YOU'VE GOT BETTER THINGS TO DO WITH YOUR TIME

We'll do your taxes.

About Us      |      Frequently Asked Questions      |      Contact Us     |      Helpful Resources

Frequently Asked

QUESTIONS

How much do you charge?

We aren’t sky high like some firms nor are we dirt cheap. We tend to land somewhere in between. Tax preparation is not just entering numbers in boxes. We have spent years studying and completing tax returns so we know the right questions to ask to help maximize your refund or minimize what you owe. We explain to you, simply and clearly, what goes into your tax return and alert you on upcoming changes to watch out for. The price you pay for preparation and filing of your return is just the beginning of the value we provide. We are open year-round to help you with tax planning or as questions or situations arise. We want you to think of us as part of your financial power team, helping you get where you want to go, successfully. 

What's new for 2020?

This is a BIGGIE!: California continues the Individual Health Care Mandate Penalty: Open enrollment runs Oct. 15, 2019 - Jan. 31, 2020. If you do not obtain eligible health insurance for 2020, you will be subject to a penalty of $695 per adult and $347.50 per child or 2.5% of your annual household income (whichever is greater). This is assessed and collected when filing your 2020 taxes in 2021 on your California Form 540. There is some good news here! California has increased the income limits to qualify for premium assistance so you may now be eligible to have a portion of your premium covered by the state!

 

Withholding will now be calculated using the Percentage or Wage Bracket Method: One of the biggest changes, beginning with the 2020 Form W-4, is that employees will no longer be able to request adjustments to their withholding using withholding allowances. Instead, employees will use the new Form  W-4 to provide employers with amounts to increase or reduce taxes and amounts to increase or decrease the amount of wage income subject to income tax withholding. The withholding tables have been revised to include three filing statuses: single, married filing jointly, and head of household.

 

Contributions to 401(k)'s and HSA's are increasing for 2020: Individuals can contribute $19,500 to a 401(k), up $500 and for HSA's the increase is $50 for an individual to $3,550 and $7,100 for families which is a $100 increase.

A new form 1040-SR has been drafted: It is intended for those 65 and over. If married, both spouses must be 65 or over and may not itemize. The font size is supposed to be larger and easier to read.

Can you help me with a letter I got from the IRS?

Yes! Even if it is a result of taxes you filed yourself or somewhere else.

Can you help me file several years’ worth of taxes? 

Absolutely! We get this question a lot so don’t think you are alone. If you have missing documents, we can help you get transcripts from the IRS and take it one step at a time. 

What is an Enrolled Agent?

You may have noticed that Brenda is an Enrolled Agent. This certificate is given by the IRS to individuals who have demonstrated their high tax knowledge by passing a three-part examination. Commonly referred to as an EA, someone with this certificate can represent a taxpayer before the IRS in matters of audits or to negotiate for taxpayers when large sums of money are due.  

Is Social Security income taxable? 

It depends. Actually, this is the answer to many tax questions. Depending on how much other income you have, up to 85% of your Social Security can be taxable income.

Is unemployment income taxable?

Yes... It is just like earning wages. Worker’s Comp. is not normally considered taxable. However, there are some employer provided insurance programs that may be considered taxable income.

Will the IRS ever call me?

First contact from the IRS should always be a letter sent via regular mail. Technically, they will call you if you have asked them to in response to a such a letter. No doubt you may have received one or more (many more in some cases) of those crazy calls saying they are coming to arrest you or our favorite, “a serious matter has been pressed upon your name.” HANG UP! Beginning 2018, the IRS did authorize certain collection agencies to call on their behalf. The names of those specific agencies may be found at www.irs.gov

Can I deduct my horse?

Okay, this isn’t really a FAQ, but the answer is yes, only under certain circumstances. And yes, we have done it!

439 N. El Camino Real Ste B, San Clemente, CA  92672  |  thepros@taxprossc.com  |  Tel: 949-271-1200

  • Like us on Facebook-TaxPros+

© 2020 All Rights Reserved  •  Privacy Policy  •  Sitemap