Do you offer support after filing?
Yes—at Taxorify, our support doesn’t stop once your return is filed.
We provide ongoing, post-filing support to ensure you stay compliant, informed, and protected. This includes:
- IRS & State Notice Assistance – If you receive a letter or notice, we’ll help you understand it and respond appropriately.
- Amendments & Corrections – Need to update your return? We handle amended filings efficiently.
- Audit Support & Guidance – If you’re selected for an audit, we’ll guide you through the process and help you prepare the necessary documentation.
- Year-Round Tax Advice – We’re available to answer questions, help with tax planning, and support major financial decisions throughout the year.
Our goal is to build long-term relationships with our clients—not just complete a one-time filing. When you work with Taxorify, you have a trusted tax professional in your corner year-round.
Is my financial data secure?
Yes—your financial data is handled with the highest level of security and confidentiality.
At Taxorify, we use industry-standard encryption protocols (such as 256-bit SSL/TLS) to protect your information during transmission and secure, access-controlled systems to safeguard it once received. Your data is stored using encrypted servers with strict administrative, technical, and physical safeguards designed to prevent unauthorized access, disclosure, or misuse.
We also follow best practices aligned with IRS data security guidelines and applicable federal and state privacy laws. Access to your information is limited only to authorized professionals who need it to provide services on your behalf, and all personnel are trained in data protection and confidentiality standards.
Importantly, Taxorify does not sell or share your personal or financial information with third parties for marketing purposes.
Your privacy and security are not just priorities—they are foundational to how we operate.
When is the best time to file your taxes?
The best time to file your taxes is as early as possible once you have received all required tax documents (such as W-2s, 1099s, and any investment or income statements).
From a professional tax standpoint, here’s how timing works:
1. Early Filing (January–February) — Generally Ideal
Filing early offers several advantages:
- Faster refunds, especially if you e-file with direct deposit
- Reduced risk of tax identity theft (fraudulent returns are less likely once yours is filed)
- More time to plan for any balance due
- Immediate confirmation that your return is accepted
2. Mid-Season Filing (March) — Still a Strong Option
This is a practical window for many taxpayers who are waiting on corrected or additional documents (common with brokerage or partnership reporting). Filing in this period helps ensure accuracy while still avoiding last-minute pressure.
3. Late Filing (April Deadline) — Only If Necessary
Waiting until the deadline can increase the risk of:
- Errors due to time pressure
- Processing delays
- Limited time to address unexpected tax liabilities
If you are not ready, filing an extension is a smart, compliant strategy—but keep in mind that an extension gives you more time to file, not more time to pay.Professional Recommendation (Taxorify):
The optimal approach is to file early, but not prematurely—only after all documents are received and reviewed. Accuracy should always take priority over speed, but when both are aligned, early filing provides the greatest financial and security benefits.
I have crypto transactions. How do I file my taxes?
If you have cryptocurrency transactions, you are required to report them on your tax return—just like stocks or other investments. The IRS treats crypto as property, which means every sale, trade, or use of crypto can create a taxable event.
Here’s how to properly file your crypto taxes:
1. Identify Your Taxable Transactions
You must report any activity where crypto is disposed of or earned, including:
- Selling crypto for cash
- Trading one cryptocurrency for another
- Using crypto to pay for goods or services
- Receiving crypto as income (e.g., payments, staking, mining)
2. Calculate Gains and Losses
For each transaction, calculate:
- Cost basis (what you originally paid)
- Fair market value at the time of the transaction
- The difference = capital gain or loss
Short-term gains (held ≤ 1 year) are taxed as ordinary income.
Long-term gains (held > 1 year) are taxed at lower capital gains rates.
3. Report on the Correct Tax Forms
- Form 8949 – Report each individual crypto transaction
- Schedule D (Form 1040) – Summarize total capital gains and losses
- Schedule 1 or Schedule C – Report crypto received as income (depending on whether it’s personal or business-related)
4. Answer the IRS Crypto Question
On your Form 1040, you must answer whether you received, sold, or exchanged digital assets during the year. This is mandatory.
5. Use Accurate Records
Maintain detailed records of:
- Dates of transactions
- Purchase prices
- Sale values
- Wallet and exchange activity
If you have multiple transactions, using crypto tax software (like CoinTracker or Koinly) can help generate reports compatible with IRS forms.
6. Apply Loss Strategies (If Applicable)
Crypto losses can be used to:
- Offset capital gains
- Deduct up to $3,000 per year against ordinary income
- Carry forward remaining losses to future years
7. Stay Compliant and Avoid Penalties
Failure to report crypto activity can result in:
- IRS penalties
- Interest on unpaid taxes
- Potential audits
The IRS receives data from major exchanges, so full disclosure is essential.
Bottom Line Filing crypto taxes requires accurate tracking, proper classification of transactions, and correct reporting on IRS forms. If your activity is complex—multiple trades, DeFi, NFTs, or staking income—it is strongly recommended to work with a qualified tax professional.
How much income will trigger a taxable event?
There is no single dollar amount that “triggers” a taxable event. A taxable event occurs whenever you receive income or realize a gain, regardless of amount. However, whether you actually owe tax or must file a return depends on your total income, filing status, and applicable deductions.
Professional Explanation (Taxorify Standard):
A taxable event is triggered any time you earn income, receive payment, or realize a financial gain. This includes wages, self-employment income, interest, dividends, rental income, and profits from selling assets (such as stocks or real estate).
From a legal and tax-preparer standpoint:
- Any amount of income can be taxable under federal law
- Even $1 of income is technically taxable
- However, filing requirements and tax liability depend on thresholds set by the IRS
Key Distinction: Taxable Event vs. Filing Requirement
- Taxable Event:
Occurs immediately when income is earned or a gain is realized (no minimum threshold)
- Filing Requirement (2024–2025 general guidance):
You typically must file a tax return if your income exceeds:
- ~$13,850 (Single, under 65)
- ~$27,700 (Married Filing Jointly, under 65)
- Self-Employment Rule (Important):
If you earn $400 or more in net self-employment income, you must file and pay self-employment tax, even if your total income is below standard thresholds
Examples for Clarity:
- You earn $50 from freelance work → Taxable event occurred
- You sell stock for a $200 profit → Taxable event occurred
- You earn $10,000 total income → May not owe tax, but still taxable income
- You earn $500 from a side hustle → Filing required due to self-employment rules
Bottom Line (Client-Friendly):
There is no minimum income required to create a taxable event—it happens the moment income is earned or a gain is realized. The real question is not if it’s taxable, but whether you are required to file and how much tax you owe based on your total financial situation.
