If I did my taxes on the 28th when when Would I get them back? 

Answer by Wray Rives: Assuming we are talking US tax, if you filed your return early and are expecting a refund, you should expect to wait a while.  Ninety percent of fraudulent refund claims are filed from the time efiling opens until mid to late February.  The IRS will review every refund claim much closer […]

Should our multi-member LLC have clients send us a 1099 for the work we performed? 

Answer by Wray Rives: You should not get a 1099 from your own LLC and if the money went to the LLC then you should not receive a 1099 from your clients.  If you are a multi-member LLC and have not made any corporate elections for the LLC, then you should be filing your taxes […]

Does an U.S. citizen who lives abroad and is a partner in a foreign entity taxed as partnership owe self-employment taxes? 

Answer by Wray Rives: Yes you do owe self employment tax on foreign taxable self employment.  You may avoid some US taxation if there is a totalization agreement between the US and your resident country.  Self employment income that is exempt from US income tax due to the foreign earned income exclusion (What is earned […]

What happens when two people claim the same dependent on their taxes? 

Answer by Wray Rives: First if two people claim the same dependent, the one who files second, will not be able to file electronically, but will have to file a paper return. After both file, both will receive notification from the IRS, that their dependent is claimed on another return and request clarification.  I suggest […]

How much do accountants charge to do a fairly complex individual tax return? 

Answer by Wray Rives: Fees for tax preparation do vary geographically; however, tax work is also an area of accounting that lends itself well to being done remotely which can eliminate that as a consideration.  I won't say that no one charges based on income levels or perceived ability to pay, but they should not. […]

Under what circumstances should you file Tax Form 941? 

Answer by Wray Rives: You file a Form 941, if during the previous quarter you had any of the following: Wages you paid. Tips your employees received. Federal income tax you withheld. Both the employer's or the employee's share of social security and Medicare taxes you withheld. Additional Medicare Tax withheld from employees. Current quarter's […]

What is a backdoor Roth? 

Answer by Wray Rives: There is an income limitation to be able to make a contribution to a ROTH IRA.  For 2015 the limits are: Married Filing Joint $183K-$193K reduced contribution Married Filing Joint over $193K no contribution Single or HOH $116K-$131K reduced contribtion Single or HOH over $131K no contribution You can still contribute […]

If my corporation leases an apartment for one of my employees does the company get the tax deduction? 

Answer by Wray Rives: Yes if the corporation (employer) pays for the housing, then the employer gets to take a tax deduction for the cost.  The housing is additional compensation to the employee unless it meets all three of the following conditions: On the employer's business premises.   For this exclusion, your business premises is generally […]

Can I claim my considerable job-related travel and lodging expenses as tax exemptions? 

Answer by Wray Rives: Assuming this is a full time permanent job, no.  Your commuting and living expenses will be personal.  If you were an independent contractor and working a short term project (short term is generally less than a year), then you would be able to deduct the expenses, but as an employee the […]

How do I find a trustworthy CPA for my startup? 

Answer by Wray Rives: I would concur with John Cody's answer with one exception that limiting yourself to a local CPA can also unnecessarily limit your choices.  Most services offered by a CPA can be performed remotely these days.  The local CPA model is becoming outdated, because technology allows you to offer tax, accounting, bookkeeping […]