Tax FAQ — Tao's Tax LLC

Question 1

When is the tax filing deadline?

Accepted Answer

The federal tax deadline is typically April 15. If it falls on a weekend or holiday, the deadline moves to the next business day. You can request a 6-month extension, but any taxes owed are still due by the original deadline.

Question 2

What documents do I need to file my taxes?

Accepted Answer

You'll need your W-2s or 1099s, Social Security numbers for yourself and dependents, last year's tax return, records of deductible expenses, and bank account information for direct deposit of any refund.

Question 3

Can I file my taxes if I haven't received all my forms?

Accepted Answer

You should wait until you have all your income documents before filing. If a form is late, contact the issuer. In some cases you can file using substitute forms, but it's best to have everything in hand first.

Question 4

What happens if I miss the filing deadline?

Accepted Answer

Filing late without an extension can result in a failure-to-file penalty (5% of unpaid taxes per month, up to 25%). If you're owed a refund, there's no penalty for filing late — but you should still file to claim your refund.

Question 5

What is the difference between a deduction and a tax credit?

Accepted Answer

A deduction reduces your taxable income, while a tax credit directly reduces the amount of tax you owe. Credits are generally more valuable dollar-for-dollar than deductions.

Question 6

Should I take the standard deduction or itemize?

Accepted Answer

It depends on your situation. If your itemized deductions (mortgage interest, charitable contributions, state taxes, etc.) exceed the standard deduction for your filing status, itemizing saves more. We'll help you determine which is better for you.

Question 7

What common deductions do people miss?

Accepted Answer

Common overlooked deductions include student loan interest, educator expenses, home office deductions, job-related moving expenses, energy-efficient home improvements, and contributions to HSAs or IRAs.

Question 8

Do I need to pay estimated taxes if I'm self-employed?

Accepted Answer

Yes. If you expect to owe $1,000 or more in taxes, you're generally required to make quarterly estimated tax payments. These are due in April, June, September, and January.

Question 9

What business expenses can I deduct?

Accepted Answer

Common deductible business expenses include home office costs, vehicle mileage, equipment and supplies, professional services, marketing, business insurance, and a portion of your health insurance premiums.

Question 10

What is the self-employment tax?

Accepted Answer

Self-employment tax covers Social Security and Medicare taxes for people who work for themselves. The rate is 15.3% on net self-employment income. You can deduct half of this tax on your return.

Question 11

What should I do if I receive an IRS notice?

Accepted Answer

Don't panic — most IRS notices are routine. Read it carefully to understand what they're asking. Respond by the deadline stated in the notice. Contact us and we can help you understand and respond appropriately.

Question 12

What triggers a tax audit?

Accepted Answer

Common audit triggers include unusually high deductions relative to income, math errors, unreported income, large charitable contributions, and home office deductions. Filing accurately and keeping good records is the best protection.

Question 13

How long should I keep my tax records?

Accepted Answer

Keep tax returns and supporting documents for at least 3 years from the filing date (the IRS audit window). Keep records related to property for at least 7 years, and employment tax records for 4 years.

Question 14

Can Tao's Tax LLC represent me before the IRS?

Accepted Answer

Yes. We can assist with IRS correspondence, respond to notices on your behalf, and help you navigate audits or payment plans. Contact us as soon as you receive any IRS communication.

Frequently Asked Questions

Filing Basics

Deductions & Credits

Self-Employment & Business

IRS Notices & Audits

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