Tax Preparation Checklist
Tax season is officially upon us. This means it’s time to start thinking about how you’re going to prepare your tax return. If you’re looking for help, you may be wondering if there are any tax prep near me options available in Akron Ohio. Fortunately, there are a number of excellent local tax preparation services to choose including Akron Income Tax Co. In this post, we’ll take a closer look at tax preparation. So, if you’re ready to get started on your taxes, keep reading.
Are you looking for a Tax Preparation checklist of what to bring to your appointment? Whether you’re a first-time tax filer or have, we’ve got you covered. Check out our list of what to bring to your tax prep appointment. And find the nearest tax prep near my location that can help you.
How To Find a Tax Preparer?
Once you have decided it’s time to find a tax pro, consider a few things. First, try asking other taxpayers, such as your friends and family members who have been through the process recently, for recommendations from their tax preparers.
You can also try searching for an online free tax prep service or checking out your phone book. For the location of a tax preparation company that offers tax assistance. Finally, make an appointment to meet with the tax service pros, and bring all of your personal information, income statements (W-2s), business information, etc., with you. We can be your Tax preparation firm with tax prep fees of $130.
How Long Does Tax Prep Take?
Once you have arrived at your appointment, the length of time it takes to find the best tax preparers will vary based on the complexity of your return. If you have a small business, it may take longer, but usually, it takes less than an hour. However, a typical appointment with a tax professional generally lasts about an hour. Some people
Tax Prep Checklist
Before you leave for your appointment, make sure to have all of your financial information with you. Here is a list that may come in handy for own taxes:
1) Personal Information
The first step for taxpayers is to ensure that they have all their documents together.
Last Year Tax File
Last year’s taxes are an essential refresher for you and can be a starting point. If anything was missed or made on previous tax returns. But, of course, you should also still keep copies of your federal tax form and any applicable state paperwork from last season!
Your Social Security Number
The first and foremost thing that you need is your social security number. You may also need this information for the W-2 forms if you work independently or file a business tax return.
Your Spouse and All Dependents
Don’t forget to bring your spouse’s social security number or each dependent’s. You may also need their birth dates for the return.
2) Income Information:
When paying your tax, your income is a vital element.
Your W-2 Form(s)
Make sure to bring the most recent forms from any employers you have worked for and those from any side jobs or freelancing positions that may have been done during the year. If you haven’t already received a form, ask the accountant when W-2s will be ready.
Interest, Dividends, And Capital Gains
If you have had interest or dividends from any investment account (i.e., checking, saving, 401k), these forms are necessary to get accurate tax returns. Likewise, if you’ve had capital gains like the sale of stock or property, bring these documents along as well!
1099 Tax Forms
These forms are also helpful when determining your correct tax. From self-employment to freelancing, having these records will let you know what needs to be included in your taxes. Get all 1099s if you received them in the past year.
3) Business and Financial Documents:
If you have a business of any kind, there is paperwork that must be done to file your returns correctly. This includes documents for yourself and any other individuals in the company who may have been filing in previous years.
This information can include:
Schedule C or E : Business or Rentals
These schedules provide additional insight into your business income from any sales made last tax season! These figures will be recorded on line 12 of your tax return under self-employment income.
K-1s, 1065s, and 1099-MISC
These forms are mainly for people with a business who have more complex returns or receive a lot of money from their business. You will most likely see the form for any capital gains from stock sales if your small business holds onto stocks for at least a year. If you have received these types of income, be sure to bring them along!
4) Miscellaneous Documents:
There are also a few other documents that can help taxpayers to get started on preparing their taxes.
Home And Vehicle Information
If you’ve bought or sold any property last year, brought a new vehicle during this tax season, or are now paying interest on a new mortgage, please bring this information with you. If you don’t have this paperwork already, ask the accountant how it can be obtained!
Medical Expense Deductions
If your family has had an increase in medical expenses over the past year (such as insurance premiums) that went unreimbursed by your employer. In that case, you may want to consider asking for documentation of these expenditures if they were significant enough. These allowable expenses can often reduce the tax rate owed by an enormous percentage!
As mentioned above, if there have been any significant medical expenses in the last year, these deductions should be considered when filing. However, be aware that medical expenses must exceed 10% of your adjusted gross income before you can deduct any of them. So, if your AGI was $40,000 for this past year, be sure to have more than $4000 of medical expenses in order to have a chance using this!
Charitable Contributions
Having charitable donations deducted from your taxes each year is a great way to save money on your overall bill. Even if you file a short form, you can deduct a certain amount. Of course, you should still keep all documents filed throughout the year. Documentation for charitable deductions is usually accepted until you file your Income-tax returns. So, if you have any documents still on hand, it’s best to bring them with you!
5) Other Deductions:
When filing your tax returns, you can often find some that can help lower your taxable income. Some common ones include:
Student Loan Interest
If you are paying back student loans from past years, be sure to take advantage the interest you paid! The maximum amount allowed is $2,500, but any paid interest can get you closer to lowering or eliminating your tax bill. Any documentation on the loan should also be brought along with its corresponding paperwork, so this deduction can be properly recorded.
Retirement Contributions
If you’re planning on filing as a single taxpayer between 50 and 70 years old in January, be aware that there is a credit for those making contributions into their retirement accounts. This applies to anyone who made pre-tax contributions into an IRA or 401k. The maximum credit is $1000 since it has been scaled down due to recent legislation changes. Make sure you keep all documentation about these contributions because the amount will need to be calculated based on this information alone.
6) Tax Credits:
Everyone likes credits because they directly reduce the amount of tax you owe. But, as always, when filing, make sure the tax service can claim any credits that apply to you. Some commonly overlooked ones are:
Child Tax Credit
Every child would qualify for a credit on your taxes if under 17 during the tax year! However, be aware that this is a ‘non-refundable’ credit, so if it brings your total below zero, it will not get refunded to you.
Earned Income Tax Credit (or EITC)
This one is often overlooked by people who didn’t qualify or were unaware of the credit in previous years. This applies specifically to people who have low incomes and have at least one qualifying child. The EITC can often get you a nice refund from the IRS, so make sure to include it!
American Opportunity Credit
This credit is available for college students who are currently enrolled in school or graduated during the tax year. This one has been scaled back because of recent legislation and caps out at $2,500 per student. So be aware that if your child will graduate this year, there’s still time to use this credit!
Moving Expenses
Moving expenses can be deducted from taxes if you moved within the last tax year and met certain criteria (listed in detail here). Documentation about these expenses should always be brought when filing tax so this deduction can properly apply. The deductible amount is capped at $3500 per adult, and any excess can be applied to the following year of taxes.
7) Tax Payments:
Now that you know how much you owe include the proper amount of tax payments on your return. However, be aware that if you are underpaying, then there is an estimated penalty for not paying enough. If unsure about the rules surrounding this, it’s best to talk to a professional who can help! Lastly, don’t forget about including any interest paid on back taxes with the total amount due.
8) Signing the return:
Finally, it’s time to sign your simple returns! Don’t forget that a signature is needed on both paper and electronic returns. If filing electronically, make sure you sign using an acceptable method!
FAQs
What If I Didn’t Have a Job During the Tax Year?
If this is the case, consider your assets and income sources such as social security, stock portfolio, pension plans, etc. This will be considered fully when filing returns when determining whether or not to file and how much you owe. You cannot simply say that you did not work because it will be assumed that you had no taxable income! As always, consult with a professional before filing taxes if unsure about anything.
What If I Didn’t Make Any Money?
This isn’t necessarily true, depending on where and how you obtained your money. Remember that interest earned from savings accounts is still considered taxable by the IRS, so keep track of any amount paid out by banks. The tax service person should be able to provide the tax help you need to assist you. Also, don’t forget to check if you qualify for tax credits such as the EITC or AOTC!
What If I Borrowed Money from Someone?
Interest is still considered income (unless excluded by special rules) and must be included when filing returns. However, keep in mind that just because you’re receiving interest doesn’t mean it’s not taxable, so consult with a professional to ensure everything is handled properly on your return.
So, What Do I Need to Know About Akron Income Tax Co?
We offer various tax preparation options throughout the year, our professionals have prepared taxes for years and can assist with your taxes. We can help you with the IRS rental and small business taxes. Our office has low fees starting for a basic return the cost is just $120. Business taxes are more complex and the taxpayers pay a little more to file their taxes! Preparing your taxes yourself isn’t a bad thing but cheating yourself out of money and the time it takes to file your taxes must be considered as well!
With Akron Income Tax Co, you can make an appointment or just drop off your documents. We also have remote option and we will help you from start to finish with any questions you have along the way. Also, you can contact our tax pros for tax counseling, dealing with notices from the taxing authority, or registered trademarks.
A final note on Akron Income Tax Co. is that if you decide to drop off your taxes, you can avoid waiting for an appointment and we will call you when they are completed in a day or two.
What is the Tax Preparation Fees?
The tax preparation fees vary by where you live and the complexity of your tax return, but to prepare the Form 1040 or state return for a tax pro, enrolled agents, or certified public accountants, it can cost anywhere from $200 to $500 or more depending on these factors.
Is It Worth Paying For Tax Preparation? Do you want a Refund?
It depends.
More often than not, the amount you pay for filing your IRS taxes at a reputable office more than pays for itself in the service you get. The person filing your documents has the expertise to understand if your tax situation qualifies for any tax credits. If you miss just one credit or deduction, you will let the IRS keep your hard-earned money by default. Professional tax preparers at your local office can help identify tax deductions you might not know about and get you a bigger refund. Additionally, you can use the IRS’s Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to find a tax return preparer in your area with the credentials described above.
However, if you are eligible for any, then you may want to consider professional preparation to ensure they are correctly identified and claimed. Remember: there is no such thing as “perfect” when it comes to filing tax – but there is such a thing as perfect relief!
Who Is The Cheapest Tax Preparer?
There is no definitive answer to this question. It depends on factors such as the complexity of your tax return, the availability of discounts, and the location of the tax preparer. That said, many online tax preparation services offer low-cost or even free filing for simple federal returns, but you have to know how to use the service otherwise you just may cheat yourself out of money.
Our clients demand the best possible IRS refund or the lowest payments if they have to write the check. Our simple returns services usually cost $130 if you don’t have a business or rental properties. Furthermore, when clients use our services, we e file your returns for free.
Where is the Cheapest place for Tax Prep Akron?
There is no one-size-fits-all answer to this question, as the cheapest place will depend on your individual situation. However, some tips to keep in mind include checking with various online or offices that offer tax services, demand to know exactly what you will have to pay to get the services you need. Some certified public accountants charge by the hour and some enrolled agents charge by the form. The free tax offers you see are not really free, restrictions apply if you don’t meet their eligibility criteria. Most have free Federal but then you have to pay for your state service to get your refund. As you know free doesn’t always mean free.
We have qualified tax professionals at Akron Income Tax Co who can prepare your federal return at affordable prices and get you the biggest refund possible. Free State returns, City and E file when we file your IRS federal return or amend returns. Call our office to access our services that will generate the refund from the IRS that our clients deserve.
How Can I Find The Best Tax Preparation office?
If you are looking for the best tax preparer near you, there are a few things to keep in mind while searching for tax help.
1. Find a list of tax preparers in your area
2. Check the Preparer Tax Identification Number (PTIN)
3. Make sure the tax preparer is licensed and insured
4. Start by asking friends and family for recommendations. Check their tax prep fees.
5. Check with the Better Business Bureau to see if any complaints have been filed against the preparer
6. Compare tax advisor fees – some preparers charge a flat fee, while others charge by the hour
7. Make sure your tax preparer offers free e-file
8. Make sure they sign your returns and provide their PTINs
9. Get a copy of the return before it’s filed
10. Make sure the preparer will be available to answer any questions you have during the tax season
Is It Worth Going to A Tax Prep near me?
The answer to that question can vary quite a bit. Here are four different situations whether you’re an individual, a small business, or a larger company, where you might consider going to a tax preparer. More often than not, the tax prep fees are worth going to a professional office. An enrolled agent or professional tax preparer can provide the assistance you need to lower your liability and reduce your chance of IRS penalties.
1) The complexity of your return is high. You have businesses or rentals.
2) You have messed up tax situations and will likely owe the IRS money in April.
3) You’re in tax situations where you normally don’t have to file taxes. But this year need to because of life changes (e.g., children, divorce, separation, etc.) or income from an additional job.
4) If you live near the border, it often makes sense when doing state and federal tax returns for both Massachusetts and Connecticut because the total time spent with some high-level preparers combined often runs below 50 hours for both states.
Fees
The hourly fee remains the same even when doing both states.
When you’re in doubt, just go to an IRS tax preparer or enrolled agent. You should stick with that decision throughout the year. It’s better than the alternative of trying to file tax returns yourself online. Thereby, possibly missing deductions or having to take them to a tax professional office at the last minute. Furthermore, it is more costly to process a client’s amended return.
Conclusion
As you can see, there are many moving parts to filing IRS returns properly. Keep in mind that the purpose of this article is to help those who aren’t exactly sure how to file their docs. Additionally, they should know what forms need to be included. This topic is far too complex and wide-reaching to cover everything. It is best to seek advice from a professional who is unsure about anything tax-related! So, when you are ready to work with the best tax preparation services, call us! Many online services offer consultation if you’re looking for ways to better prepare yourself for filing next year!
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