Are interest and dividends taxable income?

Generally yes, except for municipal bond interest which is tax-exempt. Report all taxable interest and dividends on your return; tax-exempt income must still be reported.

What are capital gains and how are they taxed?

Capital gains arise from selling property for more than its cost basis. Tax rates depend on holding period (short-term vs. long-term) and applicable tax brackets. Specific rules apply to different asset types.

The Godwin Firm, PA

Growing with our clients. Small enough to care.

Certified public accountant in Christiana, DE (show on map)

4.5

★★★★★

4 reviews

The Godwin Firm provides comprehensive tax, accounting, and business advisory services with a low-pressure, client-focused approach.

Call (302) 737-5511

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About

The Godwin Firm, PA is a trusted legal and accounting firm specializing in tax and business advisory services. With a focus on personalized, low-pressure client care, the firm offers expertise in business entity selection, buy/sell transactions, estate planning, financial analysis, IRS audit representation, management advisory services, notary public services, payroll management, retirement planning, sales tax compliance, and proactive tax planning.

The firm prides itself on an excellent client-retention rate and high-quality service delivery, ensuring clients receive tailored solutions for their unique financial and legal needs.

Low-pressure approach

Comprehensive service range

Client-focused expertise

Services

Business Formation and Exit Planning

Guidance on selecting and restructuring business entities, including LLP, LLC, sole proprietorship, partnership, and corporation, with focus on financial and tax implications.

Entity selection advice Tax implications analysis Business growth strategy

Buy/Sell Transactions

Support for buying or selling a business, including valuation, buyer vetting, due diligence, and negotiation strategies.

Business valuation Buyer/seller vetting Due diligence support

Estate and Trust Tax Planning

Structuring estates and trusts to minimize taxes and ensure smooth asset transfer to heirs.

Estate structuring Tax minimization strategies Heir transition support

Financial Analysis

Providing financial analysis to support business management, planning, and decision-making.

Prospective analysis Scenario evaluation Decision support

IRS Audit Representation

Experienced representation during IRS audits, ensuring proper handling of tax matters and compliance.

Audit strategy development IRS communication Compliance support

Management Advisory Services

Support for business planning, mergers, acquisitions, and operational efficiency improvements.

Business planning M&A advisory Operational efficiency

Credentials & Certifications

Licensed Tax Professionals

IRS Audit Experience

Reviews

Rating

4.5

★★★★★

Reviews

Frequently Asked Questions

How long will it take for you to prepare and file my tax return? +

Preparation time depends on the complexity of the return. Providing all relevant records at the outset can minimize delays. Generally, schedule your appointment several weeks before the IRS deadline to ensure timely filing.

Is e-filing my tax return safe? +

Yes, as long as you use reputable platforms and avoid public Wi-Fi without a VPN. Reputable platforms encrypt returns, but public networks can be vulnerable to interception.

What should I do if I cannot pay the full amount of tax I owe by the deadline? +

Pay as much as possible immediately, then propose an installment plan to the IRS detailing affordable monthly payments. Showing commitment can reduce penalties and interest.

How long will it take to get my IRS refund? +

Electronic filings typically receive refunds within 21 days after acceptance. Paper filings may take six weeks or more. Direct deposit speeds receipt, while mailed checks add extra time.

Can a person qualify for more than one tax filing status? +

Yes. For example, married couples can file jointly or separately, and unmarried individuals with dependents may file as single or head of household, depending on circumstances.

Does an automatic 6-month IRS filing extension give me more time to pay my taxes? +

No. The extension only delays filing; payment is still due by the original deadline. Submitting an estimated payment with the extension can help avoid penalties.

I have heard that if I do not owe any tax, I don't have to file a return. Is that true? +

Only in certain cases. If your income is below the standard deduction, you may not need to file. However, if you have income exceeding the threshold but qualify for deductions/credits that reduce your tax to zero, you must file to claim any refund.

Can I claim my step child or foster child as a dependent? +

Yes, if they meet IRS age, support, and income criteria. Stepchildren and foster children can qualify as dependents under the right conditions.