When it comes to filing taxes, most people will feel overwhelmed by the process. The stress. The calculations. The receipts. You name it. Filing taxes can be challenging. But some people might find this time to be the best time while others might find it sensible to visit a tax preparation office in Roseville called Tax Shark. Working with a tax accountant or preparer will make the process straightforward.
But is a tax preparer the best choice than TurboTax? Here is what you need to know about filing taxes and hiring a tax preparer to help you.
Understanding How to File Taxes
Even if it’s routine, you should know how to file taxes. Whether you decide to hire a tax preparer or file the returns alone, you will have to gather the right tax documents. These will include the 1099s and W-2s. Ensure you don’t fail to collect the forms that show your annual income. If you are employed, the employer needs to mail the documents to you. This is crucial because you need to get the chance to audit them.
But in case you didn’t know, tax forms will be the first step. Also, you will require data about deductible costs that you paid. These payments include student loan interest, mortgage interest, and other relevant expenditures. If you set up a business, you should have comprehensive information on revenue and expenses. Apart from this, you should understand the appropriate tax forms you need while you file tax returns.
If you work full-time and don’t have other responsibilities, filing taxes will be straightforward. If you know how to file taxes yourself, you have nothing to worry about, but if you are inexperienced and don’t have enough time, you can use TurboTax. However, if your situation is complicated or you don’t know what to do, it is always best to speak to an experienced tax preparer.
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Are You Self-Employed?
When tax time comes, you will have to file self-employment taxes if you worked for pay throughout the year. Although you might be employed and pay income taxes, you will still be self-employed if you’re earning a side income.
For instance, if you handle digital marketing for an online company as a contractor, the company will pay you, but you will not be considered a full-time employee. This means they will pay taxes. Always remember they will not make illegal payments. They will ensure that they send the relevant forms to the IRS, and you will be required to pay your taxes. Whether you’re employed or self-employed, you will have to pay your fair share of taxes.
Apart from paying federal income taxes, you are required to pay taxes for your side income. This should be over 15%. With self-employment taxes, they will cover Medicare and Social Security. If you are self-employed and want to handle deductions, you will need to work with a professional tax preparer. Not only will the tax preparer help you with the audit, but your taxes may also reduce because you will know the valid deductions that you may have ignored. If you’re not sure, take your time before you file your taxes.
Are You Offering Financial Support to a Loved One?
If you are offering financial support to someone, that individual will be considered dependent, and you can put them on your tax return documents.
What is termed as an exception? If you are taking care of a relative or close friend that isn’t related to you, you will not get the chance to put them on your tax return documents. It is one of the methods the government will use to avoid freeloading. For example, if you know a close friend who is employed but still requires financial help, you will not claim their returns. If you’re unsure, you can speak to a tax preparer.
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Now that you know a tax preparer can help you with your taxes, you can choose between hiring one if you believe that your situation is complicated or you may make an error while filing. Don’t hesitate to speak to a professional tax preparer. Most professionals are knowledgeable and experienced. And the best thing is most people trust them when they decide to file taxes. So, whether you’re employed or self-employed, get in touch with a professional to understand your situation.
If your case is straightforward, you could handle everything yourself or use Turbotax. But if you are dealing with a complicated situation, you can count on a tax preparer to help you.