Every new business needs its own tax ID number. To get a federal tax ID number, you must fill out IRS Form SS-4 (available from the IRS Web site at www.irs.gov –click on “Forms and Publications”.  There is no fee

The simple answer is yes. If you have a federal tax ID number and fail to file a tax return with that number on it, the IRS will charge you a nonfiling penalty

If your family members are truly employees, meaning you direct and control their activities during working hours and they don’t work for anyone else, you need to send them W-2s by January 31 for the preceding year.

YESThe IRS views single-member LLCs as “disregarded entities”–that is, the IRS does not view them as separate from their owner. 

The cost to file income taxes can fall anywhere between zero dollars — as in you do your taxes yourself and file for free — and an average cost of $273 for a basic return without a schedule C (self employment) using a tax preparer.  A CPA or accountant’s total fee depends on the project.

If you are currently uninsured, then yes. Beginning on Jan. 1, 2014, all U.S. citizens will be required to have health insurance or pay a penalty. The penalty is 2.5% of household income or $695 per adult, $347.50 per child under 18 whichever is higher.

No.  Mr. Trump signed an executive order on the day of his inauguration asking agencies to reduce burdens related to compliance with the health law.  It does not do away with the Affordable Care Act’s requirement that all Americans who can afford it obtain health insurance or pay a fine. But it might make it a little harder for the I.R.S. to figure out who is breaking the rules.

Wrong. Your status as a full-time student doesn’t exempt you from federal income taxes. If you’re a U.S. citizen or U.S. resident, the factors that determine whether you owe federal income taxes or must file a federal income tax return depends on your income .

Going to prison for tax fraud, which is how the IRS classifies not-filing, is very rare.  After all, if you go to jail, you can’t work, which means the IRS can’t seize the money you owe from your paycheck .

If you want someone to handle complex issues, fight for all possible deductions and credits, completeness, accuracy and compliance then your answer is YES!!!

YES, and its legit too…The Tax Court has ruled that it’s OK to list the cost of a babysitter as a charitable contribution on your return, if you can document that while performing her duties, you were volunteering.

We all like to look nice, especially for business purposes. But you’re expected to arrive to work fully clothed You can only deduct the cost and upkeep of work clothes and uniforms if you must wear them as a condition of your employment and the clothes are not suitable for everyday wear.

3 years from the date your return is filed OR
2 years from the date the tax is paid OR
6 years after the return is filed if income is under reported by more than 25% OR
Indefinitely, if you failed to file a return or the return is false or fraudulent.

The majority of Americans will be getting a tax cut under the new bill. Couples with children will especially benefit, especially if they live in places with low state taxes. The standard deduction virtually doubles, the child tax credit doubles and tax rates have Declined.

There’s no age limit if your child is “permanently and totally disabled” or meets the qualifying relative test. To claim your child as your dependent, your child must meet either the qualifying child test or the qualifying relative test:

  • To meet the qualifying child test, your child must be younger than you and either younger than 19 years old or be a “student” younger than 24 years old as of the end of the calendar year.
  • In addition to meeting the qualifying child or qualifying relative test, your child must also meet all of the other tests to be your dependent:
    1. Dependent taxpayer test
    2. Citizen or resident test, and
    3. Joint return test

NO. That is a common misconception. However due to the increase in the standard deduction you may not want to deduct those items. For example – every taxpayer gets the choice of a standard deduction or an itemized deduction. The standard deduction for a married couple for 2018 is $24,000. The real estate taxes (limited to total state and local taxes of $10,000), mortgage interest and PMI are all itemized deductions. In addition, charitable donations and medical expenses (to the extent medical expenses exceed 7.5% of your income) are all included as itemized deductions. Most taxpayers will be better off simply claiming the standard deduction, as it will exceed the itemized deduction

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