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The Most Common Questions Answered by A CPA
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Posted By Ernestine Cartagena
If you own a business, no matter small or big, you need someone to look over your finances and handle your taxes for you. When looking for a tax preparer or a CPA, you want to ensure you are looking for the right one. The wrong tax preparer can put your business at risk of an audit and result in legal penalties like hefty fines and imprisonment.
That being said, a person with barely any knowledge about the tax system can seek consultation from a CPA and get their queries solved. One of the best ways to ensure you have the right information about your business’s tax planning is by speaking to a San Mateo tax planning and preparation expert.
Common questions answered by a CPA
- How do I know if I have to file a tax return?
Whether you are required to file a tax return depends on a few factors, such as your gross income, age, filing status, and whether you are dependent on another party’s federal income tax return. You may have to file a tax return even if you do not owe any taxes. Speak to an expert to get more information about who must file.
- When are taxes due?
The income tax deadline is usually on April 15th. In some cases, states might extend the deadline. For example, in case of a pandemic or another emergency. However, not all states may extend their deadline or change their laws. Therefore, it is recommended to be updated with the ever-changing laws or speak to an expert equipped with legal knowledge.
- What kind of deductions do I qualify for?
Almost everyone qualifies for some standard deductions, and these are often the biggest deductions available to you. While self-employed people and business owners have various opportunities to save money, employees also have many options. For example, if you are an employee, you can deduct contributions made to IRAs, HSAs, and FSAs. You can also deduct student loans if you meet certain criteria.
- How do I file a tax return?
You can file a tax return in several ways. Here are some options you have:
- IRS e-file
- Free online tax filing
- DIY
- Paid tax professional
You can work with a professional in San Mateo to determine which method works best for you. Submitting electronically rather than physically has several advantages. You can get refunds sooner through the internet than paper returns.
