Income Tax Returns

Income Tax Returns

Filing your Taxes and hiring the right preparer

When the tax season approaches, you often find yourself wondering about the options of filing an income tax Returns correctly. Tax season starts in January and ends on the 15th of April every year. However, filing your federal income tax returns Akron need not be overwhelming. By partnering with the right tax preparer, you can avoid costly mistakes and take advantage of opportunities that can help you save money.

So, what goes into filing your federal income tax returns. Let’s see.

Filing your Federal Income Tax Returns Akron

A tax return is basically a form or forms filed with a tax authority, such as the IRS in the USA. The form contains information about income, expenses, and other tax information. Taxpayers can calculate their tax liability and also request a refund in case they have overpaid their taxes. It can also allow taxpayers to schedule their tax payments since it is necessary to file their tax returns every year.

There are three major sections to tax returns- income, deductions, and tax credits.

Income

You have to list all your sources of income in the income section of a tax return. In the US, the W-2 Form is typically used for reporting all the income you have earned. Your income includes your wages, income from being self-employed, dividends, royalties, and more.

Ideally, you should receive your W-2 Form by January or February every year. People who work full-time usually receive the W-2 form with details of all their earnings and the taxes withheld. For freelancers and contractual workers, the equivalent is the Form 1099-NEC, which offers details of all that they have earned. If you have earned dividends or interest on investments, you may also receive other documents, such as 1099-DIV and 1099-INT.

College students may receive the 1098-T that shows the amount they have paid in tuition. If they have received any grants or fellowships, that will also reflect on the form.

Deductions

A tax deduction is a claim or deduction that lowers your taxable income, and therefore your tax liability. Your tax deductions could be different depending on the jurisdiction you live in. However, some common examples of tax deductions include interest deductions on certain loans, contributions to retirement savings plans, and more.

Understanding the kind of deductions, you are eligible for can help you gather the right documentation.

Here are a few deductions on your income tax returns Akron that you may be eligible for:

Student loan interest

You may be able to claim tax deductions up to $2500, depending on your adjusted, modified gross income.

Business expenses

If you work as a freelancer or are self-employed, you may be able to claim deductions for work-related expenses. These include office supplies, industry subscriptions, and more.

Education credits

Are you a full-time student? Are you being claimed as a dependent? If you answered no, then you may be eligible for a tax credit. However, you are only eligible if you contribute to a retirement plan. The amount of credit you are eligible for depends on your adjusted gross income and your filing status. For instance, for the 2021 tax year, you may be eligible for saver’s credit if your adjusted gross income is $33,000 or less and your filing status is single. Similarly, if you are married, you may be eligible if your adjusted gross income is $66,000 or less. These numbers are subject to change, and so you may want to check on the IRS website.

The IRS website also lists other deductions that you may be eligible for.

Tax credits

A tax credit refers to the amount of money that taxpayers can deduct from the income taxes that they owe. Like deductions, even tax credits can vary between jurisdictions. However, you might be able to claim credits attributed to the care of seniors and children, education, pension, and many more.

The end of your income tax return, after reporting income, deductions, and credit, identifies the amount you owe in taxes. It will also show if you have overpaid your taxes. In case you have overpaid taxes, you could get a refund or roll them over to the next year.

The next step is to file your income tax return. If you feel confident enough, you can always file it on your own. There is tax preparation software available online that you could use to file your returns for a fee. However, can you be sure of their accuracy? If you want accuracy, reliability, and safety, the ideal thing to do is hire a tax preparer. Plus, you also get expert guidance, which is a win-win.

Why hire a preparation Specialist?

A tax preparer is an expert that calculates and files tax Returns, and there are several reasons to hire one. If you have multiple sources of income, filing a tax return can be quite complicated. Are you aware of all the ways that you can adjust your taxable income? Do you know the ways to reduce tax or increase your tax refund? If not, then hiring a tax preparer is the best thing you can do.

The biggest advantage of hiring a tax preparer is their wealth of knowledge regarding tax laws and procedures. Akron Income Tax Co. has been doing Taxes for the past 38 years. Their incredible knowledge and expertise regarding US tax laws make them the best in the market.

Other benefits of hiring a tax preparer include:

You don’t have to go through the hassle of doing it yourself

Filing tax returns is no joke. There is a lot you must know and a lot to be taken care of. You should be aware of the right deductions and credits you can claim to reduce your taxable income. Pick the wrong ones, and you may just be breaking the law. Why go through so much hassle when you can hire an experienced tax preparer to complete your income tax returns Akron Income Tax Co.

You can save money

Experienced tax preparers can help you find the right tax credits and deductions you are eligible for. The amount of money you save from these easily exceeds the amount you would pay to a tax preparer. Akron Income Tax Co. works with some of the most highly educated and experienced tax professionals. We offer a flat rate, no frills pricing, and absolutely no hidden fees.

Akron Income Tax Co. can be incredibly helpful during the tax season as well as the rest of the year. Our tax professionals can offer expert guidance on the best strategies for smart tax-saving decisions. If you have missed any deductions in the past, our professionals could amend that as well.

You can save time

According to the IRS, it takes 20 hours to complete the average tax return with deductions. Do you have that kind of time? What if you have questions? You could call the IRS, but that means being on the phone for hours.

So, what is the best thing to do? Hire a trusted, reliable, and experienced tax preparer such as Akron Income Tax Co. We have over 38 years of experience, with a stellar reputation of being accurate, secure, and reliable. We have some of the best tax professionals working for us who are both highly educated and experienced. It is because of the incredible trust that we have in our accuracy that we guarantee our work. Yes, we guarantee our work. With Akron Income Tax Co., you are sure to save your money in the long run.

Do you need help with your tax returns? Let’s talk. We have an incredible offer for you.

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