A Few Things to Understand About Online Tax Returns
You must know that the income taxes need to be filed in a specific time period so that you will be able to get rid of the unnecessary penalties and issues. Handling the taxes is one of the problems that must be done properly. There are so many receipts, forms, and documents that you should deal with. So that you can avoid the trouble, then what you can do is to go for the online method of filing taxes with the use of the software programs.
During the tax season, so many accounting firms have that heavy and huge workload. You can also see that the certified public accountants are quite busy with their paperwork. Through the online tax return method and the e-filing option, then you can ensure that things become much easier as well as faster to deal with. You don’t have to rush to your accountant to seek for one’s help and guidance. You can do this easily as well as conveniently with the use of the software on the internet. With the use of the internet facilities, you may also contact and talk to a good accountant and have the tax details sent through the internet.
There are several websites that provide income tax preparation online as well as the e-filing methods. When you would do the task on the internet, then you could save some time and money which is surely a fantastic thing. Many of the online tax filing companies offer the facility of estimating and calculating the right amount of taxes that should be filed.
Moreover, you have to know that preparing as well as filing the tax return online is not just easy but this is free too. You can go to the IRS website so that you can benefit from using the free file software when it comes to filing the income tax return. You can make use of this method when your AGI is less than $57,000. However, when you cannot use the software, you can use free file fillable forms in order to prepare and file the return forms through electronic method. A lot of the firms that handle tax preparation and e-filing offer services at really low rates. Computing the tax amount using the online calculators as well as filing the return online is very easy now.
For you to have more information on how this is done and for you to know more about this, you can get more information online. Once you know the method, then you should try this route so that you can take advantage of the convenience that it provides.
How to Get a Good Tax Return Preparer for Your Company
Preparation and filing an income tax return is both a challenging and demanding job. If you are not able to do it, then it would be wise to just employ someone who can do it in your stead. But if you have to pay someone else to do the critical task for your company, you have to be very careful in making a choice. Be aware that the Interview Revenue Service will put the responsibility and the liability on you if your tax return comes with mistakes even though you are not the one who is personally preparing it. So many companies today do not choose a tax return preparer carelessly. They often select a person who is professional, well-experienced and honest. Please read on to the next few parts of this article in order to know how you can select your tax return preparer properly.
Evaluate the Person’s Qualifications
The IRS has a new regulation which makes it necessary for paid tax return preparers to have a Preparer Tax Identification Number. In addition to ensuring the person you choose has a PTIN, you have to ask if he is a member of a professional accounting or tax preparation organization. It also matters if your preparer is pursuing continuing education to give you assurance that he is aware of every new regulation on tax preparation the IRS is giving. Even more, tax return preparers who are not a CPA, enrolled agent or attorney are demanded to pass a new test requirement. Individuals who are able to pass this test will become a Registered Tax Return Preparer.
Assess Your Preparer’s History
Before you decide to hire a specific individual to be your income tax return preparer, it is important that you take time to check his history. You need to verify if the tax preparer is having some questionable standing with the Better Business Bureau. You may also check the licensure status of the preparer and if he has had disciplinary actions from the IRS office of enrollment, state board of accountancy and state bar associations.
Check the Service Fees of the Preparer
Tax preparers do not have the same method of charging their clients. But then usually, it does not help you if you choose a preparer who charges you on a percentage of your refund. Do not even choose someone who claims that he has gotten larger refunds than other tax preparers. Also, you have to make sure that the refund of taxes are sent to your company’s bank account number.
Source: online tax return
Common Errors When Filing Income Taxes
Nowadays, thanks to tax preparation software, it is easier to file annual tax returns. However, with just a single slip in putting in your information on your computer could end up costing you, either in the form of a larger tax bill or a smaller refund. Additionally, even when the mistake, either on your PC or paper forms, did not cost you any money, it could delay the receipt of any refund you’re expecting.
Another crucial factor that you need to remember, is that any changes in your taxes can also make the annual tax-filing exercise even more confusing. For example, during the 2015 tax year, reporting and filing requirements prompted by the Affordable Care Act have caused a myriad of problems for taxpayers, tax professionals and even the IRS. Whether are there are special taxes applied in the current year, there are still plenty of ways to mess up a 1040 form.
Tax Math miscalculations
Every year, the most common error that occurs on tax returns are incorrect math. Even a single error in your arithmetic or in moving figures from one schedule to another will get you an instant correction warning. You need to remember, even the most simple mathematical error can reduce your tax refund or result in you owing more taxes than you thought. Your primary responsibly is to get all the numbers correct since the IRS will be doing a double-check all of the numerical entries against its copies of your tax statements (W-2, 1099s and the like).
Another typical math error that can happen are computation errors, during this event taxpayers or their accountants make errors in figuring such tax-return entries as taxable income, withholding and estimated tax payments. In addition, credits and special deductions also pose problems.
One thing you need to remember, the IRS is not just all about numbers, but words too, especially correct names. Whenever the names of a taxpayer, his or her spouse or their kids don’t match with the tax identification number that the Social Security Administration has on record it may start different problems with the processing. Typically, this issue is a normal one especially for women who are newly married. This is why women should announce to the Social Security Administration as soon as she can when she got married and will be changing surnames.
Additional Income Means Additional Filing Work
If ever you have additional jobs, for example, as a contractor you will most likely receive a Form 1099-MISC detailing the extra earnings. Never miss on declaring these important details or the IRS will count this against your owed taxes. There are many other tax problems that you will bump into, it is crucial that you know how to amend them to avoid problems.