Tax Preparation Frequently Asked Questions

Here are examples of some of the thousands of questions the staff at H&R Block in Rome and Boonville can help answer for you.

Question: Which homeowner deductions are available this year?
Answer: Some deductions available for homeowners include: Mortgage interest deduction, Real property tax deduction, and Mortgage insurance deduction. Each deduction requires you to pass certain tests. Review each deduction to ensure you qualify for it. You might make improvements to your home to increase energy efficiency. If so, you might qualify for an additional credit.

Question: Should I itemize or use the standard deduction?
Answer: It depends. Choose the method that results in the largest deduction for you. The value of your itemized deductions might be more than the amount you'll receive as a standard deduction. If so, you should probably itemize. If you’re subject to Alternative Minimum Tax (AMT), you might want to itemize even if the standard deduction is more. Otherwise, it's usually better to claim the standard deduction. Don't forget to take the state's tax results into consideration when making your choice.

Question: I'm claiming an energy credit. Why didn't my refund go up?
Answer: The energy credit isn't a refundable credit. So, the credit can only reduce the tax you owe to $0. You won’t receive a refund for any remaining credit amount. If you installed a qualified geothermal heat pump property, you can carry over any unused credit to the next tax year. If you installed an electric heat pump, you can’t carry the credit over. So, you'll lose any unused credit.

Question: Is the 10% penalty on an early 401(k) withdrawal based on the original amount or on the amount I received after taxes?
Answer: You pay the 10% additional tax on the original full withdrawal amount. It's not based on the amount you receive with taxes withheld.