Filing your Federal Income Tax Returns
Are you dreading doing your income tax returns? It doesn’t have to be a difficult process. With the help of an Akron professional tax preparer, you can get through it quickly and easily. Let us take the hassle out of tax season for you.
We’ll make sure that your return is done correctly and filed on time. You can contact us today to get started. Also, go through our guide to understand the process and get informed about federal taxes.
About Filing Your IRS Income Tax Returns
When the tax season approaches, you often find yourself wondering about the options of filing individual income tax returns correctly. Tax season starts in January and ends on the 15th of April every year. However, filing and completing your federal IRS income tax returns in 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 and increase your federal tax refund.
Basically, a tax return is a form or form filed with a tax authority, such as the IRS, in the USA. The form contains information about taxation, income, expenses, and other relevant financial information. Taxpayers can calculate their tax liability and request a refund if they have overpaid their taxes. It can also allow taxpayers to schedule their tax payments since they must file their tax returns every year.
There are three major sections to tax returns– income, deductions, and tax credits.
Taxable 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 accounting and 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 they have earned. If you have earned dividends or interest on investments, you may receive other tax documents, too, such as 1099-DIV and 1099-INT.
College students may receive the 1098-T, which shows the amount they have paid in tuition. If they have received any grants or fellowships, that will also reflect on the form.
Tax 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 in 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. Student loans can affect your refund status and give you a chance for a maximum refund.
Business Expenses
If you work as a freelancer or are self-employed, you may be able to claim deductions for work-related expenses. Business tax returns require additional forms to report income and expenses. Expenses would include office supplies, industry subscriptions, and more.
Tracking your revenue and using the correct forms to report your individual income revenue will reduce the error rate on your federal tax return. Federal tax status changes for the self-employed as additional expenses are available on Schedule C forms.
Education Credits
Are you a full-time student? Are you being claimed as a dependent? If you answered no, 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. These changes could mean you qualify for tax credits like the Child Tax Credit (CTC), the Earned Income Tax Credit (EITC), and the Child and Dependent Care Credit. For 2023, the CTC is worth $2,000 for each qualifying child. A child must be under age 17 at the end of 2023 to be a qualifying child.
For instance, for the 2021 tax year, you may be eligible for the saver’s credit and the earned income tax credit if your adjusted gross income is $33,000 or less and your filing status is single.
Similarly, you may be eligible if your adjusted gross income is $66,000 or less if you are married. These numbers are subject to change, so you may want to check the IRS website for more information on eligibility requirements and income limits for education credits and other tax benefits related to business income.
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. You may be able to claim credits for taking care of older people and children, education, pensions, and more.
After reporting income, deductions, and credits, the end of your income tax return identifies the amount you owe in taxes. It will also show if you have overpaid your taxes from your paycheck. If you have overpaid on your federal return, you qualify to get a refund in the mail, or if you e-filed, you can roll them over to the next year. Additionally, you can request a tax return transcript by mail to view your prior year adjusted gross income (AGI) and access your tax records, making the process of filing your taxes even easier.
The next step is to file your own income tax return. If you feel confident enough, you can always file it yourself. There is a tax preparation software program available online that you could use to file your own taxes for a fee. However, can you be sure of their accuracy? If you want accuracy, reliability, and safety, the ideal is to hire a professional preparer to file your federal return. Plus, you also get expert guidance, which is a win-win for tax filing.
Are You Supposed To Pay Akron City Taxes?
It is common knowledge that people who live in the city limits of Akron or have a business within the city limits are responsible for paying city taxes on top of their state tax returns and federal income taxes. Anyone who has a business or rental property (rental owners must register) must also account for the income and submit or e-file an Akron income tax form.
If you are unsure whether or not you need to file a return with the City of Akron, speak with our tax experts at Akron Income Tax Co., who will address the question and can help you determine your filing requirements. Failing to pay taxes owed can result in significant penalties and interest charges, so it is better to be safe than sorry. Note that not everyone with an Akron address must file a city return with the government, some areas are not inside the city limits.
Why Hire A Tax Preparation Specialist?
A tax preparer is an expert who 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 pretty 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 federal tax refund, such as using a withholding estimator? If not, then hiring a tax preparer is the best thing you can do to increase your refund.
Our secure services guarantee that you get the maximum federal refund. Dollar for dollar, we should be your choice for tax preparation because we understand the importance of handling your personal information with utmost care and confidentiality.
The most significant 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:
Convenience
Filing tax returns is no joke. You must know a lot 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.
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 what 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 beneficial during the tax season and 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.
Save Time
According to the IRS, it takes 20 hours to prepare and complete average income tax returns with deductions. Do you have that kind of time? What if you have questions? E-file will save you time and money. 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 the team at Akron Income Tax Co. We have over 38 years of experience with a stellar reputation for accuracy, security, and reliability. We have some of the best tax professionals working for us who are highly educated and experienced. Because of the incredible trust that we have in our accuracy, 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.
FAQs
When Should I Expect My Tax Refund?
In the case of e-filing, you should receive your refund within 21 days. If you mailed a paper return, you should expect your refund within 42 days. It is more secure to sign and e-file your income tax returns. Millions of people use this service to sign and send their data. E filing reduces wait times vs mailed services. Additionally, you can have your refund via direct deposit or deposited into your bank account, providing a convenient and efficient way to access your funds for the current year.
How Can I Check the Status of My IRS Tax Refund?
The best way to check the status of your refund is to use the IRS’s free “Where’s My Refund?” service tool. You can also call the IRS directly at 1-800-829-1040.
What if I Owe Taxes?
If you owe taxes, you should expect to receive a bill in the mail from the IRS. The bill will include the amount you owe, as well as instructions on how to pay. You can also set up a payment plan with the IRS if you are unable to pay the full amount owed.
What if I Haven’t Received My Tax Refund?
If you expected to receive a refund but have not yet received it, the best thing to do is to check the status of your refund using the IRS’s “Where’s My Refund?” tool. If you notice there is a problem with your refund, the tool will tell you what you need to do next.
Do I Need to File a Tax Return?
You only need to file a tax return if you meet certain criteria. For more information on a person who needs to file a tax return, you can speak to a tax professional at our company today.
What Happens if I Don’t File a Tax Return?
If you don’t file a tax return when you are supposed to, you may be subject to penalties from the IRS. The amount of the penalty will depend on how late you are in filing your return. In some cases, the penalty can be as high as 25% of the taxes you owe. However, if a tax return contains errors, it is important to submit an amended return to correct the discrepancy and avoid further penalties or complications.
Get Started Now
Our income tax company can help you with all of your income tax returns in Akron, Ohio, whether you are an individual or a business. We have a wide range of various tax services here to offer our clients, and we are always here to help. Whether you need help with the income tax credit, refund status, or electronically filing a state tax return, we’re up for help. Contact us today to get started!