Yahoo Finance Your tax day questions answered
It’s officially tax day! We’ve rounded up a few more of your tax questions and are here to help you file successfully (and on time!). Yahoo Finance partnered with a team of certified public accounts to answer your tax questions.
Need more help? We’ve compiled all of your questions into these tax guides.
Your last-minute questions about taxes answered
All your retirement tax questions answered
TAXPAYERS WHO ARE SELF-EMPLOYED: What can I deduct?
While the Tax Cuts and Jobs Act that passed at the end of 2017 affected people who work from home but are employed by a company, if you’re self-employed, there are still deductions available to you. Sheila Brandenburg, a CPA in New York City, says things like a home office, business meals, and office equipment are all things to consider. Additionally, Brandenburg says keeping accurate records is critical for taxpayers who are self-employed.
“The first thing you should always do is get an invoice out to your client, and then you will get a 1099,” she says. “Whatever type of expenses or money you're laying out for your business, keep track of it—document it and scan them.”
TAXPAYERS WHO ARE RETIRED: How will the new standard deduction affect me?
The new standard deduction — which nearly doubled to $12,000 this year after the implementation of the Tax Cuts and Jobs Act — is on the minds of lots of taxpayers, specifically retirees.
“It is hard to say in general how it will impact you,” says Lydia Vercelli, highlighting two factors for filers to keep in mind. “One is how your 2018 standard deduction compares with your prior years. The 2018 limit is $12,000, and you get an extra amount if you’re over age 65.”
TAXPAYERS WHO FILED INCORRECTLY: How do I fix a mistake on my W-4?
Claiming the wrong number of exemptions on your W-4 can lead to one of two outcomes, says Brandenburg: owing more to the IRS or getting a bigger refund. If you have a large refund, you may want to increase the number of exemptions so that you’re getting more money throughout the year and not just sending it off to the government.
More exemptions means less taken out for taxes in each paycheck, she says. Conversely, if you end up owing more tax, it might be a good idea to reduce the number of exemptions you’re claiming.
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