Steps to Take Before You Prepare Your Taxes

In case you are running a small business, you need to pay your tax. If you don’t have a tax preparer, it is better to take the suggestion of a family member or a friend regarding referrals. However, while choosing the tax prepare, ensure that the person must have a PTIN. PTIN shows that the person is authorized to prepare federal IT returns. You must also inquire about the fees and other matters too.

Once you have finalized the tax preparer, now you must meet a person as soon as possible. Sooner you will meet the tax preparer, sooner you will be able to complete the tax return. In case you are expecting a refund, you will get it soon if you contact the tax preparation soon. Further, if you will not appoint a tax preparer soon, you won’t be able to get him within the time as most of the tax preparers remain busy during the closure months.

No matter when your tax preparer Santa Monica will start working, but you need to gather all your urgent documents by the end of January, each year. You must collect them from the employee or employees, as well as from banks, brokerage firms, and others with whom you do business. Some of the common forms are Form W-2, 1099 forms, Form 1098, Form W-2G, etc.

What are the receipts you need to present depends on whether you itemize the deductions or claim the standard deduction?

You need to choose which one produces the greater write-off. However, the only way to know for sure is to add up your itemized deductions and compare that with your standard deduction. For singles, the standard deduction is $12400 and for married it is $24800. The tax preparation will take less time if the records are properly organized.

Once completing all the process, you need to list all your personal information. It will include a Social Security number. The tax preparer will need this, so it is better to pen down along with any other information.

Note other important details such as renting a property or selling any property. You must also note down the dates of the sale and buying.

Finally, get a copy of the return of the last year.

However, if you have hired the same tax preparer Santa Monica, then the tax preparer will have your all information with them. However, if you are filing the return with a new tax preparer, then it is better to provide the last year’s copy. It will work as a sample as well as a reminder for the new tax preparer.

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