Good afternoon, all! We will begin our web chat in less than an hour. Do you have questions for our expert? Her name is Elisa Armetta and she is a CPA in Lake Worth. You can start asking right now.
Hi, @andrew ! You'll be the first person we get to. Starting in about 20 minutes.
@Andrew: If you incorporated your business you will need to file based on the way you organized your business. There is no minimum with regard to a business return, you would need to report all income and expenses for the business. If you're just a self-employed individual then you'll report all your income and expenses on Schedule C which you should do regardless of the amount of income you've made. Hope this helps. Please feel free to call me with additional questions at 561.357.8885.
@Crown965: If you had distributions that were all used for medical expenses make sure that when you report that on Form 8889 that you make them aware of it so that the distributions aren't taxable to you.
@Crown965: If you discovered an error the best thing to do is file an amended tax return using Form 1040-X. You have three years to file an amended return from when it was originally due.
I have a question. What are common mistakes people make on their tax forms?
@MollieReynolds: The most common mistakes are not reporting all income and not taking all deductions you are entitled to.
Some file electronically, some file manually. What are the pros and cons?
@MollieReynolds: The main pro to filing electronically is that if you are due a refund you get it in about 10 - 21 days as opposed to waiting 4-6 weeks for it.
What should people do if they can't make the deadline and owe the IRS money?
@MollieReynolds: If you can't file by April 15th you need to file an extension on Form 4868 and pay in an estimated amount that you will owe in order to limit any penalty you may be assessed for not paying in timely.
@Andrew: Depending on your income level and whether or not you are student will determine if you're parent's can still claim you as a dependent. If you meet those requirements to be a dependent then on your business reporting you are entitled to claim all expenses that you paid for personally or through your business account.
@Lisagirl: If you owe and can't pay them in full you can request an installment agreement via Form 9465. I suggest paying a little something when you file your return and then you will need to let them know on the form how much you can pay monthly. Keep in mind that you will be charged interest on the balance until paid in full.
@Rose: If you received a 1099-MISC for the contract work I would suggest filing a return as the IRS will be looking to match up that 1099 to your personal tax return.
@Lisagirl: Happy we could help!
@Isittrueifabusiness...: The IRS has made it a requirement for tax professionals to submit returns electronically as they are trying to limit the time it takes to process paper returns. If for some reason the return is rejected when filed electronically then of course you would have to file it by paper.
@Rose: You are very welcome.
@Tom: If you received any tax forms it's always suggested that you file a return regardless of the amount you make. If however your only source of income is Social Security then a return is not needed as you would not have any taxable income.
@JonathanLarcey: If you are now a resident of FL you will need to file a part-year NY return and let them know that you moved.
@Cathy: As long as your employer filed the W-2C with the IRS you shouldn't have a problem filing your taxes with the correct information.
What happens if you owe and can't make the deadline?
@MollieReynolds: If you owe with your return and can't pay it all by April 15th you need to file Form 9465 to request an Installment Agreement. It is suggested you pay a little amount with the return when you file and you will need to let the IRS know on Form 9465 how much you can pay monthly until you have paid in full. The IRS will charge you interest on the amount you owe until it is paid in full
@AnneSisti: If you received any tax forms you should file a return regardless of the amount of income so the IRS is able to match up the tax forms with your return and not send you a letter later in the year telling you they never received a return.
How should people avoid common tax filing mistakes?
@MollieReynolds: The best way to avoid making mistakes is to hire a licensed tax professional to prepare your return.
@Kathy: Yes they will. Form 5498 will be filed with the IRS soon after April 15th which will let them know how much you contributed to your Roth IRA. You will get this form by mid-May for your files.
@LisaPamphle: Hi Lisa do you have a question?