Aug 2, 2013

Louisiana Tax Preparation Services Can Help Both Individuals And Businesses

By Cathy Mercer


Getting taxes done is a necessity for all individuals and businesses. Even those who do not make enough money to be required to pay taxes often still have to file a return. In Louisiana tax preparation is available for large businesses and also those who just need to file a 1040EZ.

Finding a tax preparer depends upon a couple of factors. What type of return you need to file is the first consideration. A single individual or a couple who files as married filing joint with wage income and no dependents can file a 1040EZ, which is the shortest form and very easy to fill out. A tax preparer will charge less for this form than for any other complete form.

A 1040A form can be filed by taxpayers who do not plan on itemizing deductions. This form can also be used if the individual or couple plans on claiming the child tax credit, credit for dependent care, or the EIC (earned income credit.) The alternative minimum tax can also be used on this form in lieu of the amount from the tax table.

A 1040 form (also known as the long form) has certain instances when it must be used. It must be filed if the individual's income is over $100,000 or if they choose to itemize deductions. This form must also be used if the individual has self-employment income.

Itemized deductions can be of benefit to an individual in certain cases. The majority of taxpayers take advantage of the standard deduction, however if one has a large amount of medical expenses, property taxes, or charitable contributions, itemized deductions can reduce the tax owed in excess of the standard deduction. Medical deductions must meet certain requirements, and can include insurance premiums, if not paid for by the individual's employer.

All businesses can benefit from using a tax service. Many tax preparers are also bookkeepers or accountants and can be used the rest of the year to record and classify income and expenses. This also makes the tax filing process easier at the end of the year, or the end of the quarter in some cases. A preparer who is also a CPA can often give tax advice to businesses and individuals that could help reduce tax liability.

An individual who owns a business that is a sole proprietorship must also file a Schedule C or Schedule C-EZ along with their 1040 form. Half of all self-employment tax is also deducted on the 1040 before the adjusted gross income is calculated. This reduces the overall taxable income for that individual. The type of business determines what type of form needs to be filed so it is important to check with a tax professional to be sure.

In Louisiana tax preparation can be taken care of easily and efficiently by contacting one of many tax professionals in the area. These professionals often specialize in a particular type of tax, so the individual should ask questions to determine if that company is a good fit for their situation. Timely filing of taxes saves money, as penalties do incur if filing is not done on time. A good tax preparer will ensure that deadlines are met and all requirements are satisfied.




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