Tax Preparation

Before you know it, April 15th will be just around the corner, meaning that it’s officially time to file your taxes. At Advance Tax Relief LLC we advise you to prepare for the process as much in advance as possible to avoid any unnecessary stress. Our tax relief services are here to ensure quick and responsive help for your tax return preparation.

Tax preparation is the process of preparing tax returns. It is the actual process done before you or performed by a tax preparation service, which will file your owed taxes. There are several ways you can go about tax preparation, a few of which we will cover below. 

Do You Need To File?

Before jumping into the process, it is important to identify whether you actually need to file or not. Factors such as marital status, age, filing method, and income all help determine whether you need to file taxes or not. To find this out, check the IRS website for info. It is also important to confirm whether you are dependent and if you have to file. During this initial step, it is also important to identify which status you are filing under, such as single, married (separately or jointly), unmarried, or as a widow/widower.

You As The Tax Preparer

At this point, it is time to gather all of your necessary documents (W-2, 1099, school taxes, property taxes, etc). Filing will be much easier if all documents are organized beforehand. Next, you must determine which form you use in order to file. There are three forms used to file taxes:

1040EZ – The “easiest” of the 1040 forms, the 1040EZ allows you to take the standard deduction, however, you can’t itemize deductions, claim adjustments to income or any tax credits other than the Earned Income Tax Credit (EIC). If you have earned any income through self-employment, alimony, dividends or capital gains, the 1040EZ is no longer an option.

1040A – This form allows more tax breaks for childcare, education, and retirement; however it remains limited in regards to deductions and other credits beyond the ones mentioned above. While more flexible than the 1040EZ, the 1040A remains fairly limited compared to the IRS Form 1040.

Form 1040 – The lengthiest of the three forms, Form 1040 is meant for those with larger earnings (income over $100,000), various investments, tax credits, and itemized deductions. Essentially, the more money you make, the longer the tax form. And the longer the tax form, the more tax breaks, and credits are available.

Form 1040EZ is the easiest to complete but only works for some taxpayers. Check the stipulations on the IRS website to ensure you are using the right form for you and your income status / financial situation. Make sure to deduct whatever is necessary as well. Once completed, you can either submit online or mail a paper return to the IRS. If you are unable to pay the full amount of your current tax liability, the IRS Installment Agreement will allow you to pay a portion of that tax issue. There are different types of installment plans based on your financial situation. These payment plans can be paid by payroll deduction, direct debit, credit card, and more.

What If I Don’t Want To File Taxes Myself?

Tax preparation can be overwhelming and stressful. We get it. Since there are so many factors to consider and different stipulations for everyone, Advance Tax Relief wants to help turn your tax worries into tax relief. We understand it can be a challenge to keep all of your tax documents organized and clear. The good news is that today there are a plethora of resources and services that can do your taxes for you, making filing your own taxes all the easier.

Standard Deduction vs Itemized Deduction

When filing taxes, you are faced with two options to lower your taxable income: the standard deduction or itemized deduction. The standard deduction will lower your income by a single fixed amount, while itemized deductions consist of various expenses for which you may or may not qualify. Whichever deduction lowers your tax liability the most is the right choice for you.

File Taxes Yourself With Help

If visiting an actual tax preparation company is something you’d like to avoid, there are several companies that offer online services at affordable prices. This makes it easy for you to file taxes yourself with the support of a website guiding you through the entire process. Services vary as well, making it customizable to your financial situation and personal needs. These online filing services are great if you have some idea about taxes, but would rather not do it all yourself. Some of these online companies include TurboTax and H&R Block. Feel free to read reviews to determine which service is best for you.

Get Your Taxes Done

If you have a lot of questions and are totally overwhelmed by taxes, then meeting with qualified individuals may be your best option to answer your questions to guide you through the process with IRS tax expertise. There are several different tax preparation agencies that take care of the process for you and are easily accessible in most areas — especially relief services in Houston and Los Angeles. There are plenty of outlets available for your services, including electronic filing, though one-on-one consulting is always an option.

If you have not filed for many years, be sure to check with the IRS to confirm which years they are looking for. Sometimes the IRS is not always looking for all returns to be filed. Would you like to find out how many years of tax returns you need to file? Contact us at 713-300-3965 to make sure you are owing the least amount possible. 

At Advance Tax Relief, our tax experts will help you establish a payment plan that most efficiently satisfies any tax issues you might have regarding federal refunds or state returns, standard deduction, tax liens, tax forms, or anything else related to tax preparation and filing.

If you need your taxes done, please call (713)300-3965 for a free consultation. 

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