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Frequently Asked Questions
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Q: How long does it take after you've filed to receive a refund?
A: If you e-file with direct deposit and have not received your refund within 3 weeks after filing your return (8 weeks if you filed paper with paper check), you can check your refund status on the Where's My Refund? page on the www.irs.gov web site or you can call Refund Hotline at 1-800-829-1954. Be sure to have a copy of your current tax return available because you will need to know your social security number shown on the return, the filing status and the exact whole dollar amount of your refund.
Q: How long does it take to get a refund back by direct deposit?
A: If you e-file with direct deposit and have not received your refund within 3 weeks after filing your return (5 weeks if you filed paper with direct deposit), you can chech your refund status by going to the Where's My Refund page on the IRS website www.irs.gov or you can call Refund Hotline at 1-800-829-1954. Be sure to have a copy of your current tax return available because you will need to know your social security number shown on your return, the filing status and the exact whole dollar amount of your refund.
Q: Can you direct deposit your refund into someone else's bank account if you do not have a bank account?
A: No. The account has to be in your name.
Q: Will I be notified when my direct deposit is made or will I have to check with my bank to find out?
A: You will need to contact your bank to determine when the deposit was made. The deposit will be recorded in your bank statements. However, if you use an automated system to check on your bank account balance, you will know that your refund has been deposited when your balance has increased by the amount of your expected refund.
Q: Can I check my refund status via Internet?
A: You can now check the status of your refund via internet through the Where's My Refund? page on IRS website www.irs.gov. You must provide your social security number, filing status, and refund amount.
Q: How can I check on the status of my refund?
A: Refund information does not become available until it has been 6 weeks since you filed your tax return (3 weeks if you filed electronically). After waiting the appropriate number of weeks, the fastest, easiest way to find out about your current year refund is through the Where's My Refund? page on IRS website www.irs.gov or you can call the Refund Hotline at 1-800-829-1954. Be sure to have a copy of your return available since you will need to provide your social security number shown on your return, the filing status, and the exact whole dollar amount of your refund. The IRS updates refund information every seven days.
Q: Can a person receive a tax refund if they are currently in a payment plan for prior year's federal taxes?
A: You may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan or child support. The IRS will automatically apply the refund to the taxes owed. If the refund does not take care of the tax debt; you must continue the installment agreement.
Q: I lost my refund check. How do I get a new one?
A: Call the IRS at 800-829-1954. If your refund check has not been cashed, IRS can normally provide a replacement within 6 to 8 weeks. If your refund check has been cashed, the IRS will provide procedures for you to verify the signature on the cancelled check before determining whether another can be issued.
Q: Is it possible to find out if a federal tax refund check has been cashed?
A: If you need to know whether a federal tax refund check that was issued to you has been cashed, you can call 800-829-1954 and request Form 3911 (PDF), Taxpayer Statement Regarding Refund.
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Q: I still have not received a W-2, What should I do?
A: First, contact your employer to find out if or when the W-2 was mailed. Allow a reasonable amount of time for the employer to re-mail or issue the W-2. Then, if you still did not receive your W-2, contact the IRS to prepare Form 4852 (PDF), Substitute for a Missing Form W-2. When you call, you will need to give IRS the following information:
Your employer's name and complete address, including zip code, social security number, and telephone number; and An estimate of the wages you earned, the federal income tax withheld, and the period you worked for that employer. IRS will mail you a copy of Form 4852, but you should use it only if necessary to meet the filing deadline. If you file your return and attach Form 4852 instead of a W-2, your refund may be delayed while the information you gave us is verified. If you receive a corrected W-2 after you file your return, and it does not agree with the income or withheld tax you reported on your return, you must file an amended return.
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Q: Do I need to file a return?
A: If you are a U.S. citizen or resident, whether you must file a return depends on three factors:
1) Your gross income.
2) Your filing status.
3) Your age
To find out whether you must file please contact us.
Q: I am a student attending college and working part-time. Do I have to file a return?
A: If you are an individual who may be claimed as a dependent on another person's return and you are single and under age 65, you must file a return if any of the following circumstances apply:
1) Your unearned income was more than $900.
2) Your earned income was more than $5,450.
3) Your total income was more than the larger of $900 or your earned income (up to $5,150) plus $300.
Even if you do not have to file, you should file a federal income tax return to get money back if any of the following apply: You had income tax withheld from your pay. You qualify for the earned income credit. You qualify for the additional child tax credit.
Q: My daughter is my dependent and receives dividend income. Does she need to file a federal income tax return?
A: A federal income tax return usually must be filed for a child whose income includes investment income, such as interest and dividends, and totals more than $900.
Q: If you don't owe any money, do you have to file a tax return?
A: Whether you have to file a tax return depends on your filing status, age, and gross income. You need to file if you are due a refund from income tax withheld from your pay, or you qualify for the earned income credit or the additional child tax credit.
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Q: If I won't be able to finish my return by April 15th, can I get an extension?
A: Yes. You can get an extension by filing Form 4868 (PDF), Extension of Time To File U.S. Individual Income Tax Return, by the due date. By filing the extension, you avoid the late filing penalty. However, Form 4868 does not extend the time to pay your income tax.
Q: If you are late filing, without an extension, and have a refund coming back, how much are you penalized?
A: Late filing penalties are based on the amount owed. If you have a refund coming there will be no penalty.
Q: How long can you make a claim to that money?
A: While you may file the original tax return at anytime, the amount of any refund cannot be more than any tax paid within the 3-year period (plus any extension of time for filing your return) immediately before you filed the claim. (The time you file your claim may be based on the postmark date for this purpose.) Income tax withheld from wages and estimated income tax payments (made before the due date without regard to extensions for the original return) are considered paid on the due date.
Q: I'm expecting a refund, but I have not filed my return and the deadline has passed. Will a late penalty be charged?
A: If there is a refund due to you, no penalty for late filing will be charged. The penalty is based upon the unpaid taxes as of the due date of the return.
Q: If I mailed my return in after April 15th, would the return be considered received on the day it was postmarked or the day the IRS received it?
A: A return delivered to the Service by U.S. mail after the due date for the return is considered timely filed only if the return was postmarked on or before the due date of the return. For example, an income tax return postmarked April 18th and received by the Service on April 20th is considered filed on April 20th.
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Q: If the child is born in the last week of December, can the child be a qualifying child for the Earned Income Credit?
A: Normally, to be your qualifying child, your child must have lived with you for more than half of the tax year. However, if the child fails the residency test because the child was born or died during the year, the child is considered to meet the test if the child lived with you for the entire time he or she was alive during the tax year.
Q: In order to claim the Earned Income Credit, does the child have to be claimed as a dependent?
A: A qualifying child for the Earned Income Credit does not need to qualify as a dependent unless he or she is married.
Q: If the noncustodial parent receives permission from the custodial parent to claim a child on his or her tax return, is the noncustodial parent eligible for the Earned Income Credit?
A: The noncustodial parent cannot claim the Earned Income Credit on the basis of that child because the child did not live with that parent. The custodial parent may be able to claim the Earned Income Credit. A qualifying child for the Earned Income Credit does not need to be a dependent unless the child filing status is married.
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Q: My ex-spouse owes me child support. How can I find out if he has filed and if I will receive his federal refund this year?
A: An individual's tax return is protected under the Privacy Act of 1974. Therefore, the IRS is restricted from releasing information concerning your ex-spouse's account. However, if your state office of child support enforcement has norified the Treasury of a past-due child support obligation, the refund will be offset to pay the debt.
Q: Is my child support included in income?
A: No. It's neither income to the recipient or a deduction by the person paying.
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Q: When does my Social Security Benefits become taxable?
A: If part of your benefits are taxable, how much is taxable depends on the total amount of your benefits & other income. Generally, up to 50% of your benefits will be taxable. However, up to 85% of your benefits can be taxable if either of the following situations applies to you:
1) The total of one -half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly).
2) You are married filing separately and lived with your spouse at any time during 2003.
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Q: First Time Home Buyer Credit -- How's it different in 2010?
A: The Worker, Homeownership and Business Assistance Act of 2009, signed into law on Nov. 6, 2009, extends and expands the first-time home buyer credit allowed by previous Acts.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
The new law also:
* Authorizes the credit for long-time homeowners buying a replacement principal residence.
* Raises the income limitations for homeowners claiming the credit.
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Energy Credit Back?
Nonbusiness Energy Property Credit
This credit equals 30 percent of what a homeowner spends on eligible energy-saving improvements, up to a maximum tax credit of $1,500 for the combined 2009 and 2010 tax years. The cost of certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass all qualify, along with labor costs for installing these items. In addition, the cost of energy-efficient windows and skylights, energy-efficient doors, qualifying insulation and certain roofs also qualify for the credit, though the cost of installing these items does not count.
By spending as little as $5,000 before the end of the year on eligible energy-saving improvements, a homeowner can save as much as $1,500 on his or her 2009 federal income tax return. Due to limits based on tax liability, other credits claimed by a particular taxpayer and other factors, actual tax savings will vary. These tax savings are on top of any energy savings that may result.
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Q: I've changed jobs - What do I put for withholding at my new job?
A: Even though you'd think this would be standardized and an easy question, there turns out to be many variables that could change your take home paycheck. Assuming that you are satisfied with your present refund and all things are equal (i.e. other income, itemized deductions, credits, etc.) and that you will be claiming the same (married 2, single 1, etc.) at your new job, the best way will be to compare your paychecks.
One of the variables is How you are being paid (weekly, monthly, semi-monthly, bi-weekly, etc.) and this alone can change your withholding drastically.
Remember - the W-4 is telling your employer how much to withhold. The worksheet they give you equates everything to your family size but in reality only plays a small part of the overall picture. Example: you have a net operating loss from a business that went bad that wipes out your taxable income - there would be no need to have anything withheld and thus, you could be married with no children and still claim 9 dependents. Remember! It's only telling your employer how much to withhold.
Rule of thumb #1 - The more dependents you claim the more you get back in your paycheck and the less amount of refund you should plan to receive.
Rule of thumb #2 - Each dependent that you claim could mean a difference between $400 - $800 (for average taxpayer) in your refund check depending on your income - the higher the income - the higher the difference.
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Q: How long do I have to reinvest and buy another house?
A: Under the new tax law you get $500,000 (married filing joint) and $250,000 (single) of gain free. The old law had you reinvesting the money but the new law doesn't have that requirement. You can do this every 2 years. You must own the home (your personal residence) and live in it for 2 of the past 5 years. A change in place of employment, health or unforseen circumstances may be an exclusionary rule if you sold more than 1 home during 2-year period. Any other variances see your tax advisor.
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Q: How much is the special deduction for Teachers?
A: Eligible teachers may deduct up to $250 for out-of-pocket expenses on the front side of their tax returns. Be sure to keep receipts! Amounts spent in excess of the $250 may be included on schedule A. The deduction for teachers is scheduled to expire this year. Look for Congress to extend the very popular deduction.
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Q: I cannot make my payment in full; can I make payment arrangements?
A: If you cannot pay the full amount owed when you file, you may ask to make monthly installment payments. To make this request, wait until the department processes your return and sends you an initial billing notice. You will receive an installment agreement request with the initial billing notice.
Q: Is there any way you can tell me if my return has been received?
A: Please allow 8 weeks from the time your return was filed to check on your return. You may inquire about your return status by calling (602) 255-3381 or, if you are calling from area codes 520 or 928, you may call toll-free (800) 352-4090. This is an automated inquiry line. You must be ready to provide your social security number, zip code, filing status, and amount of refund you expect to receive.
Q: What are the filing requirements for Arizona?
A: The filing requirements are explained at the beginning of the instructions for Arizona income tax returns. If your Arizona gross income (for Arizona full year residents this is the federal adjusted gross income) is at least $15,000, you must file an Arizona income tax return. Also, you must file an Arizona income tax return is your Arizona adjusted gross income is at least $11,000 for married filing jointly or $5,500 for those filing as single, head of household or married filing separately.
Q: Can I make a payment with my credit card?
A: No. Arizona has no provisions for paying by credit card at this time.
Q: Do I have to send in an extension to the state if I already sent it in to the IRS?
A: A federal extension for filing income taxes will also extend your time to file Arizona income taxes. However, if you are making a tax payment with your extension request, you must use the Arizona extension Form 204 to make that payment in order to ensure your payment will be properly credited to your account.
Q: If I have income from another state is it taxable in Arizona?
A: Yes, an Arizona resident is subject to tax on all income wherever derived from.
Q: What portion of my pension is taxable?
A: As a general rule, the same portion of your pension is taxable for Arizona purposes as is taxable for federal purposes. However, there is a special subtraction, not to exceed a total of $2,500, for pensions from the State of Arizona and its political subdivisions or from U.S. government service, including the U.S. military.
Q: What is the due date for my tax return?
A: Arizona individual income tax returns are due on the 15th day of the 4th month after the close of the taxable year. For most people, this is April 15th. If April 15th falls on a Saturday or Sunday, the return is due on the next business day. Tax returns for the year 2008 are due on April 15, 2009, unless you have obtained a valid extension.
Q: Are capital gains reported on my Arizona tax returns?
A: Arizona has no special treatment for capital gains. Capital gains included in your federal adjusted gross income are included in your Arizona gross income and are taxed at your regular tax rate.
Q: How many weeks does my return take to process?
A: How long it takes your return to process depends on how you filed (e-file or paper) and when you filed. If you file early in the tax season, your return will be processed much faster than if you file at the last minute. Returns that are e-filed are processed faster than paper returns. Please allow 8 weeks from the date you filed before calling to check on the status of your return.
Q: How do I e-file my return?
A: You may only claim certain credits on your Arizona return if you e-file. The only credits that you may claim on an e-filed return are:
1) Family income tax credit
2) Clean Elections Fund tax credit
3) Increased excise tax credit
4) Credit for taxes paid to another state or country (Form 309)
5) Credit for solar energy devices (Form 310)
6) Credit for contributions that provide assistance to the working poor (Form 321)
7) Credit for contributions made or fees paid to public schools (Form 322)
8) Credit for contributions to school tuition organizations (Form 323)
9) Credit for donating motor vehicles to the Wheels to Work program (Form 324)
You may not e-file your return if you are claiming any other credits. You must file a paper return if you are claiming credits other than the ones listed above.
Q: If I owe money when I e-file, how do I remit my payment?
A: If you owe money when you e-file, you should receive an Arizona Form AZ-140V from your tax preparer or software. Mail your payment together with Form AZ-140V to the address shown on Form AZ-140V. If you do not include Form AZ-140V with your payment, this will delay proper application of your payment. You must complete the electronic filing process in enough time to receive a confirmation or rejection and correct any errors by April 16. This means you should not wait until the last minute if you want to e-file.
Q: I already sent in my return but I forgot to enclose my payment. Where do I send the payment?
A: Please send the payment to Arizona Department of Revenue. PO Box 52016, Phoenix, AZ 85072-2016. Be sure to write your social security number on your check. If your payment is postmarked after April 15, the Department can charge you a late payment penalty. This penalty is 1/2 of 1% (.005) of the amount shown as tax for each month or fraction of a month for which the failure continues. This penalty cannot exceed a total of 10%.
Q: The information line is saying that my check was mailed on --------- and I have not received it. Why?
A: The department mails your refund to the address shown on your tax return unless you have notified the Department of a change of address. Sometimes mail is lost. If you have not received the check within two weeks of the date it was mailed, call (602) 255-3381 or toll-free (800) 352-4090 from area codes 520 or 928 for assistance.
Q: Why am I getting penalized for underpayment of estimated taxes when I am getting a refund?
A: If you expected your 2003 Arizona gross income to exceed $75,000 (Married Filing Joint $150,000) or if your Arizona gross income for the 2002 taxable year was greater than $75,000 (Married Filing Joint $150,000), Arizona law required you to make estimated payments to cover the amount that was not covered by withholding during 2003. These payments were due on April 15, 2003, June 15, 2003, September 15, 2003 and January 15, 2004. If you did not make these payments on a timely basis, you may owe a penalty.
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