Are you filing taxes for the first time? Do they worry you? First time taxes can be troublesome, but there is nothing too difficult about them if you hire a qualified CPA Celebration, FL. Everyone has their first time; they all get through and so will you.
So do you have everything ready? Gather all relevant documents with yourself and only then sit down to do your taxes. But before you start filling up their return form, here are some things which you should ask yourself.
Should you file a return or can you skip it for this year?
If you work and have a monthly income source, you should file. As for the exact filing requirements, they depend on a number of factors such as income, filing status and age. If you are just starting out with a new job, you will have to know if your parents are claiming you as a dependant. If they opt this, your tax situation will be very different than when they do not.
By the way, if your income level is really low, you may not be subjected to taxes, but you should still file them anyway. After all, filing is really important and you can realize this when you consider that the penalty for not filing is greater than the penalty for not paying taxes.
Talk to your chosen CPA Celebration, FL, and they will guide you more about this.
What form will you need for doing your taxes?
If you are employed, your employer will send you your W-2 form by January or February. This form mentions your yearly income, the taxes that were paid on it, the benefits you are entitled to and a number of other things. Ask your employer; they might either mail you this form or provide you with an online link to it. In both cases, keep it safe so that your personal details are not leaked.
Some employers may, ask you to fill out a W-4 form. They will then use it for determining the income tax which will be deducted from your paycheck. This tax usually depends on your withholding allowances.
Which sort of 1040 form should you use?
The 1040 form is the main tax from, which is available in three different versions. The 1040 form, the 1040EZ form and the 1040A from. If your tax situation is really simple, you can use the 1040EZ form. If your tax situation is complex, you should use the 1040 form. In some situations, there is no choice and you will have to use the 1040 form. Generally, the 1040EX form is used if you are not listing any dependants or deductions. Form 1040A caters to some deductions, and form 1040 can apply to all cases.
Should you do taxes by yourself or hire a pro?
We already talked about this towards the start and we will like to talk about it towards the end. If you want to simplify your taxes, a CPA Celebration, FL is what you should opt for.
If you need more information about our Celebration, FL accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt. (Freedomtax’s accounting and tax professionals are not CPA’s. CPA services provided by third party provider.)