Your tax questions answered
At ABJ Tax Services, a family-owned business with over 10 years of experience, we pride ourselves on our dedication to simplifying taxes for individuals and small businesses. Explore how our personalized approach can provide clarity and peace of mind for your financial future.
Frequently asked questions
Navigating tax regulations can be complex, but you don't have to do it alone. We've compiled answers to the most common questions our clients ask, addressing key concerns and preparing you for a smooth tax season.
Should I itemize my deductions or take the Standard Deduction?
The choice between itemizing and taking the Standard Deduction depends on your individual financial situation. Generally, if your eligible itemized deductions (such as mortgage interest, state and local taxes, medical expenses, and charitable contributions) exceed the standard deduction amount for your filing status, itemizing could result in a lower tax liability. We'll help you analyze your specific situation to determine the most beneficial option during our consultation.
How can I stay up to date with tax laws and changes?
Staying informed about tax law changes is crucial. ABJ Tax Services regularly monitors updates from the IRS and state tax authorities. We share important news and tips through our Tax Tips & News page on our website and during client consultations. We're committed to keeping you informed so you can make timely and effective financial decisions.
Can I deduct medical expenses?
You may be able to deduct medical expenses that exceed a certain percentage of your Adjusted Gross Income (AGI). This includes amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any structure or function of the body. There are specific rules and limitations, so it's important to keep detailed records of all medical costs. We can help you determine if your medical expenses qualify for a deduction.
What are some common worries people have about taxes, and how do you help?
Many people worry about unpaid taxes. The best course of action to resolve unpaid taxes is to pay the full amount to the IRS as soon as possible. Doing so will mean that you owe less in added penalties and interest over the long term. Not everyone can pay in full right away, so check out these other options for solving unpaid taxes: Apply for a long-term payment plan to pay in monthly installments; Look into an offer of compromise, which allows you to settle your debt for less than the amount you owe; Try requesting a temporary delay in collections if you expect your financial situation to improve. We can guide you through these options and help you communicate with the IRS.
What should I do if I receive a tax audit letter?
Receiving a tax audit letter can be daunting, but we're here to help. First, read through your letter to see what information the IRS is requesting from you. Next, you’ll need to gather your requested documents and send them to the IRS for verification. Make sure you respond in a timely manner and don’t miss the deadline specified in your letter. Audits conclude in one of three ways: no change, agreed, or disagreed. 'No change' means that your information is verified and no changes are needed. 'Agreed' means that you understand and accept the IRS’s proposed changes. 'Disagreed' means you understand but don’t accept their proposed changes, and will undergo further review. ABJ Tax Services can assist you in preparing for and responding to an audit, ensuring you provide accurate and complete information.
What important things should new clients know or prepare before working with ABJ Tax Services?
New tax clients should be prepared to provide comprehensive financial documentation and clearly communicate their goals to ensure an efficient, accurate, and proactive tax preparation process. Key preparations include:
Prior Year Tax Returns: A copy of your last 1–2 years' federal and state returns is critical for identifying carryover losses, depreciation schedules, and previous filing history.
Identification & Personal Info: Social Security cards or tax ID numbers for yourself, spouse, and all dependents. Also, bring dates of birth for everyone on the return and a government-issued photo ID.
Income Documentation: W-2s (for employees), 1099s (for interest, dividends, retirement, self-employment/contractor income), and K-1s (for partnerships/S-corps).
Deduction & Credit Records: Mortgage interest statements (Form 1098), property tax records, charitable donation receipts, medical expense summaries, and daycare provider information.
Business/Self-Employed Records: If you own a business, provide a Profit & Loss statement, balance sheet, and a detailed list of business expenses/mileage logs.
Other Important Documents: Forms 1095-A (if you have Marketplace insurance), 1098-T (education expenses), and records of estimated tax payments made during the year.
Organizing these documents beforehand will make our initial meeting more productive.
Ready to simplify your taxes?
At ABJ Tax Services, we go beyond basic tax preparation, offering personalized insights and proactive advice to help you achieve your financial goals. As a family-owned business , we're dedicated to providing clarity and peace of mind. Let's start your journey to a stress-free tax experience.