Monday 28 November 2016

Factors To Consider When Looking For Tax Preparation Austell GA

By Christine Stone


Anyone who resides in Austell, GA, whether a citizen or legal alien, is required by law to pay tax. Businesses and other legal entities must also pay tax. This is the cost of living in a free world. Taxes pay for security, infrastructure, education and all other services that are provided by the government. When in need of the best tax preparation Austell GA has to offer, there are numerous factors that you must consider.

There are many ways of preparing your returns. For instance, you can use a tax preparation software. These are very common nowadays, but some of them come with software bugs and can be hacked. You can also choose to do your own taxes, if you have basic knowledge of the tax code. The best option, however, is to hire a professional who has a lot of experience with this.

The only professionals who are permitted by law to provide tax-related services to the public are certified public accountants. This is because they have completed the prescribed training program, have the required knowledge as well as the industry experienced needed to competently prepare taxes for third parties. They are also aware of all tax credits and deductions that can help to reduce your tax bill.

While you can always try to do your own taxes, you should not take unnecessary risks. This is because a simple error or omission may lead to a tax audit, and nobody wants that. Therefore, you should either choose to hire an experienced CPA or use the most trusted tax preparation software.

When preparing your returns, the first thing that must be considered is the type of income you earn. Dividends, capital gains and interest income are usually withheld at the source and are subjected to the lowest tax rates. Employment income is usually subject to payroll tax, which is withheld by the employer. On the other hand, corporate income is subject to corporate tax, which is quite high in the US.

The total income earned by an employee must be adjusted several times before the tax rate is applied. For instance, the allowances and perks an employee normally gets must be calculated and added to their basic salary. For instance, the rent that an employee, who lives in a company house, would pay on a similar property would be added to their basic salary to determine taxable income.

Before the applicable tax rate can be applied, tax deductions must first be taken into consideration. For instance, if you are an individual taxpayer, any money you pay towards the interest on your mortgage is deductible. If you acquire a new Energy Star rated heater, you can deduct the whole amount from your total income. This will reduce your tax bill.

There are many reasons why you should work with a professional. For one, they rarely make mistakes. Secondly, they have the time, knowledge, experience and resources needed to accurately prepare your tax. Thirdly, you may not have the time to do the job, hence the need to outsource. When hiring a CPA, you should pay attention to their license, experience and reputation before making a decision.




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