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Frequently Asked Questions

If your questions aren’t answered below, please contact us and we will gladly answer them!

How do I fill out the W-4?

How do I fill out the W-4? What number do I claim on the W-4? What is the difference in my paycheck if I change my allowances/exemptions?

You’ve probably seen the IRS Form W-4. It’s one of the many forms employers give you to fill out once you get hired. The purpose of this form is to let your employer know how much income tax for the Feds and State you want taken out of each paycheck.

The general rule behind the amount of allowances/exemptions you claim on your IRS Form W-4 or equivalent is this: The lower the number you claim (zero being the lowest), the more tax the payroll department at your job will take out of your paycheck, and the lower the amount you will owe at the end of the year. Therefore, if you want to stay on the safe side of IRS, claim single 0 on your W-4. If you end up paying more tax on your paycheck than what was owed, you will get a refund on your tax return at the end of the year.

You may prefer having more money in your paycheck than getting a refund or owing at the end of the year, but that is a more complicated issue, as you will need all the facts to get the most accurate answer. Not only that, but usually Congress and the IRS do not determine the tax rates until the end of the year, so payroll may not have been accounting for the different tax rates.

If you want to know the exact amount of allowances or exemptions to claim, and what the various allowances or exemptions will do to your paycheck, give us a call for a consultation.

How long will it take me to receive my refund?

E-filed tax returns: Once the return is accepted, most IRS gov refunds are issued in less than 21 calendar days.

Paper filed returns: IRS gov refunds can take anywhere from 6-8 weeks from the date the IRS receives your tax return to issue a refund.

You can now check the status of your refund on Where’s My Refund? Check within 24 to 48 hours after e-filed tax returns, and four weeks for paper filed returns.

When the IRS begins processing your tax return, the Where’s My Refund? tool will show “Return Received” status. You will not see a refund date until the IRS finishes processing your tax return and approves your tax refund.

Once the IRS finishes processing your tax return and confirms your tax refund is approved, your status will change from “Return Received” to “Refund Approved”. Sometimes the change in status can take a few days, but it could take longer — and a date will not be provided in Where’s My Refund? until your tax return is processed and your IRS gov tax refund is approved.

The IRS will provide a personalized refund date once your status moves to “Refund Approved”. If the status in Where’s My Refund? shows “Refund Sent”, the IRS has sent your tax refund to your financial institution for direct deposit. It can take one to five days for your financial institution to deposit funds into your account. If you requested that your tax refund be mailed, it could take several weeks for your check to arrive.

Some tax returns take longer than others to process depending upon the situation. Some of the reasons it may take longer include incomplete information, an error, or further review. The sooner you e-file your return, the sooner you’ll get your tax refund.

 

Do I have to pay when I file my Tax Return?

The answer depends on the amount you owe.

Owe over $1,000 –  Yes, you will need to make a payment when you file your tax return. The amount of the payment needs to be at least enough to get the balance down below $1,000. The reason for this is because you will be getting hit with the underpayment of estimated tax penalty. To stop the penalty from continuing to accrue, you will need to get the balance below $1,000.

Owe under $1,000 – No, you will not need to make a payment when you file.

Keep in mind that any outstanding tax balance is due by April 15th. If you have the means to pay for your tax balance, save yourself the headache, and pay as soon as possible.

How do I pay the IRS?

You can make and IRS payemnt when you file, online, smartphone app, by mail or by phone.

IRS Payment when filing: If you e-file, you can make an IRS payment using your bank account with the IRS Electronic Funds withdrawal. You can choose the date and amount to be withdrawn; however, note that all tax liabilities are due by April 15. Some e-filing softwares also allow the use of debit or credit cards, just be aware that there may be a processing fee.

If you paper file your return, you can make an IRS payment by sending a check or money order along with the return through the mail. Be sure to make the check or money order out to the United States Treasury, and write down your Social Security Number (SSN), as well as the year and form number, in the memo line or at the top of the check

Online using bank account information: IRS Direct Pay is the website to use when making an IRS payment online. You can use your checking or savings account to make a payment or schedule a payment. You will need a copy of your tax return or (or tax ID for businesses) handy to reference information that will be asked.  This is a free, secure, and fast way to make a payment with instant confirmation after payments have been made.

Online using debit or credit card: Use this link to choose from various websites that offer the service of making an IRS payment with a debit or credit card. You will need a copy of your tax return or (or tax ID for businesses) handy to reference information that will be asked.  Be aware there are processing fees associated with every transaction.

Smartphone App – IRS2Go is the IRS’s app which can be used to make an IRS payment with a bank account or debit and credit cards.

IRS payment by Phone:             Individuals – 800-829-1040

                        Businesses- 800-829-4933

IRS Payment Mail: The IRS address you mail a check or money order to depends on your location as well as the reason for payments. Check the linkto find out where to send your IRS tax payments to. Be sure to make the check out to the United States Treasury, and write down your Social Security Number (SSN), as well as the year and form number, in the memo line or at the top of the check.

How do I pay the IRS?

You can make and IRS payemnt when you file, online, smartphone app, by mail or by phone.

IRS Payment when filing: If you e-file, you can make an IRS payment using your bank account with the IRS Electronic Funds withdrawal. You can choose the date and amount to be withdrawn; however, note that all tax liabilities are due by April 15. Some e-filing softwares also allow the use of debit or credit cards, just be aware that there may be a processing fee.

If you paper file your return, you can make an IRS payment by sending a check or money order along with the return through the mail. Be sure to make the check or money order out to the United States Treasury, and write down your Social Security Number (SSN), as well as the year and form number, in the memo line or at the top of the check

Online using bank account information: IRS Direct Pay is the website to use when making an IRS payment online. You can use your checking or savings account to make a payment or schedule a payment. You will need a copy of your tax return or (or tax ID for businesses) handy to reference information that will be asked.  This is a free, secure, and fast way to make a payment with instant confirmation after payments have been made.

Online using debit or credit card: Use this link to choose from various websites that offer the service of making an IRS payment with a debit or credit card. You will need a copy of your tax return or (or tax ID for businesses) handy to reference information that will be asked.  Be aware there are processing fees associated with every transaction.

Smartphone App – IRS2Go is the IRS’s app which can be used to make an IRS payment with a bank account or debit and credit cards.

IRS payment by Phone:             Individuals – 800-829-1040

                        Businesses- 800-829-4933

IRS Payment Mail: The IRS address you mail a check or money order to depends on your location as well as the reason for payments. Check the linkto find out where to send your IRS tax payments to. Be sure to make the check out to the United States Treasury, and write down your Social Security Number (SSN), as well as the year and form number, in the memo line or at the top of the check.

How do I pay the IRS?

You can make and IRS payemnt when you file, online, smartphone app, by mail or by phone.

IRS Payment when filing: If you e-file, you can make an IRS payment using your bank account with the IRS Electronic Funds withdrawal. You can choose the date and amount to be withdrawn; however, note that all tax liabilities are due by April 15. Some e-filing softwares also allow the use of debit or credit cards, just be aware that there may be a processing fee.

If you paper file your return, you can make an IRS payment by sending a check or money order along with the return through the mail. Be sure to make the check or money order out to the United States Treasury, and write down your Social Security Number (SSN), as well as the year and form number, in the memo line or at the top of the check

Online using bank account information: IRS Direct Pay is the website to use when making an IRS payment online. You can use your checking or savings account to make a payment or schedule a payment. You will need a copy of your tax return or (or tax ID for businesses) handy to reference information that will be asked.  This is a free, secure, and fast way to make a payment with instant confirmation after payments have been made.

Online using debit or credit card: Use this link to choose from various websites that offer the service of making an IRS payment with a debit or credit card. You will need a copy of your tax return or (or tax ID for businesses) handy to reference information that will be asked.  Be aware there are processing fees associated with every transaction.

Smartphone App – IRS2Go is the IRS’s app which can be used to make an IRS payment with a bank account or debit and credit cards.

IRS payment by Phone:             Individuals – 800-829-1040

Businesses- 800-829-4933

IRS Payment Mail: The IRS address you mail a check or money order to depends on your location as well as the reason for payments. Check the linkto find out where to send your IRS tax payments to. Be sure to make the check out to the United States Treasury, and write down your Social Security Number (SSN), as well as the year and form number, in the memo line or at the top of the check.

For 1) individuals who travel for their employment and do not get reimbursed or 2) self employed taxpayers, keeping track of your business mileage when it comes to tax time can be very beneficial. First, note the mileage that is allowed to count towards a deduction on the tax return. It does NOT include your commute to and from your regular workplace or office. What can be counted is any other mileage conducted for business purposes, including but not limited to travel to clients or customers or traveling among several offices within a region.

The easiest way to keep track of your business mileage is to use one of several mobile mileage apps. The apps use the GPS on your phone to track your trips, and ask you either daily or weekly to classify the trips as business or personal. At the end of the year the app will provide you with a report summing up the amount of mileage for business and personal, which will be used on your tax return.

The “old school way” to keep track of mileage is to keep a notebook inside your car and write down the starting mileage and ending mileage of each business trip with a date. At the end of the year you will need to go through your notebook and calculate the total mileage.

First of all, no need to panic — but you will need to address it as soon as possible. If you made a basic mathematical mistake, there is no need to worry as the IRS will fix that simple problem. However, if you made a mistake to the filing status, number of dependents, tax credits taken or left out, or the total income, you have the option to file an amended return.

The amended tax return is filed with the Form 1040X. This will need to be mailed to the IRS as they do not accept e-filed amended tax returns. Include copies of any forms and/or schedules that you are changing or did not include with your original return.

To avoid delays, file Form 1040X only after you’ve filed your original return. Generally, for a credit or refund, you must file Form 1040X within three years after the date you timely filed your original return or within two years after the date you paid the tax, whichever is later. Allow the IRS up to 16 weeks to process the amended return.

A doctor doesn’t charge you based on the severity of your injury, but rather on the particular services they provide to you. Likewise, tax resolution companies should not charge based on the amount of tax you owe the government. At Cityline Tax, our fees are based on the tax forms we will prepare and file for you. All our service fees are itemized so you always know exactly what you are paying for.

In a time when scams and identity theft have become rampant, it is important to ensure your tax professional keeps your personal information safe and secure. The private and sensitive information contained in your tax documents are the stuff of an identity thief’s dreams: names, addresses, Social Security numbers, banking information, and so on.

The most secure way to send information is the old school way of a physical handoff; however, in the digital age this can be inconvenient. If you are to send your documents over the internet be sure it is secure. Secure methods of sending files over the internet include encrypted file sharing services and encrypted or password protected email. Ask your tax professional if your files will be encrypted when sending those through a file sharing service, as you wouldn’t want your identity to be compromised.

At Cityline Tax we use the highest security standards in the industry to keep your information private. Whether that be storage of your personal information, or online file sharing, we use the most up to date encryption software to make sure your privacy is not compromised.

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