DALLAS — It's tax season once again. As people around the state start getting their W-2, their 1099 or other tax forms, it may leave some people scratching their heads about what to do.
That's why Donovan Miller, a certified public accountant and senior tax manager with Whitley Penn, as well as the chair-elect of TXCPA Dallas, went onto WFAA Thursday afternoon to answer some viewer questions.
Here are those questions and answers below to help you this tax season:
I’ve got a 17-year-old who just got his first job last year. Do I include his W-2 on my tax return this year since he is a minor and dependent…or does he do his own?
"If they're under 19 and they’re living with you for more than six months out of the year and you’re providing more than half their support, then they would be a dependent. Their filing requirements for a dependent would be if they make over $1,250 in investment income or if they earn earned income of more than $13,850."
I’m receiving social security now. If I work part time, how much can I earn without getting penalized?
"Most people, you can start drawing social security at 62. But if you’ve not met your full retirement age…then if you’re making more than a little over $22,000, and these numbers change, and in the year that you hit the full retirement age if you’re making more than about $60,000, then they will start clawing back some of your benefit."
My husband and I bought our first house. Is there still a credit for buying your first house?
"There was a credit back in 2008 in the housing crisis. That credit lapsed in 2010. It’s been reintroduced in legislation, it’s sitting in congress right now, so there currently isn’t. People that own homes should be thinking about their mortgage interest deduction, which will allow them to deduct the interest on up to $750,000 of mortgage indebtedness, and also their real estate taxes."
What resources are available to taxpayers?
"At the TXCPA one of the programs they have available is findatxcpa.org and they will allow you to enter some info of what you're needing and send you to a CPA. The IRS is actually a great resource, you can sign up for an account that will allow you to get tax transcripts, look at tax notices, and just do a lot of self-service items that you can take care of on your own."
I haven’t filed a federal return since 2019. How do I get back on track?
"There’s two things you want to look at. There’s a three-year statue with the IRS. If they need to collect tax from you…they really need to be thinking about, are they going to owe tax? They might want to get those filed right away because those interest and penalties are racking up as well. If they have a refund coming, they need to do it within that same three-year statute. They need to get those filed in order to receive those refunds. It will go away completely if you miss that statute."
I’m a retired, disabled veteran. Is there someone that can help with my taxes?
"There’s actually two really good programs. One of them is called VITA (Volunteer income tax assistance). The other one is through the AARP. They both will help people who generally have income of around $60,000 or less, if you’re disabled, if English is not your primary language, you can find these sites at the IRS websites. They have walk-in centers (some require appointments). They will help you free of charge."
Am I able to deduct the taxes I paid for a car purchased in 2023?
"If you’re itemizing your deductions then you are putting all taxes into that same bucket, so that can be your real estate taxes, sales tax, and you can do special taxes on specific items, and that can include a car, boat, certain items you bought during the year. You’re still going to need to fall under that $10,000 limit."
What should a taxpayer do if they receive a notice from the IRS?
"The first thing to do is pay attention to the deadline that might be on those notices. The IRS, they're easy to deal with if you’re dealing within their timelines. A lot of these notices will come automatically based on information that's been reported to them, what they find on your return, and if they think you’ve left something off, then they will send you a notice and give you a certain amount of time to respond. If you're not responding during that time you may be losing out on some ability to appeal."