The tax experts at Sun Loan have the answers
Tax Day 2023 falls on April 18, which means we are now officially in “tax season,” that time of year to start gathering all the appropriate financial documents in preparation for tax filing. And with tax preparation comes many tax questions, especially if you are a first-time taxpayer.
Sun Loan is your tax expert, here to answer any tax-related questions you have. In fact, we’ve already answered many frequently asked questions below. However, if you have additional questions that we did not cover, please reach out to Sun Loan. We’re here to help you navigate tax season and get you the most accurate refund!
Common Tax Questions
What filing status do you recommend I file? What filing status would be more beneficial for me to file?
The Internal Revenue Services (IRS) has multiple filing statuses. With a few questions, we can determine what is the best filing status for your situation. Keep in mind, your filing status and taxable income, including wages, will determine the tax bracket you’re in. Bring your documents to your local Sun Loan today so we can get your return started.
How do I handle my dependent’s income?
There are many different situations where your dependent may have income, from a part-time job to Social Security. Come to Sun Loan, where we can simplify the process and get the highest refund for both you and your dependents.
What type of expenses can I claim for work?
Out-of-pocket expenses for work may be tax deductible. It will depend on a few factors such as being a corporate employee or a freelancer. Visit us at Sun Loan to make sure you get credit for all your deductions.
I heard Earned Income Tax Credit (EITC) is more this year. Is that true?
Yes! The amount of EIC has increased to up to $6,935. However, taxpayers have to meet certain criteria to gain eligibility for the EITC. Come into Sun Loan today so we can see if you meet the general eligibility rules to qualify for the Earned Income Tax Credit.
Did the standard Deduction also increase this tax year?
For the 2022 tax year, the standard deductions have increased for all. Individual taxpayers and married taxpayers filing separately will see the standard deduction rise to $12,950. Heads of households will see the standard deduction rise to $19,400. Married filing jointly will see the standard deduction rise to $25,900. Come get your taxes filed at Sun Loan to find out which deduction you qualify for and get the most accurate refund!
I have never filed taxes before. Where do I start?
If this is your first time filing taxes to the IRS, we can help you get started. Here are a few things you will need as a taxpayer before you begin:
- Your Social Security (or tax identification) number
- Form W-2 or 1099 from your employer, which has your wage and income information (parts of college grants or scholarships may qualify as taxable income)
- Documentation for any tax credits and deductions you plan on claiming
Once you’ve gathered your documents, contact Sun Loan or visit one of our branches, where our tax experts will help you file your first tax return.
If I am newly married, how should I file my taxes?
Married couples can either file jointly or separately on their federal income tax returns. The IRS encourages couples to file joint tax returns by offering tax breaks to those who file together. In most cases, it’s recommended that married couples file jointly, but there may be scenarios where it’s better to submit separate individual returns, especially when it comes to tax deductions. Ask a Sun Loan tax expert if you’re unsure how to file.
I haven’t filed taxes in a while. Where can I go for help?
If you haven’t filed a tax return for an extended period of time, start gathering paperwork and documents, such as Form W-2 and/or Form 1099, for every year that you did not file a tax return. If you are not sure where to find your W-2 or 1099 form, your employer can provide them for you. If you plan to claim deductions and tax credits, make sure you have receipts.
Once you have your documents, file as quickly as possible. If you can’t pay the full amount you owe in taxes, you might be able to arrange a payment plan with the Internal Revenue Service, which allows you to pay off your taxes over a period of time in installments. Your best bet, if you haven’t filed taxes in a while, is to contact a tax professional who can walk you through the process of getting your taxes in order and back in good standing with the IRS. Call or visit Sun Loan today to get started.
My filing situation has changed. How do I adjust my taxes?
First, you’ll need to notify the IRS of any change to your filing situation, which you can generally do when you file your next tax return. These are some life changes that would require you to change your status with the IRS, which will also affect what tax bracket you land in:
- Marriage: When you get married, you must update your filing status at tax time from individual to married. You’ll decide whether to file jointly or separately and then select that filing status on your tax return.
- Divorce: If you become divorced or legally separated by December 31 of the tax year for which you’re filing, you will need to change your tax status to either single or head of household.
- Having a child while unmarried: Becoming a parent can change your eligibility for tax exemptions, deductions, and credits and may change your filing status.
How does health insurance purchased through the Marketplace affect my taxes?
If you purchased your health insurance through the Marketplace, you will receive a Form 1095-A, Health Insurance Marketplace Statement from the IRS at the beginning of the tax filing season. The information shown on this form will help you complete your federal income tax return. When buying health insurance through the Marketplace, you may receive a premium tax credit (based on your estimated income and household information from the Marketplace application), which you can put toward lowering your monthly health insurance payment.
You can use some, all, or none of the premium tax credit to adjust your monthly payments. When it comes time to file your taxes, keep these things in mind:
- If you use more advance payments of the tax credit than you qualify for based on your final yearly income, you must repay the difference when you file your federal income tax return.
- If you use less premium tax credit than you qualify for, you’ll receive a refundable credit for the difference when you file your taxes.
If you do use premium tax credits and your income changes during the year, you’ll need to adjust that number in the Marketplace since it will impact your tax credits.
How does a new child affect my taxes?
If you have a baby, you can claim the Child Tax Credit, which lowers your tax bill by up to $2,000 for each qualifying child (as long as your income isn’t over a certain threshold). This tax credit can help with some of the many expenses involved with raising a child. And you may claim this tax credit each year, for each child, as long as the child is under 18.
Should I file taxes? Do I have to file taxes?
According to the IRS, most U.S. citizens–and permanent residents who work in the United States–need to file a tax return if they make more than a certain amount for the year (see table below). There are some exceptions, however. For example, if you only receive Social Security benefits as income, you likely won’t need to file a tax return. If you don’t earn enough income to meet the minimum amount required for filing a tax return, you likely won’t have to file. To find out whether you need to file an income tax return, click here.
You may file even if you make less than that amount, however, because you could get money back if you file and you:
- Have had federal income tax withheld from your pay (you can check Form W-2 to confirm)
- Made estimated tax payments
- Qualify to claim tax credits such as the Earned Income Tax Credit and Child Tax Credit
If you do make the minimum income required to file a tax return, then yes, you must file your taxes or else you run the risk of committing tax fraud. If you do not file your taxes, and you owe money on your tax return, you may face some steep fines and penalties. On the other hand, if you are owed a tax refund by the government, you will not receive it until you file your taxes.
Have more questions? Sun Loan has more resources
We understand that filing taxes can be a confusing process, especially if you are a first-time tax preparer. That’s why we’re constantly adding more and more articles and resources to help you better understand the tax process and prepare them to receive the biggest refund possible. You can find more answers to your tax-related questions by visiting our Tax Questions & Tips resource page.
Sun Loan makes taxes easy
At Sun Loan, we offer tax preparation services from experts with more than 20 years of tax experience. Sun Loan can help you with your taxes in a few different ways:
- Online document upload: Get in touch with your local branch to receive a personalized document upload link, upload photos or scans of your tax documents using your upload link, review, and e-sign.
- In-person tax filing: Stop by one of our 200-plus neighborhood branches to receive personal assistance with your taxes. We’ll take care of your tax return, you’ll review it and sign, and we’ll e-file.
- Tax drop-off services: Simply gather your documents, drop them off at your local Sun Loan branch, review your tax return and e-sign from home, and we’ll handle the filing to the IRS!
With multiple ways to file and over two decades of tax preparation experience, we’re here to give you peace of mind–and get you the biggest refund possible–during tax time.