Filing taxes is a necessary part of life that not everyone enjoys. All individuals and businesses need to file taxes with the IRS, with some exceptions. In Louisiana tax preparation services are available for any entity or person who needs to file.
Locating a tax preparer is fairly simple, however, what type of return to file needs to be taken into account. A couple who plans on declaring their filing status as married filing joint or a single individual can usually file a 1040EZ. This form is the shortest and the easiest to fill out. Individuals using this form should not have any dependents nor own a business. A tax service will charge the least for completing this form.
A 1040A is slightly more complicated than a 1040EZ and is for taxpayers who have wage income and do not choose to itemize deductions. 1040A filers can claim dependents and credits such as the earned income credit and the child tax credit. Filers of this form can choose to pay the alternative minimum tax version tax from a tax table.
The 1040 form is also referred to as the long form, and there are certain cases that require this form to be used. If an individual has chosen to itemize deductions or they have income over $100,000, the IRS requires that they use this form. It must also be used if that individual is self-employed.
An individual or couple might choose to itemize deductions in certain cases. The IRS offers everyone the option of using the standard deduction, which is used by the majority of taxpayers. However, there are many cases where itemizing deductions could decrease tax liability. Commonly, medical expenses, property taxes, and charitable contributions are claimed as deductions. Medical deductions can also include premiums for insurance, if not paid for by an employer.
All businesses can benefit from using a tax service. Many tax preparers are also bookkeepers or accountants and can be used the rest of the year to record and classify income and expenses. This also makes the tax filing process easier at the end of the year, or the end of the quarter in some cases. A preparer who is also a CPA can often give tax advice to businesses and individuals that could help reduce tax liability.
Any individual who runs a sole proprietorship has to file a Schedule C or Schedule C-EX with their 1040 form. The IRS also allows half of the self-employment taxes can be deducted on the 1040, which reduces tax liability, since it is taken out before the adjusted gross income is calculated. Different businesses might need different forms, so it is important to check with a preparer to insure proper filing.
In Louisiana tax preparation is easy to find, just by going online or picking up a phone book. Different tax professionals specialize in different areas, so it is a good idea to ask questions to determine whether or not they are a good fit. Hiring a tax prepare ensures that filing is accurate and timely which saves the penalties that could incur if they are paid late. It is also important to pay enough tax, if the tax amount at the end of the year is over a certain threshold, a penalty can also be incurred. A paid tax preparer can help avoid such pitfalls and give an individual or business peace of mind that this chore has been taken care of.
Locating a tax preparer is fairly simple, however, what type of return to file needs to be taken into account. A couple who plans on declaring their filing status as married filing joint or a single individual can usually file a 1040EZ. This form is the shortest and the easiest to fill out. Individuals using this form should not have any dependents nor own a business. A tax service will charge the least for completing this form.
A 1040A is slightly more complicated than a 1040EZ and is for taxpayers who have wage income and do not choose to itemize deductions. 1040A filers can claim dependents and credits such as the earned income credit and the child tax credit. Filers of this form can choose to pay the alternative minimum tax version tax from a tax table.
The 1040 form is also referred to as the long form, and there are certain cases that require this form to be used. If an individual has chosen to itemize deductions or they have income over $100,000, the IRS requires that they use this form. It must also be used if that individual is self-employed.
An individual or couple might choose to itemize deductions in certain cases. The IRS offers everyone the option of using the standard deduction, which is used by the majority of taxpayers. However, there are many cases where itemizing deductions could decrease tax liability. Commonly, medical expenses, property taxes, and charitable contributions are claimed as deductions. Medical deductions can also include premiums for insurance, if not paid for by an employer.
All businesses can benefit from using a tax service. Many tax preparers are also bookkeepers or accountants and can be used the rest of the year to record and classify income and expenses. This also makes the tax filing process easier at the end of the year, or the end of the quarter in some cases. A preparer who is also a CPA can often give tax advice to businesses and individuals that could help reduce tax liability.
Any individual who runs a sole proprietorship has to file a Schedule C or Schedule C-EX with their 1040 form. The IRS also allows half of the self-employment taxes can be deducted on the 1040, which reduces tax liability, since it is taken out before the adjusted gross income is calculated. Different businesses might need different forms, so it is important to check with a preparer to insure proper filing.
In Louisiana tax preparation is easy to find, just by going online or picking up a phone book. Different tax professionals specialize in different areas, so it is a good idea to ask questions to determine whether or not they are a good fit. Hiring a tax prepare ensures that filing is accurate and timely which saves the penalties that could incur if they are paid late. It is also important to pay enough tax, if the tax amount at the end of the year is over a certain threshold, a penalty can also be incurred. A paid tax preparer can help avoid such pitfalls and give an individual or business peace of mind that this chore has been taken care of.
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