Things You Never Knew About Income Tax Preparation

Are you looking for tax preparation assistance? Tax filing can be a tricky and complex process. Knowing all the nuances and details involved in tax filing can be difficult, even for those with a financial background. Here are some things you never knew about income tax preparation and filing that you may not have been aware of before.

IRS Tax Form Options

1040 EZ

The easiest of the tax forms, the 1040 EZ is a single-page document to file for taxpayers who are single, married filing jointly, and don’t claim any dependents. This form is usually used by those who have simple tax returns and don’t need to itemize deductions.

1040A

This form is a bit more complex than the 1040 EZ and allows for larger deductions and credits, such as tuition and fees deductions, child and dependent care expenses, and education credits. It also allows for more detailed reporting of income.

1040

This form is the most detailed and comprehensive of all IRS tax forms. It allows for itemized deductions, self-employment income, dividends and capital gains, and other larger deductions that wouldn’t fit on the 1040A or 1040EZ.

Tax Software

Free E-Filing

The IRS offers free e-filing for taxpayers who meet certain criteria. For example, taxpayers with an adjusted gross income (AGI) of $69,000 or less are eligible for free e-filing.

These taxpayers can use the IRS’s Free File program to file their taxes online.

Online Tax Software

Online tax software programs allow taxpayers to prepare and file their taxes from the comfort of their homes. These programs are typically more user-friendly than paper filing and can help taxpayers better understand the filing process.

Hiring a Professional

For those who don’t want to handle their taxes on their own, they can always hire a professional. Professionals are experienced in handling complex tax filings and can help taxpayers maximize deductions and credits.

FAQs

Q: What is the best way to file my taxes?

A: The best way to file your taxes is going to depend on your individual needs and situation. If you have a simple tax return, then you may be able to use the IRS’s Free File program. If your tax return is more complex, consider using online tax software or hiring a professional.

Q: How do I get started with filing my taxes?

A: The first step in filing your taxes is to gather all the necessary documents, such as W2s, 1099s, etc. Then you can determine which tax form you need to fill out and start preparing your tax returns.

Q: What is the deadline for filing taxes?

A: The deadline for filing taxes is typically April 15th of each year. However, the IRS may grant an extension if you are unable to file by the deadline.

Conclusion

Tax preparation can be a complicated and tedious process, but it doesn’t have to be! With the right tools and knowledge, you can make tax filing an easier process. Whether you’re using the IRS’s Free File program or hiring a professional, the key to making tax filing easier is understanding what forms and resources are available.