Question 1

What is a Tax Credit and a Tax Reduction?

Accepted Answer

Tax credits lowers the amount of money you must pay the government. It is designed to encourage people to spend money in specific ways. For example, one of the most common tax credits is the Child Tax Credit. Taxpayers who have children under the age 16 at the end of the calendar year receive a credit to help reduce the cost of raising a child. Another popular tax credit is the Lite Learning Credit (LLC). The LLC encourages people to pursue further education by crediting part of the overall cost back at tax time. 
A tax deduction lowers one’s taxable income, thus reducing the tax liability. If a person receives a deduction, he decreases the amount from his income, which lowers his taxable income. The lower a person’s taxable income, the lower the tax bill. 
By contrast, a tax credit decreases the tax bill rather than a person’s taxable income. So, if a person has a $100,000 salary and has a $10,000 deduction, the taxable income will be $90,000. If the person in this example is taxed at a rate of 25%, the tax bill will be $22,500. If that same person has a $10,000 credit instead of a deduction, he will be taxed at 25% of their $100,000 income and owe $25,000 in taxes. However, he will then be credited $10,000 and owe only $15,000. 
Some tax credits are refundable, but most are not. A refundable tax credit, which is different from a tax refund, can be given to taxpayers even if they do not owe any taxes. Additionally, a refundable tax credit can be given in addition to a tax refund. 
A nonrefundable tax credit means that a person will get the tax credit up to the amount owed. For example, if a person owes $2,000 in taxes and receives $3,000 in nonrefundable credits, that will simply erase her tax bill. If she gets $3,000 in refundable credits, she will receive a $1,000 tax refund. 
Between Federal, State, City and local credits and deductions there are too many to count, so please go to our “how it works section” and let us help get you started.

Question 2

Why should you file your Past Due Return now?

Accepted Answer

Avoid interest and penalties 
File your past due return and pay now to limit interest charges and late payment penalties.

Claim a Refund 
You risk losing your refund if you don't file your return. If you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the return due date. The same rule applies to a right to claim tax credits such as the Earned Income Credit.

The IRS will hold income tax refunds in cases where records show that one or more income tax returns are past due. The Irs will hold them until they get the past due return or receive an acceptable reason for not filing a past due return. 
Protect Social Security Benefits 
If you are self-employed and do not file your federal income tax return, any self-employment income you earned will not be reported to the Social Security Administration and you will not receive credits toward Social Security retirement or disability benefits.

Question 3

What if you don't file voluntarily?

Accepted Answer

Collection and Enforcement Actions 
The return the IRS will prepare for you (A proposed assessment) will lead to a tax bill, which, if unpaid, will trigger the collection process. This can include such actions as a levy on your wages or bank account or the filing of a notice of federal tax lien.

If you repeatedly do not file, you could be subject to additional enforcement measures, such as additional penalties and/or criminal prosecution.

The IRS is getting a lot more money for audits. New infusion by Congress of $80 billion for the IRS will allow it to add thousands more auditors and customer service representatives.

Every year, millions of federal and state tax refunds go undelivered or unclaimed. There's still $1.5 billion in total unclaimed tax refunds for 2019 earnings — that's an average of $1,006 per eligible individual. , so please go to our how it works section and let us help get you started.

Question 4

I don't earn a lot of money, do I really need to file my taxes?

Accepted Answer

According to the search results, you might still need to file your taxes even if you don’t earn a lot of money. Federal law doesn’t require you to file a tax return if you didn’t earn any money during the previous tax year.(https://www.thebalancemoney.com/filing-taxes-no-income-5180054) However, if you earned some money but your earnings were less than the amount of that tax year’s standard deduction, you might still be required to file a tax return.(https://www.thebalancemoney.com/filing-taxes-no-income-5180054)

Question 5

How do I organize my tax records?

Accepted Answer

Here are some tips on how to organize your tax records:
1. Have accessible storage for receipts, forms, and other types of paperwork in an easy-to-reach location.
2. Label everything.
3. Categorize your tax documents.
4. Review your tax filing in the previous years.
5. List down the necessary tax information.
6. Prepare a checklist of your tax documents.
7. Get into a routine, and be consistent.
8. Break everything down into categories.
9. Create a tax “drop zone.”
10. Follow best practices for digital organization.
11. Know when you can get rid of documents.
12. Develop a filing system that works for you.

Question 6

What are estimated taxes?

Accepted Answer

Estimated taxes are taxes paid to the IRS throughout the year on income that is not subject to withholding. This can include income from self-employment, interest, dividends, rents, alimony, etc.(https://www.irs.gov/forms-pubs/about-form-1040-es) Estimated taxes are paid quarterly based on the filer’s reported income for the period. Estimated taxes are required for most small business owners, freelancers, and independent contractors.(https://www.irs.gov/forms-pubs/about-form-1040-es)

Question 7

Who pays the estimated taxes?

Accepted Answer

Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed. Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed.(https://www.irs.gov/newsroom/estimated-taxes-for-individuals)

Question 8

Are my crypto investments taxed?

Accepted Answer

Yes, cryptocurrency is taxable in a variety of circumstances. Cryptocurrency is generally treated as property for US federal income tax purposes. The taxable events of crypto transactions are generally characterized as either capital gain (or loss) or ordinary income, depending on the type of transaction.(https://help.crypto.com/en/articles/6494857-us-cryptocurrency-tax-guide-2022)

Question 9

Are my home improvements tax deductible?

Accepted Answer

If you use your home purely as your personal residence, you can’t deduct the cost of home improvements. These costs are nondeductible personal expenses. However, home improvements do have a tax benefit.(https://www.bing.com/aclk?ld=e8GjqsbLLRnOi04_hDV-X8UDVUCUz37ytx9XS0KOu5zNlI1pEO9UlNFwsUVsQeMN7RaX_ed44X8J4xi_nD6dSDA7Nams0bHOTNSU9J5Ayo2KBMPsqPiQ8BXvANJk9PU_582nw16tqVUBt0gWc2kgQttNT8i6n2UVywYLKmHso2j8eKY172&u=aHR0cHMlM2ElMmYlMmZ3d3cuZW5lcmd5YmlsbGNydW5jaGVyLmNvbSUyZmxhJTJmJTNmaHR0cHMlMjUzQSUyNTJGJTI1MkZ3d3cuZW5lcmd5YmlsbGNydW5jaGVyLmNvbSUyNTJGbGElMjUyRiUyNTNGJTI1N0JscHVybCUyNTdEJTI1MjZ0Z19yZWYlMjUzRDQxNTM3NTA2NSUyNTI2bXNjbGtpZCUyNTNEMTlmMjFmZjc5Y2I3MWUyNWI2NzQ3YjYwOTZhZmVjZGUlMjUyNmNhbXBfaWQlMjUzRDEyMzkxNDk4NTIwODgzNjUlMjUyNmtleXdvcmQlMjUzRGhvbWUlMjUyNTIwaW1wcm92ZW1lbnQlMjUyNTIwdGF4JTI1MjUyMGNyZWRpdCUyNTI1MjAyMDIwJTI1MjZzdWIyJTI1M0Q3NzQ0NzAxMTI2Mzc5NCUyNTI2bWNhbXBpZCUyNTNENDE1Mzc1MDY1JTI1MjZvcmRlcml0ZW1pZCUyNTNENzc0NDcwNjkyNDQ0MTIlMjUyNnRhcmdldGlkJTI1M0Rrd2QtNzc0NDcwNjkyNDQ0MTIlMjUzQWxvYy03MTE2OCUyNTI2bWF0Y2h0eXBlJTI1M0RiJTI1MjZibWF0Y2h0eXBlJTI1M0RiYiUyNTI2bmV0d29yayUyNTNEbyUyNTI2ZGV2aWNlJTI1M0RjJTI1MjZmZWVkaXRlbWlkJTI1M0QlMjUyNmxvY19pbnRlcmVzdF9tcyUyNTNEJTI1MjZsb2NfcGh5c2ljYWxfbXMlMjUzRDk0MDkzJTI1MjZxdWVyeXN0cmluZyUyNTNEQXJlJTI1MjUyMG15JTI1MjUyMGhvbWUlMjUyNTIwaW1wcm92ZW1lbnRzJTI1MjUyMHRheCUyNTI1MjBkZWR1Y3RpYmxlJTI1MjUzRiUyNTI2b3JkZXJpdGVtaWQlMjUzRDc3NDQ3MDY5MjQ0NDEyJTI1MjZ0YWN0aWMlMjUzRHNlYXJjaCUyNnRnX3JlZiUzZDQxNTM3NTA2NSUyNm1zY2xraWQlM2QxOWYyMWZmNzljYjcxZTI1YjY3NDdiNjA5NmFmZWNkZSUyNmNhbXBfaWQlM2QxMjM5MTQ5ODUyMDg4MzY1JTI2a2V5d29yZCUzZGhvbWUlMjUyMGltcHJvdmVtZW50JTI1MjB0YXglMjUyMGNyZWRpdCUyNTIwMjAyMCUyNnN1YjIlM2Q3NzQ0NzAxMTI2Mzc5NCUyNm1jYW1waWQlM2Q0MTUzNzUwNjUlMjZvcmRlcml0ZW1pZCUzZDc3NDQ3MDY5MjQ0NDEyJTI2dGFyZ2V0aWQlM2Rrd2QtNzc0NDcwNjkyNDQ0MTIlM2Fsb2MtNzExNjglMjZtYXRjaHR5cGUlM2RiJTI2Ym1hdGNodHlwZSUzZGJiJTI2bmV0d29yayUzZG8lMjZkZXZpY2UlM2RjJTI2ZmVlZGl0ZW1pZCUzZCUyNmxvY19pbnRlcmVzdF9tcyUzZCUyNmxvY19waHlzaWNhbF9tcyUzZDk0MDkzJTI2cXVlcnlzdHJpbmclM2RBcmUlMjUyMG15JTI1MjBob21lJTI1MjBpbXByb3ZlbWVudHMlMjUyMHRheCUyNTIwZGVkdWN0aWJsZSUyNTNGJTI2b3JkZXJpdGVtaWQlM2Q3NzQ0NzA2OTI0NDQxMiUyNnRhY3RpYyUzZHNlYXJjaCUyNnRnX3JlZiUzZDQxNTM3NTA2NSUyNm1zY2xraWQlM2QxOWYyMWZmNzljYjcxZTI1YjY3NDdiNjA5NmFmZWNkZSUyNmNhbXBfaWQlM2QxMjM5MTQ5ODUyMDg4MzY1JTI2a2V5d29yZCUzZGhvbWUlMjUyMGltcH)

Question 10

Is a Virtual Currency Transaction Taxed?

Accepted Answer

Yes, virtual currency transactions are taxable just like traditional transactions involving money for goods or services, or an exchange of property for other property or services.(https://www.taxpayeradvocate.irs.gov/news/report-your-virtual-currency-transactions/)

Question 11

Can I rent my home tax-free?

Accepted Answer

Yes, you can rent your home tax-free if you rent it for 14 days or less per year 1(https://www.bing.com/aclk?ld=e8fRcCXFpV4BunwLhwmQ1WnDVUCUzPVL5E0dgh5JEW8Qjyssc2nHgrCOEc5Y0SnbathtXWL6D5dOZvbpYjM0NcUNYAJaj9lTiL3cswjJB1BMdhFMqafkA6QBMXerxcRwJEuORpKt2TM8JZET6HiorlEkn6J0kmfxImUFbQkp21B5psqVSI&u=aHR0cHMlM2ElMmYlMmZ3d3cuYWxscHJvcGVydHltYW5hZ2VtZW50LmNvbSUyZnBsZiUyZiUzZnV0bV9zb3VyY2UlM2RiaW5nJTI2dXRtX21lZGl1bSUzZGNwYyUyNnV0bV9jYW1wYWlnbiUzZE5hdGlvbmFsLUJpbmctTm9uX0dlb19Nb2RpZmllZCUyNnV0bV9jb250ZW50JTNkTmF0aW9uYWwtUmVudF9NeV9Ib3VzZS1CaW5nLUJNUCUyNnV0bV90ZXJtJTNkcmVudGluZyUyNTIwbXklMjUyMGhvdXNlJTI2bG9jYXRpb24lM2QlMjZkZXZpY2UlM2RjJTI2bXNjbGtpZCUzZDYxNTEwYjI2ODU1ZDE2ZDFjMzhlNmZiMThmYjQ2MjVl&rlid=61510b26855d16d1c38e6fb18fb4625e)2(https://www.vacasa.com/homeowner-guides/vacation-home-tax-rules).(https://www.thepennyhoarder.com/make-money/side-gigs/legal-loophole-lets-rent-house-room-without-paying-taxes/) However, if you rent your home for more than 14 days per year, you will have to pay vacation rental taxes.(https://www.bing.com/aclk?ld=e8fRcCXFpV4BunwLhwmQ1WnDVUCUzPVL5E0dgh5JEW8Qjyssc2nHgrCOEc5Y0SnbathtXWL6D5dOZvbpYjM0NcUNYAJaj9lTiL3cswjJB1BMdhFMqafkA6QBMXerxcRwJEuORpKt2TM8JZET6HiorlEkn6J0kmfxImUFbQkp21B5psqVSI&u=aHR0cHMlM2ElMmYlMmZ3d3cuYWxscHJvcGVydHltYW5hZ2VtZW50LmNvbSUyZnBsZiUyZiUzZnV0bV9zb3VyY2UlM2RiaW5nJTI2dXRtX21lZGl1bSUzZGNwYyUyNnV0bV9jYW1wYWlnbiUzZE5hdGlvbmFsLUJpbmctTm9uX0dlb19Nb2RpZmllZCUyNnV0bV9jb250ZW50JTNkTmF0aW9uYWwtUmVudF9NeV9Ib3VzZS1CaW5nLUJNUCUyNnV0bV90ZXJtJTNkcmVudGluZyUyNTIwbXklMjUyMGhvdXNlJTI2bG9jYXRpb24lM2QlMjZkZXZpY2UlM2RjJTI2bXNjbGtpZCUzZDYxNTEwYjI2ODU1ZDE2ZDFjMzhlNmZiMThmYjQ2MjVl&rlid=61510b26855d16d1c38e6fb18fb4625e)

Question 12

Do I have to pay taxes if I receive over $600 from Venmo transfers this year?

Accepted Answer

If you receive over $600 from Venmo transfers this year, you will have to pay taxes on any Venmo transfers that are commercial, such as selling goods or services or receiving payments for a side hustle.(https://www.mdtaxattorney.com/resources/do-you-have-to-pay-taxes-on-venmo-and-zelle-payments/)

Question 13

What types of tax services do you specialize in?

Accepted Answer

There are several types of tax services available to help you with your taxes Individual and Small Business

Question 14

What is your turnaround time for tax preparation and filing?

Accepted Answer

Each return is different and processing time can vary.

Question 15

Can you assist with amending previous tax returns?

Accepted Answer

Yes  we can, fill out the information sheet s(https://www.aegrouptaxes.com/application)o we can help.

Question 16

Will you provide a clear breakdown of your fees and charges?

Accepted Answer

Yes , before you are charged you will have a breakdown.

Question 17

I'm self-employed, can I get a tax break for my home?

Accepted Answer

Yes, if you are self-employed and work from home, you may be eligible for tax deductions for your home office.(https://www.bing.com/aclk?ld=e8Zg0brLapcx9-2dmxp_7-jDVUCUywh8-bldOM0KoMgNE65aHGdDZtdvAhksZw1wDgrUH6yKUGPo9v4QFZEyGlwyj46xQowHOJzhA4ngGZzsRePLVDnJxibCJARPEbEGLiegwa8HBhELoMUJUv8DIo2DZjstjGBTLZHlCqal7x0YNWDxGD&u=aHR0cHMlM2ElMmYlMmZndXN0by5jb20lMmZnbyUyZnBheXJvbGwtMDQxJTNmdXRtX3NvdXJjZSUzZGJpbmclMjZ1dG1fbWVkaXVtJTNkc2VhcmNoJTI2dXRtX2NhbXBhaWduJTNkNjM4MDAzNzYzJTI2a2V5d29yZCUzZGt3ZC03NjM0Nzc1MzI1NTQyNSUzYWxvYy00MDg1JTI2Y3JlYXRpdmUlM2QlMjZkZXZpY2UlM2RjJTI2bWF0Y2h0eXBlJTNkYiUyNmFkZ3JvdXAlM2QxMjIxNTU3OTI0MTcyNzE3JTI2YWRwb3NpdGlvbiUzZCUyNmxvY2F0aW9uJTNkOTQwOTMlMjZtc2Nsa2lkJTNkY2Q2ZDY1Y2JiNjI2MWU1ZjdhMGQwMTVjYmM2YWNjYTI&rlid=cd6d65cbb6261e5f7a0d015cbc6acca2)

Question 18

When are quarterly estimated tax payments due?

Accepted Answer

Quarterly estimated taxes are due four times a year on the 15th day of April, June, September, and January of the following year. If the 15th falls on a weekend or a legal holiday, the payment is due on the next workday. The payments cover the income earned in the previous months of each quarter.(https://www.cnet.com/personal-finance/taxes/estimated-tax-payments-due-today-september-15/)

Question 19

I'm self-employed, what forms do I need?

Accepted Answer

1. Form 1040:(https://www.bing.com/aclk?ld=e8O_2zwtngWhs0__r_9Zp8UzVUCUxmQfXREy2sH1e991BS2oTzeHFgGD-b-PkknPFa1WrHbH-RvhmWH-HlspAsPqdpDqO0tv1Baaokk5KVUyjGaeKpljWDpRpC1vRMqdP8rNHgec-vd-HvOAHU9iJ0TXIFp_m2_XHys8FfCv_CZBafXIVP&u=aHR0cHMlM2ElMmYlMmZndXN0by5jb20lMmZnbyUyZnBheXJvbGwtMDQxJTNmdXRtX3NvdXJjZSUzZGJpbmclMjZ1dG1fbWVkaXVtJTNkc2VhcmNoJTI2dXRtX2NhbXBhaWduJTNkNjM4MDAzNzYzJTI2a2V5d29yZCUzZGt3ZC03NjM0Nzc1MzI1NTQyNyUzYWxvYy00MDg1JTI2Y3JlYXRpdmUlM2QlMjZkZXZpY2UlM2RjJTI2bWF0Y2h0eXBlJTNkYiUyNmFkZ3JvdXAlM2QxMjIxNTU3OTI0MTcyNzE3JTI2YWRwb3NpdGlvbiUzZCUyNmxvY2F0aW9uJTNkOTQwOTMlMjZtc2Nsa2lkJTNkMDJhZDMwZDNlNzBlMTdjMzkxYTc1NDQ0ZWQ4ZTQxM2E&rlid=02ad30d3e70e17c391a75444ed8e413a) This is the standard tax form that all individuals use to file their federal income tax return.(https://www.bing.com/aclk?ld=e8O_2zwtngWhs0__r_9Zp8UzVUCUxmQfXREy2sH1e991BS2oTzeHFgGD-b-PkknPFa1WrHbH-RvhmWH-HlspAsPqdpDqO0tv1Baaokk5KVUyjGaeKpljWDpRpC1vRMqdP8rNHgec-vd-HvOAHU9iJ0TXIFp_m2_XHys8FfCv_CZBafXIVP&u=aHR0cHMlM2ElMmYlMmZndXN0by5jb20lMmZnbyUyZnBheXJvbGwtMDQxJTNmdXRtX3NvdXJjZSUzZGJpbmclMjZ1dG1fbWVkaXVtJTNkc2VhcmNoJTI2dXRtX2NhbXBhaWduJTNkNjM4MDAzNzYzJTI2a2V5d29yZCUzZGt3ZC03NjM0Nzc1MzI1NTQyNyUzYWxvYy00MDg1JTI2Y3JlYXRpdmUlM2QlMjZkZXZpY2UlM2RjJTI2bWF0Y2h0eXBlJTNkYiUyNmFkZ3JvdXAlM2QxMjIxNTU3OTI0MTcyNzE3JTI2YWRwb3NpdGlvbiUzZCUyNmxvY2F0aW9uJTNkOTQwOTMlMjZtc2Nsa2lkJTNkMDJhZDMwZDNlNzBlMTdjMzkxYTc1NDQ0ZWQ4ZTQxM2E&rlid=02ad30d3e70e17c391a75444ed8e413a)
2. Schedule C:(https://money.usnews.com/money/personal-finance/taxes/articles/how-to-file-taxes-when-you-are-self-employed) This form is used to report your business income and expenses.(https://money.usnews.com/money/personal-finance/taxes/articles/how-to-file-taxes-when-you-are-self-employed)
3. Schedule SE:(https://www.irs.gov/forms-pubs/about-schedule-se-form-1040) This form is used to calculate your self-employment tax.(https://www.irs.gov/forms-pubs/about-schedule-se-form-1040)
4. Form 4562:(https://www.jacksonhewitt.com/tax-help/tax-tips-topics/employment/self-employment/) This form is used to report depreciation and amortization expenses.(https://www.jacksonhewitt.com/tax-help/tax-tips-topics/employment/self-employment/)
5. 1099 forms:(https://money.usnews.com/money/personal-finance/taxes/articles/how-to-file-taxes-when-you-are-self-employed) If you received payments of $600 or more from a client or customer during the year, you will need to report this income on a 1099 form.(https://money.usnews.com/money/personal-finance/taxes/articles/how-to-file-taxes-when-you-are-self-employed)

Question 20

Will you handle communication with the IRS if a problem arises?

Accepted Answer

If you authorize our company to communicate for you.

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