FAQ

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Frequently Asked Questions

If I'm self-employed, how do I create a W-2 for myself?
[vc_column_text]Self-employment income isn’t reported on a W-2. Instead, you must report your self-employment income on Schedule C. You’ll figure your self-employment tax on Schedule SE. Schedule SE is required if your self-employment income minus expenses is at least $400. business to be at some future date.[/vc_column_text]
Why didn't my employer take any federal withholding taxes out of my paycheck?
[vc_column_text]It depends on your situation. The best way to find out is to ask your employer.

Here are some possible reasons:

  • You might be considered an independent contractor and won’t have taxes withheld for you. If this is the case:
    • You probably received a Form 1099-MISC instead of a W-2 to report your wages. No Medicare or Social Security would have been withheld either.
    • You’ll need to file a Schedule C to report the income and any expenses related to that income.
    • You’ll also need to file a Schedule SE to report and pay your Medicare and Social Security tax.
  • You might have claimed on your W-4 to be exempt from withholding. You must meet certain requirements to be exempt from withholding. You should check with your HR department to make sure you have the correct amount withheld.
  • Your employer might have withheld taxes but gave you an incorrect W-2. If this is true, your employer must issue you a corrected W-2.
  • Your employer might have just made a mistake. If your employer didn’t withhold the correct amount of federal tax, contact your employer to have the correct amount withheld for the future. When you file your return, you’ll owe the amounts your employer should have withheld during the year as unpaid taxes.

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If my employer didn't withhold any taxes, what do I need to file?
[vc_column_text]There are several difference scenarios:

  • If you’re an independent contractor, your employer wouldn’t withhold taxes for you. Instead, you’ll file Schedule C and Schedule SE. Enter the amounts you received for work as an independent contractor. Independent contractors usually need to make estimated tax payments throughout the year.
  • If you’re an employee, your employer should withhold federal taxes. This depends on the allowances you claimed on your W-4. They should also withhold Medicare and Social Security (FICA) taxes:
    • If your employer didn’t withhold the correct amount of federal tax, contact your employer and correct it. When you file your return, you’ll owe the amounts your employer should have withheld during the year as unpaid taxes.
    • If your employer didn’t withhold your FICA taxes correctly, ask that those amounts be withheld. Both you and your employer are responsible for the unpaid amounts.
  • If you were an employee but your employer is treating you as an independent contractor, you can file these:
    • Form SS-8: Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding
    • Form 8919: Uncollected Social Security and Medicare Tax on Wages

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How should I file an extension for my partnership LLC?
[vc_column_text]File Form 7004: Application for Automatic Extension of Time to File Certain Business Income Tax Information, and Other Returns. You get an automatic five-month extension to file Form 1065.[/vc_column_text]
If a business operates without paying taxes, what possible IRS penalties does it face?
[vc_column_text]A business that doesn’t file and pay income taxes by its return’s due date is subject to:

  • Penalties
  • Late-filing penalty
  • Late-payment penalty
  • Interest

These will apply until the business owner pays the unpaid balance. If the IRS determines that fraud is involved, a business owner will be subject to:

  • Additional fines
  • Sanctions
  • Possible criminal prosecution with jail time

Also, if a business has employees and doesn’t pay payroll taxes, it might be subject to the trust fund recovery payment. This is a 100% penalty that can be assessed against any person in the employer’s business who:

  • Is responsible for collecting, accounting for, and paying withheld employment taxes
  • Willfully fails to collect or pay these taxes

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If I report Form 1099 self-employment income, how do I report my expenses?
[vc_column_text]If you’re a sole proprietor, claim these on your Schedule C:

  • Your allowable business expenses
  • 1099-MISC income related to your business

You might be required to file additional forms for certain expenses. Ex: Form 4562 for depreciation[/vc_column_text]

Can I claim an undocumented person as a dependent?
[vc_column_text]No. To claim someone as a dependent, the person must have one of these:

  • Social Security number (SSN)
  • Individual taxpayer identification number (ITIN)

An undocumented person won’t have either of these, so you can’t claim him or her.

To get an ITIN, complete Form W-7 and file it with the IRS. To get the form, visit www.irs.gov.[/vc_column_text]

My partner and I bought a house together. We're not married, so how do we split the home mortgage interest deduction?
[vc_column_text]You can only claim the portion of the interest that you actually paid.[/vc_column_text]
If I have a balance due on my return and can't pay it, how do I set up a payment plan with the IRS?
What's a capital gain or loss?
After I file for an extension, how much time do I have to file my return?
If I list my business as ``doing business as`` (DBA), do I need to file additional forms?
If my spouse files separately and itemizes, can I file using the standard deduction?
Is Social Security disability income taxable?
Can I report my LLC losses on my personal return?
Who can I claim as a dependent?
If my W-4 states I'm married, can I file as single?
How much interest and property tax can I deduct, and how many years back can I claim them?
If I owe back taxes to the IRS, will the IRS take my state refund to pay it off?
How are Roth IRA contributions taxed?
What are the requirements for claiming a full-time college student as a dependent for EIC purposes?
When I file for an extension, do I have to pay my entire balance due?
Can I claim both the child tax credit and the Earned Income Credit (EIC)?
My child is a dependent receiving Social Security benefits. How do I report these benefits?
How do I check the status of my refund?
If my dependent didn't live with me for the entire year, can I still claim him as a dependent?
If I didn't report all my deductions last year, what should I do?
When does my employer have to issue my W-2?
If I accidentally claimed an incorrect exemption amount on my W-4, what will happen?
If I file my federal return one day after the filing deadline, will I have to pay penalties or interest?
If we're married filing separately, do we need to add our incomes together on each return?
How much federal tax should I withhold?
If I don't have receipts for my charitable donations, can I claim the donations?
How do I figure capital gains and losses for Schedule D?
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DALLAS

Phone: (214) 331-2200
Fax: (214) 331-2211
5536 S Hampton Rd, Dallas, TX 75232

GIDDINGS

Phone: (979) 542-0703
Fax: (979) 542-0705
1087 N. Orange, Giddings, TX 78942
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