Resources, worth keeping.

Both are licensed to prepare returns and represent clients before the IRS. CPAs are state-licensed and can also do attest work (audits, reviews) and broader business consulting. Enrolled Agents are federally licensed and specialize specifically in taxation and IRS representation. Daniel is an EA on our team. The other principals are CPAs. For most tax work, either credential is appropriate.

Generally seven years for most documents, indefinitely for records establishing basis in property (home purchase docs, investment cost basis, depreciation schedules). The IRS has three years to audit a return, six years if substantial income was omitted, and unlimited time for fraud. We recommend digital storage in a secure system. We retain client copies for ten years.

If you're self-employed or a partner in a partnership, yes, when the space is regularly and exclusively used for business. Employees of W-2 jobs (including those who work from home) cannot deduct a home office on their federal return under current law. Montana follows the federal treatment. We can model whether the simplified or actual-expense method is better for you.

Generally if you'll owe $1,000 or more at filing and aren't having enough withheld through W-2 income. Self-employed clients and those with significant investment income typically pay quarterly. The four federal deadlines are April 15, June 15, September 15, and January 15. Montana follows the same dates. We calculate these for our planning clients in February each year.

If you established Montana residency during the year, you'll file a part-year resident return. If you live in Montana and work remotely for an out-of-state company, you typically file Montana resident and may need a non-resident return in the other state depending on its rules. Tax situs and residency rules vary considerably by state. We handle multi-state returns regularly.

A deduction reduces taxable income. A $1,000 deduction in the 22% bracket saves $220 in federal tax. A credit reduces tax owed dollar-for-dollar. A $1,000 credit saves $1,000. Credits are generally more valuable. Non-refundable credits can only reduce tax to zero. Refundable credits (like the Earned Income Credit) can produce a refund beyond what was withheld.