Frequently Asked Questions about Taxes

Why should I hire a tax professional instead of doing my taxes myself or using one of those free online services?

It’s all about ensuring that the maximum of YOUR tax dollars that you are entitled to end up coming back to you. 

Tax professionals are better than one-size-fits-all AT tools in ensuring that your tax return is accurate while also maximizing your deductions. At Smokey Mountain Tax Experts we are well-versed in the latest tax laws and regulations, which can save you time and potentially reduce your tax liability. We also pride ourselves on local service with a team that understands the unique needs of East Tennessee residents.

What are the benefits of using a local tax expert in East Tennessee?

Local tax experts, like those at Smoky Mountain Tax Experts, have a deep understanding of state and local tax codes that can affect your return. We are familiar with the specific financial challenges and opportunities in East Tennessee, providing you with tailored advice and support. Plus, you get the comfort of working with a neighbor who is invested in your community.

How can a tax professional help if I’ve missed filing taxes in previous years?

If you’ve missed filing taxes, a tax professional can help you navigate the complexities of catching up. At Smoky Mountain Tax Experts, we have helped more than a few clients in tough situations with the IRS. We have extensive experience in dealing with the IRS and can assist in negotiating payment plans or settlements, ensuring you comply with all requirements while minimizing penalties.

What makes Smoky Mountain Tax Experts different from other tax services?

Smoky Mountain Tax Experts combine the expertise and security of a big city firm with the friendly, personal touch of a local business. With over thirty years of experience, we offer comprehensive tax services at competitive rates, ensuring you receive the best value and support tailored to your individual needs.

Can a tax professional help me with complex tax situations?

Yes, tax professionals are equipped to handle complex tax situations, whether it’s dealing with multiple income streams, investments, or business taxes. Smoky Mountain Tax Experts have the knowledge and experience to manage even the most intricate tax scenarios, providing peace of mind and ensuring compliance with all tax obligations.

What are some commonly missed deductions for individuals on their tax returns? 

Many taxpayers overlook deductions such as state sales taxes, student loan interest, and medical expenses. Additionally, deductions for job search costs, moving expenses for a new job, and charitable contributions made through payroll deductions are often missed.

Can I deduct medical expenses on my tax return? 

Yes, you can deduct medical expenses that exceed 7.5% of your adjusted gross income. This includes out-of-pocket expenses for doctor visits, prescriptions, and even some travel costs related to medical care. Many taxpayers miss this deduction because they don’t keep track of 

Are there any deductions available for education-related expenses?
Absolutely! You can deduct student loan interest up to $2,500, even if you don’t itemize your deductions. Additionally, the Lifetime Learning Credit and the American Opportunity Credit can help offset education costs, but these are often overlooked by those who qualify.

How can I ensure I don’t miss any deductions related to charitable contributions?
To maximize deductions for charitable contributions, keep detailed records of all donations, including receipts for cash donations and acknowledgment letters for non-cash contributions. Don’t forget to include mileage driven for charitable activities, as this can also be deducted.

What should I know about deductions for work-related expenses?
While the Tax Cuts and Jobs Act of 2017 eliminated many miscellaneous itemized deductions, certain work-related expenses are still deductible for self-employed individuals. These include home office expenses, professional dues, and business travel costs. It’s important to maintain accurate records to ensure you don’t miss out on these deductions.

How do I respond to a notice from the IRS?

 If you receive correspondence from any tax authority we highly recommend  securing the services of a tax professional BEFORE responding. We have a significant track record in resolving projected liabilities.  Many time a phone call to the proper area will result in resolution.  At Smoky Mountain Tax Experts our initial consultation is always free of charge.

What steps do you take to secure my personal information?

We subscribe to and follow all IRS guidelines for data security.

Do you offer tax planning for new 2025 tax law changes?

We provide free tax planning advise & consul with the preparation of your tax return. As licensed professionals we are required to maintain continuing education to accurately account and report resulting income or loss.

Can you help with the complexity of tax filings for dividends, capital gains & crypto transactions?

Yes, we’ve handled cryptocurrency transactions for years. These areas can be intricate due to varying tax rates, holding periods, and specific IRS regulations. Here are a few important details to keep in mind.

1. Dividends are typically reported on Form 1099-DIV. Qualified dividends are taxed at the capital gains tax rate, which is lower than the ordinary income tax rate. Non-qualified dividends are taxed at the standard income tax rate.
2. Capital gains are reported on Schedule D and Form 8949. They are categorized into short-term (assets held for one year or less) and long-term (assets held for more than one year), with different tax rates applied to each.
3. Crypto transactions are treated as property by the IRS, meaning each transaction is a taxable event. This includes selling, trading, or using crypto to purchase goods or services. These are reported on Form 8949 and Schedule D, similar to other capital assets.

Smoky Mountain Tax Experts can help navigate these complexities with personalized service, ensuring compliance and optimizing your tax situation. If you have specific questions or need assistance, feel free to ask!