Top 5 Tax Questions

One of the things I love the most about preparing tax returns is the people.  I love listening to what you have to say and answering your questions.  So I thought it would be nice to share some of the more popular questions I hear during the season.  Here are the top 5, from the least to most popular. 

Question 5)  "How much is this going to cost?  "

A mere pittance but a sufficient amount.  :)  In all seriousness,  it may be that you can get your return filed for free if you qualify for the IRS rules to use form 1040EZ.  If not, at H&R BLock you are charged based on the complexity of your tax situation.  This is reflected in both the complexity of the form, and how much of the form is used. 

Question 4)  "We're married, would we be better off to file single?"

First, if you are married you have to file using "Married Filing Jointly" or "Married Filing Separate".  "Single" is not a valid filing status for married taxpayers.  The IRS really wants married people to file jointly.  To this end, the IRS incents you by removing many of the beneficial credits and deductions when you file separately.  Because of the loss of benefits, a "Married Filing Separate" filer normally is someone who does not want to be held legally liable for their spouse's filings.  "Carmella", the mob boss wife of "Tony Soprano", from the HBO show "The Sopranos", would have a real motivation for filing separate.

Question 3)   "Can I use my pet as a dependent on my return?"

Pay attention President Obama!  This is one people really want!!  As anyone who has taken their pet to the vet can testify, pet care is expensive.  Although our pets are very much members of our families - they do not qualify as dependents under the current US Tax Code.  According to the book "Freakonomics", seven million dependents dropped off the IRS rolls in 1987 when the IRS started requiring a social security number for every dependent.  There were no statistics released surrounding how many of these were pets.

Question 2)  "Can you withold my tax preparation fees from my refund?" 

Of course, this one really assumes that the taxpayer is getting a refund.  The tax season can be divided into two parts:  the first half, is the refund season...  the second half, is the balance due, or those who have to pay season.  If you are getting a refund, it is possible by using H&R Block's "Refund Anticipation Check" product to have your fees withheld.  This is not a loan, and a small account fee is required (which can also be withheld). 

Question 1)  "How fast can I get my refund?" 

This is by far the most common question!!!  How long you wait on your money depends on a couple of factors.  E-Filing your return, will get your refund quicker than if you mail in your return.  Returns that are mailed often have attachments requiring slower manual processing.  The second, depends on if your refund is being mailed to you, or sent via direct deposit.  Direct deposit into your checking account is by far the quickest way.  You can expect to see the money hit your bank in as little as 8-15 days from the date of the IRS accepted your return.  Here's a link to a chart you can use as a reference.

http://www.irs.gov/pub/irs-pdf/p2043.pdf

Please feel free to post your own tax questions or comments down below.  I'll be back next week with more tax tips. 

Happy Filing!
John