Filing Income Tax with Your CPA: Comprehending the Process

0
7

Preparing and filing your income tax return can be a tedious process that many would find very complicated. While filing your federal and Texas state taxes on time is necessary, it’s not essential to do it on your own. You can get the help of a CPA in Brownwood, TX, and get the process done without any hassle.

While a CPA will take care of the tax preparation and filing process for you, it can be very helpful if you have adequate knowledge. It will help you be prepared with the necessary documents and information and save you a lot of time.

Things you need to have before filing your tax return

You can follow the steps given below to ensure that you have everything needed for tax preparation by your side:

  • Create an account on the IRS website, or keep your credentials handy.
  • Gather all your tax forms like Form W-2, Form 1099, Form 1099-K, 1099-MISC, 1099-INT, 1095-A, CP01A Notice, etc., and organize them.
  • Ensure your ITIN (Individual Tax Identification Number) is valid. If it’s expired, get it renewed.
  • Make sure to adjust your withholdings. Also, consider changes like marriage, divorce, childbirth, job change, etc., to change the withholdings.

Understanding the process of tax filing

Once you’ve gathered all the necessary information and documents, here’s what you need to do next:

  • Find a reliable, experienced CPA and fix an appointment to complete the return well before the deadline. 
  • Bring all your forms and other relevant documents when you visit the CPA.
  • Bring along the receipts for property taxes, investment-related expenses, and medical costs not covered by your insurance or covered by FSA or HSA, as they may be included as itemized deductions.
  • Bring your SSN (Social Security number) and ITIN (Individual Tax Identification Number).
  • Decide whether you need an extension to file your tax return. However, it is recommended that the return be filed by the deadline to avoid penalties and interest.
  • Apply for a refund for next year’s taxes. You can directly contribute the refund to certain accounts like HSA, IRA, ESA, savings bonds, etc.

Filing the return

Here’s how to file taxes on the IRS website:

  • Get your forms and receipts ready and sign into your account on the IRS website 
  • Select the filing status, which is based on your marital status. Your household expenses may also affect your filing status.
  • Decide how you want to file, i.e., using tax preparation software to e-file, using the IRS direct file pilot program, or filing by mail.
  • Specify if you are itemizing your return or claiming the standard deduction.
  • Submit your tax return by the deadline. 

Final thoughts

If you’re not a tax professional, filing tax returns on your own may be confusing, and there might also be chances of errors. Therefore, the best way to file your tax returns is through a CPA to avoid all the confusion and stress.

Comments are closed.