The tax preparation process can be confusing and intimidating. It’s important to find a tax representative who understands your needs, but how do you know where to start? Tax preparation is the process in which individuals and businesses calculate the tax owed to a federal, state or local government. They then file a tax return with the IRS. Individual taxpayers and businesses have two choices to make: prepare their taxes by themselves or to get the help from a tax professional. Tax professionals will always have more understanding of tax-matters than your average taxpayer. The tax professional will more often determine more costs and conditions that qualify them for tax breaks, credits, and other financial benefits.
Who Prepares Taxes?
Typically, the taxpayer themselves or a professional tax preparer will prepare the taxes. Tax professionals are very knowledgeable about the tax laws and have all of the tools needed to accurately prepare your taxes. That being said, preparing taxes by yourself may leave a big room for error. We’re all human and we may make mistakes while preparing your taxes. If preparing your own taxes isn’t exactly in your area of expertise, Clear Start Tax is fully-equipped with the necessary tools and resources to provide accurate filing and get you the most out of your tax refund.
What Happens When You Go Unfiled?
Preparing and filing your taxes may be tedious or even complicated to some, but accumulating unfiled years is a recipe for disaster. If you’ve fallen into that dilemma, you may have current back taxes, compounded interest, and loads of penalties.
What Do I Need To Get My Taxes Filed?
Some items to keep in mind that make filing easier your upcoming tax return include :
- Your social security number
- Dates of birth and social security numbers for spouse and dependents
- The income of other adults in your home
- Proof of source of income
- Savings & investments of dividends
- Other income & losses