Frequently Asked Questions

 

Question: How long will it take Pacific Tax 1040 to finish my tax return?

Answer: We're quick, but it depends on how complicated the return is. For a simple return with home mortgage interest, some bank interest the time is about one day. More complex returns will require more research and more back and forth between us.

 

Question: How much will it cost if I have Schedules A (itemized deductions), B (interest and dividends), D (capital gains)?

Answer: A ballpark estimate is $165 before discounts. Check out the quotes page for more info.

 

Question: How much will it cost if I have Schedules A (itemized deductions), C (business expenses), self-employment tax, and business use of my home?

Answer: A ballpark estimate is $260 before discounts. Check out the quotes page for more info.

 

Question: Where are you located?

Answer: We're located in the Bay Area of California, in San Mateo County (the Peninsula), in the town of San Carlos.

 

Question: What is the rule about the Roth conversions in 2010?

Answer: In 2009 and prior years, you can rollover/convert money from a traditional IRA to a Roth IRA only if your income is below $100,000. And you can only contribute money to a Roth IRA if your income is within certain limits, which is $120,000 in 2009 if you're single. But in 2010, you can convert money from a traditional IRA to a Roth IRA regardless of your income. Tax may be due on the conversion. If you make too much to contribute to a Roth IRA, you can contribute to a traditional IRA without claiming a deduction and convert that amount to a Roth IRA. The rules are tricky though.

 

Question: What are the special tax breaks for 2011?

Answer: For 2011 the Bush tax cuts have been extended. The Bush tax credits not only lowered taxes on the highest earners, but also expanded the child tax credit, double the standard deduction for married filers, etc. On your paychecks you might have noticed a 2% reduction of your social security taxes (but this does not typically affect your tax return). Check out our tax breaks article.