Filing taxes can be intimidating, especially for the first time filer, so if you have questions about the process of tax preparation, it is critical to contact an experienced financial management team who can walk you through the process.
Before beginning the filing process, a potential taxpayer must determine whether he or she meets the income requirements, which is determined based on the filer’s age and dependency status. However, even if you are not required to file, you should still consider it if your employer withheld taxes from your paycheck, as this means that you could collect a tax refund.
Taxpayers must also make sure that their employer provides them with a Form W-2, which shows an employee’s gross and net wages as well as withheld taxes. Employees should also find out whether their earnings are being invested in a 401(k) or retirement plan. This is important because taxpayers who contribute a certain amount of their paycheck may be able to claim the Retirement Savings Contribution Credit. Taxpayers must have a Form W-2 from each employer before filing their taxes.
When filing taxes, each person must make sure that they choose the correct status, which could include:
Married filing jointly
Married filing separately
Head of household
Qualifying widow(er) with a dependent child
Filing taxes under the wrong status can have serious implications, so if you are unsure of your status, it is important to contact an experienced tax preparation professional who can advise you.
First-time taxpayers should also account for any deductible expenses. This is an important step because deductions can lead to a significant tax refund. However, in order to collect a tax refund, the taxpayer will need to provide documentation, such as an invoice or proof of payment. Furthermore, taxpayers will also need to clearly differentiate between personal and business deductions.
Although filing taxes can be intimidating and frustrating, it doesn’t have to be, so if you have questions or concerns about the process of filing your taxes, please contact a member of our CORE financial team in Oklahoma City by calling 405-288-1206. If you wish to speak with a member of our Lawton team, please call 580-353-2376, or if you’d prefer to speak with a Tulsa representative please call 918-209-3441 today.