News For This Month: Options

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Filing Tax Returns via Tax Preparation

The US Federal government reports that 60% of individuals who submitted their tax returns where complied with by paid preparers; therefore, tax preparation has entered into a new level of tax return filing courtesy of the quick services of paid tax preparers.

The first step in preparing to submit your tax returns is to look for a competent tax preparer and there are ways to do that, such as asking friends or a lawyer to give you a referral or go through the link of the IRS on directory of preparers. Once you have a listing of preparers, be guided with the following: ask for his/her Preparer Tax Identification Number (PTIN), which indicates that he/she is authorized to prepare your federal income tax returns, inquire on the fees, which will actually depend on the complexity of your returns, and if the preparer requires a percentage cut on your tax refund, steer clear of this person; otherwise, there are tips on choosing a preparer which the IRS has provided in its link.

Time element is an essential factor in recruiting a tax preparer, because the sooner you choose a qualified one, the sooner, too, will the tax preparation begins, such that if there are any tax incentives that you may enjoy, such as being eligible for deductible contributions to IRAs or health savings accounts, it will be the tax preparer who can determine and can comply with before the tax returns deadline.
Looking On The Bright Side of Options

It is important to always check each tax form that you will receive, which is usually provided at the end of January, finding out if the information in the tax form matches your own records. Some of the common forms provided are: Form W-2, if you have a job; Form SSA-1099, if you received Social Security benefits; various form 10992, to report income, like cancellation of debt (1099-C), dividends (1099-D), interest (1099-INT), and nonemployee compensation paid to independent contractors (1099-MISC); new Form 1095-A, to report information from the government marketplace from which you purchased health coverage; various 1098s, reporting mortgage interest (1098), student loan interest (1098-E) and tuition payments (1098-T); Form W-2Gs for certain gambling winnings.
The Essentials of Options – The Basics

Take hold of your filed receipts and the more organized you are in filing your receipts, the less time it will take the preparer can complete your tax returns form, which translates into reducing his/her service fees. It helps when you organize your receipts for the tax preparer to determine if your personal deductions can be claimed under standard deductions or itemized deductions and make comparisons as to where you are of an advantage.

The tax preparer will also be requiring you on personal information, such as Social Security number; the Social Security number of your dependents, address of your home and that of your other properties; specific dates when you transferred residence; information about properties you bough and sold, including their respective dates and the amounts paid and received.