Tax return season in itself is a nightmare for many, especially for those that will have to end up paying taxes to the IRS, some other people however will be getting a nice amount of change sent back to them. Since today is the first of the month (February) all W-2 forms for regular employees should of been mailed out already. If you are self employed and do contract work, then you should have a 1099-MISC form also sent to you by all the different companies you did work for.
Last December, I gave out two tickets in a raffle to the Starwars Premier in Brownsville and a lucky winner, Orlando Gutierrez a native from Brownsville was the winner. Orlando has been working at iTax services and solutions since 2012 and has previously worked for Cavazos Income Tax for many years before they sold out to H&R Block. With over 10+ years of experience in his belt, if anybody is to ask about taxes, it would be this guy. I had a chance to have a phone interview and ask some frequently asked questions and also debunk some myths that people have.
Question #1
Me: What happens to the people that don’t have their W-2, what should they do so they can file their tax return?
Lando: If the people haven’t received their forms by February 23rd, they really need to call the IRS and let them know. They will ask you information about yourself (name,address,city..etc…) and about your employer (dates of employment, how much you made, and income tax withheld using your last paystub). If you still by then haven’t received your W2, you still need to file a tax return and request an extension to file by the tax deadline.
Question #2
Me: How come they are people that get a bunch of money and I know for a fact they haven’t worked at all in the year.
Lando: If you have 0 income reported, they don’t qualify to receive any money at all. What people may be doing is putting down that they are self employed and may qualify for EIC (Earned Income Credit) and if they have kids that they put down as dependents, then likely this is where they are receiving money on their tax return. Now if they are not self employed and are filing this way, this is against the law and they could get audited and be fined or go to jail.
Question #3
Me: Some people that work I know say they are not going to file an income tax, why is that? Are they required to file?
Lando: For 2015, the rules are that if you make less than $10,300 you are not required to file an income tax return, however you could be losing money because you could be eligible to receive a tax return and not know unless you file.
Question #4
Me: What happens if you don’t file your income tax?
Lando: You have three years to file a tax return, and if you are owed money then you’re just losing out on that money if you don’t actually file. If you owe money to the IRS then more than likely in a few years you’re going to get a letter in your mail with the amount of money you owe and interest added as a penalty and of course when you deal with the IRS and if you owe them money, they don’t play around, so it’s best to just file your taxes in a timely manner to avoid things like this happening.
Question #5
Me: Last question, how much do you charge for your services?
Lando: We have some of the best prices around, we start at $45 and up, depending on the type of tax return that you are filing. We match and beat any competitors price, our prices are affordable that we give our clients a change to pay upfront. We also double check your last year return or prior to see if you got all the qualifying credits you deserve and help you file a correction (1040x) so you can get any extra money that is owed to you.
After talking with Lando on the phone and thanked him for his time, it seems with all the information given to me, I’ve learned a few things myself. Most of the time I’ve done my own taxes using HRBlock online so I will probably have him check my taxes and who knows, he may have earned himself a new client. If you want to consult with Orlando or anyone in their iTax office, just head down Southmost in Brownsville and take a right on Esperanza Rd and their office is next to Gloria Plaza.