United States income tax laws are considered very complicated and tax preparation is the process of preparing taxes returns following the current laws. Tax preparation may be done by a tax preparer with or without the help of new software, but you should choose wisely anyway.
Tax preparation
60% of people use paid preparers to complete their tax returns according with the federal government. If you are included in this percentage, it’s important to read some information after do it to get started right away therefore you can have a successful and satisfying tax return experience.
Collect and organize your information
Remember that you can make the tax preparation by your own but also you can hire a tax preparer; however you need to collect some papers and you will need to provide your preparer important information that can be directly known from you by answering a questionnaire. In one way or another you will need a few days to gather and organize your information.
Get your receipts together
Get your receipts together for various deductible expenses such as medical costs not covered by insurance or any other health plan not reimbursed, job-related and investment-related expenses, property taxes, etc.
Choose a good preparer
The best way to find a preparer is by asking to your family or friends to make a referral and searching reliable advisors. You need to be sure that the selected person has a Preparer Tax Identification Number (PTIN) and is authorized to prepare federal income tax returns.
Some institutions recommend that your tax return preparer should have participated in a voluntary program that offers good training about federal tax law, basic tax filing and ethics. And remember that tax preparers fees will vary depending on where you live.
Gather your information returns
You should have received various types of information returns that you need to complete the tax preparation. For each form, you may verify if the information matches with your own records. The most common forms are: W-2 if you have a job, SSA-1099 if you are receiving Social Security benefits, for student loan interest 1098-E, 1099-MISC for nonemployee compensation paid to independent contractors and schedule K-1s from corporations or partnerships.
Schedule an appointment
Consider that the sooner you meet with your tax preparer, the sooner you can start the complete process and if you need an extension you will get it without any problem. Besides, if you want to anticipate a refund to receive your money quickly, it is especially important to act promptly.