FAQs About Business and Income Taxes

For Tax Year 2023, the normal due date for personal income tax returns is 4/15/2024. However, due to severe storms, the IRS extended the filing date for certain counties (including San Diego) to 6/17/2024. If an extension was filed, then the due date for personal income tax returns is extended to 10/15/2024. (Keep in mind that extensions provide additional time to file, but not to pay).

For Tax Year 2024, the filing deadline is Tuesday, April 15, 2025.

We mail them in January. If you prefer a digital copy uploaded instead, just let us know.

Here is a (partial) list of what documents we might need to complete your tax returns:

1. Engagement Letter signed
2. Questionnaire filled out – do your best but if you don’t know an answer or have a question, feel free to write it in the margins, etc.
3. Tax Organizer – This is optional, you do not have to fill it out. It can be very helpful, however, in helping you see what you had last year to remind you what is needed for this year.
4. Forms W-2’s if you worked for wages
5. Forms W-2G if you have gambling winnings. Provide a list of gambling losses, if any.
6. Forms 1098 if you paid mortgage interest
7. Forms 1098-E if you paid student loan interest
8. Forms 1098-T if you paid tuition
9. Forms 1099-INT if you received more than $10 interest from a bank or other financial institution. NOTE: If the amount is under $10 you may not receive a 1099.
10. Forms 1099-DIV if you received any dividends
11. Forms 1099-R from any retirement accounts
12. Forms 1099-MISC and Forms 1099-NEC if you received any miscellaneous income
13. 1099-SSA if you received Social Security income
14. Form 1099-G if you received any unemployment
15. Closing Statement if you bought/sold/refinanced a home during the tax year
16. Business Income and Expenses if you have a business
17. A list of medical/dental expenses if substantial amount was paid out of pocket. Please separate into categories like doctors, dentists, prescriptions, etc.
18. A list of charitable contributions made by cash or check.
    a. Gifts of less than $250 each do not need a receipt

    b. If the gift is over $250, you need a receipt but we do not need to see it; a list is fine.
19. A list of non-cash donations made to charity
20. If the fair market value of the goods donated is less than $500, we just need the dollar amount.
21. If the fair market value of the goods donated is $500+, we need more detailed information: name, address, date, description.

Yes we are – if you are up to date with filing. For potential new clients, we offer a no-charge consultation first. We take a look at your previous year’s tax return ahead of the appointment, so that we are familiar with your situation. Then, we meet with you either in person, on the phone, or over Zoom, and ask/answer questions. After the appointment you can decide if you would like to move forward with our services.

Our tax appointment can be either in person, or on the phone, or over Zoom video. It can be a short check in to review your tax return, or more in depth, depending on your situation and your questions. It is part of our service, and we recommend it, but it is optional.

We have found that if we have a chance to enter the bulk of your data ahead of time, the tax appointment is more productive for both us and the client. It gives us a chance to spot missing information ahead of time, and at the appointment we know exactly what questions to ask. We can then discuss the results of your tax returns with you and answer questions you have. You can drop off, mail in, or upload your documents, whatever is easiest for you.

We do need to see some documents: W-2’s and 1099’s, social security statements, etc. Other items, like certain receipts, we do not need to see each one. A list is preferred.

For medical expenses, a list is helpful, separated into categories like doctors, dentists, prescriptions, etc.

For charitable donations, a list is also usually fine.

• If you have a single donation of cash/check/credit card over $250, you will need a receipt, but we do not need to see it.
• If you donated non-cash items, and the fair market value of the total goods donated is less than $500, we just need the dollar amount. But if the fair market value of the total goods donated is $500+, we need more detailed information: name, address, date, and description of the items donated.

A pass-through entity is a business organized as a sole proprietor, a partnership/LLC, or an S-Corporation. These entities do not pay Federal income tax at the business level, rather the net profit passes through to the owner’s individual income tax return where the income is taxed at the owner’s applicable tax rate. For purposes of determining taxable income, net profit will be reduced by 20% for qualifying taxpayers.

If you bought a home, please provide the Closing Statement, Mortgage Statement, and Property Tax statement.

If you refinanced a home, we will need a Closing Statement.

If you sold a home, we would report the sale even if you owe no taxes on it. Please provide the Closing Statement, as well as the purchase date & price, and dollar amount of improvements made over the years.

We encourage all clients to create an account on IRS.gov and FTB.ca.gov to access their tax information. It is a great way to find out exactly how much government payments you received, allows you to print out an official list of your estimated payments made, and much more.

It is important to report accurate amounts on your tax return so that you do not receive a letter from the IRS or FTB, which is a hassle for you, and delays the processing of your return.

See instructions on the IRS and FTB websites for how to create the accounts, and feel free to call us if you have any trouble.

The length of time depends on the action, expense, or event that the document records. In general, we recommend you keep tax returns for 3 years from the date you filed the return, or 2 years from the date you paid the tax; whichever is later. In some situations, however, such as claiming a loss from bad debts, you should save your records for 7 years. Records from a home purchase or sale should be kept until 3 years after the property is sold. Business income/expenses should be kept 4 years after the tax is due or paid, whichever is later.

You can pay either way, but one benefit of paying online is immediate confirmation that they received your payment. No wondering if it got lost or delayed in the mail.

To pay the IRS online, go to irs.gov.

To pay the FTB online, go to ftb.ca. gov.

For more detailed instructions, please call us 760-741-8802 Ext. 0.