1What is the due date for filing my tax returns?
For individuals, corporations and fiduciary returns it is April 15th. And if you file an extension it is October 15th.
For S Corporations and Partnerships it is March 15th, and if you file an extension it is September 15th.
2How long do I need to keep my records?
I suggest keeping a copy of your actual tax returns forever.
Records to back up your tax returns should be keep a minimum of 4 years with a maximum of eight years. Some exceptions apply.
3If I file an extension does that extend the time to pay my tax obligation?
No.
You must pay with your extension the amount of money that you will owe the IRS or FTB.
4If I receive a gift do I need to pay income taxes on the gift amount?
No.
However, the basis of the gift from the donor becomes your basis.
5If I give a gift to someone do I need to file a gift tax return?
If you give a gift of more than $14,000 in cash or property to an individual, you will need to file a gift tax return.
Call us for ways to give more without filing a gift tax return.
6If I receive an inheritance do I need to pay income taxes on the inheritance amount?
Generally in California you do not pay income taxes on inherited property. Also you receive a step-up-basis of the property inherited to fair market value.
Exception: If you inherited money that was never taxed like from an IRA, you will need to pay income taxes on it as you draw the money out based on your tax bracket.
7Someone called and said they were from the IRS or I received an email saying that I owed the IRS money. Does that happen?
The IRS does not call individuals requesting money nor do they contact individuals using email. These are fraudulent calls and emails. If you receive calls or emails, you may call the local police and check the IRS website.
8Is the amount that I receive from the Social Security Administration taxable?
Up to 85% no mater your age can be taxable depending on if you have other income. Give us a call for your particular situation.
Nontaxable income that you receive from dividends or interest may cause your social security income to become taxable. Call us for your individual situation.
9How much income do I need to have in order to have to file an income tax return?
If you are self-employed, any income over $400 necessitates filing an income tax return.
If you have a brokerage account with stock activities, you most likely will have to file an income tax return.
For individuals under 65 with gross income over $10,350 and over 65 $11,900.
For married couples joint return both under 65 gross income over $20,700 both over 65 $23,200. Call us for other situations.