Below are some of the most common questions that we are asked, or the items we find we have to remind our Clients about the most each year.
What do I bring to my appointment?
The most common documents to bring with you are your W-2, a 1098 -INT or 1098-DIV for savings and investments, and a 1098 for your home mortgage.
For retired individuals you may have a 1099-R for your pension/IRA and you should also receive a 1099-SA from Social Security.
There may also be special documents if you have children.
I live in State A but work in State B, what do I do?
Relax, this is a common occurrence, especially living in the Delmarva area. We see this situation everyday, and in most cases it works out just fine. If you told your employer about your residency, then they should have already done most of the work for you - withholding taxes in the state where you work, and if needed, taking some additional taxes out for the state that you live in. When we file your returns, we will file your nonresident state first, as they generally have first claim to tax your wages. Once finished with the nonresident return, we can apply credits to your resident return - in many cases this drastically reduces the tax burden at home, perhaps eliminating it altogether. If we find there is an issue, we will work with you to get it fixed going forward.
What forms do I need to satisfy the Health Insurance requirement?
Your insurance provider or employer should have provided you with a 1095-B or a 1095-C. These forms are not entirely mandatory, but they are good to have on record in case the IRS makes an inquiry.
If you took advantage of the Health Insurance Marketplace, you will receive a 1095-A. This form is required so that we can reconcile any Advanced Premium Credits you may have received.
Individuals or families that are on Medicare, Medicaid, or have Military benefits may or may not receive any of the above forms - please be sure to bring this up at your appointment.
My child is in college, can I still claim her?
The quick answer is maybe - of course, are taxes ever easy? In most cases we find that full-time students can still be claimed by their parents for the first 3 years of college, with the 4th year an up-in-the-air situation.
Hopefully students can focus their time and energy on school, and parents are in the position to continue supporting their children - in these cases the parents claim their son or daughter through completion of their degree. However, there are situations where a student is only enrolled part-time, or has significant enough wages from a part-time or summer-job where the parents are no longer the primary source of support for their child - in these cases the parents do not claim their son or daughter.
Every family dynamic is unique and this should be discussed during your appointment.
I bought/sold a house, now what?
Congratulations!
Buying a house can be an extremely rewarding experience, and can have advantageous tax impacts. At your closing, when you signed about 100 documents, you should have received a "Closing Disclosure". This is a 5 page document that gives us everything we need to know about the closing itself and the transfer of money.
Selling a house can have numerous tax impacts. Please bring the "Closing Document" as referenced above, and if you can find them, please find the original Closing documents from when you bought your home - these were likely a "HUD-1", depending on when you originally purchased.
My child had a part-time job, does he need to file?
Getting your first job is exciting for most people, cold hard cash that you can spend however you wish. Looking at that first paycheck and seeing all the taxes come out is less so exciting. The good news is that in many cases, your child will be able to get most, if not all, of those taxes back in their pocket. We won't know for sure until we look at their W-2, but the likelihood is that they technically don't need to file, but they should file - first, it lets them get back the refund they deserve, and second, it gets them into the habit of being responsible for their taxes. Ask about our discounted preparation fee for dependent children.