Tax preparation is the process of gathering and organizing financial information, completing tax forms, and filing tax returns with the appropriate government agencies.
If you are required to pay taxes, you are legally obligated to file a tax return with the government. Failing to do so can result in penalties and fees.
The deadline to file taxes in the United States is typically April 15th. However, this deadline can be extended in certain circumstances.
The specific documents you need may vary depending on your individual situation, but generally you will need W-2s or 1099s from your employer, documentation of any income from investments or rental properties, and receipts for any deductions or credits you plan to claim.
Yes, many people choose to prepare their own taxes using tax preparation software or paper forms. However, it can be beneficial to consult with a tax professional to ensure that you are taking advantage of all possible deductions and credits.
Common mistakes include entering incorrect information, failing to claim all available deductions and credits, and missing deadlines. It is important to carefully review all forms and double-check your work to avoid these errors.