FAQ'S of Tax

Can a person receive a tax refund if they are currently in a payment plan for prior year's federal taxes?

Can a person receive a tax refund if they are currently in a payment plan for prior year's federal taxes?

As a condition of your agreement, any refund due you in a future year will be applied against the amount you owe.

  • Continue making your installment agreement payments as scheduled because your refund is not considered as a substitute for your regular payment due.
  • You may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support.
  • IRS will automatically apply the refund to the taxes owed.

What is a split refund?

A split refund lets you divide your refund, in any proportion you want, and direct deposit the funds in up to three different accounts with U.S. financial institutions.

What should I do if I made a mistake on my federal return that I have already filed?

It depends on the type of mistake that you made:

  • Many mathematical errors are caught in the processing of the tax return itself.
  • If you did not attach a required schedule the service will contact you and ask for the missing information.
  • If you did not report all your income or did not claim a credit, you are entitled to file an amended or corrected return using Form 1040X (PDF), Amended U.S. Individual Income Tax Return.
When filing an amended or corrected return:
  • Include copies of any schedules that have been changed or any Form W-2 (PDF) you did not include.
  • The Form 1040X (PDF) should be submitted after you receive your refund or by the due date of the return, whichever, is earlier.
  • Generally, to claim a refund, the Form 1040X (PDF) must be received within three years after the date you filed your original return or within two years after the date you paid the tax, whichever is later.

Is there an age limit on claiming my children as dependents?

Age is a factor in the qualifying child test, but a qualifying relative can be any age.
  • Qualifying child or qualifying relative test
  • Dependent taxpayer test
  • Citizenship or resident test
  • Joint return test

What is the American Recovery and Reinvestment Act (ARRA) of 2009?

The American Recovery and Reinvestment Act (ARRA) of 2009 was signed into law by President Obama on February 17, 2009. The bill is intended to provide a stimulus to the U.S. economy in the wake of the economic downturn. The bill includes federal tax cuts, expansion of unemployment benefits and other social provisions, including domestic spending in education, health care, and infrastructure, including the energy sector.

How much does a student have to make before he or she has to file an income tax return?

If you are an unmarried dependent, you must file a tax return if your earned and/or unearned income exceeds certain limits.

For head of household filing status, do you have to claim a child as a dependent to qualify?

In certain circumstances, you do not need to claim the child as a dependent to qualify for head of household filing status, such as when the qualifying child is unmarried and is your child, grandchild, stepchild, or adopted child.

   

 
 
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