Important Tax Links & Resources
Below you will find answers to our clients’ most frequently asked questions and important links. Navigating the IRS tax rules and regulations is quite problematic for most people. Here are some essential links and tools to may help you understand the IRS and your tax obligations.
Where is my refund?
Use this tool to check your refund. Your refund status will appear around:
- 24 hours after you e-file a current-year return
- 3 or 4 days after you e-file a prior-year return
- 4 weeks after you file a paper return
How to make a payment to the IRS?
The IRS accepts full and partial payments, including payments toward a payment plan (including installment agreement). Penalties and interest will continue to grow until you pay the full balance.
How to estimate my Income Tax Withholding?
Use your best estimates for the year ahead to determine how to complete Form W-4 or W-4P so you don’t have too much or too little federal income tax withheld.
Tax Preparation FAQs
It depends on 3 things: your gross income, your filing status, and your age.
Generally, you must file a tax return if your gross income for the tax year meets or exceeds the standard deduction threshold for your filing status. For the current (2025) tax year, the general baseline thresholds for individuals under age 65 are:
- Single: $15,750
- Head of Household: $23,625
- Married Filing Jointly: $31,500 (increases to $33,100 if one spouse is 65 or older)
- Married Filing Separately: $15,750 (regardless of age)
Important Exceptions That Force You to File
Even if your income falls below the numbers listed above, the IRS mandates that you must file a tax return if any of the following apply to your situation:
- Self-Employment Earnings: You had net earnings from self-employment, independent contractor gigs, or a 1099-NEC of $400 or more.
- Marketplace Health Insurance: You or anyone in your household received advance premium tax credits through the Health Insurance Marketplace (Obamacare).
- Special Taxes Owed: You owe alternative minimum tax (AMT), household employment taxes, or uncollected Social Security/Medicare taxes.
Why You Should File Your Taxes Voluntarily?
Even if your income falls below the mandatory thresholds, you should still file a tax return if your employer withheld federal taxes from your paychecks or if you qualify for refundable credits like the Earned Income Tax Credit (EITC) or Child Tax Credit. Filing is the only way to get that refund check back.
Unsure if your income requires a return? Complex rules apply to gig workers, small business owners, and international non-residents. Let an experienced Enrolled Agent (EA) analyze your records and keep you safely compliant.
As a general rule, the IRS considers all income from whatever source derived to be taxable, unless tax law specifically exempts it. Taxable income includes both money you receive and the fair market value of property or services you exchange. These are the most common types of taxable income:
- Earned Income: Wages, salaries, tips, bonuses, commissions, and self-employment or 1099 independent contractor earnings.
- Investment & Property Income: Interest from bank accounts, dividends, capital gains from selling stocks or crypto, and rental property income.
- Assistance & Benefit Income: Unemployment compensation, certain pension payouts, and traditional IRA withdrawals.
- Miscellaneous Income: Gambling winnings, prizes, awards, and jury duty pay.
You generally do not pay federal income tax on:
- Inheritances, gifts, and bequests.
- Child support payments (unlike alimony from older divorce decrees, which may be taxable).
- Life insurance payouts received due to the death of the insured person.
- Qualified distributions from a Roth IRA or Roth 401(k).
- Most compensatory damages received for physical personal injury or sickness.
Got complex income streams? Tracking what is taxable and what business expenses you can legally write off against your income requires precision. Contact us for expert help from experienced Enrolled Agent (EA) at Hispano Tax Service.
Your filing status determines your tax bracket, standard deduction amount, and eligibility for key tax credits. The IRS determines your filing status based on your marital and household situation as of December 31st.
There are 5 filing statuses:
- Single: Choose this if you are unmarried, legally separated, or divorced on December 31st, and you do not qualify for any other status.
- Married Filing Jointly (MFJ): For married couples who choose to combine their income and deductions on a single tax return. This status typically offers the lowest tax rates and the largest standard deduction.
- Married Filing Separately (MFS): For married couples who choose to file individual returns. This is usually chosen if spouses want to keep their tax liabilities completely separate.
- Head of Household (HOH): A highly favorable status for unmarried individuals who paid more than half the cost of keeping up a home for the year and had a qualifying dependent (such as a child or dependent parent) living with them for more than half the year.
- Qualifying Surviving Spouse: For individuals whose spouse passed away within the last two tax years, and who have a dependent child. This allows you to use the more favorable Married Filing Jointly tax rates and standard deduction.
Which status saves you the most money?
Choosing the wrong status causes thousands of local families to overpay their taxes every year. For example, such as mistakenly filing as Single when you qualify as Head of Household. Let a certified Enrolled Agent (EA) analyze your household structure to ensure you choose the most profitable and legally compliant filing status.
The IRS defines a dependent as someone who relies on you for financial support and meets specific legal rules. To qualify as your dependent, a person must be a US citizen, US national, US resident alien, or a resident of Canada or Mexico. They cannot file a joint return with a spouse, and they cannot be claimed as a dependent by anyone else.
Claiming a dependent reduces your overall taxable income and can unlock high-value credits like the Child Tax Credit or the Credit for Other Dependents. There are 2 distinct dependents categories:
- Qualifying Child
Requirements to claim a child as a dependent:
– Relationship: They must be your son, daughter, stepchild, foster child, brother, sister, half-sibling, or a descendant of any of them (like a grandchild or nephew).
– Age: They must be under age 19 at the end of the year or under age 24 and a full-time student for at least 5 months of the year.
– Residency: They must live with you for more than half the year.
– Support: They cannot have provided more than half of their own financial support for the year. - Qualifying Relative
Such as an elderly parent, an adult child over 24, or a partner living with you can still be claimed as a qualifying relative. Here are the requirements they have to meet:
– Support: You must provide more than 50% of their total financial support for the year.
– Gross Income: Their gross taxable income for the year must be below the strict IRS statutory limit.
– Member of Household: They must either be related to you in an IRS-approved way (parents, grandparents, aunts/uncles do not have to live with you) or they must have lived in your home as a member of your household for the entire year.
Rules for blended or international families can be complex. Tie-breaker rules apply if two people try to claim the same child, and special provisions dictate claiming relatives living abroad. Let a certified Enrolled Agent (EA) look over your family situation to ensure you legally maximize your household tax credits.
The U.S. has a progressive tax system, so not all your income is necessarily taxed at the same rate.
Your federal tax bracket and tax rate depend entirely on two factors: your filing status (Single, Married Filing Jointly, Head of Household, etc.) and your taxable income (your total income minus deductions).
Marginal Rate vs. Effective Rate
- Marginal Tax Rate: This is your “tax bracket.” It is the highest rate applied to the very last dollar you earned.
- Effective Tax Rate: This is the actual percentage of your income you pay in taxes overall. It is always lower than your marginal rate because your first dollars are taxed at the lower 10% and 12% rates.
How to Find Your Exact Numbers from Last Year
If you want to see exactly what you filed on your last tax return, grab your copy of IRS Form 1040 and look at these specific lines:
- Find your Taxable Income: Form 1040, Line 15.Look at Line 15.
This shows your income after the standard or itemized deduction has been taken out. This is the number used to determine your bracket. - Find your Total Tax: Form 1040, Line 24.Look at Line 24.
This is the actual amount of federal income tax you owed for the entire year before factoring in what you already paid through payroll withholdings. - Calculate your Effective Rate: Divide your Total Tax (Line 24) by your Taxable Income (Line 15) and multiply by 100.
That percentage is your real, overall tax rate.
State and Local Taxes: Please note that the tables and calculator above only track Federal income taxes. Depending on where you live, your state or city may levy an additional income tax, which usually operates on its own separate bracket system.
You should choose whichever option gives you the largest deduction to lower your overall taxable income. For the current tax year, the standard deduction amounts are:
- $15,000 if you file as Single or Married Filing Separately.
- $22,500 if you file as Head of Household.
- $30,000 if you file as Married Filing Jointly.
If your total itemized deductions (such as mortgage interest, state/local taxes up to $10,000, and charitable donations) exceed these updated limits, itemizing will save you more money. Our team can analyze your receipts to determine the most profitable pathway.
Both tax deductions and tax credits can reduce the amount of tax you must pay. In short, credits reduce your tax bill directly, while deductions reduce your taxable income.
- Tax Deductions (Indirect Savings): A tax deduction lowers the amount of your total income that is subject to federal income tax. The actual cash value of a deduction depends entirely on your marginal tax bracket.
– Example: If you are in the 12% tax bracket, a $1,000 tax deduction does not save you $1,000. Instead, it removes $1,000 from your taxable income, saving you $120 ($1,000 x 0.12). If you are in a higher tax bracket, the exact same deduction saves you more money.
– Types of Deductions: You can choose to take the fixed Standard Deduction for your filing status or itemize write-offs like mortgage interest and charitable donations. There are also “above-the-line” deductions available to everyone, such as student loan interest.
- Tax Credits (Direct Savings): A tax credit is subtracted directly from the final amount of tax you owe. It acts like a gift card for your tax bill, giving you a dollar-for-dollar reduction.
– Example: If you owe $3,000 in federal taxes but qualify for a $1,000 tax credit, your tax bill drops instantly to $2,000.
– Types of Credits: Some are refundable (like the Earned Income Tax Credit or the Child Tax Credit), meaning if the credit reduces your tax bill below zero, the IRS sends you the rest as a refund check. Others are nonrefundable (like green energy credits), which can bring your tax bill down to zero but won’t pay out a surplus. Example: If you owe $3,000 in federal taxes but qualify for a $1,000 tax credit, your tax bill drops instantly to $2,000.
Are you maximizing your eligible tax breaks? Missing out on credits or failing to document deductions is one of the most common ways local taxpayers overpay the IRS. Get in touch with our team and work with certified Enrolled Agents (EA) to capture every single credit and deduction available to you.
The deductions and credits you’re eligible to claim vary depending upon your situation. Here are some examples:
High-Value Tax Credits (Direct Cash Savings)
- Child Tax Credit (CTC)
- Earned Income Tax Credit (EITC)
- Child and Dependent Care Credit
- American Opportunity Tax Credit (AOTC) & Lifetime Learning Credit
Popular Tax Deductions (Income Reductions)
- The Standard Deduction
- Itemized Deductions
- Student Loan Interest Deduction
Self-Employed, 1099, & Small Business Write-Offs
If you run a business, operate as a freelancer, or drive for rideshare services in South Florida, you can deduct ordinary and necessary business expenses to drastically lower your tax liability:
- Home Office Deduction
- Vehicle & Mileage Tracking
- Self-Employed Health Insurance
Each year, you’re required to file your federal income tax return for the previous calendar year by Tax Day. Usually, the filing deadline is on or around April 15, though if the 15th falls on a weekend or holiday the deadline can be bumped to the next business day.
Tax Deadlines You Should Know About
- January 15: 4th Quarter Estimated Tax Payment deadline for freelancers, 1099 independent contractors, and small business owners.
- March 15: Final day to file corporate calendar-year returns or request an extension.
- April 15: The General Tax Deadline. Final day to file individual returns (Form 1040), pay any tax liabilities, and make contributions to a Traditional or Roth IRA for the prior tax year.
- April 15: 1st Quarter Estimated Tax Payment deadline for the new tax year.
- June 15: 2nd Quarter Estimated Tax Payment deadline. Also the general filing deadline for U.S. citizens and resident aliens living and working abroad (expats).
- September 15: 3rd Quarter Estimated Tax Payment deadline.
- October 15: The final extended deadline to file your individual return if you requested an official 6-month extension.
Filing a tax return involves gathering your income documents, calculating your deductions, choosing the correct forms, and submitting them to the IRS. While the process can be handled independently, choosing the right method ensures you don’t overpay or trigger an audit. You have multiple options to file your return:
- Mail: The address to mail in your return will depend on the state you live in (the IRS offers a list of addresses)
- IRS e-file, is free if your income is $66,000 or less
- DIY, with fee-based tax preparation software like TurboTax
- Having a Tax Professional (ideal)
However, you choose to file, be aware that submitting your return electronically has several advantages. If you’re owed a refund, you could get it sooner via e-file, since the IRS processes e-filed returns more quickly than paper returns.
The IRS issues more than 9 out of 10 refunds in less than 21 days when you choose electronic filing (e-file) paired with direct deposit.
Paper Returns: If you file a physical paper return, processing can take 4 to 6 weeks or longer.
Tracking Tools: You can securely track your money 24 hours after e-filing a current-year return using the official IRS “Where’s My Refund?” tool located on our primary resources section.
If you can’t afford to pay your taxes, it’s imperative you still file tax a return and decide to pay what you owe. Failing to file and/or pay your taxes on time will result in interest and penalties.
If you can’t afford to pay the full amount you owe by the deadline, the IRS has multiple payment options that could help, including installment agreements. Keep in mind that you’ll still owe interest, and possibly penalties, even if you enter into a payment arrangement.
Costs and fees of payment plans vary depending upon the duration of your plan and whether you apply by mail or online.
The Child Tax Credit provides up to $2,000 per qualifying child under the age of 17. Up to $1,700 of this credit is refundable (known as the Additional Child Tax Credit) if you owe zero tax liability.
- Income Phase-Out Limits: The credit begins to phase out if your modified adjusted gross income exceeds $200,000 ($400,000 for married couples filing jointly).
- Dependents Rule: To qualify, the child must have a valid Social Security Number (SSN), be your biological child, stepchild, or eligible foster child, and live with you for more than half the year.
Yes. Even if your Florida LLC has no US-sourced income or zero business operations, foreign-owned single-member LLCs are treated as “Disregarded Entities” by the IRS. This classification requires you to file Form 5472 and Form 1120 annually.
The Risk: Failure to file Form 5472 on time carries a strict minimum penalty of $25,000. Our international tax specialists regularly help overseas founders stay compliant.
We help hundreds of business owners who reside outside of the USA, in particular: Venezuela, Colombia, Spain, Ecuador, Peru, Panama, Chile and Argentina.
An Enrolled Agent (EA), like Lisett Murch, is federally certified directly by the IRS. This means that if you receive an audit letter, we have full legal authority to represent and defend you before the IRS without you having to speak with them directly.
Absolutely. We specialize in independent contractors and individuals who file a 1099-MISC. We help you properly deduct your work expenses so you don’t overpay on your taxes.
