TAX PREPARATION
Whether you file taxes as an individual or jointly with your spouse, there are tax preparation services available to make the process easier. Income tax filing can be tricky at first, and even those who work in accounting may need help preparing their taxes. Tax preparation services can also help you identify any deductions or write-offs that you might not have known about before. If this is something that interests you, read on for some helpful information!
What is Tax Preparation?
Tax preparation is the process of filing your taxes and reporting your income. When you prepare your taxes, you report all of your income for the previous year and claim any deductions or write-offs.
There are several different types of tax preparation services available:
- Tax preparation services
This is the most basic type of tax preparation. These services may prepare both federal and state taxes but will not include advice or counsel. - Tax preparation with advice and counsel
This type of tax preparation service typically includes the basic service of preparing your taxes and some additional advice and counsel. You may receive help in determining which deductions to claim, or you may be able to ask for advice about your specific personal situation. - Tax preparation with assistance in identifying deductions
This type of tax preparation service offers help in identifying deductions that you might not have known about. - Tax preparation with assistance in maximizing deductions
This type of tax preparation service goes a step further than the service above by helping you understand how to maximize deductions. - Tax preparation with assistance in filing amended tax returns
This type of tax preparation service offers help in filing amended tax returns.
Which type of tax preparation service should you choose?
As mentioned above, tax preparation services can vary across a spectrum of different types. Depending on your own needs and circumstances, you may benefit more from one type of service than another. If you need help identifying deductions or write-offs, for example, you might want to go with a tax preparation service that offers assistance in this area. If you’re looking to hire a tax preparation service, it’s important to shop around first. Find out how long the service has been in business and what its track record is like. Be sure to ask for references, and talk to people who have used the service before. This way, you can be sure that you’re hiring a reputable service and that you’re getting the best possible outcome from your taxes.
Hiring an accountant
When you hire an accountant, you’re hiring a professional who specializes in taxes. Accountants can help you get the maximum benefit from your taxes and can help you find deductions and write-offs that you might not have known about. An accountant can help you file both your federal and state taxes, and they may offer other services as well, such as bookkeeping and financial planning. Hiring an accountant is more expensive than using a tax preparation service, but they may be worth it if you have complicated tax needs. Accountants may also be able to offer additional services to you.
Checklist
Personal Documents
- Your social security number or Individual Taxpayer Identification Number (ITIN), as well as those of anyone you may be claiming on your tax return, including your spouse if you are filing jointly.
- Photo identification.
Income Documents
- W-2 forms from any employers you worked for
- 1099 forms for any contract work you completed if you earned more than $600 total.
- Income from unemployment or social security benefits.
- Income from the previous year’s state and local tax returns.
- Income from any rental properties you may own.
Income Adjustment, Credit, and Deduction Documents
- Receipts from charitable donations.
- Receipts from moving expenses for active military.
- Receipts from job search expenses.
- Records related to loss of property or insurance claims from a federally declared disaster.
- Bank account and routing number if you want your refund direct deposited.
Other Documents
- Contributions to a Medical Savings Account (MSA).
- Contributions to an IRA.
- Interest from investments, stocks, or other property.
- Costs related to childcare (including the provider’s tax ID number) or adoption.
- Costs related to education (1098-T and 1098-E).
- Costs related to homeownership (1098s for mortgage interest, property tax, energy-saving improvements, or other expenses).
- Costs related to medical care from doctors, hospitals, or other providers.
- Form 1095-A for health insurance through the Marketplace Exchange, or 1095-B or -C for health insurance through another source.
Conclusion
If you’ve been keeping up with your tax filings all year, the process should be relatively smooth. However, if you put it off, things might become a little more difficult. Whether you file taxes as an individual or jointly with your spouse, there are tax preparation services available to make the process easier. Income tax filing can be tricky at first, and even those who work in accounting may need help preparing their taxes. Tax preparation services can also help you identify any deductions or write-offs that you might not have known about before.
Need Help Filing Your Return?
If you’re overwhelmed by the thought of preparing and filing your taxes, we’re here to help. Our team of tax experts has the expertise to find the best solution for your situation. Whether you’re looking for a simple way to file or a way to save money, we’ve got you covered. So get ready to breathe a sigh of relief this tax season with Family Tax Relief.
