Tax Services and Tips for Individuals and Small Business

Tax laws are continually changing, and it’s essential to be aware of all the new regulations, so you file your income taxes correctly and efficiently. By taking advantage of all new tax laws, you can potentially save thousands of dollars on your next tax return.

With Georgen Scarborough, your life can become less taxing. We provide:

— Electronic filing (e-filing) for Federal, Virginia, Maryland and all other states

— Income tax planning

— Estimated tax preparation

— Equipment depreciation, pension, 401K and other services for self-employed

Whether you have just reached adulthood, or are a new resident in America, the first time you file your income tax return can be a daunting experience. Here are some tips to help you through the process.

Tax Tips

1. When to File a Tax Return

It’s possible that if your income is below a certain amount, you will not need to file an income tax return. However, if you want to claim any refundable tax credits, or get a refund for any income tax withheld from your paycheck, you must file a tax return.

2. Have tax documents ready

Before you start, make sure you have all your tax documents ready. These can include:

•W-2 (Wage and Tax Statement)

•1099 (Income other than employment income)

•Educational expenses

•Supporting documents such as receipts

What forms you need will depend on your individual circumstances, so think about things that could impact taxes like any change in your job, selling stocks or other investments, opening retirement accounts, or medical expenses.

3. Remember Side income

If you have earned income from freelancing work like rideshare driving or deliveries, don’t forget to report that income on your tax return. You can often deduct expenses related to your work like maintenance costs to your car, insurance, supplies etc.

4. Claim all your relevant deductions and credits 

Deductions and credits can lower the amount of tax you owe or increase your refund, but you must file and claim them to take advantage of these. Common deductions for first-time filers include:

•Education credits

•Student loan interest deductions

•Home office deductions for self-employed people

5. Choose how to file 

There are many ways to submit your income tax return. You can go old-fashioned and file by paper through the post office, but if you want your refund quickly, you should consider filing online or having your taxes done by a tax preparation service.

Tax Filings for Small Business

Every small business wants to find the best ways to reduce their tax liability and better conduct their affairs with the IRS. Also, in 2021, as many companies face reduced income due to the COVID-19 pandemic, business owners will be looking for ways to cut costs wherever possible.

Here are five key small business tax tips to help you do so.

1. See if your business is eligible for different tax treatment

2. Increase your business savings plan – or get one started

3. Invest in new equipment

4. Contribute to charity

5. Make the most of your losses

Filing your taxes can be stressful, especially if your tax return is any more complex than a standard individual W-2. Getting a CPA to do your taxes, rather than doing it yourself, can save you a lot of hassle and possibly some money.

Each year tax laws seem to become more complicated and studies have shown that a person may spend as many as 30 hours preparing an income tax return.

Whether we like it or not, tax preparation is now more confusing than ever.

According to a study from the U.S. General Accounting Office, more than 75% of 71 million taxpayers indicated they benefited from using professional tax preparation. CPA-filed returns are also less likely to be selected for audit.

Would you like more information?