Frequently Asked Questions

If you e-file and choose direct deposit, the IRS typically issues refunds within 21 calendar days. Paper returns can take 6-8 weeks or longer. You can check your refund status using the IRS "Where's My Refund?" tool at irs.gov or through the IRS2Go mobile app. Returns claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) may be delayed until mid-February per the PATH Act.

No, Texas does not have a state income tax. This is one of the major financial advantages of living in the Lone Star State. However, Texas compensates with higher property tax rates (averaging about 1.8% of assessed value) and sales tax (6.25% state rate plus local additions up to 8.25% combined). When doing your federal taxes, you cannot deduct state income tax, but you can deduct property taxes up to the $10,000 SALT cap.

For 2025, the standard deduction is $15,000 for single filers and $30,000 for married filing jointly. You should itemize only if your total deductible expenses exceed the standard deduction. Common itemized deductions include mortgage interest, state and local taxes (up to $10,000), charitable contributions, and medical expenses exceeding 7.5% of AGI. In Texas, since there's no state income tax, it can be harder to exceed the standard deduction threshold.

The EITC is a refundable tax credit for low-to-moderate income workers and families. For 2025, the maximum credit ranges from about $600 (no children) to over $7,800 (three or more children). Income limits apply and vary by filing status. The EITC can significantly increase your refund -- many Texas families qualify but fail to claim it. Use our tax calculator to estimate your eligibility.

If you owe taxes but cannot pay the full amount, you should still file your return on time to avoid the failure-to-file penalty (5% per month). The IRS offers several payment options: installment agreements (monthly payment plans), offer in compromise (settling for less), and currently not collectible status if you're experiencing financial hardship. Contact us to discuss your options.

The IRS generally recommends keeping tax records for at least 3 years from the date you filed or 2 years from the date the tax was paid, whichever is later. Keep records for 7 years if you claimed a loss from worthless securities or bad debt. Keep property records (purchase price, improvements) for as long as you own the property plus 3 years after you sell it.

The home office deduction is available only to self-employed individuals and independent contractors. If you are a W-2 employee working from home, you cannot claim the home office deduction on your federal taxes (this changed with the Tax Cuts and Jobs Act in 2018). Self-employed individuals can use the simplified method ($5 per sq ft, up to 300 sq ft) or the regular method (actual expenses).

A tax refund advance (or refund anticipation loan) is a short-term loan based on your expected tax refund. It allows you to receive funds within 24-48 hours of filing rather than waiting the standard 21 days. Many tax preparation services, including My Tax Service, offer these products with low or no fees. The loan is repaid when the IRS sends your actual refund. Learn about our refund advance options.