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FREQUENTLY ANSWERED QUESTIONS
At TaxPros in San Clemente, we understand that navigating tax preparation and estate planning can raise a lot of questions—whether you're filing as an individual, running a business, or looking for guidance from a trusted tax or estate planning consultant.
That’s why we’ve put together answers to some of the most common questions we receive about our services, pricing, filing deadlines, and more. Our goal is to make the process as clear and stress-free as possible, so you can move forward with confidence.
If you don’t see your question here, feel free to reach out. Our experienced team is always happy to help.
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 should be fair to you and fair to us. We are open year-round to also help you with letters, tax planning and questions or situations as they arise. Make us part of your financial power team!
CAN YOU HELP ME FILE SEVERAL YEAR'S 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 Jean and JJ are Enrolled Agents. This certificate is given by the IRS to individuals who have demonstrated their high tax knowledge by passing an extensive 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.
DOES THE 'BIG BEAUTIFUL BILL' LEGISLATION ELIMINATE SOCIAL SECURITY TAXES?
No, the "Big Beautiful Bill" (also known as the "One Big Beautiful Bill") does not eliminate taxes on Social Security benefits. While the bill does include a temporary tax deduction for seniors, it does not remove the existing taxation of Social Security benefits. Specifically, the bill includes a $6,000 deduction for individuals over 65 with incomes below $75,000, which can offset taxes on Social Security income for some, but it does not eliminate taxes on Social Security for everyone.
DOES THE 'BIG BEAUTIFUL BILL' ELIMINATE TAXES ON OVERTIME OR TIPS?
Tips are addressed overtime and tips as tax deductions only. This means workers can subtract earnings from overtime and tips from their taxable income, effectively exempting those amounts from federal income tax. However, not all workers will be eligible for the deduction as the bill caps the total overtime deduction that can be claimed at $12,500 (or $25,000 for a joint return). Additionally, it allows this deduction for individuals with adjusted gross incomes up to $150,000 ($300,000 for joint returns) and slowly reduces the allowable amount of deduction by $100 for every $1,000 of income over those thresholds.
The amount workers earn from tips and working overtime won’t be completely tax free. The exemption only applies toward federal income tax. Federal payroll tax — a flat tax split between employers and employees to fund Social Security and Medicare — will still apply to any earnings. Additionally, workers will still be subject to state and local income and payroll taxes. And finally, these deductions start in 2025, but they are temporary, and are set to expire after December 31st 2028.
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 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.
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