Income Tax Preparation & Income Tax Services by Community TaxIf your income changed within the last tax year, your taxes may have altered dramatically. Entering a new income tax bracket can be tough, and without a tax professional by your side, you can make major mistakes and miss opportunities to save. If you want to make the most out of your returns and avoid harsh penalties, the income tax preparers from Community Tax are ready to help. When you choose Community Tax, you take back the reins of your finances. Our team of tax professionals have decades of combined experience in the field, helping clients in almost every financial situation imaginable. Reach out to us, and we’ll pair you with one of our tax experts, accountants, CPAs, or enrolled agents who will tailor a plan specifically to your goals. Together, we can help you maximize returns, minimize risk, and resolve any income tax issues.
What is Income Tax?In the US, income taxes are the single biggest source of tax revenue for the federal government. All individuals and businesses are required to file an income tax return every year to decide whether they owe taxes or are eligible for a tax refund. IRS laws and regulations determine the amount of tax owed and refunds issued.
Individual Income TaxMuch of the income you make is subject to income tax, including any dividends, interest, lottery winnings, royalties, rents, and unemployment compensation. The IRS allows a certain amount of deductions that you can subtract from your gross income to determine your taxable income. These deductions include education expenses, some medical and dental bills, mortgage interest, charitable contributions, and more. Credits and deductions can greatly reduce the amount you owe in taxes each year. Our experts can determine which deductions you qualify for to maximize your refund.
Business Income TaxAll businesses and self-employed individuals are obliged to pay a business income tax. If you own a business, you must pay a business income tax as you receive income throughout the year through estimated tax payments. Like the individual income tax, businesses can deduct certain expenses to create a gross taxable business income.
State and Local Income TaxEvery state exercises their own income tax requirements. As of 2016, only seven states don’t impose income taxes on their residents, including Texas, Alaska, Nevada, Florida, Washington, Wyoming, and South Dakota. Our tax professionals can keep you up to date on the latest tax codes imposed by the federal, state, and local governments to keep you in good standing with the IRS.
What is an Income Tax Bracket?Income tax brackets include a range of incomes that are subject to a certain tax rate. The tax bracket is part of a progressive tax system, in which the percentage of tax taken from income increases as your income increases. This means that taxpayers who make a low income will pay less in income tax than those who make much more. The IRS has issued seven federal tax brackets, with a tax rate ranging from 10% to 39.6% of income tax depending on the amount of income. Tax brackets are adjusted every year for inflation using what’s called the Consumer Price Index.
Arguments for and Against Tax BracketsTax brackets were made to help people retain a decent standard of living, regardless of their income. Those who make a higher income have a higher tax rate because they can presumably afford to pay more, while low-income individuals have a lower tax rate so they can meet their basic needs. Proponents of tax brackets claim that this offsets the inequality of income distribution among the poor, middle class, and wealthy. Some people argue that the progressive tax system is counterproductive. They believe that it’s unlawful to discriminate taxation between the rich and the poor. Under this progressive tax system, the wealthy class can exploit ways to protect earnings and assets so they can spend less in taxes, which deprives the government of revenue.
How to Determine Your Tax BracketYour heart might race when you see what tax bracket you fall under, but don’t fret: your tax bracket is based on your taxable income, not gross income. The IRS allows you to take certain deductions from your gross income to determine your taxable income. Your resulting income is what you use to determine your tax bracket. Note that your income tax rate may change slightly depending on how you file. Single filers, joint married filers, separate married filers, widow filers, and head of household filers can alter your tax bracket. A qualified tax expert can strategize how you should file to maximize your returns, whether you file jointly or separately.
Tax Rates vs. Tax BracketsTaxpayers sometimes use the two terms interchangeably, but they’re quite different. The tax bracket is the income range in which people are taxed, and the tax range is the percentage of that income that is taxed. All taxpayers, besides those who fall in the lowest bracket, are taxed progressively. You may be subject to several different tax rates, so your tax bracket doesn’t always precisely determine how much you’ll pay in taxes. Confused about which tax bracket you fall under? Don’t break out the calculator just yet; a skilled tax preparer can determine your tax rate for you. Avoid making mistakes and getting over taxed by teaming up with Community Tax. We’ll decide your actual tax rate by analyzing your ratio of income. If you have any questions along the way about your income tax bracket, we’re happy to work with you every step of the way.
Why You Should Hire a Tax Preparer from Community TaxCommunity Tax has your best interests at heart. If you want to maximize your returns and stay out of debt, it may be time to hire one of our experienced and certified tax specialists. Our income tax services have helped clients pay within their tax bracket without sacrificing their livelihood. We take integrity seriously, so we retain high ethical standards while making the most out of your return. We know that a fair return is a secure return, so we don’t exploit loopholes or try to cheat the IRS. You can remain in good standing with the IRS if you work with a certified tax preparer from Community Tax. Our tax specialists understand that many of our clients come to us under pressure from tax authorities, so we dedicate ourselves to creating returns with the most precise and up to date information. Whether you’ve made a mistake in your taxes or you need to negotiate a payment plan with the IRS, our professionals are ready to represent you and create a comprehensive strategy to suit your goals.
Reasons to use Our Tax Preparation ServicesWhen it comes to tax season, income taxes are the tip of the iceberg. As the years go by, your taxes can become complex and difficult to manage. Whenever you make a major life change, it’s time to reevaluate your tax plan. If you reach one of these milestones, contact Community Tax and we’ll give our honest advice on the next steps you should take.
- Not Enough Time
- Mistakes Made on a Previous Return
- Back Taxes or Debt
- Change in Marital Status
- New Dependents
- Change of Residency
- Buying or Selling Real Estate
- Peace of Mind
Our Tax Preparation ServicesWe offer more than income tax preparation. Whether you want to stay on top of your finances or you’re digging your way out of debt, we have a wide range of tax services to get you on the right path. Our clients often pair income tax preparation with other tax services for a more comprehensive financial plan. We’ve resolved thousands of cases, and we’ll assign you a team of tax specialists who have a genuine interest in your financial pursuits. Need to resolve a tax issue with the IRS? Our tax advocates want to support you. We provide a number of tax services to our clients, including:
- Corporate Tax Returns
- Estate Taxes
- Estimated Tax Payments
- Individual Tax Returns
- Missing Tax Returns
- Tax Resolutions
Our Certified Tax Preparation ExpertsEvery tax preparer is licensed with a Preparer Tax Identification Number (PTIN), but many of our tax preparers are also Certified Public Accountants, tax attorneys or enrolled agents. Any tax professional with a PTIN is authorized to file federal tax returns, but each of our experts specialize in different skills. Every member of our team comes to the table with unique tax experience, so you can rest assured that you’ll be well taken care of.
- Enrolled Agents
- Certified Public Accountants
- Tax Attorneys