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The estimated price range provided by TaxGuru is calculated based on the information provided in the questionnaire and assumes that only one document is required per request. However, if additional documents are required after TaxGuru reviews your information, or if multiple documents are required (such as multiple W-2s, multiple rental properties, or multiple K-1s), the final price may be higher than the estimate. Additionally, certain special situations, such as dual-status filing, foreign income/investment, or gift tax filing/planning, may also result in a higher final price. In most cases, however, the final price should fall within the estimated price range.
Preparation and filing of your federal and state tax returns, including any necessary forms and schedules.
E-filing of your tax return for maximum convenience and speed. If your return is not eligible for e-filing, TaxGuru will provide detailed instructions and packaging to help you file your return via mail.
Assistance in responding to general inquiries from Federal, State, and Local tax authorities. However, it's worth noting that if a notice or audit is caused by the taxpayer's own actions (such as failure to provide necessary documents or inaccuracies in the information provided), TaxGuru may charge an additional fee to handle such matters.
The time it takes to process a tax return can vary depending on a number of factors, including the complexity of the return, the availability of necessary documents and information, and the workload of our team. In general, we strive to process returns as quickly as possible, but it's always best to plan for some extra time in case of any unforeseen issues. After you submit all the necessary documents and information, we will provide you with a rough estimate of how long it will take to process your return and keep you updated throughout the process. If you require expedited service, we do offer priority processing for an additional fee. Please contact our customer service team for more information and to arrange this service.
The tax treaty for students can vary depending on the country of origin. For example, for students from China, earned income up to $5,000 may be exempt as long as the F visa is properly maintained. This means that even if the student changes to a tax resident status, such as changing to an H1b visa, if they earned more than $5,000 in wages while on an F visa, they may still be eligible to exempt the first $5,000 from their taxable income.
For students from India, they may be able to take a standard deduction on their Form 1040 and may also be able to claim personal exemptions for a nonworking spouse and U.S. born-children. However, it's important to note that nonresident aliens are not able to file a joint return. Even if an Indian student can take an exemption for a nonworking spouse, it is not considered a joint return.
Students from other countries should refer to the specific details of the tax treaty for their country of origin for more information.
Dual status refers to a tax filing status for individuals who change their residency status during a tax year. This can happen when a non-resident alien becomes a resident alien, or a resident alien becomes a non-resident alien. This change in status means that the individual will have to file both a non-resident tax return (Form 1040NR) and a resident tax return (Form 1040) for the same tax year, and the income and deductions will need to be allocated between the two returns based on the number of days in each status. The process of filing a dual-status return can be complex and it may require special calculations and considerations. TaxGuru can help you navigate the complexities of dual-status filing and ensure compliance with all regulations.
Filing for a tax extension can be a great option if you need additional time to file your return. A tax extension is a request to the Internal Revenue Service (IRS) to extend the deadline for filing your federal tax return. It allows you to file your taxes later than the usual April 15th deadline. If you are granted a tax extension, you will have an additional six months to file your return, which means the new deadline will be October 15th. At TaxGuru, we can help you file an extension and ensure that it is done correctly.
It's important to note that an extension only extends the time to file, not the time to pay. If you choose to file an extension with TaxGuru, we will estimate the tax due and schedule any necessary extension payments (usually a little more than the amount due to be safe) on or before the April 15th deadline. Once your return is filed, if you have overpaid, you can expect a refund. However, if your return or extension is not filed on time, a failure to file penalty may apply. Additionally, if the tax payment is not made on time, a failure to pay penalty may apply.
A: An amended tax return is a corrected version of a previously filed tax return. It is used to make changes or corrections to a return that has already been filed with the IRS.
A: There are several reasons why you may need to file an amended tax return. Some common reasons include: reporting additional income, claiming additional deductions or credits, correcting errors on the original return, or changing your filing status.
A: To file an amended tax return, you will need to complete Form 1040X and mail it to the IRS. You will also need to attach any relevant supporting documentation to the form.
A: The deadline for filing an amended return is generally three years from the date you filed your original return or two years from the date you paid the tax, whichever is later.
A: It depends on the changes you make to your return. If you are correcting errors or omissions that resulted in you owing more tax, you will not receive a refund. However, if the changes you make result in you being owed a refund, you will receive the refund.
A: No, you will not be charged a penalty for filing an amended return. However, if the changes you make result in you owing more tax, you may be charged interest on the additional amount due.
A: Yes, TaxGuru can help you with the process of amending your return. Our experts can review your previous return and assist you with filing the necessary forms and documentation to correct any errors or omissions.
A: There are a few ways to track your tax refund:
Check the status of your refund online using the IRS’ “Where’s My Refund” tool, which can be found on the IRS website. You will need your Social Security number, filing status, and refund amount to use this tool.
Call the IRS toll-free refund hotline at (800) 829-1954. You will need your Social Security number, filing status, and refund amount to use this service.
Use the IRS2Go mobile app to check the status of your refund. You will need your Social Security number, filing status, and refund amount to use this service.
A: The time it takes to receive your refund depends on several factors, such as the complexity of your return and the processing time of the IRS. Generally, if you file electronically and choose direct deposit, you can expect to receive your refund within 21 days. If you file a paper return, it can take up to six weeks for your refund to be processed. Amended return usually takes 3-9 month to process the extra refund.
A: If you have checked the status of your refund online and it shows that it has been processed, but you have not received it, you should contact the IRS at (800) 829-1954. They will be able to assist you in determining the reason for the delay and help resolve the issue.
A: If you have already filed your tax return and your refund is being processed, you cannot change your bank account information. If your refund is returned to the IRS, you can contact them to provide new bank information for a direct deposit. If you have not yet filed your return, you can provide new bank information when you file.
TaxGuru usually files the return within 24 hours the e-file authorization is received. Please go to track status page to track your federal and state tax return.
Obtaining a copy of your prior tax return can be done by requesting a return transcript from the IRS. A return transcript shows most line items from your tax return as it was originally filed, including any accompanying forms and schedules. To request a return transcript, you can visit the IRS website here and follow the instructions provided. You can request the transcript online, by mail, or by phone. Keep in mind that it may take several weeks for the IRS to process your request and mail you the transcript. TaxGuru also can help you to retrieve your prior-year tax return by providing necessary information and assist in the process.
A: It's important to note that the tax implications of working remotely can vary depending on your location, the laws of the state where you are working, and your individual circumstances.
If you work in another state for more than two weeks during the tax year, you may be subject to taxes in that state (the nonresident state). Usually, your employer will withhold taxes based on your address on file. However, if you do not qualify as a permanent resident of the nonresident state, all of your income will still be subject to taxes in your resident state. The taxes you paid to the nonresident state can be used as a credit towards your taxes in your resident state, subject to certain limitations.
Example:David is a California resident. Because of COVID-19, he decided to temporarily work from Hawaii until his office reopens. He reported his new address in Hawaii to his employer and started paying Hawaii taxes in 2020. When he prepares his 2020 tax return, David will still be considered a California resident and a Hawaii nonresident. All of his income earned in Hawaii will need to be reported and taxed as nonresident income in Hawaii. All of his income earned outside of Hawaii will still be subject to California resident taxes. However, the taxes he paid to Hawaii can be used as a credit towards his California tax liability.
If you work in another state for a certain period of time, you may become a resident of that state and be subject to taxes in both states, known as dual state residency. Each state has different rules, so it is important to consult with a tax professional for more details.
Example:David stays in Hawaii for more than 200 days in 2020 (not consecutively), he may be required to pay taxes as a resident in both California and Hawaii.
If you move twice in one year, the first move is considered temporary and does not qualify as a permanent move. Therefore, your resident state is considered the same as the previous year until you make a permanent move (the second move).
Example:Abby is a California resident in 2019 and plans to move to Texas in 2020. Before moving to Texas, Abby stays with her parents in Washington for three months. Then she permanently moves to Texas in November 2020.
Even though Abby physically moved out of California in August, her stay in Washington is considered a temporary move. We will consider Abby as a California resident until she permanently moves to Texas in November 2020.
If you are unsure about your tax liability when working remotely, please contact TaxGuru for more details and expert guidance.
A: It depends on your employer’s policies. Some employers may handle the taxes for remote work, but others may not. It is important to check with your employer to see if they have any specific policies in place for remote work and taxes.
A: The forms you need to file for your remote work taxes will depend on your specific tax situation. Generally, you will need to file a state tax return for the state where you are working remotely, and you may also need to file a nonresident return for the state where your employer is located. It is important to consult with a tax professional to ensure that you are filing the correct forms.
A: Yes, you can use online tax software like TurboTax to file your remote work taxes. However, it is important to make sure that the software you are using can handle the complexities of remote work taxes, such as dual taxation. It may also be helpful to consult with a tax professional to ensure that your taxes are filed correctly.
If you ever work from another state over 2 weeks in the tax year, you may subject to tax liability to that state (the nonresident state). Usually, the employer will withhold per your address on file. If it does not qualify as permanent moving, all your income will still subject to resident state tax liability. But the tax you paid to any nonresident state could be a credit to the resident state.
Example:David was a CA resident. Due to COVID-19 working remote flexibility, David decided to “move” to HI until the office reopens. David reported his new address in HI to his employer, and he started to pay HI tax in 2020. When preparing his 2020 tax return, David is still considered as a CA resident and a HI nonresident. All his HI sourced income will need to pay HI nonresident tax. And all his income over the world still subjects to CA resident tax. In the meantime, his tax paid to HI could be a credit to his CA tax liability (subject to limitation).
If you work from another state over a specific period, you may become a resident in that state, which can make you a dual state resident. In that case, you may be double taxed by both states. Each state has different rules. Please contact us for more details.
Example:David stayed in HI over 200 days in 2020 in the aggregate (not consecutive), David may need to pay resident tax to both CA and HI.
If you “moved” twice in the year, the first move is considered a temporary move. A temporary move usually does not qualify as “moving”. Therefore, your resident state is considered the same as last year until you made a permanent move (the second “move”).
Example:Abby was a CA resident in 2019 and planned to move to TX in 2020. Before moving to TX, Abby went to WA and stayed with her parents for 3 months. Then she moved to TX permanently in November 2020.
In this case, even Abby physically moved out from CA in Aug, her stay in WA was considered a temporary move. We will consider Abby as a CA resident until she moved to TX in November 2020.
A: Quarterly estimated tax is a payment system for taxpayers to pay their tax liabilities on a regular basis, typically on a quarterly basis. This applies to individuals who are self-employed, have income from investments, or receive income that is not subject to withholding. It is important to note that farmers, fishermen, and certain household employers may not be required to make quarterly estimated payments.
1st payment: April 15th
2nd payment: June 15th
3rd payment: September 15th
4th payment: January 15th (of the following year)
Please note that if any due date falls on a weekend or holiday, the due date will be extended to the next business day.
A: To avoid an underpayment penalty, you must meet one of the following conditions for each quarter:
You expect to owe no more than $1,000 in taxes when you file your return.
You have paid at least 90% of your actual tax liability for the current year.
You have paid 100% (or 110% if your AGI exceeds $150,000) of your total tax liability for the prior year.
A: You can make estimated tax payments by updating your W-4 with your employer to have additional taxes withheld from your paycheck, or by making payments directly to the IRS or your state's tax department. TaxGuru can also assist you in making quarterly estimated tax payments and help you to avoid underpayment penalty. Federal and most states accept online payments.
A: If you did not make enough estimated tax payments, the IRS and state tax departments may charge an underpayment penalty on the underpaid amount. The underpayment penalty is calculated on a daily basis. It's important to note that the IRS interest rate can vary over time. To check the current rate, please visit the IRS website.
If you fail to file your tax return or request an extension on time, or if you do not make enough estimated tax payments, you may be subject to penalties from the IRS and state tax departments. The penalties for failing to file and failing to pay are different and can add up quickly.
The failure to pay penalty is 0.5% of the unpaid tax for each month or part of a month that the tax remains unpaid, up to a maximum of 25%. This means that the longer you go without paying your taxes, the higher the penalty will be.
The failure to file penalty is 5% of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25%. This penalty is added to the failure to pay penalty. So, if you don't file your return on time, it can be even more expensive than just failing to pay.
To avoid these penalties and additional interest, it's best to file your return and make any necessary payments as soon as possible, even if you've missed the deadline. TaxGuru can help you file your return and make payments if you need assistance.
As of the Tax Cuts and Jobs Act, the individual shared responsibility payment, also known as the "Obamacare tax," has been reduced to zero for months starting after December 31, 2018. However, some states still require all residents to have qualifying health coverage or a valid exemption. These states are California, District of Columbia, Massachusetts, New Jersey, Rhode Island, and Vermont.
W-2: Employers must send out W-2s to employees by January 31st.
1099-MISC: Issuers must send out 1099-MISC forms by January 31st.
1099-INT: Issuers must send out 1099-INT forms by January 31st.
1098: Issuers must send out 1098 forms by January 31st.
1099-R: Issuers must send out 1099-R forms by January 31st.
K-1: Issuers have until the due date (March 15th) of the return (might extend to September 15th) to send out K-1 forms.
1042-S: Issuers have until March 15th to send out 1042-S forms.
5498: Issued by May 31st and must be reported on your tax return by October 15th (to file your tax return, deposit information is good enough).
Note: These are the general deadlines set by the IRS, but it's always best to check with the issuer to confirm the exact date you can expect to receive your forms.
The best way to ensure that you receive all communication from the IRS is to keep your address up-to-date on file with them. If you know that you will be moving before you file your tax return, be sure to update your address with TaxGuru so that we can include your most recent address on the return we file for you. If you move after your return has been filed, you can mail a completed Form 8822 to the IRS to update your address on their records. Additionally, you can also register with the United States Postal Service (USPS) and set up mail forwarding services to ensure that any mail sent to your old address is forwarded to your new address.