faq: Wells Accounting

 

Frequently Asked Questions

1. WHAT ARE YOUR HOURS?

A: EXTENDED HOURS DURING TAX SEASON ARE M-F 9-8, SAT 9-6 AND SUN 12-4. IN OUR HOAGLAND OFFICE THEY ARE TUE & THURS 6-9PM AND SUN 12-4. AFTER APRIL 15, HOURS ARE M-F 10-5. WEEKENDS AND OTHER TIMES ARE BY APPOINTMENT.

2. HOW MUCH DO YOU CHARGE TO PREPARE TAXES?

A: FOR INDIVIDUAL RETURNS WITH ONE W-2, FEES START AT $59.00. ABOUT 90% OF OUR CLIENTS WALK OUT PAYING LESS THAN $100.00 NOT INCLUDING BANK PRODUCTS.

3. WHAT FORM OF PAYMENT DO YOU ACCEPT?

A: WE CAN TAKE YUR FEE OUT OF YOUR REFUND. YOU CAN ALSO PAY WITH CASH, BY PERSONAL CHECK OR BY MASTERCARD, VISA OR DISCOVER.

4. HOW MUCH IS THE CHILD TAX CREDIT FOR THIS YEAR?

A: $1000 PER QUALIFYING CHILD.

5. WHAT IS STANDARD MILEAGE FOR 2008?

A: 48.5 CENTS PER MILE. 20 CENTS FOR MEDICAL

6. ARE ANY TAX PROVISIONS EXTENDED?

A: YES, EDUCATOR EXPENSES, QUALIFIED TUITION AND FEES, THE ELECTION TO INCLUDE NON TAXABLE COMBAT PAY FOR FIGURING EARNED INCOME CREDIT AND DEDUCTION OF STATE AND GENERAL SALES TAX.

7. FOR THIS YEAR, WHAT IS THE STANDARD DEDUCTION DOLLAR AMOUNT?

A: SEE BELOW:

SINGLE	$5450
MARRIED FILING SEPARATELY	$5450
MARRIED FILING JOINTLY	$10900
HEAD OF HOUSEHOLD	$8000

8. WHAT IS THE AMOUNT OF PERSONAL EXEMPTION PER PERSON?

A: $3400

9. WHAT ARE THE INCOME LIMITS FOR EARNED INCOME CREDIT FOR THE YEAR 2008?

A: SEE BELOW:

Single Income	DEPENDENT CHILDREN
$12,850	0
$33,950	1
$38,600	2
Married Filing Jointly Income	DEPENDENT CHILDREN
$15,850	0
$36,950	1
$41,646	2

10. WHAT IS MAXIMUM EIC (EARNED INCOME CREDIT)?

A: SEE BELOW

WITH 0 CHILDREN	$438
WITH 1 CHILD	$2917
WITH 2 CHILDREN	$4824

11. HOW LONG DOES IT TAKE FOR ME TO GET MY REFUND?

A: WE CAN GET YOU A REFUND IN AS LITTLE AS 24 HOURS AT AN ADDITIONAL CHARGE. -OR- A: 10 TO 14 DAYS FOR USING OUR FREE E-FILE WITH DIRECT DEPOSIT -OR- A: 4 TO 6 WEEKS FOR STANDARD FILING.

12. IF MY SPOUSE OWES BACK TAXES OR BACK CHILD SUPPORT HOW CAN I GET MY PORTION OF THE REFUND?

A: THERE IS A FORM 8379 (INJURED SPOUSE) THAT CAN BE FILED ALONG WITH YOUR RETURN. THIS ENABLES THE IRS TO DETERMINE WHAT PORTION OF THE REFUND IS CONTRIBUTED BY THE INJURED SPOUSE AND NORMALLY WILL BE REFUNDED TO THAT SPOUSE. THIS FORM CAN BE ELECTRONICALLY FILED ALONG WITH YOUR RETURN.

13. AT WHAT DOLLAR AMOUNT SHOULD I CONSIDER ITEMIZING?

A: THIS AMOUNT DEPENDS ON YOUR FILING STATUS. BELOW IS A TABLE FOR THE STANDARD DEDUCTIONS DEPENDING ON YOUR FILING STATUS.

SEE BELOW:

SINGLE	$5450
MARRIED FILING SEPARATELY	$5450
MARRIED FILING JOINT	$10900
HEAD OF HOUSEHOLD	$8000

IF YOUR TOTAL ITEMIZATIONS EXCEED THE AMOUNTS ABOVE YOU SHOULD CONSIDER ITEMIZING.

*IF ONE SPOUSE ITEMIZES THE OTHER MUST ALSO ITEMIZE.

14. WHAT KIND OF ITEMS CAN I USE ON A SCHEDULE A (ITEMIZED DEDUCTIONS)?

A: YOU CAN USE ANY OUT OF POCKET MEDICAL EXPENSE THAT EXCEED 7.5% OF YOUR GROSS INCOME. THESE CAN INCLUDE MEDICAL PREMIUMS, DOCTOR VISITS, PRESCRIPTION DRUGS, DENTAL AND CO-PAYMENTS. YOU CAN ALSO INCLUDE ANY STATE AND LOCAL INCOME TAXES, REAL ESTATE TAXES AND PERSONAL PROPERTY TAXES. THE THIRD CATEGORY IS INTEREST YOU PAID ON YOUR HOME. THIS INTEREST CAN BE FROM A MORTGAGE LENDER, THAT REPORTS THIS TO YOU ON A FORM 1098, OR IT COULD BE FROM A LAND CONTRACT. THIS IS WHEN YOU ARE BUYING A HOME FROM AN INDIVIDUAL. THIS SECTION IS WHERE YOU WOULD ALSO REPORT ANY INVESTMENT INTEREST. THE FOURTH SECTION IS REGARDING CHARITABLE CONTRIBUTIONS. THESE INCLUDE CASH AND NON-CASH CONTRIBUTIONS. THERE ARE LIMITATIONS WHEN AIG EXCEEDS CERTAIN AMOUNTS. THE NEXT SECTION DEALS WITH THEFT AND CASUALTY LOSSES; THERE IS AN ADDITIONAL FORM TO FILL OUT IF THIS WILL BE PART OF YOUR ITEMIZATION. THE LAST SECTION IS FOR MISCELLANEOUS DEDUCATIONS. ANY MISCELLANEOUS DEDUCTIONS THAT EXCEED 2% OF YOUR ADJUSTED GROSS INCOME CAN BE DEDUCTED. THIS INCLUDES TAX PREPARATION FEE, UN-REIMBURSED EMPLOYEE EXPENSES ETC.

15. HOW DO I REPORT THE SALE OF MY HOME?

A: THE SALE OF A PERSONAL RESIDENCE REPORTED ON FORM 2119. THE SALE NEEDS ONLY TO BE REPORTED TO THE IRS IF THERE WAS A PROFIT OF $250,000 IF YOU ARE SINGLE, OR $500,000 IF YOU ARE MARRIED FILING A JOINT RETURN. TAXPAYERS ARE REQUIRED TO MEET OWNERSHIP AND USE TESTS TO QUALIFY FOR THIS EXCLUSION.

16. CAN I FILE MY RETURN ELECTRONICALLY IF THERE IS A BALANCE DUE?

A: YES, YOUR PREPARER WILL SUPPLY YOU WITH A 1040V VOUCHER ABLE TO SEND WITH YOUR CHECK TO THE IRS.

17. IF I FILE ELECTRONICALLY AND MY RETURN SHOWS A BALANCE OWED, DO I HAVE TO PAY THE TAX IMMEDIATELY?

A: NO. YOUR TAX IS DUE ON APRIL 15TH, 2008. YOU ARE CONSIDERED ON TIME IF THE PAYMENT IS SENT BY THAT DATE.

18. CAN I TAKE A CHILD AS A DEPENDENT IF HE/SHE LIVES WITH ME ALL YEAR?

A: THERE ARE 5 TESTS THAT NEED TO BE MET. THESE TESTS ARE (1) RELATIONSHP, (2) NO JOINT RETURN FILED, (3) RESIDENCY, (4) INCOME AND A (5) SUPPORT TEST. YOU MUST PROVIDE OVER 50% OF THE SUPPORT OF A DEPENDENT CHILD OR STUDENT. THERE IS AN EXCEPTION TO THE RELATIONSHIP TEST; THAT IS IF THE CHILD LIVES IN YOUR HOME FOR THE WHOLE YEAR AND YOU CARED FOR THAT CHILD AS IF IT WERE YOUR OWN. FOR EIC PURPOSES, IF THE CHILD IS NOT RELATED HE OR SHE MUST BE A FOSTER CHILD ASSIGNED BY THE COURTS.

19. WILL UNEMPLOYMENT RECEIVED 2008 BE TAXABLE ON MY TAX RETURN?

A. YES, UNEMPLOYMENT BENEFITS ARE TAXED AT THE FEDERAL LEVEL. USUALLY THEY ARE DEDUCTED BACK OFF AT THE STATE LEVEL DEPENDING ON YOUR TOTAL INCOME LEVEL. YOUR STATE UNEMPLOYMENT AGENCY SHOULD SEND YOU A STATEMENT OF YOUR BENEFITS AT THE END OF JANUARY.

20. I PAY FOR CHILD CARE FOR MY YIOUNGEST CHLD, IS THIS DEDUCTIBLE?

A. YES. CHILD CARE IS REPORTED ON A FORM 2441. THIS IS A CREDIT OFF TAX LIABILITY.

21. IS MY HIGH SCHOOL AGED CHILD REQUIRED TO FILE A TAX RETURN IF HE/SHE HAD WAGES?

A. IF STUDENTS HAVE WAGES UNDER $5000 AND THEY HAD FEDERAL TAXES WITHHELD; THEY NEED TO FILE A RETURN TO RECEIVE A REFUND. IF WAGES ARE UNDER $5000 AND THEY ATTENDED COLLEGE FULL-TIME, THEY CAN STILL BE TAKEN AS A DEPENDENT ON THEIR PARENTS’ RETURN. IF THE WAGES ARE OVER THE $5000 LIMIT, THERE ARE SOME CASES WHERE THEY CAN STILL BE TAKEN ON THE PARENTS’ RETURN BUT THEY MAY NOT GET ALL OF THE FEDERAL WITHHOLDING BACK AS A REFUND.

22. IF MY HIGH SCHOOL AGED CHILD FILES A TAX RETURN, CAN I STILL CLAIM HIM ON MY TAX RETURN?

A. YES, EVEN THOUGH A HIGH SCHOOL STUDENT FILES A RETURN, THE PARENTS CAN STILL CLAIM HIM ON THEIR RETURN AS LONG AS THE STUDENT WAS A FULL-TIME STUDENT. THERE ARE ALSO INCOME GUIDELINES TO CONSIDER. ALSO, THE STUDENT CANNOT CLAIM HIMSELF OR HERSELF ON THE TAX RETURN IF THE PARENTS TOOK THAT EXEMPTION.

23. IF I HAVE A CHLD IN COLLEGE, HOW MUCH OF AN EDUCATION CREDIT SHOULD I GET?

A. THE AMOUNT OF THE EDUCATION CREDIT DEPENDS ON WHAT YEAR THE STUDENT IS IN SCHOOL AND THE INCOME LEVELS OF THE TAXPAYER. IF THE STUDENT IS IN THE FIRST OR SECOND YEAR OF SCHOOL, THE CREDIT COULD BE AS MUCH AS $1800. IN THE SUCCEEDING YEARS THE MAXIMUM CREDIT IS $3600. BOTH CREDITS ARE PHASED OUT AS ADJUSTED GROSS INCOME INCREASES.

24. WHAT IS THE FIRST TIME HOMEBUYERS CREDIT?

A. THIS IS A CREDIT OF UP TO $7500 FOR A HOME PURCHASED IN 2008. FOR A HOME PURCHASED AFTER JANUARY OF 2009 THE CREDIT CAN BE UP TO $8000.

25. HOW DO I REPORT THE SALE OF STOCK?

A. THE SALE OF STOCK IS REPORTED ON A SCHEDULE D. TO COMPLETE THE SCHEDULE D, WE NEED FORM 1099-B THAT WILL BE ISSUED TO YOU, AS WELL AS THE COST BASIS OF THE STOCK, THE DATE PURCHASED AND THE DATE SOLD.

26. DO YOU ACCEPT WALK-INS?

A. OF COURSE. HOWEVER, TO INSURE YOU DO NOT HAVE TO WAIT, WE RECOMMEND AN APPOINTMENT.

27. DO YOU OFFER BANK PRODUCTS?

A. YES – ALL OF THEM. WE OFFER DIRECT DEPOSIT, FAST FUNDS AND FAST CHECKS.

28. DO YOU ALSO DO BUSINESS TAXES?

A. YES. WE DO SMALL BUSINESSES, C-CORP, S-CORP, LANDLORDS, FARMS, PARTNERSHIPS, VIRTUALLY EVERYTHING.

29. CAN I USE MY HOME AS A PART OF MY BUSINESS DEDUCTION?

A. FORM 8829. BUSINESS USE OF YOUR HOME CAN BE USED IF THE BUSINESS THAT IS CONDUCTED OUT OF THE HOME SHOWS A PROFIT. IF THIS FORM IS USED, THEN PART OF THE MORTGAGE INTEREST, TAXES, UTILITIES, AND REPAIRS CAN BE DEDUCTED.

30. WHAT IS THE PER DIEM RATE FOR 2008?

A. THIS RANGES FROM $109 TO $393 DEPENDING ON WHERE AND WHEN YOU TRAVEL.

31. WHERE ARE YOU LOCATED?

A. 2119 S. CALHOUN ST. (ACROSS FROM CITY GLASS)

2505 LOWER HUNTINGTON RD. (HALF BLOCK WEST OF AZARS)

10035 HOAGLAND RD. HOAGLAND, IN (1/2 MILE WEST OF ASPY TIRE)

32. PHONE NUMBERS?

A. FORT WAYNE OFFICE (260)-745-8093 24-HOUR FAX (260)-744-3205

HOAGLAND OFFICE (260)-639-7297

WAYNEDALE OFFICE (260)-747-8093