Frequently Asked Tax Preparation Questions: Line One

	Frequently Asked Questions
	I started a business in 2009. Will I need to file a separate return for my new business? Can I still file a joint return with my spouse?
	If your business is not incorporated, and there is only one owner, it is usually filed as a sole-proprietorship. A separate schedule is attached to your individual income tax return, to calculate the taxable net income that is combined with your other taxable income. A separate return is not filed for the business, and you still have the option to file a joint return with your spouse, or a separate return for yourself. In the case of a business operated by a married couple (that is not registered as a separate entity with your state) each spouse could include a separate schedule to calculate their share of income or loss from the operation of the business.

	Do I have to have my W-2 forms to file my taxes? I haven't received them from my employer.
	W-2 forms are supposed to be made available to you by January 31st of the year following the year of employment. So it is advisable to wait until after the beginning of February (to allow mailing time from January 31) before requesting a W-2. For electronically filed tax returns, after the middle of February an IRS "substitute" W-2 form may be filed. You will be required to explain the efforts that you have made to obtain the W-2 and how you calculated the amount of gross wage and withholdings that are entered on the substitute form. Other useful information for the form is your employer's name, address, and Federal Employer Identification Number. For forms W-2 for previous years, the IRS can provide transcripts of W-2 information that may be used for filing those returns. Call the IRS at 1-800-829-4933 to request transcripts.

	I did not file my tax return for 2004, and I would have been due a refund for that year. Is that refund still available?
	The "statute of limitations" for an income tax return is three years from its original or extended due date, unless 25% or more of gross income is omitted from the return. In the case of that omission the return is available for IRS scrutiny for an additional three years. At the present time only tax returns for the years 2005, 2006, and 2007 are available for a tax refund, in addition to 2008. Accordingly after April 15 of 2009 (or October 15 in the case of a timely filed extension) a refund from a late filed 2005 tax return will no longer be available. TOP

	My spouse had little or no income in 2009. Should I file by myself?
	Filing jointly with your spouse, in that situation, is a financial advantage because your spouse adds no significant income to your return, but you receive the benefit of their deductions and allowable credits, and so maximize your return.TOP

	My spouse passed away in 2008 (or in 2009 before we filed our tax returns). Will separate returns need to be filed?
	If your spouse passed away in 2008 (or 2009, as above), you still have the option of filing a joint return or filing separate returns. If your spouse passed away in 2008 you of course will have that same option for your 2009 tax return. In addition if you have dependent children you may be eligible to file as a Qualifying Widow(er) with dependent child for the two years succeeding the year of the death of your spouse. Your single income would then be taxed at the advantageous joint return rates for those years.TOP

	I was divorced in 2009, and have made monthly child support payments to my ex-spouse since the divorce was final. May I claim that child that is in his/her custody as my dependent for tax purposes?
	For tax purposes the custodial parent is assumed to be deserving of the dependency deduction for the child, barring documentation to the contrary. That documentation would include a stipulation in the divorce decree granting the deduction to the non-custodial parent for any specified years (e.g. "all years", "all odd-numbered years", etc.). However timely child support payments are required and more than 50% of the child's support must be supplied by both parents combined. In addition the custodial parent may allow the non-custodial parent to claim the child for tax purposes by supplying a signed form 8332 to the non-custodial parent. The form 8332 must be attached to the tax return for successful claiming of the dependent child not in the taxpayer's custody. Pertinent pages of the divorce decree (cover page, page describing the non-custodial parent's right to the deduction for the child, and signed signature page) may also be used to verify the right to the deduction. If appropriate documentation is not provided with the filed tax return the deduction will be denied. Different rules applied for divorces final before 1985.

	TOP


	EMAIL

		WELCOME TO LINE ONE!

	MEET OUR STAFF

	WHERE WE ARE

	DISCUSSIONS WITH DAVE

	DROP-OFF QUESTIONNAIRE

	ORGANIZER

	TAX INFO LINKS

	FAQs

	TAX UPDATES • BUSINESS • INDIVIDUAL

	LOAN STATUS (LINK TO CHASE BANK)

	REFUND STATUS (LINK TO IRS)

	OTHER LINE ONE SERVICES
	• ACCOUNTING • PAYROLL • EMPLOYER SERVICES
	• GRAPHIC SERVICES (LINK TO CARROUSEL GRAPHICS)



	Photo: Marek Tihelka Dreamstime.com



	The folks at Line One are a great help to businesses. They know this stuff. . .I trust them with my tax work!

	TOPICS:
	Business start in 2008
	W-2 forms
	Didn't file past tax return
	My spouse passed away
	Do I file separately?
	I was divorced in 2008

	Have a question?
	Email your questions to Dave include your phone number and a good time for Dave to call—he will telephone you at his first opportunity to discuss the answer with you (he likes to visit on the phone to be sure your question is clear and gets answered). If it's one that others would be interested in, we'll include it on this FAQ page! Thanks for your input.

	Isn't it appropriate that the month of taxes begins with APRIL FOOL'S DAY and ends with cries of "MAY DAY!" ? —Rob Knauerhase (Intel Corporation)