With all the changes brewing in tax law, it’s no wonder people are confused about their 2017 tax returns. We answer the most asked tax questions of 2017 below.
When Will the New Tax Law Be Effective?
The new tax laws for individuals and businesses take effect as of January 1, 2018. This doesn’t impact your 2017 taxes, which you will file in April.
Am I required to File a Tax Return?
Income tax codes are ever changing and can be quite daunting to delve into. ATC Tax Service experts use three key tax rules to determine if you are required to file a personal tax return. Generally speaking, you’ll need to know your Gross Income, Filing Status and Age in order to determine whether you’re required to file a federal tax return (more information may be needed). Find out more at ATC Tax Basics & Tools. Alternatively, you can also use the Interactive Tax Assistant from the Internal Revenue Service at Do I need to File a Tax Return.
How Do I Claim 1099 Income?
If you earned income as an independent contractor, you will receive a 1099 form in the mail. Report this income in box 7 of Form 1099-MISC to claim it on your tax return. In addition, all 1099 income, as well as any other self-employed income not report on form 1099-Misc from, will need to be carried to the Schedule C form of your federal income tax return. ATC Tax Service experts can advise on what expenses you may be able to deduct (proof of income and expenses required). The IRS receives a copy of all 1099 forms filed under your social security number and will independently verify the amounts you enter.
Does the Affordable Care Act Impact My 2017 Taxes?
All ACA legislative provisions are in force for 2017 taxes. If you did not meet these requirements, you may be subject to the appropriate penalties. However, the penalty does not apply to tax year 2018.
What if I’m required to file with an IP-PIN?
The IRS IP PIN is a 6-digit number assigned to eligible taxpayers to help prevent others from using your Social Security number to file a fraudulent federal tax return. The IRS sends new IP PIN each year in late December or early January by postal mail. If the IRS assigns you an IP PIN, you must use it to confirm your identity on any return filed during the current calendar year. This includes current year returns as well as any delinquent tax returns. Without this unique PIN, you will not be able to electronically file your federal tax return.
What if you lost or did not receive your IP PIN? Because it is required in order to authenticate and validate your Social Security number, you will need to obtain your IP PIN before you can e-file your return. You can get your current IP PIN by using the Get an IP PIN application online. We recommend that you have your current credit report handy as you will be asked to verify your identity by answering specific questions on your credit file.
If you’re unable to retrieve your IP PIN online… ATC Tax Pros can assist – and we’ll file your Tax Return with $0 Out of Pocket Cost!
Should I Hire a Professional Income Tax Service?
When you hire a professional tax service, you get an expert in the field who knows the laws that apply to the current filing year. They can e-file your return so that you get your refund back faster. In addition, most offers options for a tax refund loan, which comes in handy if you need money right away.
Hiring a tax professional always gives you the option to refer questions on your return to them, avoiding the stress of dealing directly with the IRS.
ATC Tax Experts: available in the following locations – Atlanta, Decatur, College Park, Riverdale, Marietta, Norcross, Suwanee and Conyers in Georgia. In Wisconsin, we’re available in Milwaukee, Brown Deer and Racine. Book an Appointment today – always Free Tax Consultation.