Quality Tax & Accounting Service

Common Tax Questions

Wisconsin Forms: Call Wisconsin Department of Revenue at 608-266-1961 or go to the following web site for all Wisconsin forms and publications. http://www.dor.state.wi.us/html/formpub.html
Minnesota Forms: Call Minnesota Department of Revenue 800-657-3757 or go to the following web site for all Minnesota forms and publications: http://www.taxes.state.mn.us/individ/forms/2001/individ.html
Federal Forms: 800-829-3676 or go to the IRS web site: http://www.irs.gov/formspubs/display/0,,i1%3D50%26genericId%3D10204,00.html
Are my taxes done yet? A member of the Quality Tax Staff will call to let you know when the paper copy of your tax return is ready to be picked up. If you have signed and paid, the return has been electronically filed and refunds will be deposited directly into the account you paid Quality Tax from unless you requested a different account and gave proof of that account to the Quality Tax return preparer. We would prefer you pick up your paper copy of your return ASAP. If you have been called to pick up your return and two weeks have passed since that call, your return will be mailed to you.
How do I check the status of my return filed by Quality Tax? Phone 608-526-2849 to get the most current status of your tax return and RAL checks. Be sure and follow voice prompts. NOTE: This system only works for Quality Tax & Accounting Service customers.
How do I check the status of my return filed by myself or another tax preparer?
- Wisconsin 608-266-8100. You will need social security number of the first person named on the tax return and "Full Dollar" amount of refund- no cents allowed.
- Minnesota 800-652-9094 or 651-296-4444
- Federal 800-829-4477. Along with the social security number of the first person named on the return and the refund in "whole dollar" amounts, you will also need the filing status shown on page one of your 1040: Single = 1, Married filing joint = 2, Married filing separately = 3, Head of household = 4 and Qualifying widower = 5. If 3 or more weeks have passed since the return was "electronically filed" you may call 800-808-4262.
W-4: Lump sum payouts should be taxed a federal minimum % as shown on the history page of your tax return (normally not under 15%) with 7% withheld for WI & MN residents providing nothing has changed in your tax situation. Some of the largest changes are a loss in dependent or change in marital status. It will depend on the type of software your employer has for payroll. Most bookkeepers can adjust to get this % withheld.
W-4: Dependent/minor. To protect the working student still being claimed by the parent you should request Single marked in Box 3, 0 allowances marked in Box 5 with an additional $5.00 noted on line six of the W-4 for federal and state withholding.
W-4: Couples Married only one working. Married with the total number of allowances being the number you are supporting including yourself, your spouse and children.
W-4 Couples Married both working. Never put any more than Married and 0 allowances. In fact if you are always finding you owe at the end of the year the spouse with the lower income should mark Married but withholding at the higher single rate in box 3 with 0 exemptions.
Work Related Meal Deductions: It is always better to have your employer pay for your meals and lodging while away from home however many employers do not do this. If you find yourself in this situation, keep a diary of who, what, when, where and why and a mileage log on "your" vehicle that shows the time you left and the time you returned along with beginning and ending odometer readings. Keep receipts for anything you purchase to do you job - these items must be "ordinary & necessary". When in doubt keep the receipt it could be deductible but you need receipts for your business expenses. Receipts are not required for meals but you will still need to know where you were for the days you wish to deduct.
I have started a new business, do I need to file a separate tax return for this business? If you have started a business as a sole proprietor and have not formed a partnership or incorporated, you may still file using the 1040. You will need the 1040 schedule C to file the .
I cannot afford to pay my taxes, can I get a payment plan. Yes, installment plans are available. The federal form is form 9468 for the cost $43.00 to set up. Your payments can be ducted from your bank account on the same day each month for the same amount. You can pay it in full at any time during the installment agreement. We can file this with your tax return if you desire.
Edvest questions - a program to help parents save for college in Wisconsin. go to the following web site: http://www.edvest.com/
Claiming hope and lifetime learning. The hope credit can be claimed for the first two years after high school that a student is enrolled at least half-time in a degree program. There are income limits for this credit. The lifetime learning credit is limited to $1,000 per family. All education that is undergraduate and graduate levels are eligible expenses. See Publication 970 (pdf) for further information.
What percent of my medical bills can be deducted. You must be able to itemize to claim medical expenses. The expenses must exceed 7.5% of your adjusted gross income. These expenses include but are not limited to qualified out-of-pocket medical expenses. Insurance costs and transportation to & from the doctor, dentist, chiropractor, pharmacy and eye-doctor qualify. You may be able to deduct your insurance costs if neither you or your spouse have an employer provided insurance plan. When in doubt save all receipts.
We sold our home. Is the sale taxable? If you have never used your home for business and the profit on the sale of your home does not exceed $125,000 ($250,000 if married filing a joint return) and you have not sold a home in the last two years the answer is probably no. If the home was used for business, parts of the sale may be taxable. This is an area where you really should seek the help of a tax professional!
I know how much I made, but I have not received a 1099, can I still file my taxes? Yes you can. While you should have received the 1099, they are not needed to file your taxes. While businesses are not required to issue 1099's if the payouts are under certain lever, you are required to report all taxable income. Money received for odd jobs and interest and dividends under $10.00 should all be reported. Call the person or business that should be issuing the 1099 and confirm the income amount before filing.
My boyfriend is supporting me and my child. Who can claim the child for EARNED INCOME CREDIT. For earned income credit, only a foster child that lived with you the entire year and a child who is a blood relative can be claimed by the taxpayer. In this example, only you can claim the child for Earned Income Credit.
My boyfriend is supporting me and my child, who can claim the child as a dependent? In this example, if the boyfriend is providing more than half the child's support, he may be eligible to claim the child if the child lived in his home as a family member for the entire year. He may even be able to claim you if you had limited income below the exemption deduction, $2,900 in 2001. Your relationship cannot violate local law.
Is child support deductible? No it is not and it is not claimed as income by the recipient.
Is alimony taxable or deductible. See IRS publication 504.
How much do you have to make on child care before you much report it? All income is reportable. If you make more that $400.00 doing childcare, you also need to pay social security tax on this income. The federal Schedule C and SE are needed to report self-employment income. If you do any work for profit, these rules will apply to you. If your intention was to make money, these rules will apply. If you provided childcare, you must provide each customer with a W-10 at the end of the year. This form must contain your name, address and social security or employer ID number if you have one and the amount you received from them during the year. You can be fined if you refuse to give out this information to your customers. It is a good idea to have the customer sign the receipt that shows they agree with the amount paid during the year to avoid problems at a later date.
We are changing our home mortgage, how does this affect our income tax? Keep all closing papers. We need both the papers from a home sale and one purchased or refinanced - no matter how often you refinanced during the year. If nothing else, the amount of fees paid to refinance add to the basis in your home which could help later when you sell your home.
Can I deduct my IRA? Both your earned income, total income and whether you or your spouse are members of a retirement plan through your employers can change the answer to this question. Refer to IRS publication 590. Note: Alimony can be considered earned income for the IRA deductions.
How much do we charge to prepare taxes and electronically file returns. The bill is generated by the computer system to ensure all clients are charged the same for tax preparation. We charge by the forms that the client needs to file. Even though we may prepare a form, you are not billed for it if the form does not benefit you or is not required to file your taxes. We are competitive in our pricing and there is no charge for the Electronic Filing of returns prepared by Quality Tax & Accounting Service. Electronic filing is available for customers who have prepared their own return and just need to send it electronically for a small fee. This fee is the same all year and we transmit returns to all the federal service centers and individual states who accept electronic filing in the United States.
I have quetions regarding daycare, where can I find more info? Check out this site www.redleafinstitute.org