Individual –Form 1040 / CA 540
You are required to file a federal and state income tax return if your income is above a certain level. This amount varies depending on your filing status, age and the type of income you receive.
There are instances when you may want to file a tax return even though you are not required to do so. You may want to file to get money back if federal/state income taxes were withheld from your pay. Also you may qualify for an Earned Income Tax Credit (EITC), if you worked, but did not earn a lot of money. EITC is a refundable tax credit which means that you could quality for a tax refund.
If you are not sure if you are required to file, make an appointment and we will figure it out together. We will not charge you for the consultation.
Estates/Trusts –Form 1041
If you find yourself named as a personal representative for an estate or a trust, we always recommend that you seek the services of an attorney for the legal aspects of administering your duties. Please make an appointment with us to discuss if and when you may need to file the Form 1041.
The same as individuals, estates and trusts have specific filing requirements. In common, they both must file if they have gross income of $600 or more. Gross income is interest, dividends, capital gains, rental receipts, etc. Filing dates can vary, so call to get more information about your required deadlines.
Past Due Returns Filing
You may be entitled to tax refunds but you won’t receive them until you file your returns. You have three years from the original due date to file a tax return and still get a refund…and there is no late filing penalty if you are due a refund. The original due date for any return is April 15 of the following year.
You should also file a return that is earlier than the 3-year time period. You may owe money or the IRS may believe that you owe money. If you do not file, the IRS can prepare a substitute return for you and assess you a balance due. The IRS will have up to ten years from the date of assessment to collect any unpaid taxes.
Filing past due returns will set the record straight and will stop the penalties and interest, if any, from continuing to add to your balance due. We can help you arrange a payment plan to fit your needs with the IRS or State of California.