FAQ

The typical tax filing deadline for federal income tax returns in the U.S. is April 15th. However, if it falls on a weekend or holiday, the deadline may be extended. You can also request an extension until October 15th, but any taxes owed must still be paid by April 15th to avoid penalties and interest.

Most U.S. citizens and residents who earn above a certain income threshold are required to file a federal tax return. The threshold varies based on filing status, age, and type of income earned.

If you owe taxes and file late, you may be subject to penalties and interest. The Failure to File Penalty is typically 5% of the unpaid tax per month, up to a maximum of 25%. If you are due a refund, there is no penalty for filing late

• Tax Credit: Reduces your tax liability dollar-for-dollar (e.g., a $1,000 tax credit reduces your tax bill by $1,000).
• Tax Deduction: Lowers your taxable income, reducing the amount of income subject to taxation.

The standard deduction for 2024 tax returns (filed in 2025) is:

• Single: $14,600
• Married Filing Jointly: $29,200
• Head of Household: $21,900

You should itemize deductions if your total deductions (e.g., mortgage interest, medical expenses, charitable donations) exceed the standard deduction amount for your filing status.

Self-employment tax covers Social Security and Medicare taxes for self-employed individuals. The tax rate is 15.3%, with 12.4% going to Social Security and 2.9% to Medicare. You can deduct half of this tax as an adjustment to income.

You can track your refund using the IRS “Where’s My Refund?” tool on the IRS website: www.irs.gov/refunds.

Yes! The IRS offers Free File for eligible taxpayers with income below $73,000. There are also free tax preparation services like VITA (Volunteer Income Tax Assistance) and Tax Counseling for the Elderly (TCE).

• Earned Income Tax Credit (EITC) – for low to moderate-income workers
• Child Tax Credit – for parents with dependent children
• American Opportunity Credit & Lifetime Learning Credit – for education expenses
• Home Mortgage Interest Deduction – for homeowners
• Charitable Contributions Deduction – for donations to eligible organizations

Yes, you can file an amended return (Form 1040-X) if you made errors in your original tax return. You have up to three years from the original filing date to correct any mistakes.

The IRS recommends keeping tax records for at least 3 years, but you may need to keep them longer if you have business expenses, property sales, or unfiled returns.

• W-2: Issued by employers to employees, showing wages and taxes withheld.
• 1099: Used for independent contractors, freelancers, or self-employed individuals to report non-employee income.

If you can’t pay in full, you should file your return anyway to avoid a late filing penalty. You can request a payment plan (IRS Installment Agreement) or see if you qualify for an Offer in Compromise (OIC) to settle for less than you owe.

Some common ways to lower taxable income include:

• Contributing to retirement accounts (IRA, 401(k
• Claiming business expenses (if self-employed)
• Deducting health savings account (HSA) contributions
• Making charitable contributions
• Claiming education-related tax credits