FREQUENTLY ASKED QUESTIONS
I don't know which tax form to file for my business.
The tax return you must file depends on how you set up your business. Most businesses are sole proprietorships or LLCs and those will file a Schedule C within the owner’s Form 1040. A partnership or LLP will first prepare a Partnership Form 1065 and then provide each partner with the information required for them to include in their 1040. If your business is Incorporated a Form 1020 or 1020 S is required.
What Income and Expenses do I need to bring to my appointment?
Each business is different and has unique income and expenses, the information found on the Tax Returns for Business page will give you a general idea of what you should be keeping track of. A sample spreadsheet is available when you contact EDM Bookkeeping and Taxes, LLC
Should I claim my vehicle mileage or actual expenses?
You have the option of either using mileage driven during the course of your business or actual expenses of operating your vehicle. EDM Bookkeeping and Taxes, LLC will work with you to determine the best option for you. In both cases you will need to provide the year, make and model if your vehicle and when you began using it for business purposes. Parking and tolls are computed separately for both options.
§ If you choose to use the mileage option you should keep an accurate calendar of every trip that you make that is business related. Don’t forget those trips to the post office, to purchase supplies or meeting with potential clients, every mile that you drive related to business should be counted.
§ If you choose to use the actual vehicle expenses option you must save all receipts from gas, maintenance, auto repair and insurance. You will need to provide the purchase price of your vehicle and the percentage that it is driven for your business.
What is depreciation?
Depreciation is an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property over a period of years. It is an annual allowance for the wear and tear, deterioration, or obsolescence of the property. In order for a taxpayer to be allowed a depreciation deduction for a property, the property must meet all the certain requirements.
What if I need refund information about a Business Tax Return?
For refund information on federal tax returns other than U.S. Individual Income Tax (Forms 1040, 1040A, and 1040EZ) please call the IRS, toll free, at 800-829-4933. From outside the U.S., call 267-941-1000. TTY/TDD: 800-829-4059.
What will my tax return cost?
The cost of your tax return depends on the type and complexity of the return.
EDM Bookkeeping and Taxes, LLC prepares all Individual, Small Business and Home Owner returns.
Can you prepare a tax return from another state?
YES! EDM Bookkeeping and Taxes, LLC prepares state tax forms for all states that require the filing of a tax return.
We are a registered IRS e-file provider.
My Family status has changed.
If you increased in size: married, had a baby or adopted a baby; you may claim that new person as an exemption this year regardless of how late in the year this happened. If, unfortunately, your spouse or dependent passed away this year you may still claim the exemption for the entire year that they died. Sometimes a person may be your dependent who is not your child; special rules apply for these people who have joined your family to be claimed as dependents.
Why Should I file my tax return electronically?
You will get your refund back faster You will know right away that your return is accepted by the IRS Fewer mistakes are made on electronically filed returns You save postage costs and the inconvenience of driving to the post office Your tax return is safe and secure with no chance that someone can access your confidential information
What is the direct deposit/withdrawal feature offered by the IRS and EDM Tax Preparation Services?
Direct deposit allows your refund to be deposited directly into a checking or savings account that you choose. This feature eliminates the possibility of your check being stolen from your mailbox, and allows you to receive your refund as soon as 10 days after you have filed. Direct withdrawal allows you to choose the checking or savings account and the DATE you wish to have your amount due paid to the IRS. This eliminates the possibility of forgetting to pay your balance due on time and accruing additional interest.
Do you offer Rapid Refund Loans (RAL)?
EDM Accounting and Taxes, LLC does NOT offer RALs. Tax Preparers who do offer these loans charge very high fees to their clients for the very small benefit of saving 7 days of wait time for your refund.
What if I have a Balance Due?
Although EDM Accounting and Taxes, LLC will e-file your return in a timely manner, your balance due need not be paid until April 15th (or the extended date due to holidays). You may choose to pay by check with a voucher supplied by EDM Accounting & Tax Preparation Services or have the funds automatically withdrawn from your savings or checking account on the date you determine. You may also pay by credit card using one of the IRS Preferred Credit Card Payers. There is a charge for their service.
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