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Tax season is upon us, and many are anxious to file their returns and receive refunds in the mail. Although you could file your own taxes, it might make sense to hire professional help. In fact, there are seven popular reasons many people hire an accountant.

1 – You Don’t Understand Taxes

First, filing taxes can be confusing for many. The laws and codes pertaining to your taxes can feel like a foreign language. This can make it more difficult to do it on your own, and it can also increase your chances of making a mistake.

2 – You Are Impatient

Many people do not have the patience required to file a return. The numbers and data can be frustrating to manage if you are not used to working with data and numbers often.

3 – You Have Multiple Income Sources

Next, if you have multiple sources of income, filing your taxes can be more complicated. It can be confusing to properly allocate each source of income, and if you make a mistake you could create future trouble in the event you are audited.

4 – You Want More Tax Breaks

If you want more breaks on your return, you should also consider hiring an accountant. You lack the knowledge needed to take advantage of all deductions. Professionals, on the other hand, are aware of even the smallest detail that can provide you with a better break. Sometimes these deductions are even more than the basic fee an accountant charges.

5 – You Are Worried About An Audit

Those who are worried about future audits should hire help. Accountants understand the tax code and can properly file to prevent unwanted trouble with the IRS. This is extremely beneficial for professions that are more subject to scrutiny by the government.

6 – You Don’t Have Time

Furthermore, many people are simply too busy to find the time necessary to prepare their return. If you have minimal time, hiring an accountant can alleviate your stress and ensure that the job gets completed on time. After all, if you postpone it, you could be subject to additional fees.

7 – You Need Financial Advice

Finally, many people make poor financial decisions and could benefit from unbiased financial advice. Since an accountant spends time analyze your finances, they have insight and ideas that can help you to perform better financially in the future. This benefit lasts much longer than tax season and has helped many make better investment decisions and improve their credit rating.

Consider hiring an accountant this tax season. The benefits you receive will greatly outweigh the cost.

Being self-employed is one of the greatest feelings in the world. You get to set your own hours, be your own boss, work on the projects you want to work on and decide where you work. It takes a great deal of discipline and dedication to be a successful freelance professional, and a great deal of knowledge when it comes to filing your taxes as a freelance professional. Filing your taxes can be almost as demanding as finding clients and projects to keep money rolling in. Give yourself every advantage by reading up on just what it means to be a tax paying freelance professional.

Pay it Back to Pay it Forward

The first thing you’ll want to do when you start freelancing is set back money for your taxes. Since you’re your own boss, you have to do your own deductions, otherwise you’ll find yourself scrambling for money when tax day rolls around. You might want to open up a separate bank account just for your taxes and keep it separate from your savings and checking account. Alternatively, you can set yourself up on a quarterly payment plan where you estimate how much money you’ll owe at the end of the year and make payments four times a year. If you over estimate, you’ll get money back and if you under estimate you’ll have to pay the difference.

Deductions

There are a number of deductions freelancers qualify for, including home office deductions, mileage, work supplies, insurance, advertising and paying rent on buildings you use for your business. Do your research to see what deductions you qualify for and be sure to keep perfect records so that you’ll be prepared in case you’re ever audited. You should know that the IRS keeps an especially close eye on freelance professionals. Keep a record of all of your business-related expenses and update them as much as you have to. This might be time consuming and tedious, but it could save you a lot of time, money and frustration if you’re ever are audited by the IRS.

Hire a Professional

No matter how good your records and your knowledge of taxes is, you should still let an accountant or another tax preparer look over your tax returns and records. The reason for this is that they have knowledge and experience that you don’t. They’ll know what new deductions you might qualify for and what new changes are taking place with taxes that might affect you. Hiring a professional might cost you more money than you’d like to pay, but doing so could save you more money than you realize.

Know what all you’ll be getting into as a freelance professional before you decide to quit your regular job. Ease into the shift and educate yourself before you make the plunge into the freelance pool.

Having to file your taxes for the very first time is yet another sign that you’re well on your way to becoming an adult…whether you want to be or not. Even with the help of your parents or someone who has been filing taxes for years, the whole process can be more than a little daunting. One mistake could either cost you money or cause you to be edited by the IRS, which is the last thing you want to experience if it’s the first time or the 100th time that you’re filing your taxes. You can successfully file your taxes for the first time with a little direction and knowledge.

Where to Start

Whenever you start a job, you’ll have to fill out a tax form. Know in which category you’ll fall into, which will depend on if you’re single, married, have two jobs or if you have dependents. If you aren’t sure, it’s best if you take the form with you and find out as soon as possible rather than ask another employee, unless that employee also moonlights as a certified accountant. You never know what new tax laws might apply to you that could potentially affect which category you fall under.

The first thing you’ll want to do is start with your 1040EZ form. It’s not known as the EZ form without reason. The only downside is that the only people who can use this form are married couples and single people who don’t have dependents. If you don’t apply to either category, find out which tax form you should start with. Next, you’ll want to learn more about your W-2 form and all other tax documents. Take a look at all of the various labels and boxes and make sure that you scan the back of the form as well. If there’s anything that you don’t understand, ask your parents who can ask their accountant. The more you know the better prepared you’ll be.

Tax Deductions

Most young people will qualify for tax deductions for student loan interest, tax credits that assist you with saving for retirement and tax credits for your college education. While retirement might be quite a ways off, it’s never too early to start a retirement fund. You’ll appreciate it when you start having more financial responsibilities as you get older and might not be able to save as much for retirement as you might like.

To get the hang of filing your taxes, do them on paper yourself first before doing them on inexpensive or free tax software just to see if your calculations were correct. As a last step, allow a Certified Public Account to take a look at your tax form to verify that everything is correct.

Filing your taxes for the first time is only as difficult as you want it to be. The more you know, the less frustrating it will be.

Many students actively seek ways to save money while pursuing a higher education. Students are increasingly eligible for tax deductions related to education. Before claiming deductions, it is imperative to define a student eligible for filing taxes independently. To be a student, one must:

• Attend school on a full-time basis
• Be over 24 years old, married or legally emancipated
• Provide over 50% of his or her own support

If a person does not fit all of the above criteria, his or her parents may claim deductions associated with school.

Common tax deductions for students

Many school expenses are tax deductible including a percentage of tuition, fees, and books. Always save receipts for your records, especially given how expensive textbooks can be. Other than items strictly used for school, it is unwise to declare additional expenses such as purchasing a new car used to get to school or a new laptop to be used for school.

How to declare scholarships

Scholarships used for school expenses are not taxed as a regular source of income. However, any money left over from scholarship earnings is considered taxable. A number of different courses of action can be taken to get the most out of scholarship money. First, low income students can claim certain scholarships as gifts. Second, students who have received government aid (e.g. a Pell Grant) can claim that the Pell Grant was used for living expenses, and the scholarship money was used only for school expenses.

Deduct interest paid on a student loan

It is possible to deduct up to $2,500 from paid interest on student loans. Your loan provider should have sent a 1098-E form. To qualify for this deduction, you must not be claimed as a dependent, and you must earn an average gross income of less than $75,000 if single and $150,000 if married. Also, you cannot file under “married filing separately” status.

IRS now accepting deductions for education credits

The IRS has begun to give deductions for those earning education credits. According irs.gov, the IRS will begin to accept returns claiming education credits by mid-February. It is unauthorized to claim both the Lifetime Learning Credit and the American Opportunity Credit for the same student regardless of whether or not the student qualifies for both credits. However, different individuals in the same household can claim different credits.

How to avoid failing an audit

Never round to the nearest $50 or stretch the truth. Have all records of expenses and awards easily accessible, and keep every dollar that you are legally entitled to as a student.

Recently married couples find themselves with a unique decision to make once tax-filing season rolls around. There are both advantages and disadvantages to filing joint tax returns that many newly married couples are unaware of. After doing everything on your own for so long, you now have the opportunity to take advantage of some of the tax breaks you can get from filing with your spouse. Marriage isn’t just about love and romance; it can also be about keeping more of the money you make.

Additional Credits And Deductions

There are several tax deductions that are only available to couples that file their taxes jointly. If you are married and choose to file separately, these deductions won’t be available to you. Some examples are:

• Hope and Lifetime Learning credit
• Qualified educational loan interest deduction

These are just two of the examples of deductions you can take advantage of if you choose to file jointly with your spouse.

Lower Tax Liability

Each of these items should be examined in depth on a case-by-case basis, but it is typical that couples that file jointly will have a lower tax liability than those who file separately. When you file together, most couples find that are required to pay a lower amount of taxes, which is essentially the same as putting your money back in your own pocket.

Save Time And Money

There are few people in the world who actually enjoy preparing and filing their taxes. If you are not one of those people, the thought of preparing two separate tax returns may just be too much. When you file jointly, you are only required to prepare and submit one return to the IRS. You will save time and money, depending on whether you prepare your taxes yourself or pay a professional accountant to do them. Everyone loves a little extra time and money.

Largest Standard Deduction Possible

The standard deduction for couples filing jointly is almost twice what it is for couples that file separately. When you file a joint tax return, you get the largest standard deduction that is possible in terms of dollars. This takes money off your total tax bill and increases the amount of your money you get to keep.

A recent marriage brings lots of exciting new changes into your life, and although it may not be the sexiest topic to discuss, the benefits of filing taxes jointly definitely qualifies as one of those changes. Examine your particular situation with your accountant or tax professional to determine if filing jointly is the best option for you and your new spouse.

It is often talked about in the media and by politicians that there are too many tax breaks for wealthy individuals in America. But there are many tax tips for the middle class that may not be well known, and may not be being used because of this. It’s important for each middle class family to know of each tax break that is offered to them, in order to put more money back into your pocket as you file your taxes each year.

Savings Or Retirement

Although there is a limit on certain retirement plans and how much you can contribute each year, the money you put into a retirement or savings fund can often be used as a tax write off to help save you money. Any money that is put toward retirement can benefit you in more ways than one. The money will be available to you after you quit working, and can help to save you money on taxes during times of employment. Specifics for each married couple depend on the plan you choose and how you file your taxes.

Work More And Get Paid More

The more you work, the more you are eligible to get back on your taxes. For example, the government offers an Earned Income Tax Credit that is based on how much you work and how many children you have. Your state may even have its own version of this credit, which will save you even more money. But in order to receive the benefit offered by this tax break, you have to actively file for it when you file your taxes. The bonus of this is that you are likely to get a check back from the government come tax filing time.

Refunds For Children

The more children you have, the less money you pay on taxes. While it’s not a good idea to have a child specifically for the tax credit, you are eligible for a one thousand dollar tax credit each year for each child that you have. If you are divorced from the child’s other parent, you must legally work out who gets to claim the child each year and save the money. This deduction is a direct deduction that reduces your tax bill dollar for dollar. So rather than taking a percentage off your tax bill, it takes a direct thousand dollars off.

Don’t Miss Out On Your Money

The money you pay to the government should be as limited as possible. Although it is a responsibility of each American to pay taxes, it’s important that you only pay what you are required to pay. Staying educated on what tax exemptions you are eligible for can save you money in the long run.