Individual Tax Preparation

When is the deadline to file my individual tax return?

The deadline to file individual tax returns in the United States is April 15 of the year following the eligible tax year. If April 15 falls on a weekend or holiday, the IRS typically postpones the deadline to the next business day. 

Should I file my taxes electronically or by mail?

At Manay CPA, we encourage our clients to e-file their individual tax returns in order to expedite tax refunds and direct deposits. If you prefer to file your taxes via direct mail, the IRS also accepts that method of filing. 

What information do I need to gather for tax preparation?

It depends on your individual tax situation. We’ll guide you through gathering all necessary documents, including W-2s, 1099s, and other relevant financial documents. 

What are the most common tax deductions and credits for individuals?

Common tax deductions include mortgage interest, state and local taxes, charitable donations, and more. Common tax credits include the Child Tax Credit, the Earned Income Tax Credit, American Opportunity Tax Credit, and more. For a more extensive list of common tax deductions and credits for individuals, read our blog post here. 

What are the tax implications of owning a home?

Tax benefits for homeowners take various forms, from deductions for mortgage interest and property taxes to credits for energy-efficient home improvements. These benefits can result in substantial savings on your annual tax bill, making homeownership more affordable in the long run. However, these benefits often come with specific eligibility requirements and may vary based on factors such as your income level, the type of home you own, and the state you live in. For general information about the tax implications of owning a home, read our blog post here; for information specific to your home situation, consult with a tax professional. 

How do I report investment income on my tax return?

It is crucial for taxpayers to ensure all required income is reported on the tax return, such as any self-employment income, rental income, gambling winnings, investment income, cryptocurrency gains, freelance income, and so on. To report investment income, you must fill out Schedule D, Capital Gains and Losses, and transfer the necessary information onto Form 1040, U.S. Individual Income Tax Return. For additional guidance specific to your individual investment income situation, consult with a tax professional. 

What are the best tax preparation software options? 

Should I hire a tax professional?

It depends on your individual tax situation and your personal preference. Working with a tax professional can offer several advantages over e-filing or paper filing independently. Not only can a tax professional provide valuable expertise and guidance on complex tax matters, but they can also help you identify deductions and credits you may have missed on your own. Additionally, working with a tax professional can give you peace of mind knowing that your taxes are being handled accurately and efficiently, potentially saving you time and money in the long run. No matter how you ultimately decide to proceed with your taxes, you are welcome to a free consultation with a Manay CPA tax professional. 

What are the qualifications of a qualified tax preparer?

A tax preparer is an individual who prepares and files tax returns on behalf of other individuals or businesses. Such tax preparers filing returns for compensation are required to obtain a valid Preparer Tax Identification Number (PTIN). 

What are the tax implications of receiving unemployment benefits?

All unemployment compensation is taxed at the federal level, and the rate is determined based on your tax bracket and amount of taxable income. At the state level, unemployment compensation is taxed only in the states with income tax, and the rate varies from state to state. 

What are the tax rules for charitable donations?

When claiming a deduction for charitable donations, you’ll need a receipt of donation from the organization. Charitable contributions can be deducted up to 50 percent of adjusted gross income, but be mindful that this percentage varies depending on the type of charitable organization receiving the donation. 

How do I claim the Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit (EITC) is a refundable credit for low- to moderate-income working individuals and couples, particularly those with children. To claim the EITC, you must meet the required qualifications set by the IRS and file Form 1040, U.S. Individual Income Tax Return. If you believe one or more children in your household qualifies for the EITC, you must file Schedule EIC, Earned Income Credit, as part of your tax return. 

What happens if I receive a tax notice from the IRS?

If the IRS sends you any notice or request after you file your late returns, ensure you respond accurately and promptly. This may involve providing additional information, setting up a payment plan, or disputing a penalty. And remember, the IRS has an Offer in Compromise program, which allows you to settle your tax debt for less than the full amount you owe. 

How can I appeal an IRS audit?

To appeal an IRS audit, the taxpayer should file either a small case request or a formal written protest to the contact person named in the original letter they received from the IRS within 30 days of receipt. For further assistance with your IRS audit appeal, consult with a tax professional. 

What resources are available to help me learn more about individual taxes?

To learn more about individual taxes, visit our blog or consult with a tax professional.