Many of us hate the idea of doing our income taxes because we don’t know various tedious-seeming, but important things, such as all the allowed deductions, and adjusted gross income. And if you are a small business, you may hate to spend that extra money getting help from an accounting firm. However, there are some accountants who are reputable and will only require a very feasible fee.
Certified Public Accountant
A CPA stands for a certified public accountant , and this title is a licensed accountant professional’s designation. The state’s Board of Accountancy provides the CPA license.
A CPA prepares taxes. At Nazaire & Co, we have a team of CPA’s who are dedicated to helping you through tax season and beyond to put your mind at ease and your finances in order. We are more than willing to do your taxes for a very affordable fee.
If You Still Decide to do Your Own Taxes
If you still decide to do your own taxes, there are key things you should know to ensure you are filling correctly. If you don’t file correctly, you may get penalized by the IRS. That being said, the following are some key terms and other viable information that will help you:
Taxable Income
The government considers everything on this list as taxable income:
- Your salary except for money put into a retirement plan.
- Any bank account interest
- All bond interest except municipal bonds
- Dividends
- Severance pay
- Bonuses
- Sick Pay
- Unemployment compensation.
- Tips
Nontaxable Income
The government considers everything on this list as nontaxable income:
- Gifts
- Disability income
- Childcare financed through your job
- Return on Investments
Adjustments
Adjustments are special deductions or tax breaks that the government allows you to subtract from your income. And with that, you will reduce the amount of tax you owe. Moving expenses and tax-shelter account contributions are some examples of adjustments.
Itemized and Standard Deductions
There are possibly many deductions you can file in your taxes, thus allowing you to reduce the amount of tax owed. The deductions could be standard or itemized. If you itemize a wide range of expenses, you must show proof that you qualify by attaching supporting documents. Also, using the most in reducing your taxable income is the goal.
Those with reasonably simple financial situations, like not owning any property, not managing many investments, or not running a home business, may find standard deductions as the most beneficial for their situation. The standard deductions are fixed dollar amounts that Congress permits all taxpayers to subtract from their income. And when it comes to itemized deductions, you account for them on Schedule A of IRS form 1040.
Conclusion
Many, if not most, taxpayers hate tax season. And if you are a small business, you may hate to spend that extra money getting help from an accounting firm. But not to worry, Nazaire & Co has a team of professional CPAs who are dedicated and willing to help you every step of the way to secure your financial freedom. Let your worries disappear with a knowledgeable team of accountants helping you navigate through the waters of tax season. Adhering to these tips will go a long way along with professional assistance from Nazaire & Co.
