For many people who have never filed taxes before, the process may seem pretty intimidating. However, it’s really not as bad as you may think, as the process for a lot of people have been streamlined. It’s important to be informed about the basics of tax filing so that you know where your money is going and how you may even get it back. Before we discuss further, you should make sure to master certain terms. These terms include: earned income, unearned income, gross income, exemptions, standard deduction, itemized deductions, W-2 forms, and filing status. After you’re familiarized yourself with the basic terms, read on to learn more about the basics of tax filing. SmarTax, LLC is one of the top tax preparation services in Pembroke Pines. Call SmarTax, LLC today for your tax preparation needs.
Whether (and What) to File
Depending on your gross income, you have the option of whether or not you are required by law to file. For example, all single individuals under 65 with a minimum gross income of $8,950 were required to file federal taxes in 2008. Even if you are claimed as a dependent, you may still be required to file if you meet certain stipulations of income. When figuring out your total income, make sure to account for all taxable income you receive. If your scholarships are not taxable, that means you don’t need to include them in your income, since these carry no service requirements and are used to cover education-related expenses. However, if your scholarship money is paid in exchange for teaching, research, or other services, it is taxable- even if you don’t get a X-2. Work-study income and pay that you get as a teaching or residential assistant are also included. You then need to choose a form for tax preparation. To file your taxes, there are three basic forms you can fill out: the1040EZ, 1040A, and 1040.
We Provide Tax Preparation Services
The federal government allows you to deduct specific expenses from gross income, resulting in a lower tax base- which means you pay less taxes. You will have to fill out the 1040 if you want to itemize deductions. If they total more than your standard deduction, then you should itemize your deductions. However, certain people are required to itemize even if their deductions are under the standard deduction. One example is if you are married, but filing separately and your spouse is itemizing, or if you are a nonresident or dual-status alien. Keep in mind that the deadline for taxes is April 15 after the year for which taxes will be filed. If you want an extension, you will have to file for one. You can always get help with tax preparation from accounting services such as SmarTax, LLC.
Contact Us Today
It’s important to be informed about the basics of tax preparation so that you are aware of the process. SmarTax, LLC provides top tax preparation services in the Pembroke Pines area. Call SmarTax, LLC today for help with your tax needs!