AI Tax Answer Library

Cloud-based, easy onboarding, e-file coverage for common individual and business entities, integrated e-signature and client organizers; good when you don’t want servers or VPNs

Keep “permanent books of account or records” sufficient to establish income, deductions, credits, and other return items, and retain them as long as their contents may become material to any internal revenue law administration.

Use Where’s My Refund to view the status for the current year and the two prior years. You’ll need your SSN/ITIN, filing status, and the original expected refund amount for the year you select

A charitable contribution is deductible only if verified under regulations. Keep records that substantiate the amount, date, donee, and nature of the gift in the year paid.

Check your status using Where’s My Refund on IRS.gov or the IRS2Go app. These tools have the most current status and update daily

Read the entire notice to identify the tax type, period, reason, response deadline, and how to reply

Cash donations: keep a canceled check, a receipt/acknowledgment from the charity showing the charity’s name, date, and amount, or other reliable written records with that information

Maintain encrypted backups to external media or reputable cloud storage; keep at least one offline/offsite copy and encrypt before uploading to the cloud

Make sure the name and SSN on the return match the Social Security card exactly. If your name changed (for example, marriage/divorce), update the Social Security Administration (SSA) first, then file or correct your return.

Enroll at EFTPS.gov, then you can schedule multiple estimated payments in advance and set a recurring cadence. Individuals can schedule payments up to 365 days ahead; businesses up to 120 days.

IRS Direct Pay: Make one-time payments from a checking or savings account with no fees. You can schedule in advance and get instant confirmation. Works for 1040-series balances, estimates, and more

Go to IRS.gov/account and select “Sign in to your Online Account” to view your federal tax account information. New users will be prompted to verify identity; have photo ID ready. 1

Entering incorrect credit amounts (for example, Child Tax Credit, Recovery Rebate Credit) instead of using IRS letters/Online Account to reconcile; the IRS adjusts these and it slows processing 1

If you use an ITIN, confirm it’s valid; expired ITINs can delay processing and refunds. The IRS accepts returns with expired ITINs, but renewal may be needed for smooth processing

A filing extension gives you extra time to submit your tax return, generally up to six months (typically until Oct. 15 for individuals). 

he due date to file your 2024 federal individual income tax return is Tuesday, April 15, 2025. If you e-file, the transmission time in your time zone controls timeliness; if you mail, a timely postmark counts.

Contribute up to the annual elective deferral limit to your 401(k) or 403(b) and use age-50 catch-up if eligible. For reference, the IRS shows 2024 limits of $23,000 (401(k)/403(b)) and $16,000 (SIMPLE)

Most GRATs are structured as grantor trusts, so all trust income, deductions, and gains are taxed to the grantor while the grantor retains powers or interests that trigger grantor trust status. Under Rev. Rul. 85-13 principles

Amounts paid by reason of the insured’s death are generally excluded from the beneficiary’s gross income. Any interest paid on top of the death benefit (for example, if the insurer holds the proceeds and pays installments with interest) is taxable as interest income and should be reported accordingly.

Yes. A QCD is a direct transfer from your IRA to a qualifying charity that is excluded from your gross income. The basic QCD rules (age 70½ or older; direct trustee-to-charity transfer; only to section 170(b)(1)(A) organizations

Naming a beneficiary has no tax effect by itself. Taxation happens when benefits are paid. In general, a beneficiary includes in income the same portion of a retirement plan distribution the participant would have,

There’s no special change to gift tax reporting just because the recipient is a non‑U.S. person. U.S. gift tax is donor‑based: you file Form 709 for taxable gifts in the same way you would for gifts to U.S. persons.

For most non-spouse “designated beneficiaries,” an inherited IRA (traditional or Roth) must be fully distributed by December 31 of the 10th year after the year of the original owner’s death.

A conversion from a traditional, SEP, or SIMPLE IRA to a Roth IRA is treated as a distribution from the non‑Roth IRA and a rollover to the Roth IRA. The taxable portion equals the fair market value converted minus any after‑tax basis

For 2025, you can give up to $19,000 to each donee without using any lifetime exemption. A married couple can shield up to $38,000 per donee (via gift-splitting) if they consent and file Form 709 as required

The federal basic exclusion amount (estate and lifetime gift tax exemption) for decedents dying in 2025 is $13,990,000 per individual. 1