Welcome to our Tax FAQ page, where we address the most common questions about taxes. Whether you’re filing for the first time or need clarity on specific tax topics, we’re here to help!

Q: What is the deadline to file taxes?
A: The tax filing deadline is usually April 15th. If this falls on a weekend or holiday, the deadline is extended to the next business day.

Q: Do I need to file taxes?
A: Filing requirements depend on your income, filing status, age, and specific circumstances. Even if you’re not required to file, you may want to if you're eligible for a refund or tax credits.

Q: What is the difference between a tax deduction and a tax credit?
A: A tax deduction reduces your taxable income, potentially lowering your overall tax liability. A tax credit directly reduces the amount of taxes you owe, offering a dollar-for-dollar benefit.

Q: What documents do I need to file my taxes?
A: Common documents include:

• Income statements (W-2, 1099, etc.)
• Deduction and credit records (e.g., medical expenses, charitable donations)
• Investment income statements (1099-DIV, 1099-INT)
• Previous year’s tax return (optional but helpful).

Q: Can I file taxes late?
A: Yes, but you may incur penalties and interest if you owe taxes. Filing as soon as possible can help minimize these costs.

Q: How can I file an amended tax return?
A: If you made an error on your return, you can file an amendment using IRS Form 1040-X. Ensure you include all corrected information and supporting documents.

Q: How do tax brackets work?
A: Tax brackets apply different rates to portions of your income. For example, if your income places you in a higher bracket, only the income exceeding the previous bracket’s limit is taxed at the higher rate.

Q: What is the standard deduction?
A: The standard deduction is a fixed amount that reduces your taxable income. The amount varies by filing status and is adjusted annually for inflation.

Q: Can I claim deductions if I take the standard deduction?
A: Some deductions, such as the student loan interest deduction, are available even if you claim the standard deduction.

Q: When will I receive my tax refund?
A: Most refunds are processed within 21 days if you file electronically and choose direct deposit. Paper filings may take longer.

Q: Are tax refunds taxable?
A: Federal tax refunds are not taxable. State refunds may be taxable if you itemized deductions in the previous year.

Q: What should I do if I can’t pay my tax bill?
A: Options include:

• Setting up a payment plan with the IRS.
• Applying for an Offer in Compromise to reduce the amount owed.
• Requesting a temporary delay in collection due to financial hardship.

Q: How long should I keep my tax records?
A: It’s recommended to keep records for at least 3 years. For certain situations, like claiming significant deductions, keeping records for up to 7 years is advisable.

Q: What happens if I’m audited?
A: During an audit, the IRS will review your financial records to verify your tax return's accuracy. Keeping detailed and organized records can simplify the process.

Q: How can I avoid common tax filing errors?
A: Double-check your personal information, ensure all income is reported, and verify that you’ve claimed the correct deductions and credits. Filing electronically reduces the risk of mistakes.