Business & Finance Taxes

Common Tax Questions

    What if I Don't File a Tax Return?

    • All taxpayers are expected to submit a federal income tax return by April 15. If you do not file your return on time, you will be subject to late fees and other tax penalties. You can avoid this by filing a request for an extension of the due date. If you have not paid taxes for a number of years, you may be subject to wage garnishments or tax liens on your property.

    Do I Need to Tell the IRS if I Change My Name or Address?

    • An address change will be reflected in the W-9 form sent to you by your employer. Once your employer knows, and once you put the new address on your return, the IRS will be notified and no further notification will be required. A name change will require a visit to the Social Security Administration. Once your name has been verified and changed with the Social Security Administration, you can use it on your tax return and the IRS will then be notified of the change. If your "new" name and the name on your Social Security card don't match, your return may be rejected.

    How Do I Find Out if I Qualify for the Earned Income Credit?

    • The EIC is a tax credit for those who earned income, who may or may not have a qualifying child, and who earned an amount below a certain limit. All filers for this credit must have earned income (benefits and loans do not count). The income can be from self-employment or wages. You must have a Social Security number. You cannot be married and file separately and you must have investment income of less than $3,100. The IRS website has a worksheet you can use to determine your income status as well as other requirements.

    Can I Claim Head of Household Status?

    • According to the IRS, you can file as "Head of Household" if you are unmarried or "considered" unmarried on the last day of the year; you paid more than half the cost for the upkeep of your home for the year; or a qualifying person, like a child, for more than half the year. If you qualify as head of household, "your tax rate usually will be lower than the rates for single or married filing separately. You will also receive a higher standard deduction than if you file as single or married filing separately," according to the IRS.

    What if I Make a Mistake on a Return I Have Already Filed?

    • You will need to file IRS form 1040X. You can only do this within three years from the original date you filed. Be sure to explain why you are filing an amended return and enclose copies of any pertinent information.

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