Taxes and filing for return can be a complicated task. While many avail tax preparation Kissimmee services, others still choose to do their taxes themselves. Even if you are getting your tax return filed from someone else, it is crucial that you understand the tax filing process to ensure that your taxes are filed accurately and in a timely manner.
It is mandatory that all individuals including corporations and household units file their tax return Kissimmee before April 15. Failure to do so often results in a fine and/or penalty as decided by the IRS.
Tax preparation Kissimmee process begins with an individual earning his gross income. Gross income of a person is calculated by adding all the receipts which includes work, interest and pension income, and annuities. Once gross income has been calculated, deduct any deductions which include alimony payments, contributions towards retirement funds, interest payments, moving expenses and liable taxes on self-employment. Resulting difference is called as Adjusted Gross Income or AGI.
After calculation of Adjusted Gross Income, tax preparation Kissimmee experts present you with two choices: to subtract standard deductions or itemized deductions. Itemized deductions include dental and medical expenses, interests on educational loans and mortgages and contributions to charitable organizations. However, itemized deductions depend on state and federal laws and should be calculated accordingly.
At this stage, your tax preparation Kissimmee professional can calculate your net taxable income by deducting any personal exemptions. Personal Exemption is amount of income available for personal expenditure of the tax payer, his spouse and dependants on him.
Once the tax preparation Kissimmee advisor has calculated your taxable income, you can determine tax liability on you by referring IRS tax tables. Due to a marginal tax rate system, tax liability depends on the tax status of the individual and the tax rate under which your taxable income falls. Tax status of an individual is determined by the marital status of the individual. An individual can be taxed as a single person, married, married with kids, married but filing separately and divorced.
Once gross tax liability has been calculated by the tax preparation Kissimmee accountant, you can deduct any tax credits. Tax credits include items such as child care and educational expenses. Once the credit has been deducted, you will be able to determine the amount of net tax which is the total amount of tax that’s liable and the tax refund you can expect. Details regarding your tax status and income are filed with the IRS in a W-4 form. It is important that you review the form on yearly basis as tax status tends to change with your marital status.
A W-2 form shows information about the annual income that you have earned and tax withheld in case your employer is paying taxes for you. It is mandatory that tax form should be submitted with the IRS on or before April 15. Once you have submitted the return, IRS process and stores information regarding your taxes on its computers. If you are to receive any refund, you will do so through mail. If you have used an e-file system the refund will be credited to your online bank account.
If you need more information about our, Orlando accounting and tax services, please contact us at 407-344-1012. 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, and Hunters Creek, 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 status applications.