An Accountant Should Help a Person with Their Personal Income Taxes

An Accountant Should Help a Person with Their Personal Income Taxes

The federal government collects income tax from every United States citizen every year. These income tax revenues from everyone, helps in funding services and programs such as Medicare, Social Security, schools, roads, national security as well as the United States system of welfare. If you are employed, your employer will withhold taxes out of your pay. Since self-employed individuals will not have taxes withheld, it is best to turn to an accountant Miami Lakes working for Hialeah for help with income tax return.

Personal income tax return

Here are some things that you need to know about federal income taxes:

  • What income is subject to income tax?

Individuals need to pay taxes on income, such as wages, salaries, commissions, tips, business income, dividends, rents, capital gains, alimony, unemployment benefits, IRA distributions, as well as benefits from Social Security but only if the beneficiary’s total income surpasses a certain amount.

  • What kinds of deductions can be taken?

There are tax deductions that are modifications to an individual’s taxable income. For each dollar of a deduction, the person’s income amount the government taxes will be decreased by a dollar. A taxpayer can take the standard deduction or can itemize deductions. Deductions that are common include student loan interest, tuition for college, dental and medical expenses, mortgage points, mortgage interest, casualty or theft losses, taxes on property, state income taxes, and contributions to charitable and home office expenses. If you have questions on any of this, you can take these questions to a tax accountant at Hialeah Income Tax.

  • What are tax credits?

These credits on taxes reduce the individual’s tax liability dollar for dollar. In other words, for each dollar of tax credit an individual has, the dollar amount of their taxes that they need to pay goes down by a dollar. Each year new tax credits can be taken, but credits that are common includes the earned income credit, child and credit for dependent care, first-time homebuyer credit, adoption credit, credit for the elderly and disabled, Hope and Lifetime Learning credit, and retirement savings contributions credit. Because these credits might change each year, this is a good reason to have an accountant from Hialeah to work with you.

  • Need extension to file tax returns.

If you are not able to file your return when it is due, the taxpayer or the taxpayer’s accountant can request an extension by filing IRS Form 4868.

Filing your own tax returns is harder than it may look. This is the main reason you should be working with an accountant to help fill out and file your tax returns.

Category Taxes