MTDD FINANCING AND MULTI SERVICES - FAQ
Welcome to the FAQ page of MTDD Financing and Multi Services. Here you’ll find answers to common questions about our tax preparation and financial services. Our goal is to provide clear, transparent information and support both individuals and businesses in managing their tax needs with confidence.
MTDD FINANCING - Tax Professional Course Enrollment Questionnaire
What is the purpose of filing a federal tax return in the United States?
To report income to the IRS, calculate tax liability, claim tax credits or deductions, and determine if a refund is due or if additional taxes are owed.
What is the difference between a W-2 form and a 1099 form?
A W-2 form is used to report wages and taxes withheld for employees, while a 1099 form (such as
1099-NEC or 1099-MISC) is used to report income earned by independent contractors or
freelancers, without tax withholding.
What are common documents a tax preparer needs from a client to prepare an accurate return?
- W-2s or 1099s, Social Security numbers for all dependents, Previous year's tax return, Proof of expenses or deductions (e.g., childcare, education, mortgage interest), Identification (ID
What is the Earned Income Tax Credit (EITC), and who qualifies for it?
The EITC is a refundable tax credit for low-to-moderate-income working individuals and families.
Eligibility depends on income level, filing status, and number of qualifying children. Individuals
without children may still qualify under certain income thresholds.
Why is it important for a tax professional to stay updated with IRS regulations each tax
season?
Tax laws and credits change regularly. Staying updated ensures compliance, accuracy, prevents
penalties, and allows professionals to serve clients effectively by maximizing refunds or minimizing
tax liabilities.