Tax FAQ
Have a question about filing your tax return? We can help! Here are our Frequently Asked Questions. Have additional questions? Give us a call at 336-722-9400.
Question: Am I required to file a tax return?
Answer: To determine if you are required to file a tax return will depend on several factors, including your age, gross income, filing status, and if you are a dependent on someone else’s tax return. To get more specific information on who must file, check out IRS Publication 501.
Question: What is the difference between the standard deduction and itemized deduction?
Answer: A standard deduction is a fixed dollar amount based on the taxpayer’s filing status that lowers the taxpayer’s taxable income. The standard deduction is a benefit that eliminates the need for taxpayers to itemize deductions such as medical expenses, mortgage interest, and charitable contributions. Itemized deduction allows taxpayers to reduce their taxable income based on specific personal expenses such as medical expenses, mortgage interest, and charitable contributions. Most taxpayers have a choice of either taking a standard deduction or itemized deduction whichever gives the taxpayer the lower taxable income and lower tax amount.
Question: What is the current standard deduction amounts for the tax year 2022?
Answer: The standard deduction amounts for the tax year 2022 are:
- Single or Married Filing Separately – $12,950
- Married Filing Jointly or Qualifying Surviving Spouse – $25,900
- Head of Household – $19,400
Question: What is the amount of the Child Tax Credit, Credit for Other Dependents, and the Child Age Limit for the year 2022?
Answer: The child tax credit is $2,000 per eligible child (The temporary increase to $3,000 and $3,600 was for the tax year 2021 only). The credit for other dependents is $500 (This credit is for dependents who do not qualify for the $2,000 child tax credit). A child must not have attained age 17 by the end of 2022 to be a qualifying child.
Question: Will I be able to still claim charitable contributions for the tax year 2022 if I do not itemize?
Answer: No, this was only temporary for the tax year 2021, where the taxpayer was able to claim charitable contributions if the taxpayer took the standard deduction. The taxpayer will only be able to claim charitable contributions if they choose to itemize.
Question: Will I receive a tax form if I had a health plan through the Health Insurance Marketplace?
Answer: If a taxpayer or anyone in the taxpayer’s household is enrolled in a health plan through the Health Insurance Marketplace, Form 1095-A will be issued. This form will be mailed from the Health Insurance Marketplace and not the IRS. If you have not received Form 1095-A, you contact the Health Insurance Marketplace (800-318-2596) or visit the website https://www.healthcare.gov/.
Question: What do I do if I have been a victim of identity theft?
Answer: If you have been a victim of identity theft, contact the IRS Identity Protection Specialized Unit at 800-908-4490 extension 245 immediately.
Question: When are tax returns due for the tax year 2022?
Answer: Taxpayers will have until Tuesday, April 18th, 2023 to file their 2022 tax returns.
Question: How can I check the status of my tax refund?
Answer: The taxpayer can check the status of a tax refund by using the Where’s My Refund? tool (https://www.irs.gov/refunds). Where’s My Refund? tells the taxpayer if their tax return has been received and if the IRS has approved their tax return and/or sent the taxpayer their tax refund.
Question: What if I am unable to pay the taxes that I owe?
Answer: It’s important that taxpayers still file a tax return even if the taxpayer is unable to pay the taxes owed. Failing to file a tax return will result in penalties and interest. If the taxpayer is unable to pay taxes owed, the IRS has multiple payment options including installment agreements. For additional information, taxpayers may call (800-829-1040) or visit the IRS website.