F.A.Q.
At Love Taxes Accounting & Consulting LLC, we know that navigating U.S. taxes can feel overwhelming. Whether you are filing for the first time, making a payment online, applying for an ITIN, or looking to understand deductions and credits, we are here to guide you. On this page you’ll find answers to the most common questions our clients ask — from reducing your tax bill and choosing between credits or deductions, to how to pay the IRS online, what to do if you receive penalties, and how the ITIN process works. Explore the sections below and find clear, practical answers to your most urgent tax concerns.
General Tax Concepts
How can I reduce my tax bill?
You can lower your bill through tax adjustments, deductions, and credits. Contributing to retirement plans (401k, IRA), health accounts (HSA, FSA), and claiming credits such as the Child Tax Credit can significantly reduce what you owe.
What deductions do I qualify for?
Everyone qualifies for either the Standard Deduction or itemized deductions. Additional deductions may include student loan interest, mortgage interest, state and local taxes, home office expenses, business expenses, and more.
What is the difference between marginal and effective tax rates?
Marginal tax rate = the bracket of your last dollar of income.
Effective tax rate = your average rate across all income.
Which is better: a tax credit or a deduction?
Credits reduce your tax bill dollar-for-dollar. Deductions reduce taxable income. A $1,000 credit saves you $1,000. A $1,000 deduction saves you less, depending on your tax bracket.
Can I deduct medical expenses?
Yes, if they exceed 7.5% of your adjusted gross income and if you itemize. Eligible costs include medical care, prescriptions, surgeries, vision/dental, and related travel expenses.
Should I itemize deductions or take the Standard Deduction?
For 2024, the Standard Deduction is $14,600 (Single) or $29,200 (Married Filing Jointly). Compare your itemized deductions — use whichever is higher.
How can I stay up to date with tax laws and changes?
Work with a CPA or IRS Enrolled Agent (EA). Professionals stay current with tax law updates and ensure compliance.
Payments to the IRS and Confirmations
I made a payment but don’t see it deducted from my balance, even though my bank account was charged. What should I do?
Sometimes IRS systems take a few days to update. Always keep your payment confirmation number. You can verify payments by creating an account at irs.gov or calling 800-829-1040.
When I pay online, do I get a receipt?
Yes. The IRS generates a digital confirmation you should save for your records. If you still owe a balance, the IRS will notify you by mail.
Do I need to combine federal and state payments?
No. They are separate. Pay the IRS for federal taxes and your state authority for state taxes.
Can I use multiple credit cards to pay?
Yes, the IRS allows multiple cards for a single debt.
Can I pay by phone?
No. The IRS does not process direct tax payments by phone. Payments must be done online, by mail, or through authorized processors.
Can I pay from outside the U.S.?
Yes, if you have a U.S. bank account with routing and account numbers. Payments cannot be processed from non-U.S. bank accounts.
First-Time Filers and Identity Verification
If it’s my first time paying and I don’t know which tax year to select, what should I enter?
For verification, use the previous year’s return. Then, when you proceed with the payment, the IRS applies it to the tax year you initially selected.
What if I see “Tax Year 2023” but need to pay for 2024?
Use the year that matches your return. Sometimes the verification step shows the prior year, but the system records the payment for the year you selected at the beginning.
Do I need a P.O. Box? The system asks for one.
If you don’t have a P.O. Box, leave the field blank. Only fill it if you use one.
What if I was paid in cash all year? How do I file?
You still must declare all income, including cash. Deposit it in a bank account when possible, as this helps show proof of income. Then, file normally with a tax preparer.
How do I create an IRS online account?
Go to irs.gov and follow the instructions to set up an account with your SSN or ITIN.
Payment Methods
What are the main ways to pay the IRS online?
Direct Pay (bank account)
Debit or credit card
Digital wallets (PayPal, etc.)
EFTPS (for business taxes)
Which method is best for first-time payers?
Card or digital wallet is often easiest because it doesn’t require prior verification. Be aware of processing fees (e.g., minimum $2.50 for debit, ~1.87% for credit).
Can I make partial payments?
Yes, you can pay in installments, but penalties and interest continue until the balance is fully paid.
Can I pay for prior years online?
Yes. Choose “Prior Tax Year” and select the year you are paying.
Where do I find the amount I owe?
On your Form 1040, line 37 shows the total balance due. You can also check online at IRS.gov
Extensions, Payment Plans, and Penalties
When is the tax payment deadline?
April 15 each year (or the next business day if it falls on a weekend/holiday). Paying after this date generates penalties and interest.
Can I request an extension?
Yes, but it only extends the filing deadline, not the payment deadline. You can still request an IRS payment plan to spread payments over time.
What if I already set up a payment plan? How do I pay?
You can allow direct debit from your bank account or make manual payments online through the IRS system.
How much are penalties if I don’t pay?
Penalties depend on your balance and how long you delay. It is not automatically “double” your tax — that is a misconception. The IRS applies monthly interest and late fees until paid.
ITIN: What You Need to Know
What is an ITIN?
An ITIN (Individual Taxpayer Identification Number) is issued by the IRS to those who don’t qualify for a Social Security Number but must file taxes. It does not grant work authorization, Social Security benefits, or immigration status.
Who can apply for an ITIN?
Non-resident aliens with a U.S. tax obligation.
Resident aliens in the U.S. without SSNs.
Spouses or dependents of U.S. citizens/residents.
Foreign investors, students, or visa holders.
What documents do I need?
Form W-7.
Tax return (unless exempt).
Passport (preferred) or two valid documents such as a translated birth certificate + government-issued ID.
For dependents: medical or school records.
All documents must be originals or certified copies. Working with a CAA (Certified Acceptance Agent) avoids mailing originals.
When must I include a tax return with my W-7?
In most cases. Exceptions include certain investors or students under tax treaties, where a letter from the financial institution is required instead.
How long does it take to get an ITIN?
7–11 weeks, whether by mail, IRS office, or through a CAA.
Does an ITIN expire?
Yes, if not used in the last 3 years. Renewal is required before filing again.
What can I do with an ITIN besides filing taxes?
Claim certain tax credits (e.g., Child Tax Credit).
Open bank accounts and sometimes apply for loans or mortgages.
Fulfill reporting requirements for investments, royalties, or scholarships.
Do I need to file taxes if I am paid in cash?
Yes. All income earned in the U.S. is taxable. Failing to declare cash income can cause serious issues with the IRS in the future.
Got more questions? Our team has the answers.
From taxes to business consulting, we’re here to guide you every step of the way.