Resources

Have questions? Looking for web links? We’ve put together these resources to help you get answers to your questions. Need more information, give us a call!  Also, don’t forget to check out our blog for the latest information.

Quickly sort through these resources using the icon buttons below.

Below are the resources we’ve assembled to help you on your financial journey. Click these links to jump down and learn more. Please don’t hesitate to give us a call if you have any questions.

FAQs

Here are a few questions our team gets asked quite often. Feel free to give us a call anytime if you have any other questions.

How do I track my refund?

The IRS provides tracking for your refund through it’s website. (www.irs.gov)
Indiana also provides tracking for your refund. (www.in.gov)
NEW! IRS2Go is the official mobile app of the IRS (Click here for details.)

What do I bring to my tax appointment?

What to provide for your tax return (Click here for a helpful checklist.)
What to provide for a business return (Click here for a helpful checklist.)

Can I give someone money to buy a house/pay off student loans/etc.?

Yes, there are no tax consequences to either party for gifts up to $15,000 per person in 2019. The gift can be cash or any other asset (vehicles, investments, etc.). Also remember that the limit is per person, so if you want to give your child a gift and you are married and your child is married, you can give up to $60,000 in 2019.

I inherited or was gifted money or property from my parents. How much tax will I have to pay on that?

Generally, gifts and inheritances are not taxable to the recipient. One exception would be where an IRA is inherited and tax has not previously been paid on that money by the donor. On the other hand, if property is received as a gift or inheritance and later sold, the recipient would pay tax on the gain. Cost basis is determined differently for gifts than for inherited property. We are happy to explain how these calculations are made.

What credits do I get to claim if it is my ex’s year to claim our child?

The custodial parent (where the child spends most of his or her nights) is entitled to all the tax benefits, however they can allow the noncustodial parent to claim the child and that allows the noncustodial parent to claim the child tax credit ONLY. The custodial parent ALWAYS gets to claim the day care credit, earned income credit, and qualifies for Head of Household filing status.

Is there an age where Social Security is not taxed?

No, federal taxation of SS benefits is based on income level and not age. Anywhere from 0% to 85% of the SS benefit can be taxable based on how much other income a taxpayer is reporting. Note, Indiana does not tax anyone’s social security benefits.

Are the death benefit proceeds from a life insurance policy taxable to anyone?

No, a life insurance death benefit payout is one of only the few income sources that are not taxed.

Can I claim my pets as dependents, their medical care is outrageous?

It sure would be nice if you could add in your furry pet’s veterinary charges. Sorry, that’s not going to happen. But the IRS does say in Publication 502 that if you need a guide dog to compensate for your reduced vision or hearing, you can include the costs of buying, training and maintaining that animal and its medical expenses. In general, this includes such things as food, grooming and veterinary care that is necessary to make sure the animal is healthy enough to perform its assistance duties. If you’ve been diagnosed with a physical or mental condition that benefits from the attention of a trained therapy animal, those costs also count as a medical expense. Note, however, this doesn’t cover your loving cat that comforts you when he curls up in your lap. The animal must be trained or certified as treatment for a diagnosed illness or condition for the IRS to approve the deduction.

How are Indiana state and local taxes calculated?

For new residents of Indiana, there is a learning curve on understanding state & local taxes. Indiana has a flat rate for the state of 3.23%. So if you have $10,000 or $1,000,000 of taxable income, you are taxed at the same rate. In addition to this, each individual pays a county tax and each county can set their own tax rate. County rates range from .35% for Jefferson to 3.38% for Pulaski. There are a few exceptions to the rule, but an Indiana taxpayer is subject to county taxes based on where they lived on January 1st of the tax year.

What date of residence is used to compute county tax rates?

January 1st is the point in time that dictates what county taxes one would be subject to for the year. If someone moved to the state on January 2nd, they would not be subject to county taxes that first year but would be for the following tax year.

Are there different tax returns for county and state in Indiana?

Unlike some states that have a different return for the state and local/city tax, Indiana county tax computations are included in the Indiana state return.

What do you do if you work in a different county than you live?

You should always have the employer withhold based on your county of residence on January 1st.

How much retirement income is taxed in Indiana?

Like a lot of other states, Indiana does not tax Social Security Benefits. Also, Indiana gives a full or partial deduction for pensions that originate from Railroad Retirement Board, Office of Personnel Management and Defense Finance and Accounting Service (Military Retirement). If one is not lucky enough to be receiving retirement from one of the listed entities, then your retirement income will be fully taxable to state and county. To keep from owing to Indiana on your tax return, please ask the Administrator if they will withhold state taxes on the benefits. If they do, then as a rule of thumb, we tell clients that 5% withholding will cover most taxpayers in the state. This covers both state and county rates. If someone knows that they live in a county with a rate greater than 1.7%, then take the percentage up to have withheld 6% or 7%. If the Administrator will not withhold state taxes, then Quarterly Estimates may need to be sent in. Like the federal, Indiana can charge an Underpayment Penalty if more than $1,000 is owed at the end of the year.

I am employed with a company and work from home, can I deduct the office in home expenses?

For employees, home office expenses are a miscellaneous itemized deduction. If, however, you’re self-employed, you can deduct eligible home office expenses against your self-employment income. Therefore, the deduction will still be available to you for 2018 through 2025.

I started a new job and wonder if you could help me fill out my W-4 and WH-4?

We are happy to assist our clients in completing their W-4 and WH-4 (or W-4P and WH-4P for their retirement or IRA distributions).

Can I meet with my preparer without all my tax documents?

If you are missing one or two documents, but want to see where you are, go ahead and send us what you have, or make an appointment and we can see what your return looks like. Then when you receive the last few documents, send them to us and we will finish your return.

Helpful Links

Here are a few helpful links and resources. Also, don’t forget to check out our blog for the latest information.

 

Federal Resources

 

State Resources

Pricing

At Storen Financial, we strongly believe in providing professional advice and service at a reasonable price. We know you have many options available to you but we believe you will be pleasantly surprised with our pricing and the amount of time we can save you. Check back soon for more details.

Scams & Identity Theft

Phone scams, email phishing scams, and identity theft continue to grow and become more sophisticated. We are providing information courtesy of the IRS and the Indiana Department of Revenue to assist you. We will also keep our blog updated as we learn of new developments.

Please know that the IRS will never initiate contact with you over the phone demanding money, nor will they demand that you pay by a cash card immediately or you will be arrested. This is just one scam—but one that has happened all over the U.S. and many cases here in Central Indiana. Be aware!

Helpful links to read the most up to date information:

How can we help?

At Storen Financial, we offer so much more than tax preparation and accounting services. We go beyond the numbers to provide our clients with financial planning, in-depth consulting, and year-round support. Looking for more info? Click below to learn more.

Frequently Asked Questions

How do I track my refund?

NEW! IRS2Go is the official mobile app of the IRS. Click here to learn more and as always, feel free to contact us with any questions you have.

Is there an age where Social Security is not taxed?

No, federal taxation of SS benefits is based on income level and not age. Anywhere from 0% to 85% of the SS benefit can be taxable based on how much other income a taxpayer is reporting. Note, Indiana does not tax anyone’s social security benefits. Click here to see more FAQs.

How are Indiana State and Local taxes calculated?

For new residents of Indiana, there is a learning curve on understanding State & Local taxes. Indiana has a flat rate for the State of 3.23%. So if you have $10,000 or $1,000,000 of taxable income, you are taxed at the same rate. In addition to this, each individual pays a county tax and each County can set their own tax rate. County rates range from .35% for Jefferson to 3.38% for Pulaski. There are a few exceptions to the rule, but an Indiana taxpayer is subject to County taxes based on where they lived on January 1st of the tax year. Click here to see more FAQs.

How much retirement income is taxed in Indiana?

Like a lot of other States, Indiana does not tax Social Security Benefits. Also, Indiana gives a full or partial deduction for pensions that originate from Railroad Retirement Board, Office of Personnel Management and Defense Finance and Accounting Service (Military Retirement). If one is not lucky enough to be receiving retirement from one of the listed entities, then your retirement income will be fully taxable to State and County. To keep from owing to Indiana on your Tax Return, please ask the Administrator if they will withhold State taxes on the benefits. If they do, then as a rule of thumb, we tell clients that 5% withholding will cover most taxpayers in the state. This covers both State and County rates. If someone knows that they live in a county with a rate greater than 1.7%, then take the percentage up to have withheld 6% or 7%. If the Administrator will not withhold State taxes, then Quarterly Estimates may need to be sent in. Like the Federal, Indiana can charge an Underpayment Penalty if more than $1,000 is owed at the end of the year.Click here to see more FAQs.

What do I bring to my tax appointment?

Get the full list of the items you need here in this checklist.

The Latest News from Storen

Tax Return Extension Deadline – October 15th

All returns that have not been completed need to be completed by Tuesday, October 15th. There are NO second extensions. Contact our office with questions or to schedule a time to complete your return. Our office hours are 8:30am to 4:30pm on Tuesday. If you are unable...

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