Frequently Asked Questions

Please bring a government-issued photo ID, Social Security cards or ITINs for all dependents, all income statements (W-2s, 1099s), prior year tax returns, and any relevant deduction records or expense receipts.

We offer year-round client support. If you receive a letter or notice regarding a tax return prepared by Osman Tax Service, bring it to us and we will help you review, understand, and respond to it.

Yes, we specialize in tax preparation for sole proprietors, LLC, independent contractors, and gig workers. We help identify all eligible business deductions to keep your tax liability as low as possible.

Yes! We offer a "Pay With Your Refund" option. This allows our tax preparation fees to be automatically deducted directly from your federal or state refund, so you don't have to pay anything out of pocket at the time of service. (Bank processing fees may apply). 

 E-filed returns with direct deposit generally process in 8 to 21 days according to IRS guidelines. Paper-filed returns or those requiring additional identity verification can take 6 to 8 weeks or longer.

You can track your federal refund directly using the official IRS "Where's My Refund?" tool or mobile app. For New York State refunds, you can check online using the NYS Department of Taxation and Finance refund portal.

Yes, we can prepare back taxes for prior unfiled years and submit amended returns (Form 1040-X) if you need to correct errors or claim missed deductions from previously filed returns.

We can assist you in filing your return on time to avoid late-filing penalties and help you set up a manageable IRS or State installment payment plan.  

Major life events significantly change your filing status, tax bracket, and eligible credits (like the Earned Income Tax Credit or Child Tax Credit). We will guide you on the most tax-advantageous filing status for your new situation. 

Yes, if you earned $400 or more in net self-employment income, you are required to file a tax return. We help gig workers track business expenses, mileage, and home office costs to offset what you owe.

We can assist you with applying for or renewing an Individual Taxpayer Identification Number (ITIN) through Form W-7 so you can safely file your tax returns and claim eligible dependents.

The IRS lets you choose between taking a set standard deduction based on your filing status or itemizing individual expenses (such as mortgage interest, charitable donations, and medical costs). We calculate  both methods automatically and use whichever gives you the lower tax bill or larger refund.

Our Client Portal uses bank-level encryption to transmit and store your documents. Your sensitive tax and financial data remains protected against unauthorized access at every step.

Both save you money, but they work differently:

• Tax Deductions lower the total amount of your income that can be taxed. How much you save depends on your tax bracket (for example, a $1,000 deduction in a 22% bracket saves you $220).
• Tax Credits are far more powerful because they give you a direct, dollar-for-dollar reduction on your actual tax bill (a $1,000 credit saves you $1,000).

The Child Tax Credit (CTC) provides up to $2,200 per qualifying child under age 17. To qualify, the child must have a valid Social Security number, live with you for more than half the year, and meet dependency requirements.

• Income Limits: The full credit is available for single filers earning up to $200,000 or married couples filing jointly up to $400,000.

The Child Tax Credit itself is non-refundable (it reduces the federal income tax you owe down to zero). If your tax bill is less than your total credit, the Additional Child Tax Credit (ACTC) allows low- to moderate-income families to receive the remaining portion as a refundable tax refund (up to $1,700 per qualifying child, depending on earned income). 

The Additional Child Tax Credit (ACTC) is the refundable portion of the Child Tax Credit. If your federal income tax liability is lower than your total credit amount, the ACTC allows you to receive up to $1,700 per child as a cash tax refund.

To qualify, you must meet the following requirements:

1. Qualifying Child: The child must be under age 17 at the end of the tax year, have a valid Social Security Number, and be claimed as your dependent.
2. Earned Income Threshold: You must have earned income from work or self-employment of at least $2,500.
3. Residency & Support: The child must have lived with you for more than half of the year and not provided more than half of their own financial support.
4. Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien.

The Earned Income Tax Credit (EITC) is a fully refundable tax credit designed for working individuals and families with low-to-moderate income.

• Depending on your earned income and the number of qualifying children in your household, the EITC can significantly increase your refund.
• You must have earned income from employment or self-employment to qualify. 

To ensure accurate filing and prevent processing delays with the IRS or NYS, please bring:

1. Social Security Cards or ITIN letters for yourself, your spouse, and all dependents.
2. Birth certificates for children being claimed.
3. Proof of residency for dependents (such as school records, medical records, or childcare statements showing your address.
4. All income documents (W-2s, 1099s, or business records).

The Credit for Other Dependents (ODC) provides a non-refundable tax credit of up to $500 per eligible dependent. This credit covers qualifying dependents who do not meet the criteria for the Child Tax Credit.

Qualifying dependents include:

1. Children who are age 17 or older
2. Full-time college students under age 24 supported by their parents.
3. Elderly parents or other qualifying family relatives you support financially.
4. Dependents who have an ITIN (Individual Taxpayer Identification Number) rather than a Social Security Number.

There are two primary federal education tax credits available to help offset the cost of higher education:

• American Opportunity Tax Credit (AOTC): Worth up to $2,500 per eligible student for the first four years of higher education. Up to $1,000 (40%) of this credit is refundable, meaning you can get money back even if you owe zero taxes.
• Lifetime Learning Credit (LLC): Worth up to $2,000 per tax return for qualifying tuition and fees. There is no limit on the number of years you can claim it, and it applies to undergraduate, graduate, and professional degree courses, as well as job-skill development courses.

To claim education credits accurately and avoid IRS processing delays, please bring:

1. Form 1098-T (Tuition Statement issued by the school/university by January 31).
2. Form 1098-E (if you paid student loan interest).
3. Records or receipts for required course materials, textbooks, equipment, and supplies.

You cannot claim both credits for the same student in the same tax year. However, if you have multiple qualifying dependents in higher education (for example, two children in college), you may claim the AOTC for one student and the LLC for another on the same tax return.

To qualify, the student must:

• Be pursuing a degree or recognized credential.
• Be enrolled at least half-time for at least one academic period during the tax year.
• Not have completed the first four years of higher education at the start of the tax year.
• Meet the IRS income limits (Phase-outs apply for Modified Adjusted Gross Income above $80,000 for single filers or $160,000 for joint filers).

No. Under IRS rules, a child's earned income (W-2 wages from a job) cannot be added to or reported on a parent's tax return.

• If your child earned wages (Form W-2): They must file their own separate tax return if their earnings exceed the IRS filing threshold.
• Filing for a Refund: Even if your child earned less than the threshold, it is usually beneficial to file a tax return for them to claim a full refund of any federal or state tax withheld from paychecks.
• Claiming them as a Dependent: Your child filing their own tax return does not prevent you from claiming them as a dependent on your return as long as they check the box indicating "Someone can claim me as a dependent."