PLEASE NOTE: OUR OFFICE WILL BE CLOSED FROM 9/23 - 10/15. Click Here for details.

Certified Tax Experts Inc.
Certified Tax Experts Inc.
  • Home
  • About Us
  • Services
  • FAQ's
  • Forms
  • Client Portal
  • Contact Us
  • Blog
  • More
    • Home
    • About Us
    • Services
    • FAQ's
    • Forms
    • Client Portal
    • Contact Us
    • Blog
  • Sign In
  • Create Account

  • Bookings
  • My Account
  • Signed in as:

  • filler@godaddy.com


  • Bookings
  • My Account
  • Sign out

Signed in as:

filler@godaddy.com

  • Home
  • About Us
  • Services
  • FAQ's
  • Forms
  • Client Portal
  • Contact Us
  • Blog

Account

  • Bookings
  • My Account
  • Sign out

  • Sign In
  • Bookings
  • My Account

Frequently Asked Questions

Please reach us at ctetaxes@rocketmail.com if you cannot find an answer to your question.

In July and August of 2025, the IRS announced significant changes affecting the 2025 tax year, which you will file in 2026. These updates include new deductions for tips, overtime, and senior citizens, as well as inflation adjustments to tax brackets and the standard deduction. 


New temporary deductions (2025–2028)

  • No Tax on Tips: Workers in traditionally tipped occupations can take an above-the-line deduction for up to $25,000 in tips. The benefit phases out for taxpayers with a modified adjusted gross income (MAGI) over $150,000 ($300,000 for joint filers).
  • No Tax on Overtime: Individuals can deduct up to $12,500 in qualified overtime compensation, based on Fair Labor Standards Act (FLSA) rules. This deduction also phases out for taxpayers with a MAGI over $150,000 ($300,000 for joint filers).
  • Additional Senior Deduction: Taxpayers aged 65 and older can claim an additional $6,000 deduction. The deduction is per eligible individual, totaling $12,000 for a married couple where both qualify. It phases out for those with a MAGI over $75,000 ($150,000 for joint filers).
  • Car Loan Interest Deduction: Filers can deduct up to $10,000 of interest paid on a loan for a new, personal-use vehicle. This is available for loans originated after December 31, 2024, and phases out for those with a MAGI over $100,000 ($200,000 for joint filers). 


Inflation adjustments for 2025

  • Standard Deduction: The standard deduction will increase for all filing statuses for tax year 2025.
    • Single: $15,000
    • Married Filing Jointly: $30,000
    • Head of Household: $22,500
  • Tax Brackets: The income thresholds for each tax bracket will be adjusted upward, so a higher income will be taxed at a lower rate than in the previous year. The marginal tax rates themselves (10%, 12%, 22%, 24%, 32%, 35%, 37%) are unchanged.
  • Gift Tax Exclusion: The annual gift exclusion will increase to $19,000 for calendar year 2025.
  • Earned Income Tax Credit (EITC): The maximum EITC for taxpayers with three or more qualifying children increases to $8,046. 


Changes to credits and filing options

  • IRS Direct File: The pilot program that allows taxpayers to file their federal tax return directly with the IRS for free has been made permanent. The service expanded to 25 states for the 2025 filing season and will continue to cover a wider range of tax situations.
  • Child Tax Credit: The Child Tax Credit will increase to $2,200 per qualifying child for 2025 and will be adjusted annually for inflation.
  • Energy Credits: Many clean energy credits, including those for electric vehicles and energy-efficient home improvements, are being eliminated or capped as of September 30, 2025.
  • 1099-K Reporting Threshold: The threshold for receiving a Form 1099-K for payments from third-party settlement organizations (e.g., payment apps and online marketplaces) will be phased in, with a $5,000 threshold for tax year 2024 and a planned $2,500 for tax year 2025. 


Tips for tax filers

  • Check Withholding: It is a good practice to use the IRS's Tax Withholding Estimator to ensure you are having the correct amount of tax withheld from your paycheck and to avoid a surprise tax bill next year.
  • Gather Records: Keep organized records of income forms (W-2, 1099), digital asset transactions, and other important documents to simplify tax filing.
  • Use Free Resources: For eligible taxpayers, the IRS offers free filing options through IRS Direct File, IRS Free File, and Volunteer Income Tax Assistance (VITA) programs.
  • Watch for Scams: Be aware of fraudulent schemes, such as "ghost preparers" who do not sign returns, and phishing emails. 


As soon as you start to think about your business, an accountant can help you take the next steps. We can discuss your business's organization, tax purposes and operations, along with target pricing and profit margins.  


Get some impartial advice from an accountant before you consult the bank. A bank will want to see a strong business plan and organized records. Let us help you get ready for your business's next step!  


Does your accountant return your calls? Do you feel comfortable asking them a question? Do you feel heard? With the right accountant, the answers should be a resounding "Yes!"


 Each client has differrent tax needs, therefore various forms can be found at the bottom of our website for individuals and businesses. You can also refer to the list as shown for new clients (personal/business) below for that information.


The SECURE 2.0 Act makes major changes to 401(k), IRA, Roth, and other retirement savings plans. Here's what you need to know:

  • The SECURE 2.0 Act is a recently enacted significant piece of legislation that has brought about substantial changes to the retirement account rules in the United States. These changes which go into effect at different times (some for 2023 and others in 2024 or later years) affect retirement savings plans such as 401(k), 403(b), IRA, Roth accounts, and related tax breaks. 
  • The primary objective of this new law is to encourage more workers to save for their retirement. However, some of the complex changes have confused some taxpayers and plan sponsors. Therefore, it is important to understand the key points of the law.  More than 90 provisions in SECURE 2.0 cover all types of retirement savings plans. Some requirements are in place now, as of 2023. Other provisions will become effective in the new year, 2024, or in later years, i.e., 2025, 2026, or 2027.  

Some changes in SECURE 2.0 involve:

  • RMD Age Rules and Penalties
  • Higher 401(k) Catch-up Contributions
  • Automatic Enrollment Changes
  • Emergency Withdrawal Flexibility
  • 529 Plan Roth Rollovers
  • A Student Loan Payment 401(k) Match

Below is a link you can read about the changes from the US Chamber of Commerce.

052319_final_secure_act_summary.pdf (uschamber.com) 


 JANUARY 31ST

  • Employer - Form W2
  • Payors - Form 1099 NEC

FEBRUARY 28TH

  • Payors - Form 1099

MARCH 1ST

  • Date to submit to us the S Corp and Partnership tax paperwork to be filed by March 15th

MARCH 5TH

  • Request for us to file your S Corp and Partnership extension of time

MARCH 15TH

  • Tax Returns for S Corps (Form 1120S)
  • Tax Returns for Partnerships (Form 1065)

APRIL 1ST

  • Date to submit to us tax papers for personal taxes, single member LLC and C Corps to be filed by April 15th

APRIL 5TH

  • Request for us to file your extension of time for personal taxes, single member LLC and C Corps

APRIL 15TH

  • Individuals and single member LLC - Form 1040
  • C Corps - Form 1120

•  • Estates and Trust - Form 1041


 This question has been asked a lot this year so I figure I would take the time to address it. The issue has become such a problem for so many a few years back the IRS came up with a withholding calculator. So get out your latest pay check stub from this year and head to this website.

https://www.irs.gov/individuals/tax-withholding-estimator


 

Filing an extension of time for your business with form 7004 and file with the State it is incorporated in. It's important to know that some states do not have an individual state tax return but do require a state tax return to be filed. For personal extensions please file form 4868. These extensions give you time (6 months from the deadline due dates) to file a complete and accurate tax return. It does not allow for the extension to pay. If you owe monies the IRS can charge a penalty of failure to pay and can charge interest on the amount that you owe from the original due date of the tax returns. You can find these forms under PDF forms.


 More information from the IRS on this can be found here. 



View the 2024 Tax Brackets here.


So there is a lot to read about this. I attached a link so you can see if your business would be receiving one of these in 2024.


IRS announces 2023 Form 1099-K reporting threshold delay for third party platform payments; plans for a $5,000 threshold in 2024 to phase in implementation | Internal Revenue Service 


irs.gov will provide you the answers you need to find out the status of your refund. The IRS is very far behind in issuing refunds right now. Some of you still may not have received your refund for the 2020 tax year. You can call IRS at 1-800-829-1040.


Below is a link to IRS's site that you can determine through income, filing status and retirement income if you should file a tax return this year.

Who Should File a Tax Return | Internal Revenue Service (irs.gov) 


We have added a link to IRS in this one. So many people set up their own businesses without consult. This will help those who are looking to file for themselves which forms based on the type of entity they created.

Businesses | Internal Revenue Service (irs.gov) 


The Internal Revenue will then send a check to the address that is on the tax return for that year.  


 For both Individuals and Corporations, we can amend tax returns that we have previously submitted. We would file forms 1040X, 1120-X 941-C or amendments for S Corps and Partnerships to address what was left out of the original return. It is quite common for this to happen so don't worry we can address it and correct it.


Your fee for the tax preparation is based on which forms you file. I like to be as accurate as possible so if you want a quote for your personal tax preparation fee please send us a copy of your prior year tax return and if you are to file the same forms we can accurately give you a price. 


 

If you have had identity theft in the past or have opted to receive a pin number each year in order to file your 1040 tax return electronically, we need this form to file. Each year you are provided a new IPIN and it is mailed to you normally in January from the Internal Revenue Service.

If you did not receive this letter from IRS please contact them online or at 1-800-829-1040.  


Yes. We do prepare taxes in all States in the US. So, if you need a part year or full year or even a non-resident tax return prepared, we can do that at the time we prepare your federal tax return. If you are new and we have not prepared your taxes in the past and would like just a state tax return prepared, we can do that. However, keep in mind we must input all of your federal tax information from form 1040 in that year to prepare that state tax return. So, the preparation fee will be charged for both the Federal and State Tax return for each year.


 See forms for individuals for up to date information.


 

The deduction value for medical expenses varies because the amount changes based on your income. In 2024, the IRS allows all taxpayers to deduct their total qualified unreimbursed medical care expenses that exceed 7.5% of their adjusted gross income if the taxpayer uses Schedule A to itemize their deductions. Your adjusted gross income (AGI) is your taxable income minus any adjustments to income, such as contributions to a traditional IRA and deductible student loan interest.

For example, if you have an AGI of $45,000 and $5,475 of medical expenses, you would multiply $45,000 by 0.075 (7.5%) to find that only expenses exceeding $3,375 can be included as an itemized deduction. This leaves you with a medical expense deduction of $2,100 ($5,475 minus $3,375) answer to this item.


What Is the S Corp Late Filing Penalty Abatement? 

The S Corp Late Filing Penalty Abatement is a waiver that a company can apply for to ask the IRS to reduce or eliminate assessed penalties. These costly penalties are charged to companies who don't file, don't pay, or don't deposit money due to the IRS in a timely manner. This process is not used for relief of penalties associated with the accuracy of returns. Acknowledging that everyone makes mistakes, the IRS offers this as a reward for companies who are normally compliant with the deadlines.

What Is the Purpose of Late Filing Penalties? 

Taxes and penalties can be infuriating. They must be paid according to strict deadlines and sometimes they seem arbitrary and unfair. But the IRS emphasizes that the purpose of penalties is to encourage compliance, not generate more money. 

How Does Penalty Abatement Work? 

 The IRS set up the first-time penalty abatement administrative waiver (FTA) more than 10 years ago. This process allows companies with a history of compliance to ask the IRS to reduce or remove penalties. It's only available the first time a company makes such an error. Often that amounts to many dollars saved for the company. Even though the FTA has been available for several years, very few taxpayers take advantage of it. In 2012, a report from the Treasury Inspector General for Tax Administration (TIGTA) stated that most companies just don't know it exists. The report also points out that the IRS has an automated tool for penalty determinations, and it often incorrectly denies FTAs.


Benefits of the FTA Process 

• The FTA is easy for the IRS to process. 

• The FTA cites specific language from the Internal Revenue Manual to support the decision. 

• The FTA process lets tax professionals work efficiently and maximize their time. 

How to Apply for an FTA 

Taxpayers can apply for an FTA in multiple ways in certain circumstances. 

• The first way is to apply before the penalty is ever assessed. The taxpayer files a penalty non-assertion request along with their official return asking the Internal Revenue Service not to levy a penalty.

• The second method is later in the process when the IRS has already levied the penalty. The company writes a penalty abatement letter. The taxpayer can also call the IRS or reach them via e-services. • The last method takes place after the penalty has already been paid. Form 843, Claim for Refund and Request for Abatement, lets the taxpayer ask for a refund. It must be filed within 36 months of when the return was due or within 24 months of the penalty payment. Categories of Relief

Four categories of abatement from penalties are available. 

• Reasonable cause 

• Statutory exceptions 

• Correction of IRS error 

• Administrative waivers: This involves the IRS formally stating or clarifying a provision that gives abatement from a penalty. The statement can take the form of a policy publication, press release, or another form of official communication. The FTA is the most common form of an administrative waiver. 

Who Qualifies for Penalty Abatement? 

 To get an FTA waiver, a taxpayer must: 

• Have filed all the required returns or at least have filed a valid extension. 

• Not have an open request for a return from the IRS. 

• Have paid or entered an installment plan to pay all taxes due. If a payment plan is in place, the installments must be current. • Have no prior penalties in the last three years except for an estimated tax penalty. Receiving reasonable cause relief in the past does not disqualify the business from receiving an FTA. 

 

What Kind of Penalties Can Be Abated? 

The FTA can only apply to some types of penalties and returns. Sometimes determining eligibility is the hardest part of the process. 

• Individuals can ask for an FTA for failure to file or failure to pay penalties. Estate and gift tax returns are ineligible. 

• Business taxpayers, including those who remit payroll taxes, can apply for an FTA for failure to file, failure to pay, and failure to deposit penalties. Though it is not spelled out specifically in the Internal Revenue Manual, the IRS practice has been to allow FTAs for S corps and partnerships.



Take a look under business forms to download. I have made a little flow chart to help you do this.


Please visit our pdf forms for individuals to find the form that needs to be completed. 


Copyright © 2025 Certified Tax Experts Inc - All Rights Reserved.

Powered by GoDaddy

This website uses cookies.

We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.

Accept