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W-2 filer, renter, standard deduction
A CPA or EA will prepare your entire tax return from start to finish
Optional Audit Protection
Analysis of filing status to maximize tax benefits
Homeowners, maximize deductions & credits
A CPA or EA will prepare your entire tax return from start to finish
Optional Audit Protection
Analysis of filing status to maximize tax benefits
Get tax planning advice to deductions and credits
Investors, landlords, non-residents, expatriates
A CPA or EA will prepare your entire tax return from start to finish
Optional Audit Protection
Ensure proper tax compliance for foreign firms
Full capture of your investments and rental property activity
Self-employed, freelancers, and contractors
A CPA or EA will prepare your entire tax return from start to finish
Optional Audit Protection
Business activity review to ensure maximum tax benefit
Year-end catchup bookkeeping available
These questions will help us determine things such as filing status, the state you are filing under, and forms needed to ensure you get the most on your return.
Just sign your return and you're set to go. Filing has never been so easy.
Just sign your return and you're set to go. Filing has never been so easy.
Just sign your return and you're set to go. Filing has never been so easy.
All our Pros are local, US-based CPAs and EAs. If you have any questions or concerns about your return, you can reach out to your Pro at any time via the chat feature.
Becky has been a CPA for over 20 years, and started her career with a Big 6 firm. Becky enjoys being able to work personally with her clients from across the country.
Our Pros can handle your taxes. Our Pros are licensed CPAs or EAs that are based in the US. They vary in experience and specialty, but on average, they have approximately 15 years of experience. Our matching algorithm makes sure that your job is picked up by a Pro with the right experience to get the job done correctly.
Why yes of course, when answering the questionnaire be sure to select all the years you would like to file under. At checkout your final price will already have all years included so no surprise fees will be added later on.
You may think you have tax time licked – you do things the same way every year, and it all goes smoothly enough. But what if you’re leaving money on the table? You may be able to pocket some savings at tax-time if you make strategic moves to maximize your return.
The U.S. tax code is so complicated that there are many places to look to see if you might be able to squeeze a few more dollars out of your taxes. A professional tax preparer can be your partner in digging into all the corners of the tax code to make sure you’re getting the most out of your filing.Here are eight tips to maximize your return.
1. Take all possible deductionsChances are you’re among the 90% of households in the U.S. that take the standard deduction on your income taxes instead of itemizing. But if you do usually itemize or aren’t sure which is best for you, consider whether you can increase your deductions by moving some of your payments to an earlier date.For example, if your estimated state income tax bill is due January 15, you can send it in before December 31 and deduct it from this year’s return. The same goes with property tax bills due in January and medical bills that you can pay before the end of the year.The standard deduction for 2020 is $12,400 for single taxpayers, or $24,800 for those married filing jointly. If your itemized deductions can be pushed up above these limits, you should consider itemizing. One caution, however, is that if you are subject to the alternative minimum tax (AMT), then speeding up your deduction-qualifying payments can cost you money.
2. Make charitable contributionsMaking charitable contributions before the stroke of midnight on December 31st is another way to increase your deductions on your tax bill, which, as stated above, is mostly only useful if you are going to itemize. However, for 2020, the IRS has ruled that cash donations of up to $300 made before the last day of the year can be deducted by those who take the standard deduction.If you donate money in a given tax year, you’ll deduct the amount you have given from your income. If you donate goods such as furniture, clothing, or kitchen items, you deduct the goods’ “fair market value.” Taxpayers usually can only deduct charitable contributions up to 60% of their adjusted gross income, but that limit has been removed for the 2020 tax year; now you can deduct contributions totaling up to 100% of your income. Don’t forget record-keeping: If you deduct a contribution of $250 or more, you need the organization to provide a receipt to keep in your records. Bigger-ticket items that have a value of more than $500,000 will need an appraisal. In addition to reducing your taxes, charitable contributions can, of course, help you do good in the world. That’s something you can’t quantify in any bill.
3. Defer some of your incomeWhy pay today what you could put off until tomorrow? Some taxpayers may be in a position to postpone receipt of some income into the next tax year, which is a good way to lower your tax burden this year.Self-employed people are more likely to be able to do take advantage of this particular trick. They can delay sending invoices that are due at the end of the year until the beginning of the new year. Or they can push off plans to take capital gains into the new tax year.Employees may be able to ask for their year-end bonus to be delivered in January. Other than that, it can be difficult to take advantage of this option due to the regular schedule for wage and salary payment.Keep in mind that this tactic is only worth considering if you are likely to be in the same or a lower tax bracket next year. Paying as much tax as possible in the year in which you’re in the lower bracket is the best strategy.
4. Offset taxable gainsSince capital losses offset capital gains in your taxes dollar-for-dollar, selling investments at a loss can wipe out your tax bill on your gains for a year. This method of strategically selling assets like stocks and mutual fund shares that have fallen below your purchase price — resulting in a loss — is known as “loss harvesting.”It may seem a little strange to purposefully sell your investments at a loss, but there’s a method to this madness. Harvesting your losses allows you to reduce your tax bill on your gains, providing a financial advantage at tax time.You can even sell so many investments that your losses get bigger than your gains. In that case, you can use up to $3,000 of those extra losses to reduce your taxable income by the same amount. If you have losses that amount to more than $3,000, you can carry amount of excess loss above $3,000 over to the next tax year.
5. Spend your flexible spending fundsMany employers offer their workers the ability to pay into flexible spending accounts (FSA), which allows the employees to spend on life essentials like child care or medical bills with pre-tax dollars. The money you’ve allocated is put directly by your employer into an FSA account, which you can use to pay providers directly.The main disadvantage with these types of accounts is that you must decide how much you’ll set aside in the account each month at the beginning of the year, and if you don’t use all the money you’ve allocated by the end of the year, you lose it. Well, that’s usually the case anyway, but due to Covid, a new rule is allowing employers to let employees roll over unused amounts into 2021 and even 2022.In most years, having money in your account at the end of December should prompt a run to the drug store for supplies or some last-minute doctor or dentist appointments. This year you can leave the money be, though make sure you’re not building up too much to reasonably spend over the next year or two.
6. Top up your retirement accountsRetirement contributions are a major source of deductions on your tax returns. It’s a good idea to contribute as much into your tax-deferred retirement accounts as you can in any given tax year. The most common type of retirement account is the 401(k), which is an employer-sponsored retirement account into which they put some of your money pre-tax every month.The maximum allowed contribution to an IRA is $19,500 for 2020, or $26,000 if you are age 50 or over. If you aren’t able to contribute that much, try to at least max out any employer match option. The IRS permits taxpayers to deduct contributions in a take year that are made on or before the April 15 filing deadline for that year.Self-employed people don’t have access to an employer’s 401(k) plan, but they might instead consider contributing to other tax-deferred retirement savings options like a SEP IRA or a solo-401(k).
7. Make an extra mortgage paymentAbout 13.8 million taxpayers were eligible for a mortgage-interest deduction in 2018, even though the tax bill passed in 2017 reduced the number of homeowners who could take advantage of this option.If you are a homeowner and are still eligible for the deduction, you can get a deduction to offset your taxes by making an extra mortgage payment by Dec. 31. This option has some limitations: Homeowners who bought their home after December 15, 2017, can only write off interest on up to $750,000 in loans.
8. Change your filing statusThe IRS lets taxpayers choose one of five filing statuses: single, married filing jointly, married filing separately, head of household, and qualified widow(er) with dependent child. Whatever your marital status is on Dec. 31 qualifies as your status for the entire year.
Which status you choose can affect your tax return. While most married couples file jointly, it may not be the most advantageous option. Under certain conditions, such as if your spouse has a lot of medical expenses, it may make sense to separate your tax filings.Unmarried taxpayers who have dependents might be able to save some money by claiming head of household status.
You can claim this if you care for elderly parents, providing more than half of their support, even if you don’t live with them.It’s best to consult a tax professional to figure out which filing status is best for you, as well as how you can maximize your deductions. CPAs and EAs are trained to run scenarios to help you figure out the best way to approach your unique filing situation.
Taxfyle can help you get connected with an experienced and licensed CPA professional to file your taxes. We’re a one-stop online tax service with a deep network of U.S.-based CPAs and EAs who are ready to assist.
Not everyone has to file a tax return. It depends on your age, tax filing status, how much income you earn, and where that income comes from. If you have very little income, chances are you don’t need to file. However, a few circumstances may require tax filing or make filing a good idea even though it’s not required.Here’s what you need to know about how much you have to make to file taxes.
Filing Requirements for Most Taxpayers
Each year, the IRS publishes a table with the filing requirements for people who aren’t claimed as a dependent on someone else’s return. Here are those numbers from the 2020 Form 1040 Instructions.
Most people don’t have to file a tax return if their income was less than the standard deduction available for their filing status and age. One glaring exception is people who are married filing separately, who have to file if they make $5 or more. Age is a key factor in determining whether you need to file a tax return because people age 65 or older get a higher standard deduction.Income is the final factor in figuring out whether you need to file.
The IRS defines income as all income you received in the form of money, goods, property and services, including income from outside of the U.S., from sales of stock, and from a business. It also includes proceeds from the sale of your home, even if the sale isn’t taxable.
Filing Requirements for Dependents
If someone else claims you as a dependent, the IRS has different filing requirements. Your marital status, age, and income still matter, but the kind of income you receive also matters.The IRS generally breaks income out into two categories: earned and unearned income. Earned income includes salaries, wages, tips, income from a business, taxable scholarships, and fellowship grants.Unearned income includes interest, dividends, capital gains, unemployment benefits, social security benefits, pensions, annuity payments, and trust distributions.
Here are the 2020 filing requirements for dependents.Married dependents also have to file a tax return if they had at least $5 of income and their spouse files a separate tax return and itemizes deductions.Reporting a child’s income on the parent’s tax returnIf a dependent child has only interest, dividend, and capital gain distribution income, the child’s parent(s) can choose to report the child’s income on their own tax return. To qualify for this option, your child has to meet all of the following requirements:Under age 19, or under age 24 and a studentIncome only from interest, dividends, and capital gain distributionsIncome was less than $11,000Doesn’t file a joint tax return with their spouseDidn’t make any estimated tax payments, have federal income tax withheld, or have an overpayment applied from a previous tax yearIf your child meets all these requirements, use Form 8814 to report their income on your tax return.
Why You Might Have to File a Tax Return Anyway
Here are a few situations that may require you to file a tax return even if your income falls below the amounts noted above.You owe special taxes, including:
Alternative minimum tax (AMT)Additional tax on a qualified plan. For example, on early withdrawals from an IRA or non-qualified distributions from a health savings account (HSA).
Social Security or Medicare on tips you didn’t report to your employer or on wages you received from an employer who didn’t withhold taxes
You received distributions from a medical savings account (MSA) or HSA
You had at least $400 of earnings from self-employmentYou had at least $108.28 of wages from a church
You received an advance on the premium tax credit or the health coverage tax creditYou have untaxed earnings from a foreign corporation
You Might Benefit from Filing a Tax Return
In some cases, it might be in your best interest to file a tax return, even if it’s not required. Here are a few situations where that may be the case:
You can get a refund of federal income tax withheld
You qualify for refundable tax credits, such as the Earned Income Tax Credit, the Additional Child Tax Credit, or the American Opportunity Tax Credit
You qualified for an Economic Impact Payment (aka a stimulus check) but didn’t receive one. You can get that payment by claiming the Recovery Rebate Credit on a 2020 Form 1040 or 1040-SR.
You want to file as a precaution to start the clock on the statute of limitations for an IRS audit
You want to file a tax return to avoid having a fraudulent return filed using your Social Security number
According to the IRS, the average taxpayer spends 13 hours preparing their own tax return. Save time and let the Pros handle it!
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