It’s not unusual for someone to find themselves with questions when filing taxes. The tax code can be confusing at times, especially when trying to figure out the math involved, and what to put where. Following are answers to some of the most frequently asked tax questions:
Q: How do I define a dependent?
A: The best way to define a dependent is to use the test provided by the IRS regarding how much support a dependent receives from the tax filer.
Q: How do I get the Earned Income Credit?
A: You have to have a certain amount of income and/or dependents to qualify.
Q: Do the health care reform changes affect my taxes this year?
A: No. The changes won’t affect your taxes until 2015 when you file taxes for 2014.
Q: I’m self-employed. Can I deduct my home office?
A: The only time you can deduct your home office is if you use the space exclusively as an office. That means no other activities can take place there.
Q: My home was foreclosed upon. Does this affect my taxes?
A: No. The Mortgage Forgiveness Act was extended for 2013, so you will not have to pay taxes on the "income" realized from a foreclosure.
Are you in the Phoenix, Arizona area and have more questions about filing taxes? Contact the Phocus Companies today to talk to a professional tax preparer today!
