Filing taxes is a process that can be extremely overwhelming for some people. The reason tax season can strike fear in the hearts of filers is because they may not understand the process or correct steps to take to file correctly. Filing for taxes is much less daunting when the person understands all of the forms and deductions.
Many taxpayers end up filing with one of three 1040 forms. The form used does depend on income amount, marital and family status, as well as age. The 1040EZ for example is the simplest of the three to fill out. This form does have some stipulations, such as the filer cannot have any dependents and must be under the age of 65. The other two forms, the 1040A and 1040 Long, allow for more freedom when filing taxes. Whereas the 1040A does not allow for itemized deductions, the 1040 Long is the most comprehensive of the three and does allow itemization.
It is important when filing for taxes to know and understand the different tax deductions available. If a person does not include these deductions on the tax form, the money will not be added onto the tax return. Many common tax deductions include donations and professional expenses. Filing status and familial obligations can also contribute more to the tax return. It is important to either research the different deductions or to hire a tax accountant in order to get the best tax return for the year.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.