Know before you go:
explore our FAQs
When is the deadline for filing taxes?
The deadline for filing U.S. taxes for most Americans is April 15, 2024.
What documents should I organize prior to filing?
Specific documents needed vary by person, so it's always a good idea to consult with a tax professional if you're unsure. For now, this is a good start:
- Personal Information: this includes your Social Security number or tax ID number, as well as those of your spouse and any dependents. You should also have a government-issued photo ID, such as a drivers license.
- Income Information: including W-2 forms from employers and 1099 forms for other income such as self-employment, dividends, interest, unemployment, etc.
- Deduction Information: if you plan to itemize deductions, gather documents related to home and vehicle ownership, charitable donations, medical expenses, health insurance, childcare expenses, educational expenses, and any other potential deductions.
- Tax Payment Information: if you made estimated tax payments, have records of these payments available.
- Bank Account Information: if you're opting to receive a refund or pay your tax bill directly through your bank account, you'll need your bank account and routing numbers.
What kind of deductions do I qualify for?
This varies. The Standard Deduction and Itemized Deductions are two methods that U.S. taxpayers can use to reduce their taxable income. We will help you determine which method reduces your tax liability the most. As a W-2 employee in the U.S., common tax deductions include: Charitable Contributions, Mortgage Interest, State and Local Taxes, Medical & Dental Expenses, Educator Expenses, and more. For business owners in the U.S., common tax deductions include: Home Office Deduction, Business Use of your Car, Employee Wages & Benefits, Travel Expenses, Office Supplies & Equipment, among others. Our team will help you identify all qualifiying deductions that reduce your taxable income.
What tax deductions do I have access to as a homeowner?
Homeowners have access to several tax deductions, including Mortgage Interest and Property Taxes among others. Our team will help you identify all qualifiying deductions that help reduce your taxable income.
Can home office expenses be deducted?
The home office deduction is available to self-employed individuals, independent contractors, and small business owners. For the tax year 2023, the simplified method allows a standard deduction of $5 per square foot (up to a maximum of 300 square feet) of the home used for business.
What is the difference between a Tax Deduction and a Tax Credit?
A tax deduction reduces the amount of income that is subject to taxation, thereby lowering the taxpayer's taxable income. On the other hand, a tax credit directly reduces the amount of tax owed, providing a dollar-for-dollar reduction of the tax liability. For example, a $1,000 tax credit reduces the tax bill by $1,000, while a $1,000 tax deduction reduces the taxable income by $1,000. In general, tax credits are often more valuable than tax deductions, as they directly reduce the amount of tax owed. However, both deductions and credits can significantly lower a taxpayer's overall tax bill.
What are some examples of Tax Credits?
We're happy to help you identify which tax credits you may be eligible to claim. Some examples of Tax Credits in the U.S. include:
- Earned Income Tax Credit (EITC): a credit for low to moderate-income individuals and families.
- American Opportunity Tax Credit (AOTC): a credit for qualified education expenses for the first four years of higher education.
- Lifetime Learning Credit: a credit for qualified tuition and related expenses for eligible students enrolled in an eligible educational institution
- Child and Dependent Care Credit: a credit for expenses paid for the care of a qualifying individual to enable the taxpayer to work or look for work.
- Saver's Credit: a credit for eligible contributions to retirement savings accounts, such as 401(k) plans or individual retirement accounts (IRAs).
Are unemployment benefits taxable?
Yes, unemployment benfits payments are considered taxable income and must be reported on your federal tax return. Each January, TWC mails the Internal Revenue Service Form 1099-G to all claimants who received Unemployment Insurance benefits in the previous tax year. Claimants may also obtain their 1099-G information online.
Can federal income tax be withheld from unemployment benefits?
Yes, you may choose to have federal income taxes withheld from your unemployment benefit payments. If you ask TWC to withhold taxes, TWC will withhold 10 percent of the gross amount of each payment before sending it to you.