FAQs

About Prosperity
Check Refund Status
About Taxes

Where’s My Refund?

 Prosperity Information

  1. Is your office safe during the Covid pandemic?

Our office is considered an “essential” business, and we take the pandemic very seriously.  We are following CDC guidelines and NJ executive orders.  Face coverings are highly recommended, we have plexiglass shields, and we sanitize surfaces frequently.  The best time for appointments with the fewest persons present is Sunday or weekdays after 6pm.  You can also wait in your vehicle and communicate by text if desired.

2.  Do you do “Rapid” filing?

Everything we do is fast!  Most refunds are received in 2 weeks or less through direct deposit, although the IRS and state tax departments make no guarantees.  This year returns will not be accepted until January 24th, and there may be some delays due to reconciliation of Stimulus Payments and Advanced Child Tax Credit Payments.  Returns claiming the Earned Income Credit are also sometimes delayed by the IRS early in the tax season for income verification.

3. What do I need to bring to an appointment (or send for a remote appointment/drop-off)?

This will vary for each client–there is a helpful tax preparation checklist and other preparation tools available here.  New clients should bring previous year tax return if available.

4. What payments do you accept?

We accept cash, checks, credit cards, Venmo.  Remote clients can also easily pay by Square or Venmo.  

Commonly asked Tax Questions

 

1. Is my Federal Unemployment Taxable?

Yes.  Unemployment benefits are taxable on your federal return.   The exemption of unemployment from income in 2020 was not extended for tax years after 2020.  The treatment of these benefits for state purposes varies.  Unemployment is not taxable on NJ or California state returns, but it is taxable on NY returns.

2. Do I have to file a tax return this year?

This is a common question for senior citizens and people claimed as dependents on other tax returns, such as children who have a full or part-time job.  For tax year 2023, a  single person under 65 years of age is required to file a tax return if their gross income is $13,850 or more.  If you are 65 or over, the threshold is $15,350.  However, if you have self-employment income or certain investment income, there are other filing requirements.  The numbers are different for other filing statuses.  Of course, even if your income is under the threshold, you can choose to file, especially if you are due a refund or credit.  For more information on thresholds, see:  Do  I need to file a return this year?

3. I did not have health insurance this year, will I owe a penalty?

Possibly.  Although the federal government no longer mandates a penalty, NJ has adopted a penalty for no insurance.  There are some exemptions from this penalty, such as short term gap, income under the return filing threshold, and others.  See: Individual Shared Responsibility Exemptions.

4. Is it better for a married couple to file jointly or separately?

This depends on the specific situation.  Generally, couples get a better bottom line filing jointly than separately, for the following reasons:

  • Certain credits, such as education credits and earned income credit cannot be used if married filing separate status
  • Certain income limitations and loss amounts are higher
  • Couple only has to pay for the price of one return

*You may benefit by filing separately when,

  • The state tax benefit is higher when filing separately,
  • One of the couple has much more itemized deductions than the other, especially the type that are limited by adjusted gross income
  • One or both members of the couple wish to individually be responsible for their own taxes due/ or receive their “own” refund.

5.  Why do I owe so much?  Didn’t tax rates go down a couple of years ago?  

The Tax Cuts and Jobs Act lowered tax rates starting in 2018.  However, the same Act took away a lot of deductions which impacted many taxpayers, particulary married homeowners in states like NY and NJ.  Also, the withholding formulas changed, so less money was taken out of paychecks during the year.  These changes caused a lot of my clients to owe money instead of getting refunds.  

In order to combat these issues, get a W4 checkup.  W4s have changed–there is no more claiming exemptions.  Also, the W4 changes I have seen have caused clients to break even or owe money.  It is best to plan ahead or to make the changes when you experience a result other than what you want at tax time.  We can assist you with changing your W4 and understanding how it will affect your paycheck.

6.  My relative passed away.  Do I have to pay estate tax?  Do I have to pay inheritance tax?

Confusion surrounding these issues is common when a loved one dies.  NJ has an inheritance tax, and there are also “waivers” that may be used to avoid filing an inheritance tax return.  We can assist you with navigating the many tax issues regarding probate, estate tax, and inheritance tax that you may be facing.