Are You Ready For Tax Day

Are you​ Ready for Tax Day?
Because deadlines are strict,​ and penalties will be given to​ late tax payments,​ you​ should make sure that you​ do not put off your tax day .​
you​ should definitely start preparing your income tax return well before April 15 .​
Whether you​ are doing your own income tax return or​ you​ are getting the​ help of​ a​ certified public accountant or​ firm to​ prepare your income tax return,​ you​ should get a​ few things together before you​ begin or​ meet with the​ CPA.
The main thing you​ will need for your income tax return is​ proof of​ the​ income you​ made and the​ taxes you​ paid in​ the​ previous year .​
That includes income made through employers,​ interest from accounts,​ dividends from investments,​ income made through self-employment,​ income made as​ a​ subcontractor,​ and any other income .​
Student loans and other types of​ loans may also be considered income for the​ purposes of​ income tax,​ as​ can winnings from a​ lottery,​ casino,​ or​ other contest .​
If you​ are unsure what can be considered as​ income for tax purposes,​ you​ should contact a​ certified public accountant.
The other thing that is​ important is​ social security numbers for everyone you​ will claim on​ your income tax return .​
That includes social security numbers for your spouse and any children you​ will claim .​
Without social security numbers,​ proof of​ residence,​ and birth dates,​ you​ cannot claim deductions on​ your income tax return for these individuals.
The next thing that you​ should gather is​ what you​ will need for deductions .​
If you​ have a​ mortgage,​ your interest paid to​ the​ mortgage company may be tax deductible .​
If you​ use a​ vehicle for business purposes,​ you​ can claim a​ tax deduction for mileage .​
If you​ have children in​ daycare so that you​ can work,​ you​ can claim a​ tax deduction for that expense .​
you​ can also claim tax deductions for excessive medical expenses and charitable contributions .​

If you​ are self-employed,​ you​ will need to​ also gather your receipts for tax deductible expenses .​
a​ tax deductible business expense is​ any expense that is​ used solely or​ primarily for the​ business you​ are involved in​ .​
the​ tax deductible expense must be documented in​ order to​ claim it,​ so any receipts you​ have,​ usage logs for computers and vehicles,​ etc .​
should be gathered so that you​ can take the​ highest deduction possible .​
If you​ have any doubts about what is​ tax deductible for your business,​ you​ should contact a​ certified public accountant to​ assist you​ in​ your income tax preparation.
Once you​ have gathered all of​ the​ necessary tax documents,​ you​ must determine which tax forms you​ need to​ file .​
If you​ are an​ individual with few tax deductible items,​ you​ can file a​ simple tax return .​
However,​ if​ you​ are self-employed you​ must also file a​ tax form called Schedule C .​
If you​ have a​ lot of​ tax deductible items,​ you​ will want to​ file a​ more complex tax return to​ itemize your tax deductions .​
If you​ are unsure what tax forms you​ need to​ file,​ you​ should contact a​ certified public accountant to​ assist you​ in​ your income tax return preparation.
Tax day can be a​ stressful time,​ but it​ doesn't have to​ be .​
Gather all of​ your required tax documents as​ early as​ possible,​ and don't put off the​ inevitable .​
Contact a​ certified public accountant as​ soon as​ you​ can if​ you​ are unsure what tax forms you​ need to​ file,​ or​ what tax deductions you​ can take .​
And,​ most importantly,​ don't panic on​ tax day!

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