Tax FAQs

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Although we all wish they weren't, taxes can be pretty tricky, and unless you have an extensive background in the financial field, understanding them can take a while to master. Are there tax related items that you're still unsure of? Considering that tax season requires you to place a lot of your focus on your finances, we've collected a few of the most frequently asked questions regarding the topic to help make these tax heavy months a bit easier on you - check them out below.

Q: Am I still able to claim my child as a dependent?
A: In order to claim your child as a dependent, they will need to meet either the qualifying child test or the qualifying relative test. For the qualifying child test, your child must be younger than you AND must either be younger than 19 or be a student and younger than 24 at the end of the calendar year. If they are completely disabled, they can be of any age. Should your child meet the qualifying relative test, there is no age limit to define whether you can or can not claim them as a dependent, so check with your tax preparer to see if they meet the eligibility requirements.

Additionally, along with the above two tests, you can also claim your child if they qualify in the dependent taxpayer test, citizen or resident test, and the joint return test.

Q: Do I have to claim my child as a dependent to be able to file as head of household?
A: Not necessarily - depending on the circumstance, you may be able to still file as head of household even if you did not claim your child as a dependent.

Q: I noticed a mistake on my federal return after filing - what can and should I do?
A: The answer to this all depends on the exact mistake that was made. Generally speaking, any mathematical errors should be found by the IRS when processing your return, so there's a chance they will just correct it for you. If you are missing forms, expect to hear from the IRS - they'll reach out for the information they need to complete processing. If, however, the mistake has to do with filing status or changes need to be made to things like your income or deductions, the next step is to file an amended or corrected return - this can be done through Form 1040X. 

Note: keep in mind that it can take up to 16 weeks for the IRS to process an amended return.

Q: How can I let the IRS know that my address has changed?
A: Notifying the IRS of an address change can be done in a number of ways, with one of the easiest being to use your new address on this year's tax return. However, if your address changes after filing and you'd like to notify them in advance of next year's tax season, you can submit Form 8822 or Form 8822-B, send them a written statement, contact them via phone or in person, or send an electronic notification. 

Q: If I retired last year, do I need to pay taxes on the Social Security benefits I've received?
A: Your Social Security benefits include any monthly retirement, survivor and/or disability benefits. To determine how much of your Social Security benefits need to be included on your tax return and used to calculate income tax liability, you'll need to take a look at your total income and benefits from the taxable year. Once you have this information, compare the base amount for your filing status (contact us to learn how you can figure this out) with the total of the rest of your income (except any tax-exempt interest) and 1/2 of your benefits.

For those who are married and filing a joint return, you'll need to combine the income and Social Security benefits of both you and your spouse to determine how much of your benefits are taxable. In situations where your spouse did not receive any benefits, you'll still need to combine their income with yours.

For more answers to tax FAQs, check out this section of the IRS' website.

At American Investment Planners LLC, we are fully staffed with several tax professionals who know just how difficult it can be to truly understand the nature of taxes. So, if you have additional questions about certain tax related topics, please do not hesitate to give us a call at (516) 932-5130 - we'd be happy to help!