Tax preparation is simply the process of preparing financial documents, usually income tax forms, for a non-resident taxpayer, for employment, and in most cases for personal compensation. Tax preparation can be done entirely by the individual taxpayer themselves, without the assistance of tax preparation services and/or tax preparation software. In some cases, taxpayers may utilize various types of tax preparation assistance, including: tax preparation assistance from an accountant or bookkeeper, assistance from a CPA, payroll preparation assistance, obtaining the proper tax assessment and filing the appropriate forms, as well as preparation of an income tax return (ITR). Taxpayers, who utilize these services may also receive additional tax education, such as information on qualifying retirement accounts, property taxes and so forth. Taxation professionals typically provide taxpayers with various options, including: individual voluntary arrangements (IVAs), couple’s tax agreements, joint tax agreements, estate tax planning, as well as estate tax preparation. Individuals can utilize any one or several of these strategies to file their taxes.Learn more about them at Virginia Beach Certified Public Accountant Association
Some taxpayers may also choose to utilize either TurboTax or TaxMate, which are software programs that automate many aspects of filing federal tax returns. TurboTax is a state-of-the-art program that allows taxpayers to fill out their taxes online; it then compiles the information and creates tax quotes. TaxMate is a similar program that allows tax filers to generate tax quotes using a pre-designed template, rather than being required to supply their own information. These programs are especially helpful to individuals who may have improperly entered or filled in information on their federal tax returns. Both programs are extremely user-friendly but TurboTax and TaxMate require a bit more specialized training than the majority of taxpayers are comfortable completing on their own.
Individuals may also utilize the services of a tax preparation specialist. A tax preparation professional typically charges a fee for their tax preparation services. They will utilize their tax knowledge and resources to properly file your federal and state tax returns. Because these professionals have so much tax preparation experience, they generally are very confident in their abilities. However, it is still very important for you to do your own due diligence before hiring a tax preparation specialist. Make sure the tax preparation professional you are considering has experience with your particular tax situation and can provide you with a cost estimate for his or her services.