FAQs

Can I reduce my taxes if I am self-employed or running a small business?

Yes! Expenses you have incurred or losses you had during the year can be deducted on your tax return. Depending on your business, you may be able to deduct expenses such as car maintenance, babysitting, and meal preparation. We recommend that you formalize your business by creating an entity and take advantage of these tax benefits.

Click here to open an LLC today.

Do I need to update my W4 regularly?

The employee's withholding certificate (W4) is a federal form on which you report your personal and financial situation so that your employer can withhold the correct amount of federal income tax from your wages. Withholding tax means a pre-payment of the tax due as you earn income.

Updating your withholding amounts can ensure that you pay the correct amount of federal income tax throughout the year, so there will be no surprises at the time you file your tax return.

We suggest updating this form every year or when your personal or financial situation changes. For example, when you have a child, get married, or you start earning income from additional sources.

If you are not an employee but receive a 1099 form, you might consider paying taxes in advance during the year so that you are not impacted when you file your tax return.

See more at https://www.irs.gov/es/forms-pubs/about-form-w-4

What happens with my refund if my account and routing numbers are not correct in the federal tax return?

If the provided account or routing numbers are not correct, the bank will not accept the refund. In this case, the IRS will send a paper check to the address on the tax return. If you know that the account information belongs to someone else, you must contact an IRS customer service representative to correct any errors.

What is the minimum income required to file taxes?

Minimum requirements depend on your age, filing status, income earned, and other qualifiers. As a general rule, if you earned more than $12,550 in the year, you need to file a federal tax return. Check the following list to see 2021 qualifications:

• Under 65

  • Single: $12,550

  • Head of household: $18,800

  • Married filing jointly: $25,100

  • Qualifying widow(er) with qualifying dependent: $25,100

• Over 65

  • Single: $14,250

  • Head of household: $20,500

  • Married filing jointly: $27,800

  • Qualifying widow(er) with qualifying dependent: $26,450

Can I get a tax benefit if I work from home?

Yes! Small business owners who work from home may qualify for a home office tax benefit up to $1,500. There are two methods to calculate this deduction and the taxpayer must submit a specific form in their tax return to apply for it.