Tax Filing Basics: Do You Have to File a Tax Return?

Not all income earners will have to file a tax return. Several factors could determine if you have to file, including the source of the income, how much you earned, your age and your filing status. For some people this is quite straightforward while for others it is not. For example, tax preparation for small business is sometimes easy and sometimes its quite hectic when there are too many entries to handle.

Check Eligibility

If your gross income is higher than your age threshold and filing status, you have to file a tax return. Provided no other claims arise from someone else.

If you are a dependent on the return of another person, differences exist in the rules. Single dependent under 65 and are not blind, are eligible to file a federal tax return was more than $5950. For the single dependents and are blind, you can file a tax return if your income was more than $7,400.

The under 65 who are married and not blind must file a tax return if their earned income was over $5950. 

Criteria for Self-Employed Persons

There are other reasons to file tax returns. The most frequent reason for undertaking this action if you do not meet the criteria above is for self-employed persons. The self-employed can file a tax return if their net earnings are less than $400. Special taxes, including taxes on retirement accounts, alternative minimum tax (AMT), household employment taxes, Medicare tax are other reasons to file a tax return.

Take a Tax Break

If you have made up your mind not to file a tax, you may have to take advantage of a tax break which is available. Excess with-holdings are an example of refund you might be entitled to. 

A lot of taxpayers may have been part of one of these categories. If you consider your situation to be out of the box, you have to file so that the IRS will not write you saying you should have filed.

Federal Rules

It is also crucial to consider that these are the federal rules. Though state rules might be very different and are quite inconsistent. We have no personal exemption and thus, taxpayers are subject to tax on the first dollar. It is possible, then, that you might have to file a state (or local) income tax return even provided you are exempted from federal income tax.

Or just, Ask For Help!!

As always, if you have questions, ask for help. There are so many resources out there. Most software packages have an interview interface that can walk you through your situation – but remembers that those are only as good as your answers. For the best results, consult with a tax professional or call the taxing authorities.

5 Points to Remember while looking for CPA Financial Services

Why hire a CPA firm?

Having a certified public accountant(CPA) or an agency providing such services can be very beneficial when it comes to a business. This is mainly due to CPA financial services being amongst the best and highly dependable, given due their qualification which is sometimes backed by years of experience.

CPA financial services also play a key role when it comes to auditing financial statements. Their expertise in the field is considered to be very essential to organisations ranging from the public to private sector as such qualified personnel are known to be very effective in their field of work. CPA in Gaithersburg is said to have a very well experienced and skilled set of people, who are mainly focused on working in the private and public sector.

Through a CPA who knows what works best, you can even audit financial statements with complete accuracy. The services rendered by such high end qualified personnel can be very crucial in dealing with minor specifications and technical necessities. The CPA financial services are very detailed and informed in nature. The technique and approach used by them make their expertise very essential in today’s business world.

Keep the following points in mind while looking for CPA Financial Services:

• CPAs provides excellent financial services mainly in the form of aiding with tax preparation services and its related segments. These individuals through a blend of experience and skill manage to find what works best and what doesn’t. Their expertise puts them in a position to judge with legitimacy regarding what is best to solve financial, business and investment questions.
• When looking for CPA in Gaithersburg, it is essential to look for personnel who are experienced in work within the state. This will lead to more promising results.
• Do not hire based only on experience, make sure that you keep a good track of all available options so that choosing what works best is the right choice.
• Remember to hire a certified public accountant who knows the subject that is being dealt with inside out. Which means knowing all not just through thorough reading, but as a result of experience too.
• Always hire a CPA who is willing to handle the affairs with complete dedication and skill.

CPA financial services are increasing in demand as days’ pass. The stringent cpa exam that they have to write alongside the depth of knowledge that is possessed, makes them a requirement for fueling financial growth.