Income Tax Preparation and Income Tax Services

Income Tax Preparation and Income Tax Services

Income Tax Preparation & Income Tax Services by Community Tax

If 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 Tax

Much 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 Tax

All 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 Tax

Every 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 Brackets

Tax 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 Bracket

Your 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 Brackets

Taxpayers 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 Tax

Community 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 Services

When 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

When tax season comes around, filing your taxes may be the least of your priorities. Daily obligations get in the way and emergencies happen, so filing taxes can fall by the wayside. Soon, the deadline to file is upon you and you find yourself scrambling to gather all of your important tax documents. Waiting to the last minute can cause you to make serious errors and forget deductions that could have given you a considerable return.

  • Mistakes Made on a Previous Return

Making a simple mistake on your taxes can cause problems in the future. When you make a mistake, you are at greater risk of audits, tax penalties, and accrued interest. It’s easy to gloss over past returns, but over time, you might want to hire a professional to look over your tax history. A qualified tax preparer can look over your past returns and find errors you might’ve missed, and correct them before they turn serious.

  • Back Taxes or Debt

As soon as you’re notified that you have unsettled debt, you should consult a professional. Large sums of debt can be overwhelming, but working with a tax expert means that someone is by your side to help you through it. CPAs, enrolled agents, and licensed tax attorneys have the ability to negotiate payment strategies and resolve debt. They’ll also work closely with you to create a budget to help you pay off your debt reasonably. Our team has diverse experience in a variety of tax debt situations, and we’ve helped many clients resolve their tax issues quickly and efficiently.

  • Change in Marital Status

Whether you’re married or divorced, your marital status as of December 31 of the previous tax year determines how you can file. A tax specialist from Community Tax can help you reach these milestones with a plan to move you forward. If you’re married, they’ll strategize to determine if you should file jointly or separately. Our tax preparers will also advise you on whether to file separately early to prevent an ex-spouse’s unpaid tax liability.

  • New Dependents

If your combined income as a couple filing jointly is less than $110,000, or $55,000 for a parent filing separately, you’re allowed to claim a tax credit up to $1,000 per child. If you plan to adopt, your tax credit can reach up to $13,000 per adopted child.

Are you the primary caregiver to an aging parent? You might be able to claim them as dependents as well. Direct family members that need extra care can generally be claimed as a dependent and earn you tax credit. Contact us and we’ll see if your status as a caregiver allows you more credit.

  • Change of Residency

Your residency as of December 31 can make a big difference in your tax return. Each state has different income tax requirements, and it can take time to adjust to local regulations. A qualified tax professional is acquainted with state and local income tax laws, so they can help you transition into your new place of residence without incident.

  • Buying or Selling Real Estate

One of our tax advocates can sit down with you and discuss your options before you buy new property. If you own multiple properties, we can help manage the taxes on your investments and incorporate benefits like a capital gains exclusion.

  • Audit

Getting audited by the IRS doesn’t need to be stressful. A tax specialist from Community Tax can quickly gather your financial information and present it to the IRS. Should issues arise as a result of the audit, your tax advocate will represent you before the IRS and negotiate a payment plan to ensure your finances are secure. Tax professionals have in-depth knowledge of the constantly changing tax code—this is especially important when you consider that there were almost 5,000 tax code changes enacted between 2001 and 2012.

 

  • Peace of Mind

Millions of Americans suffer from stress each year around tax season. When you hire a professional tax preparer, you know you’re taken care of. There’s no need to worry about costly mistakes, accounting for deductions, and filing your taxes on time. Having a tax professional on hand will take some of the burden off your shoulders.

Our Tax Preparation Services

 

We 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:

  • Audits
  • Corporate Tax Returns
  • Estate Taxes
  • Estimated Tax Payments
  • Individual Tax Returns
  • Missing Tax Returns
  • Tax Resolutions

Call us today and we’ll give you a free consultation. Don’t hesitate to ask us questions regarding our services; we’ll give you honest advice so you can take the first steps into a brighter financial future.

Our Certified Tax Preparation Experts

Every 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

Our enrolled agents are licensed directly by the IRS. Every enrolled agent must pass a three-part Special Enrollment Examination to demonstrate their proficiency in federal tax planning, individual and business tax return preparation, and representation of taxpayers. Some of our enrolled agents have experience working in the IRS, so they know the ins and outs of tax regulations.

  • Certified Public Accountants

CPAs are licensed by state boards of accountancy. To be a CPA, these professionals must complete a rigorous CPA examination. They generally study accounting or finance and must comply with ethical requirements to obtain their license. Our CPAs have extensive knowledge of tax preparation as well as other accounting matters to get you on the right track.

  • Tax Attorneys

 

Tax attorneys are licensed by state courts and must pass their state’s bar exam. Attorneys at Community Tax have an in-depth knowledge of tax law, so they understand how to navigate the on-going changes of federal and state tax regulations. They can also provide other services, like negotiating alimony during a divorce, and representing clients before the IRS.

Why People Choose Community Tax

At Community Tax, our clients come first. We’re dedicated to assisting taxpayers nationwide to solve their tax-related issues and create a bright financial future. Our team includes CPAs, enrolled agents, and licensed tax attorneys with extensive experience in almost every tax situation imaginable. Each tax professional takes a sincere interest in your concerns and will look at every aspect of your situation to create an effective plan that works for you.

We’re honored to have earned an “A+” rating from the Better Business Bureau, and accreditation from the Consumer Affairs department. We’ve worked with over 44,000 clients, and we’ve resolved over 250 million dollars in debt. Our tax preparation services range from simple tax solutions to complex IRS negotiations. When you choose Community Tax, you know you’re in good hands. Don’t hesitate to call us today at 888.684.5798 and we’ll get you started on the path toward financial freedom.