In the past three years, personal taxes have been incredibly different because of the pandemic. However, we’re starting to see a return to “normalcy” that many of us are welcoming with open arms. In this post, we’ll take a look at some of our clients’ most commonly asked personal tax questions. If you need tax help in the Metro Atlanta or Stone Mountain area, NTRC Tax and Finance is happy to help you with all of your personal tax needs.
Common Personal Tax Questions:
Can I Deduct Home Office Expenses?
If you are an employee of a company and receive a W-2 for the year, you will not be able to deduct home office expenses for your office in your home in Metro Atlanta. However, if you are self-employed, you will be able to itemize your expenses.
How Can I Get My Refund the Fastest?
As usual, electronic filing is always the fastest type of tax return processing. If you want to receive your refund as soon as possible, file electronically rather than on paper through the mail. Additionally, for tax seasons like the 2021 tax season, the IRS has taken longer to process returns in general.
I Started Day Trading, How Do I Deal With That?
If you, like many others in the past couple of years, started day trading, you will need to determine whether or not you have a capital gain or loss. If you only incurred losses, you won’t need to pay taxes on your trading outcomes (these taxes are called “capital gains”). On the other hand, if you report a gain, you will need to pay capital gains taxes on the amount you accrued. With day trading, assets are usually held for short periods of time, so you’ll be looking at taxing short-term assets at your ordinary income tax rate. Regardless, you’ll need your Form 1099-B to file Forms 1040 and 8949.
How Do I Report Unemployment Income?
Unemployment income was much more common in the past few years, due to the pandemic. This means that many more Americans will be claiming unemployment income during the 2022 tax season than several years ago. Luckily, unemployment income usually does have taxes withheld from it. If you received any money at all in unemployment income, your state’s unemployment office will send you Form 1099-G. Use this form and the numbers within it to report your income on your taxes.
How Long Should I Keep All of My Documents?
You should keep all of your tax documentation, including W-2s, tax forms, receipts from claimed expenses, and other tax-related papers for at least three years after the year has been filed and accepted. This will ensure that you can refer back to the proper documentation if you are audited. If you work with a tax agent, you should still keep your own documentation in a safe location.
Get Answers to Personal Tax Questions in Metro Atlanta
If you need help with your personal taxes here in Metro Atlanta, the team at NTRC Tax and Finance would be happy to help you. Get in touch with us today! If you own a small business and you have tax help questions, check out this post: Top Five Most Commonly Asked Questions for Atlanta Small Businesses.