Tax Documents Checklist

            How to file for a state income tax extension

            Client figuring out how to file for a state extension

            Please note, provides software to prepare federal tax extensions. However, we do not provide software for state/local tax extensions. With every purchase of our extension software we include free software to prepare and file a tax return once the taxpayer is ready to file.  Most states, which require taxpayers to file an income tax return, use the federal deadline of April 15th (unless the 15th falls on a weekend or a holiday.) If your state requires that you file a return and you believe you will not be able to complete your return by the deadline, you may be able to file a request for an

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            Taxpayer COVID-19 FAQ

            Many users have questions regarding the change of the tax filing deadline and the economic stimulus payments the U.S. government is sending to American taxpayers. The following is being provided to help answer some of the most frequently asked questions. Please keep in mind, this situation is evolving and some information/guidelines will change. How much will my payment be? The amount of the economic impact payment you should receive from the government following the COVID-19 stimulus package is determined by your tax filing status and the Adjusted Gross Income (AGI) listed on either your 2019 or 2018 tax return. See

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            The New Simplified 1040 Tax Form

            Simplified 1040

            Several versions of the 1040 tax form have been consolidated into one simpler version that all taxpayers can use. Previously, there were three versions of the 1040 form. The redesigned 1040 form from the IRS is only half a page long on two sides.

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            Are my alimony payments considered earned or taxable income?

            The IRS considers payments to a spouse or former spouse forms of alimony (for tax purposes this includes all payments made under divorce decree, maintenance decree, or separation agreement).

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            Using an AGI, Self-Select or IP PIN to verify a taxpayer’s ID

            AGI or IP Pin for ID

            AGI stands for Adjusted Gross Income. This is a calculation that the IRS uses which translates to roughly what you have left after deductions or adjustments have been made to your gross or total income. It is the figure that will be used in the final calculation on your form 1040 and helps determine what your tax bill will be.  Your prior year AGI (the number provided to the IRS on your return last year) is the most common way to verify your identity, sign your return and to e-file your taxes electronically. The IRS considers this important piece of information a key

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            Do I pay taxes on my unemployment benefits from when I was out of work?

            Unemployment benefits come from an insurance fund worked out between the federal, state and local governments. When you file for your unemployment benefits, you should be able to choose to have your federal taxes withheld.

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            At what point should my dependent file his/her own tax return?

            ou have a child under the age of 19 or under the age of 24 and a full-time student, you should be able to claim the dependent if certain criteria are satisfied. However, the dependent must not provide more than half of their own financial support.

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            What is the marriage penalty?

            With marriage and a decision to file a joint tax return, instead of separate individual returns, comes a different set of tax brackets. It is commonly referred to as the marriage penalty when the joint tax filing brackets result in a greater tax liability than the individual brackets would have otherwise created.

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            If a taxpayer works overseas, do they pay federal taxes on the income? What forms need to be completed?

            Taxpayers and overseas work

            Whether you are only spending six months or spending several years working abroad, as long as you remain a US citizen, you must still file a U.S. federal tax return, and in most cases, pay income taxes on the money you earn while abroad.

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            Bitcoin and tax liability

            Bitcoin’s tax treatment is different than that of legal tender (dollars). It is subject to tax in the same way the receipt of property is subject to federal tax.

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