Create a Return -> Questionnaire -> Instant Price Estimate and Documents List -> Upload Documents -> Payment -> Review Draft Return(s) -> Sign -> File Return(s)
Estimated price range is calculated based on the questionnaire filled, and assume there is one document per request. If any additional documents are necessary after TaxGuru reviews your information, or there are multiple documents per request (multiple W2, multiple rental properties, multiple K-1s, etc), final price may be higher than estimates. Besides, some special situation may cause higher final price, such as dual-status filing, foreign income/investment, gift tax filing/planning, etc. Otherwise, your final price should fall in the estimated price range.
E-file tax return (if the return is not eligible for e-file, TaxGuru will organize a mailing package and give a detailed mailing instruction)
Reply Federal/State/Local notice for general inquiries. If the notice/audit is caused by taxpayer (missing documents, false records, etc), TaxGuru may charge extra fee to deal with such notice.
TaxGuru will amend the return for free, and reimburse any penalty and interest charged by IRS/State Tax Department if the mistake was caused by TaxGuru. TaxGuru has no responsibility to audit a client’s document. All returns would be finished based on documents uploaded by taxpayers. Missing documents will not be TaxGuru’s fault.
Mail to your address on return is the only method IRS will use to communicate with you. If you know the new address before filing the return, please update your profile as soon as possible so we will have your most recent address on the return. If you move after the return is filed, you can mail Form 8822 to IRS to update your address on IRS’s records. Another option is to register with USPS and set up the mail forwarding service.
Students’ earned income is exempted for first $5,000 as long as the F visa is properly maintained. It means even you turned to tax resident in the tax year, such as changing to H1b, if you earned more than $5,000 wages within F visa period, you are still eligible to exempt first $5,000 from your taxable income.
An Indian student may take a standard deduction equal to the amount allowable on Form 1040 and may be able to claim the personal exemptions for a nonworking spouse and U.S. born-children. Nonresident aliens can’t file a joint return. Even though a student from India may be able to take an exemption for a nonworking spouse, this is not considered a joint return.
Students from other countries may read details here
If you turn to tax resident (eg: F visa turn to H1b), or turn to a tax nonresident (H1b go back to home country permanently, or legally gave up greencard), you may consider to file dual-status return for the changing year.
If an individual return can not be filed before 4/15 (documents not ready/ last year return was not finalized/ no enough time to file on time), TaxGuru can help to file an extension which will give extra 6 month to finish the tax return.
Extension only extends time to file, not extends time to pay. If taxpayer agrees to file extension before 4/15, TaxGuru will estimate tax due and schedule extension payment(s) (usually a little more than amount due to be safe) if any on/before 4/15. When file return, taxpayer can get refund if over paid.
If the return/extension was not filed on time, failure to file penalty will apply.
If tax payment was not made on time, failure to pay penalty will apply.
A return can be amended within 3 years after the return was filed. A return could be amended for reasons: received a notice, missed documents/treaty claimed with original return, convert a resident return to a nonresident return, etc.
Amended return has to be paper file and will take longer to process than an original return. All extra refund/amount due will be paid with paper check.
If Amendment service is requested, TaxGuru will provide a detailed instruction to file the amended return.
TaxGuru usually files the return within 24 hours the e-file authorization is received. Please go to track status page to track your federal and state tax return.
Refund processing time:
E-filed return usually takes 2 weeks to process the refund.
Paper-filed return usually takes 3 weeks to process the refund.
Amended return usually takes 3-9 month to process the extra refund.
If you are unable to get a copy of your prior tax return, it’s an option to obtain your return transcript from IRS. Please see IRS instructions here
If you ever work from another state over 2 weeks in the tax year, you may subject to tax liability to that state (the nonresident state). Usually, the employer will withhold per your address on file. If it does not qualify as permanent moving, all your income will still subject to resident state tax liability. But the tax you paid to any nonresident state could be a credit to the resident state.
Example:David was a CA resident. Due to COVID-19 working remote flexibility, David decided to “move” to HI until the office reopens. David reported his new address in HI to his employer, and he started to pay HI tax in 2020. When preparing his 2020 tax return, David is still considered as a CA resident and a HI nonresident. All his HI sourced income will need to pay HI nonresident tax. And all his income over the world still subjects to CA resident tax. In the meantime, his tax paid to HI could be a credit to his CA tax liability (subject to limitation).
If you work from another state over a specific period, you may become a resident in that state, which can make you a dual state resident. In that case, you may be double taxed by both states. Each state has different rules. Please contact us for more details.
Example:David stayed in HI over 200 days in 2020 in the aggregate (not consecutive), David may need to pay resident tax to both CA and HI.
If you “moved” twice in the year, the first move is considered a temporary move. A temporary move usually does not qualify as “moving”. Therefore, your resident state is considered the same as last year until you made a permanent move (the second “move”).
Example:Abby was a CA resident in 2019 and planned to move to TX in 2020. Before moving to TX, Abby went to WA and stayed with her parents for 3 months. Then she moved to TX permanently in November 2020.
In this case, even Abby physically moved out from CA in Aug, her stay in WA was considered a temporary move. We will consider Abby as a CA resident until she moved to TX in November 2020.
In general, all taxpayers should pay tax liabilities on a quarterly basis, unless you are a farmer/fisherman/certain household employer. If you are an employee, the employer will withhold tax on your behalf per paycheck. If you did not fill in your W4 properly, or you have additional income, you may underpay your estimated tax. If you are self-employed or most of your income is from investment, you are obligated to monitor your income and make payments on time.
Quarterly payment due date:
1st payment - 4/15
2nd payment - 6/15
3rd payment - 9/15
4th payment - 1/15 (next year)
If any due date falls to a weekend or holiday, the due date will be extended to the next business day.
Basically, meet any of the conditions below, you will not owe any underpayment penalty for the quarter:
You expect to owe no more than $1,000 tax when you file the return;
Paid 90% of your actual tax;
100% of total tax liability of the prior year (110% if your AGI exceeds $150,000).
You should make estimated tax on a quarterly basis. For example, if a taxpayer made $100,000 capital gain in quarter 2 20XX, he/she should pay tax for the gain no later than 6/15 of the year to avoid an underpayment penalty, instead of paying all tax next year when filing the tax return. To make payment of estimated tax, you can either update W4 by telling your employer any additional income, or TaxGuru can help you do a quarterly analysis. Federal and most states accept online payment.
If you did not file a return/extension on time, or make enough (extension) tax payment(s) (discussed as #3 above) on time, IRS and state tax departments may charge failure to file/pay penalty on the underpaid amount.
Failure to pay penalty is 0.5% per month up to 25%
Failure to file penalty is 5% per month up to 25%
To avoid more penalties and interest, you should pay tax as soon as possible if the deadline is already missed.
If you did not make enough estimated tax payment(s) (discussed as #7 above), IRS and state tax departments may charge an underpayment penalty on the underpaid amount. Underpayment penalty is calculated on daily basis.
Please note IRS interest rate varies by time. Please check the newest rate with IRS.
Under the Tax Cuts and Jobs Act, the amount of the individual shared responsibility payment is reduced to zero for months beginning after December 31, 2018. However, some states still mandate all residents to have qualifying health coverage or a valid exemption.
The states which mandate healthcare coverage: CA, DC, MA, NJ, RI, VT.