Supporting Subheading
Individual Tax Preparation
the process of organizing, calculating, and filing taxes to comply with local, state, and federal tax laws. It involves preparing tax returns, ensuring accuracy, maximizing deductions and credits, and meeting filing deadlines.
Gathering Documents:
Collect income statements (e.g., W-2s, 1099s). Gather proof of deductions and credits (e.g., receipts, medical expenses, tuition payments).
Understanding Tax Obligations
Determine the type of taxes to file (e.g., individual, business, estate). Identify applicable tax rates, brackets, and filing requirements.
Keeping Records
Retain copies of filed returns, receipts, and supporting documents for at least 3–7 years in case of audits or future reference.
Identifying Deductions and Credits
Common deductions: mortgage interest, medical expenses, student loan interest, and charitable donations. Common credits: Child Tax Credit, Earned Income Tax Credit (EITC), and education credits.