Tax returns filing has become less burdensome due to paid tax preparers who offer their services to individuals who have to submit their tax returns on time and this service concept has helped much to fast-track the submission of tax returns, helping the government increase in its revenue.
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.
The most essential factor in recruiting a tax preparer is the time element, therefore, the sooner you choose a qualified one, the sooner, too, will the Tax Preparation Cambridge begins because there are tax incentives that you may avail of, such as being eligible for deductible contributions to IRAs or health savings accounts, in which a tax preparer can determine and can comply with before the tax returns deadline.
Normally, by the end of January, you will be receiving different types of information returns, such that for each form, check if the information matches your own records. So as you will know which forms are to be complied with, these are the common forms of tax returns: 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.
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 Corporate Tax Cambridge form, which translates into reducing his/her service fees. Also, with all receipts gathered together, the tax preparer can determine which you are of an advantage in terms of claiming your personal deductions as standard deductions or itemized deductions.
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.