not able to file a complete return by the deadline; you do not have to provide a reason.

Remember that this is only an extension of time to file, not to pay. If you owe any tax, payment is still due by April 15 (or the next business day, if the 15th falls on a holiday or weekend). In order to avoid late-filing penalties, you must file your tax return prior to your extended deadline of October 15 (or the next business day, if the 15th falls on a holiday or weekend).

Contact us to file your taxes with Tax Office & Associates.

The deadline to file your extended tax return is October 15. If the 15th falls on a weekday or holiday, the deadline will move to the next business day.

Contact us to file your taxes with Tax Office & Associates.

If you selected the direct deposit delivery method, your refund is estimated to be issued between 7 and 21 days after your return has been accepted and approved.  Keep in mind that the 7-to-21-day period won’t begin until your return has been accepted and approved, not submitted. Approval delays can occur if the IRS sidelines your return for additional review.

Additional review doesn’t necessarily mean something is wrong with your return. The IRS and state tax agencies have implemented more stringent security measures to help prevent tax-related identity theft and refund fraud. Those extra measures inherently cause more returns to be reviewed.

If you chose to receive your refund by mail, it could take longer than 21 days to receive your refund.

As long as your return is time stamped on the due date (April 15, or October 15 if you have an extension), it will be considered on time.

On the other hand, if you owe a tax bill and file even one day after the deadline, you’ll have the failure-to-file and failure-to pay penalties added to your bill. That’s 5% interest on your taxes added each month your return isn’t filed, so it’s always best to file on time or as soon as possible.

If you file after the deadline but don’t owe any taxes, you won’t have any penalties or fees applied until more than 60 days after the due date. After that, you’ll owe $135 (the minimum penalty when you don’t owe tax or when you expect to get a refund), so you should still file as soon as possible. Also, remember that you won’t receive your refund until your return has been filed, accepted and approved.

You can file your taxes in all the regular places, even if you’re filing with the extended deadline. The six-month extension is simply a notification that you will file your taxes between April 15 and October 15 so that no late filing fees are added to your tax bill by the IRS. Your preparer or online filing software doesn’t make the distinction, though, so you can file wherever you choose.

Contact us to file your taxes with Tax Office & Associates.

You can’t extend your tax deadline past October 15, but you can still file your return after October. Just remember that after the October deadline, you’ll have failure-to-file penalties added to your account until you file your tax return. The rule of thumb is to file as soon as you can.

Contact us to file your taxes with Tax Office & Associates.

If you mailed or e-filed an extension on IRS Form 4868, October 15 is your last day to file before failure-to-file penalties are added to your account. You can still file your tax return after the October deadline, but you will have extra fees added to your tax bill.

Contact us to file your taxes with Tax Office & Associates.

The shorter filing forms, 1040EZ and 1040A, are no longer used by the IRS, effective January 1, 2019. They have been replaced by the new Form 1040.

The IRS and Treasury Department attempted to simplify the basic Form 1040 document from a few pages to a “building blocks” system; the Form 1040 is now a single primary page with additional schedules to be completed and attached to your Form 1040 as needed. With the new system in place, the shorter Forms 1040EZ and 1040A became unnecessary.

The filing process with Tax Office & Associates is no different than before; you’ll walk through an easy interview-style process, with the opportunity to review Form 1040 and applicable forms, schedules, and worksheets before e-filing your tax return to the IRS. Choose direct deposit and you’ll receive your fastest possible tax refund.

The Form 1040EZ no longer exists for use by taxpayers, but previous EZ filers may still qualify for a “simple return.”

The IRS and Treasury Department attempted to simplify the basic Form 1040 document from a few pages to a “building blocks” system; the Form 1040 is now a single primary page with six new schedules to be completed and attached to your Form 1040 as needed. With the new system in place, the shorter Forms 1040EZ and 1040A became unnecessary, but the same type of filers may still qualify to file “simple returns.”

E-filers won’t have to focus on different schedules during the filing process; you’ll walk through the same interview-style and simply review your Form 1040, applicable forms, schedules, and worksheets before sending your return to the IRS.

E-filers can use the same online software as in previous years to file their taxes. It’s unlikely that you will notice any major changes to the process you’re accustomed to, because software programs are largely interview-based with little interaction with the actual forms (other than to review them at the end of the interview process).

Form 1040EZ no longer exists, but previous EZ filers may qualify for a “simple return,” which is defined differently by the various online e-file software programs. This is because the IRS and Treasury Department attempted to simplify the basic Form 1040 document from a few pages to a “building blocks” system, including a primary form and six new schedules to be completed and attached as needed, which made Forms 1040EZ and 1040A unnecessary.

While Form 1040EZ is no longer used, previous-year EZ filers who do their taxes online will likely not notice any major changes to the filing process.

The IRS and Treasury Department attempted to simplify the basic Form 1040 from a few pages to a “building blocks” system, including a primary form and six new schedules to be completed and attached as needed. Filers can simply review their Form 1040, applicable forms, schedules, and worksheets before sending the tax return to the IRS, making the transition from filing a 1040EZ to filing a “simple return” as smooth as possible.

E-filers can still use online software to file Form 1040 taxes, even though the paper form has changed. It’s unlikely that taxpayers will notice any major changes to the e-filing process. Filers will simply review their Form 1040, applicable forms, schedules, and worksheets before sending the tax return to the IRS.

But paper filers will have a much different experience from previous years. This is because the IRS and Treasury Department changed the basic Form 1040 from a few pages to a “building blocks” system, including a primary form and six new schedules to be completed and attached as needed.

E-filing is still the easiest way to file your taxes with the least likelihood of calculation errors, the most straightforward process, and the greatest amount of security.

You must wait to withdraw from your 401(k) until you are at least 59½ years old to take the distribution without penalty. The 10% penalty for withdrawing early is applied if you withdraw before you are at least that age.

Traditional 401(k)s are tax-deferred on the front end, meaning that you don’t pay tax until you withdraw the amount. If you withdraw early, the 10% penalty is added to any taxes you owe.

The IRS states that you must be at least 59½ and five years from when the first contributions were made in order to take a qualified distribution from an IRA. The penalty for an early distribution is 10%.

An IRA is set up between an individual and their bank instead of through an employer. You can usually deduct contributions to a traditional IRA, but all withdrawals are taxable.

In order to avoid penalties, you can take a qualified distribution at least 5 years after the first contributions were made, and you must be at least 59½ years old. You’ll owe a 10% penalty on the distribution if you withdraw before that time.

Unlike a traditional IRA, a Roth IRA is taxed on the front end, meaning that you will pay taxes on any contributions, but distributions are tax-free. However, you will still owe the 10% penalty on early distributions.

Retirees should have all income documents on hand when filing their taxes. Common income documents for retirees include:

• Forms 1099-INT for interest income
• Forms 1099-DIV for dividends and distributions
• Forms 1099-R for distributions from pensions, annuities, IRAs, and retirement or profit-sharing plans
• Forms W-2 from part-time employment

Retirees should also have forms detailing deductible expenses, such as a Form 1098 for mortgage interest. You may also have documentation for medical bills, charitable donations, property taxes paid throughout the year, and dependent care provided.

Retirees can file their taxes online, just like any taxpayer—make sure to choose a e-filing company that is reputable and easy to use, like Tax Office & Associates.
You should also collect income and expense documents before sitting down to file. Common income documents for retirees include:

• Forms 1099-INT for interest income
• Forms 1099-DIV for dividends and distributions
• Forms 1099-R for distributions from pensions, annuities, IRAs, and retirement or profit-sharing plans
• Forms W-2 from part-time employment

You will probably also have documentation for your deductible expenses, like mortgage interest, medical bills, charitable donations, property taxes paid throughout the year, and dependent care provided.

While retirees might have different forms to file with their tax return, the filing process is the same: Fill out your return with all relevant financial information and send it to the IRS. Filing online is still the fastest, most secure way to file your taxes, though some may prefer to complete their returns on paper.

Gathering all important documentation before sitting down to file is key to an easy process. Common income documents for retirees include:

• Forms 1099-INT for interest income
• Forms 1099-DIV for dividends and distributions
• Forms 1099-R for distributions from pensions, annuities, IRAs, and retirement or profit-sharing plans
• Forms W-2 from part-time employment

You should also have documentation supporting deductible expenses such as mortgage interest, medical bills, charitable donations, property taxes paid throughout the year, and dependent care.

You can find many great resources online to help you file—for example, the Tax Office & Associates Tax Guide has an entire section on investing and retirement to help taxpayers navigate their post-career finances.

Retirees can also file online, even if it’s for the first time, with e-filing companies that focus on using questions and answers to complete tax returns. Tax Office & Associates uses a smart, simple interview-style process to guide taxpayers through their returns.

Retirees can file their taxes in most of the same places the average taxpayer can. At Tax Office & Associates, we’ve streamlined the tax-filing process into an interview style, making it simple for anyone to use.

The key to a smooth e-filing experience is to gather your income and expense documents before beginning the interview. Common income documents for retirees include:

• Forms 1099-INT for interest income
• Forms 1099-DIV for dividends and distributions
• Forms 1099-R for distributions from pensions, annuities, IRAs, and retirement or profit-sharing plans
• Forms W-2 from part-time employment

For deductible expenses, check the mail for items like mortgage interest, charitable donations, property taxes paid throughout the year, and dependent care. Hopefully you also have any medical bills stored for easy access.

Resident aliens are required to pay tax on their military income and file a Form 1040.

Most members of the Armed Forces are US citizens, but not all. Resident aliens from many nations who are legally in the U.S. can sign up for military service. Just like citizens and other military personnel, resident aliens must pay taxes on any earnings from working in the armed forces.

Different treatment is rare, and includes requiring resident aliens with non-resident spouses to file using the married filing separate status, rather than the married filing jointly status.

Military personnel can file online from anywhere in the world, and it’s much more secure to send your Form 1040 through the internet than sending a physical copy to an IRS center. Just choose the e-file option once you’ve finished filling out the necessary information, and you’re good to go.

If you’d still rather send a physical copy, those with an APO or FPO address can send their Form 1040 to the IRS center in Austin, TX or Charlotte, NC. Otherwise, you will file with the appropriate IRS center based on where you are posted. For example, if you’re a resident of New York stationed in Alaska, you will send your Form 1040 to the IRS center serving Alaska.

Combat pay is completely nontaxable for many military service members. Enlisted members, warrant officers and commissioned warrant officers can exclude all combat pay from their taxable income, but still have the option of including nontaxable combat pay to calculate eligibility for the Earned Income Tax Credit.

But the combat pay exclusion is limited for commissioned officers (other than commissioned warrant officers). Commissioned officers can only exclude up to the highest rate of enlisted pay (plus imminent danger/hostile fire pay) for each month of combat pay or hospitalization as a result of combat service.

Military service members filing their taxes while overseas can either e-file online or have their tax return delivered to the U.S. by mail service.

Taxpayers who are residing overseas on Tax Day are allowed an automatic 2-month extension without having to file an extension request. This overseas extension allows an extra two months to file and to pay, unlike the regular 6-month October 15 extension (which is only an extension of time to file). Taxpayers residing outside the U.S. can still apply for the October extension to file if they so choose.

Remember to express all monetary amounts in U.S. dollars—if any pay was received in a foreign currency, you must convert to the U.S. equivalent on your tax return.

Income earned in a combat zone on your tax return is not taxed, but you can include that income on your tax return to determine whether you qualify for the Earned Income Tax Credit (EITC). If you do qualify, you could decrease the amount of tax you owe or increase your refund.

The EITC requires that you reside in the U.S. for at least 6 months, but service members are considered to live in the U.S. while on extended active duty outside the country.

E-filing with Tax Office & Associates makes it easy to see whether you benefit more from including combat pay or excluding it. See our Tax Guide post on combat pay and the Earned Income Credit for more information.

Combat pay is income earned while stationed in a designated combat zone in service to the U.S. military. Combat pay is nontaxable for most service members, and all service members can exclude at least some of their combat pay from their taxable income. Nontaxable combat pay can be included on the tax return to calculate eligibility for the Earned Income Credit.

Not all military income is considered combat pay, so service members should always evaluate their income when filing a tax return.

Remember also that service members stationed overseas for an extended period that overlaps with Tax Day (usually April 15) are automatically allowed an extra two months both to file and to pay any taxes owed.

The IRS allows you to claim your gambling losses as a deduction, as long as you don’t claim more than you won.

The deduction can only be claimed if you choose to file Schedule A, Itemized Deductions. You should also have receipts, tickets, statements and documentation such as a diary or similar record of your losses and winnings to support your deduction claim.

If you won money and lost money, you have to report those amounts separately—winnings are reported as “Other Income” on Form 1040, and losses are reported as a deduction on Schedule A. You can’t simply subtract your losses from your winnings and report what’s left over. Even your records—which you should keep as proof of your gambling outcomes—should show your winnings separately from your losses.

If you bet on baseball games and win money, those winnings are fully taxable and must be included as income on your tax return.

The agency where you placed the bet is required, as the payer, to issue a Form W-2G, Certain Gambling Winnings, if your winnings are at least 300 times what you bet and over $600 total (or otherwise subject to federal income tax withholding). You are still required to claim the winnings as income even if the agency isn’t required to issue a Form W-2G.

If the agency doesn’t withhold tax from your winnings, you may need to pay those taxes yourself in the form of estimated tax payments.

To report your gambling winnings, enter the amount under “Other Income” on your Form 1040. If you had any gambling losses, you may be able to deduct those losses on Schedule A, Itemized Deductions.

Yes, you do have to report all National Football League gambling winnings on your tax return as taxable income.

If your winnings are at least 300 times what you bet and over $600 (or otherwise subject to federal income tax withholding), the agency where you placed the bet is required to report your winnings to the IRS and send you a Form W-2G, Certain Gambling Winnings, as the payer.

Even if the agency isn’t required to issue a Form W-2G, you must still claim your winnings on your tax return. If the gaming organization doesn’t withhold tax from your winnings, and those winnings were substantial, you should pay those taxes yourself in the form of estimated tax payments in order to avoid an underpayment penalty.

To report your gambling winnings, enter the amount under “Other Income” on your Form 1040. You may also be able to deduct any gambling losses as an itemized deduction, which you’ll report on a Schedule A.

March Madness gambling winnings are treated as taxable income, and you are required to report those winnings on your tax return every year. If the gaming organization doesn’t withhold tax from your winnings, and those winnings were substantial, you should pay those taxes yourself in the form of estimated tax payments in order to avoid an underpayment penalty.

You may not get a Form W-2G, Certain Gambling Winnings, from the agency you placed the bet through; as the payer, the gambling agency isn’t required to report your winnings unless you win at least 300 times what you bet and that amount is over $600 (or otherwise subject to federal income tax withholding). You’re still required to report your winnings to the IRS, however, even if you’re not sent a Form W-2G.

The “Other Income” line on your Form 1040 is where you’ll report your gambling winnings. Any gambling losses might qualify as a deduction; if so, report the amount on Schedule A as an itemized deduction.

Sports gambling winnings are subject to income tax and you must report them on your tax return, even if you don’t receive tax documentation for the gambling income.

Gambling agencies aren’t required to report your winnings unless you win at least 300 times what you bet and that amount is over $600 (or otherwise subject to federal income tax withholding). You, however, are required to report any and all winnings on your personal tax return.

You may be required to pay estimated tax payments if the agency did not withhold Social Security or Medicare taxes.

Reporting your gambling winnings is simple; just find the “Other Income” line on your Form 1040 and report the amount there. If you lost money gambling, you may be able to deduct that amount—losses can be claimed as an itemized deduction on Schedule A.

Any state that wishes to legalize sports gambling now has the authority to do so.

For many years, Nevada was the only state where it was legal to make a single-game wager. On May 14, 2018, the Supreme Court overturned a 1992 federal law which banned most states from authorizing sports betting. This recent lawsuit was brought by the state of New Jersey in an effort to legalize sports betting in the state.

Since gambling income is taxable, you are required to report your gambling earnings when you file your taxes. You’ll receive a Form W-2G, Certain Gambling Winnings, from the betting establishment if your winnings are at least 300 times what you bet and over $600 (or otherwise subject to federal income tax withholding).

You are still required to claim the winnings as income on your taxes even if the agency isn’t required to issue a Form W-2G.

Gambling losses? You may be able to claim them as an itemized deduction; in that case, report the amount you lost on a Schedule A, Itemized Deductions.

States that wish to can legalize sports gambling, but only Nevada, Mississippi, West Virginia, New Jersey, and Delaware have full-scale, legal sports betting.

Until recently, single-game wagers were only legal in the state of Nevada. On May 14, 2018, the Supreme Court overturned a 1992 federal law which banned most states from authorizing sports betting. This recent lawsuit was brought by the state of New Jersey in an effort to legalize sports betting in the state.

Since gambling income is still income, you are required to report your gambling earnings using the “Other Income” field when you file your taxes. Gambling losses may qualify as an itemized deduction, which you’ll report separately on a Schedule A—don’t report your winnings and losses on the same form.

When you file your taxes, you’ll report your gambling winnings as “Other Income” when you file with Tax Office & Associates.

The betting establishment will likely send you a Form W-2G, Certain Gambling Winnings, from the betting establishment if your winnings are at least 300 times what you bet and over $600 (or otherwise subject to federal income tax withholding).

Even if you don’t receive a Form W-2G, you are still required to claim the winnings as income on your taxes. You may also be able to deduct any gambling losses as an itemized deduction, but don’t report those losses on the “Other Income” line; instead, report your gambling losses on a Schedule A, Itemized Deductions.

Gambling winnings are reported as “Other Income” on Form 1040, U.S. Individual Income Tax Return, when you file with Tax Office & Associates. We’ll provide an “Other Income” box for you to enter the amount as part of our interview process.

The IRS allows you to claim your gambling losses as a deduction on Schedule A, Itemized Deductions, so long as you don’t claim more than you won. You can’t, however, deduct the cost of gambling—so if you paid $20 to make the bet, you can’t deduct that $20 from your winnings.

You should have receipts, tickets, statements and documentation, such as a diary or similar record of your losses and winnings, to support the deduction claim.
Also, remember that if you won money and lost money, you have to report those amounts separately.