Frequently Asked Tax Questions

At BTS we are form based so our fees are based on the complexity of your return and number

of forms we need to use to maximize your refund or lessen the amount due. It is almost

impossible to give an exact quote without seeing your information. View our current Pricing page for current averages and any discounts offered.

We are a small, locally owned and operated tax preparation service able to only handle a limited amount of clients during tax season. This is why for new clients, a $50 processing fee is mandatory upfront. This amount will be credited back to your final service fee upon the completion of your tax return.

Not a problem. However, timing is of the essence. You can only receive refunds for the past three years. However, all tax obligations remain, while penalties and interest continue to accumulate. It’s best to get all your tax years filed to stop the increase of tax obligations. Once complete you can set up a payment plan through the IRS website. Many states also offer similar options. If you owe more than $10,000 we may be able to help reduce your tax burden. Click here to find out more.

If you have refunds due to you, there are no penalties from the IRS or your state. However if

you will owe taxes then you will have a late file penalty, a late pay penalty and accruing interest

charges from the IRS and state.

If you received unemployment you should file taxes even if you had withholdings taken from

your unemployment payments as this is counted as income on your tax return

An enrolled agent is a person who has earned the privilege of representing taxpayers before the

Internal Revenue Service by either passing a three-part comprehensive IRS test covering

individual and business tax returns, or through experience as a former IRS employee. Enrolled

agent status is the highest credential the IRS awards. Individuals who obtain this elite status

must adhere to ethical standards and complete 72 hours of continuing education courses every

three years.

Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice

rights. This means they are unrestricted as to which taxpayers they can represent, what types of

tax matters they can handle, and which IRS offices they can represent clients before. Learn

more about enrolled agents in Treasury Department Circular 230 PDF (PDF).

A certified public accountant (CPA) is a designation given by the American Institute of

Certified Public Accountants (AICPA) to individuals that pass the Uniform CPA

Examination and meet the education and experience requirements. The CPA

designation helps enforce professional standards in the accounting industry.

To review a tax professional credentials click on the following link

When we receive your tax information, you will be contacted to set up a review appointment.

Normally our turn-around time is 2-5 days depending on complexity and when we can set a

mutual time for review.

To quote the IRS: Expect delays if you mailed a paper return or had to respond to an IRS

inquiry about your e-filed return. You should only call if it has been:

•  21 days or more since you e-filed
• Where's My Refund tells you to contact the IRS

By law, the IRS cannot issue refunds for people claiming the Earned Income Tax Credit (EITC) or

Additional Child Tax Credit (ACTC) before mid-February. The law requires the IRS to hold the entire

refund − even the portion not associated with EITC or ACTC. The IRS expects most EITC/ACTC related

refunds to be available in taxpayer bank accounts or on debit cards by the first week of March, if they

chose direct deposit and there are no other issues with their tax return.

Taxpayers should use Where's My Refund? for their personalized refund date.

You will need your name, social security number, filing status and amount of refund due.

Refunds | Internal Revenue Service (irs.gov)

If you are looking for the status of your state refund, each state has their own web site

All gambling winnings are considered income and must be reported. However the IRS does

allow a deduction for losses up to the amount you won. In 2020 the personal deductions were

raised for taxpayers. Your gambling losses are claimed in lieu of your standard deduction along

with other allowable deductions such as donations, property taxes and mortgage interest. If

these amounts do not exceed your standard deduction then there will be no change in your tax

return.

The preferred way to send your tax information is through our online portal which is encrypted

the same as medical encryption. If you do not have that ability or you have a large number of

papers, please call the office and discuss the options. If you are a business please call the office

to discuss your options.

Taxpayers should gather Forms W-2, Wage and Tax Statement, Forms 1099-MISC,

Miscellaneous Income, and other income documents to help determine if they're eligible for

deductions or credits. They'll also need their Notice 1444, Your Economic Impact Payment, to

calculate any Recovery Rebate Credit they may be eligible for on their 2020 Federal income

tax return.

Most income is taxable, including unemployment compensation, refund interest and income

from the gig economy and virtual currencies.

We also will review student loan interest statements, education expenses, child care as

examples

In addition we will need a copy of your current driver’s license or a recognized form of

identification

If you have a refund due we will ask for your deposit information which would be your routing

number and checking/savings account number

If you are claiming dependents, we will need a copy of their social security card

If you have filed with us in the past and we have this information, then we do not need a new

copy

We E-file to the IRS, to the States and to Kansas City MO for the Earnings Tax.

We do have a bank we work with to have your fees paid to us through your return. There is a

nominal fee for this service the bank charges, and that changes annually. We can refund your

money to your checking account direct deposit, to a debit card or we can print a check in our

office. The check printing in our office is only available through our bank products.

When we file your tax return we will enter the most recent address for you. If you need to

change your address at another time please go to this link Address Changes | Internal Revenue

Service (irs.gov) For your particular state you will need to go to that state’s web site.

Regarding the first stimulus check, single filers and heads of household could have

gotten up to $1,200, plus $500 for each qualifying child (a person under age 17 who is

claimed as a dependent). Married joint filers could have gotten up to $2,400, plus $500

for each qualifying child. Dependents were not eligible to receive a check.

The amounts were halved for the second stimulus check, with single filers and heads of

household getting up to $600 and married joint filers receiving up to $1,200. The

qualifying child payment increased to $600.

People who had a baby in 2020 may be able to claim the additional $500 for a qualifying

child (or $600 for the second round of stimulus), even if they received the maximum

payment as an individual or couple. Additionally, the second round of stimulus allows

mixed-status families — where only one spouse has a work-eligible Social Security

number — to be eligible for single and qualifying child payments. The rule is retroactive

to the first round of stimulus as well.

If your stimulus check is higher than expected, The IRS says that for the most part, you

should not have to pay it back. There are, however, a couple of exceptions. If your last

filing status is married filing jointly but your spouse has since passed away, yet you

receive a $1,200 stimulus payment for him or her, you may be asked to repay that sum.

(It's still unclear how the IRS might enforce this rule, though). Similarly, if you somehow

received a double stimulus payment due to a technical glitch -- for example, you're

single with no dependents and somehow got $2,400 in your bank account instead of

$1,200 -- don't expect to get to keep that money. But in the scenarios described above

(a higher AGI in 2018 or a dependent who's technically aged out for eligibility), you

shouldn't have to repay your stimulus money.

While some people are finding that their stimulus payments are higher than expected,

others are having the opposite experience -- they're seeing less money than they

thought they'd get. If that's happened to you, you may need to wait until you file your

2020 tax return to get any additional funds you're due. Motley Fool Maurie Backman

5/20

The recovery rebates (stimulus checks) are an additional refundable tax credit that will

be applied to 2020 tax returns, but estimates are paid out to taxpayers based on 2019

or 2018 adjusted gross income (AGI). This is an additional credit for the taxpayer on top

of whatever refund or tax is owed for the 2020 tax year.

For example, imagine a single taxpayer with no children who made $35,000 AGI in

2019. This taxpayer will receive a $1,200 rebate now, and this rebate would also show

up in the taxpayer’s 2020 tax return as a tax credit already received. If the taxpayer

would be receiving a $500 tax refund based on their income tax withholding, they would

still receive that $500 refund when they file their 2020 tax return

At BTS we are able to amend past tax returns that need to be corrected due to any number of

circumstances. If you are a current or past client, your information will be in our system to

amend. If you are new to us we need a copy of the tax return for the year you need to correct.

Since the Covid pandemic our operating procedures have changed to protect our tax specialist and you, our valued clients. However, you will still meet face-to-face with a tax specialist through a HIPAA-compliant video conference call. The spread of Covid does not reduce because of vaccinations or boosters. Tax season is a very short processing window and requires our entire staff at their best to ensure every client gets the time and attention they deserve. We are sorry for any inconveniences that may incur. It is unfortunate, but the introduction of Covid-19 has changed the world.

Generally, the marital status on the last day of the year determines the status for the entire year.

Individual Tax Return: Generally, if someone is unmarried, divorced or single, according to state law on December 31, that person must file as a single person for that year because the marital status at year-end applies for the entire tax year.  There are some exceptions, such as qualifying as a head of household or as a surviving spouse, that do not require one to file as a single taxpayer.

Joint Tax Return: Marital status is decided based on a person's marital status on December 31.  If a couple is married on December 31 of the taxable year, the couple may file a joint return for the year. However, if divorce from the spouse is December 31 or before, one cannot file a joint return for any portion of that year. Certain married individuals, not legally separated or divorced, may still be considered single for purposes of filing tax returns if they are living apart. Ask your tax preparer.

A married couple is not required to file jointly. If one lived apart from one's spouse for the last six months of the year, one may also qualify for head of household status.[9] If a spouse dies during the year, the surviving spouse may generally still file a joint return with the deceased spouse for that year because the taxpayer's marital status at the time of the spouse's death applies to the entire taxable year.

Business Tax Return:  If you owned and operated a business prior to Dec 31st you are required to submit additional documents and infomration to the IRS.  Please contact Bev's Tax Service (BTS.TAX) for more information.

Married Filing Seperate:  Although the joint return often produces lower taxes, the opposite is sometimes the case. To accommodate for such circumstances, married couples may decide to file separately for a taxable year.[10]

Married couples filing separately does not create an identical situation to the two parties filing as single. There are different brackets for unmarried taxpayers from the ones for married taxpayers who file separately. Unmarried taxpayers enjoy wider tax brackets and so pay less tax on the same amount of income.

Certain taxpayers, who would otherwise be considered married but file separately, maintain a household for a child and have a spouse not a member of the household for the last six months of the taxable year shall be considered unmarried.

Head of Household:  To qualify for the head of household filing status, one must be unmarried and pay more than half the cost of maintaining a home for oneself and another relative who lives with that person for over half the year and can be claimed as the dependent.  A "dependent" for these purpose includes grandchild and step-grandchildren, not just children and stepchildren.

Filing as a head of household can have substantial financial benefits over filing as a single status taxpayer. As a head of household, one may obtain a more generous tax brackets and larger standard deductions.

There are many special rules and exceptions applicable to head of household filing status.

Qualifing Widow/er:  Certain taxpayers, who maintain their homes as principal residences of qualifying dependents and whose spouses died during either of the last two preceding taxable years, may be considered surviving spouses as long as they have not remarried.  If the two-year time period has run out following the spouse's death, one may still qualify for head of household status.

There are many special rules and exceptions that apply to the surviving spouse filing status.  If you're unsure or have any questions please don't hesitate to call or write.

Form more information you can visit the IRS Tax FAQ's by clicking the link.

Information resourced from Wkipedia.

We get lots of clients who use online tax programs and find our service cost comparable and we often get better results. Because of this reasoning we do not offer a DIY online tax program.

When anyone of our staff here at BTS.TAX refers to a completed tax return it means the tax return has been processed, reviewed, services paid, signed for e-filing, e-filed, and accepted by the IRS. 

When filing a tax extension, it's important to remember that an extension only provides additional time to submit your tax return, not an extension for paying any taxes owed. Therefore, if you owe taxes, you should make an estimated payment when filing an extension to avoid potential penalties and interest.  Click Here to learn more.