Answers To 3 Common Questions About Tax Returns
Posted by: Brookside Admin
We're in the home stretch of tax season with the deadline only a few days away. For those who have put off preparing their taxes until now, the CPAs at Brown Kinion and Company are available to help you finish your return in time. At USA Today, Susan Tompor published a helpful list of answers to common questions asked by those rushing to finish this year's taxes.
- Not Enough Withheld
Everyone believes they'll be receiving a healthy tax refund after filing their taxes and some have even made plans on what they'll be spending their refund on. Unfortunately, not every gets a big refund and some even have to pay additional taxes along with their return. That can come as a big surprise to many, but the reason for the additional payment is usually the same. The reason you might receive a refund is because the taxes taken out of your paycheck throughout the year end up being more than the taxes you actually owe after deductions and other factors are weighed. So, conversely, if not enough money has been taken out of your paychecks, you end up owing more. This can usually be fixed for next year by adjusting your W-4 with your employer.
- Letters From The IRS
Receiving correspondence from the IRS is cause for alarm for most of us and taxpayers have been unnerved by a letter called a 5071C that's regularly sent out at this time of year. It's intent is to verify that the recipient has in fact submitted a return. It's actually a service being provided by the IRS, however, not a threat or punishment. The letter is sent when the IRS notices changes and inconsistencies in this year's return compared to previous returns. These could be legitimate changes, or they could be signs of fraud.
- No Return Necessary
Another common question involves those whose annual income is lower than average. If your income is low enough, a tax return may not even be required. That threshold is $10,150 for individuals and $20,300 for spouses filing jointly under the age of 65. If you fall in this category, you are under no obligation to submit a return, but it may be in your best interest to file anyway. If you receive a regular paycheck, taxes have likely been taken out of those checks throughout the year. Submitting a tax return could allow you to recoup some of those taxes in a refund check. There are also additional rules regarding the Affordable Care Act that may require even those with low income to file.
If you have additional questions about your tax liability, or just need help finishing your return on time, contact us at Brown Kinion and Company or come by our offices in Broken Arrow or Tulsa / Bixby.