Tax Preparation: Nothing to worry about!

Tax Preparation is fun!

Let us tell you one thing; Tax Preparation is a fun activity, if you have the knowledge and expertise. In fact, one day you can even chose it as a profession. There are several thing involved in this activity. Each year millions of American go through this process either willingly or unwillingly. We believe it has better accept it, as it is an obligation that we have to abide by.  Through this article, we are going to provide you with some useful information about the process of tax preparation.

You can File it Free

There are many who believe that, it is mandatory to engage a professional for tax preparation. However, it is not true. Anyone with some basic information can carry out this task without any external assistance. What you all need to do is, to keep record of all your financial transactions throughout the year.

Enjoy Free Access to Best Programs

The IRS, Free File program is a good one for those who want to prepare and file their returns on their own. In fact if your income is less than $60 thousand than you the IRS will provide you access to the best tax preparation programs without paying a single penny.

What is there for big earners?

In case, you are earning more than sixty thousand dollars per annum than you have to pay for using these programs. However, for such individuals, smart fillable forms are available with an integrated facility for basic mathematical calculations. Aside of all this, we suggest you to go with a professional in case if your case is a typical one.

Why a Professional

In case if you have a very complicated kind of case, then it is better to hire a learned professional. There are several reasons that make it a good choice like,

•        You are not good at record keeping

•        You have multiple sources of incomes

•        You want to cut your tax bill, and even looking for a refund

•        You or one of your loved one is fighting with a chronic disease

•        Your life went through a major transient like divorce and marriage

There are several other factors to determine whether you need an assistance of a professional or not. Therefore, you are suggested to discuss your case with a tax preparer if you are not confident.

Different kinds of Professional

When it comes about the tax professionals, several possible arrangements are available. Each professional comes with certain pros while there are a few pros with lower-end professionals. The IRS has a dedicated segment on their website that deals with tax preparers. Let us list down the different kind of tax professionals,

1) Attorneys

2) Certified Public Accountants

3) Enrolled Agents

4) PTIN Holders Only

Here it is important to understand one thing. The top three kinds of tax preparers that we have mentioned above come with UNLIMITED REPRESENTATION RIGHTS. It means that you hired professional can solely represent you in case of an audit or appeal. However, a simple PTIN holder without any credentials and educational background can help you with the filing procedure but the IRS will grant him or her with LIMITED REPRESENTATION RIGHTS only.

Which one to prefer

As we have told you the difference between Limited and Unlimited rights, and for that reason, it depends upon your case. It's quite obvious that a professional taking more responsibility and offering more services will charge you more. Therefore, it is you who have to decide, as you know better about your case and your previous history

Amended Tax Return

Let us introduce this kind of tax return today! The amended tax return is great for those who want to alter their previously filed returns. This option covers your last three consecutive year filings. As a result, you would become able to receive any the outstanding. This (Amended Return) is something great for those, who want to claim tax refunds for previous years for being a victim of natural disaster, ailments and other kinds of difficulties.

Always, Remember tax preparation is a very important task and mastering it is necessary before filing! We wish you happy filing!

Referral - https://www.glgaccounting.com/income-tax/

400 Central Ave, Suite 340B, Northfield, IL 60093

(312) 754-9377

                                                       contact@glgaccounting.com