Pricing depends on the complexity of your tax return and the time needed to prepare it. For example, simple returns may cost less, while returns with self-employment income, investments, or rental property require additional work and may cost more. Please contact us for a personalized quote designed around your specific circumstances.

The usual deadline to file your Form 1040 individual tax return is April 15th each year. If needed, you can file for an extension that gives you until October 15th to submit your return. However, please note that an extension to file is not an extension to pay any taxes owed—payments are still due by April 15th to avoid penalties and interest.

Choosing the correct filing status and properly claiming dependents are critical steps that affect your tax rates, standard deduction, eligibility for credits, and overall tax liability.

Filing Status Options:

• Single: Generally used if you are unmarried, divorced, or legally separated as of the last day of the tax year

• Married Filing Jointly: Available if you are married and both spouses agree to file one combined return; this status usually offers the most favorable tax rates and higher deduction limits

• Married Filing Separately: You’re married but choose to file separate returns; this can be beneficial in limited cases but often results in higher taxes and loss of certain credits

• Head of Household: For unmarried taxpayers who pay more than half the cost of maintaining a home for a qualifying dependent (such as a child or relative); this status provides a higher standard deduction and more favorable tax brackets than single filing

• Qualifying Widow(er) with Dependent Child: If your spouse died within the last two years and you have a dependent child, you may qualify to use this status, which offers benefits similar to married filing jointly

Claiming Dependents:

• A dependent is usually a qualifying child or relative who meets IRS tests regarding relationship, residency, age, support, and income

• Properly claiming dependents can qualify you for valuable tax credits such as the Child Tax Credit or the Credit for Other Dependents

• Dependents must have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to be claimed

• If more than one taxpayer claims the same dependent, the IRS has tie-breaker rules to determine who is eligible

Your filing status and claimed dependents affect your standard deduction amount, tax brackets, eligibility for credits, and even retirement account contribution limits. Selecting the correct status helps minimize your tax bill and avoid IRS issues.

To ensure your individual tax return is prepared accurately and efficiently, it’s important to gather all relevant financial documents. Typically, this includes:

• Wage and Salary Income:
  

  • Form W-2 from all employers during the tax year

• Self-Employment and Business Income:
  

  • Form 1099-NEC for independent contractor or freelancer income

  • Form 1099-MISC for miscellaneous income such as rents or prizes

  • Records of cash payments or other income not reported on forms

  • Profit and loss statements or accounting records for business activities

• Investment Income:
  

  • Form 1099-INT for interest income from bank accounts, bonds, etc.

  • Form 1099-DIV for dividends and distributions from stocks or mutual funds

  • Form 1099-B for proceeds from stock sales or other broker transactions

  • Form 1099-OID for original issue discount income

  • Schedule K-1s from partnerships, S corporations, estates, or trusts

• Retirement Income:
  

  • Form 1099-R for distributions from pensions, IRAs, 401(k)s, annuities, etc.

  • Form SSA-1099 for Social Security benefits

• Rental and Real Estate Income:
  

  • Records of rental income received

  • Expenses related to rental properties

  • Form 1099-S for real estate transaction proceeds

• Other Income Types:
  

  • Form 1099-G for unemployment compensation

  • Alimony received (for divorces finalized before 2019)

  • Form W-2G and records for gambling winnings and losses

  • Form 1099-C for cancellation of debt

  • Taxable scholarships or fellowship grants

  • Jury duty pay, hobby income, prizes, awards, and other miscellaneous income

• Foreign Income:

• Foreign income statements or equivalent documentation

• Forms 2555 or 1116 for foreign earned income exclusion or tax credit, if applicable

If you earned income that is not reported on an official IRS form, please keep detailed records including amounts, dates, and sources to ensure accurate reporting.

Providing these documents early helps avoid delays and penalties while maximizing your potential refunds or savings. If you’re unsure about what to include, just ask—we’re here to guide you every step of the way.

There are two main types of deductions that can reduce your taxable income: above-the-line deductions (also called adjustments to arrive at adjusted gross income, or AGI) and below-the-line deductions (itemized deductions or the standard deduction).

Above-the-Line Deductions:

These deductions reduce your AGI and apply whether or not you itemize. Common examples include:

• Deducting half of your self-employment tax if you’re self-employed

• Contributions to traditional IRAs (subject to limits and eligibility)

• Contributions to Health Savings Accounts (HSAs) if you have a high-deductible health plan

• Student loan interest up to $2,500 (subject to income limits)

• Educator expenses for eligible teachers

• Certain other less common deductions like penalties on early savings withdrawal or moving expenses for active-duty military

Below-the-Line Deductions:

When it comes to below-the-line deductions (those claimed after calculating your AGI), taxpayers generally choose between taking the standard deduction or itemizing deductions—whichever results in a lower tax bill.

• Standard Deduction: This is a fixed dollar amount set by the IRS (adjusted annually for inflation) based on your filing status. It simplifies tax filing because you don’t need to list individual expenses. For many taxpayers without significant deductible expenses, the standard deduction is the easiest and most beneficial choice.

• Itemized Deductions: Instead of taking the standard deduction, you can itemize by listing eligible expenses such as:
  

  • Mortgage interest on your home loan (subject to limits based on the amount of your mortgage and when the loan was taken out)

  • Charitable contributions to qualified organizations (subject to AGI limits)

  • Medical and dental expenses that exceed 7.5% of your AGI

  • State and local income or property taxes paid (subject to a combined deduction cap)

  • Casualty and theft losses from a federally declared disaster (subject to limits)

  • Certain other miscellaneous expenses

You’ll want to itemize only if your total deductible expenses exceed the standard deduction amount for your filing status. Choosing the right deduction method can save you money, and we'll help you determine which option works best for your situation.

Tax credits directly reduce your tax liability dollar-for-dollar and can significantly lower the amount you owe or increase your refund. Some credits are refundable (meaning you get a refund even if you owe no tax), while others are non-refundable (can only reduce tax owed to zero).

Common Individual Tax Credits:

• Child Tax Credit (CTC): Available for each qualifying child under age 17, providing a credit of up to $2,000 per child, with up to $1,500 refundable as the Additional Child Tax Credit (income limits and phaseouts apply)

• Earned Income Tax Credit (EITC): Designed to benefit low-to-moderate income workers; the amount depends on your income, filing status, and number of qualifying children; must meet specific earned income and investment income limits

• American Opportunity Tax Credit (AOTC): For qualified education expenses paid for the first four years of higher education; worth up to $2,500 per student annually, with 40% refundable (income limits apply)

• Lifetime Learning Credit (LLC): Covers qualified tuition and related expenses for undergraduate, graduate, and professional courses; worth up to $2,000 per return annually (non-refundable); no limit on years claimed, but income phaseouts apply

Note: You cannot claim both the American Opportunity Tax Credit and the Lifetime Learning Credit for the same student in the same tax year—choose the one that provides the greater benefit. However, if you have multiple students, you may claim different credits for each.

• Child and Dependent Care Credit: For expenses paid for the care of a qualifying child or dependent so you can work or look for work; the credit is a percentage of eligible expenses up to a certain limit, based on income

• Saver’s Credit: Available to low- and moderate-income taxpayers who contribute to eligible retirement accounts such as IRAs or 401(k)s; the credit ranges from 10% to 50% of contributions (subject to income limits)

• Residential Energy Credits: For qualified energy-efficient home improvements or solar energy systems; these credits help offset the cost of making your home more energy-efficient

Each credit has specific eligibility criteria, income limits, documentation requirements, and sometimes phaseouts. Keeping accurate records and providing proper documentation helps ensure you claim all credits you qualify for.

Deductions reduce your taxable income, lowering the amount of income subject to tax, while credits directly reduce the amount of tax you owe—both can help save you money.

Providing accurate documentation helps ensure your tax return is complete and enables you to claim all the deductions and credits you’re eligible for—potentially lowering your tax bill or increasing your refund. To maximize your benefits, please provide documentation for the following items, if applicable:

• Mortgage and Property Taxes:

• Mortgage interest statements (Form 1098)

• Property tax bills and receipts

• Points paid on mortgage loans

• Records of mortgage insurance premiums paid (may be deductible)

• State and Local Taxes

• State and local income tax paid (including estimated payments)

• Vehicle registration fees based on value (if deductible in your state)

• Charitable Contributions:

• Receipts or acknowledgments for cash donations to qualified organizations

• Documentation of non-cash donations, including fair market value and condition

• Records of mileage driven for charitable purposes

• Medical and Dental Expenses (if itemizing):

• Receipts and statements for medical and dental expenses paid out-of-pocket

• Prescription drug costs

• Health insurance premiums not deducted elsewhere

• Long-term care insurance premiums (if applicable)

• Mileage for medical-related travel

• Education Expenses:

• Tuition payment statements (Form 1098-T)

• Student loan interest statements (Form 1098-E)

• Records of qualified education expenses for claimed credits (such as books and supplies)

• Child and Dependent Care:

• Statements from childcare providers including provider’s name, address, and tax ID

• Receipts for babysitting, daycare, or summer camps qualifying for credit

• Retirement Contributions:

• Records of contributions to traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, and other qualified retirement plans

• Documentation of employer-sponsored retirement plan contributions such as 401(k), 403(b), or 457 plans (especially if you made after-tax or Roth contributions)

• Records of any rollovers or conversions between retirement accounts during the tax year

• Statements showing any distributions, withdrawals, or required minimum distributions (RMDs) taken during the year

• Documentation supporting eligibility for retirement-related tax credits, such as the Saver’s Credit

• Forms 5498 (IRA contributions) and 1099-R (distributions) if provided by your plan administrator or financial institution

• Energy and Home Improvements:

• Receipts and certification statements for energy-efficient home improvements (solar panels, windows, insulation, etc.)

• Records of electric vehicle purchases or qualified plug-in hybrids

• Documentation supporting residential energy credits

• Other Tax Credits and Deductions:

• Records of contributions to HSAs (including employer contributions)

• Documentation of qualified medical expenses paid with HSA funds

• Records of FSA contributions and qualified medical or dependent care expenses

• Adoption expenses and related legal fees

• Records of any casualty or theft losses

• Records of business use of your home (home office expenses)

• Expenses related to moving for work (if qualified)

• Records of educator expenses for teachers (out-of-pocket classroom supplies)

• Records of state-specific tax credits such as college savings plans (check your state’s rules)

• Military-related deductions or credits documentation

• Any other documentation supporting specific credits you intend to claim

Please note that eligibility for deductions and credits varies based on your individual situation and current tax laws. If you’re unsure about any documents or deductions, feel free to ask—we're here to help.

In addition to income and deduction documents, please provide the following items as applicable to your situation to help ensure a smooth and accurate tax filing process:

• Social Security numbers or ITINs for yourself, your spouse, and any dependents

• Dates of birth for yourself, your spouse, and dependents

• Copy of last year’s federal and state tax returns, if available

• Health insurance forms (1095-A, 1095-B, or 1095-C) verifying coverage during the tax year

• Health Savings Account (HSA) contribution and distribution records

• Estimated tax payments made during the year

• Bank account and routing numbers for direct deposit or payment purposes

• Records of any virtual currency transactions, if applicable

• Any correspondence received from the IRS during the tax year

Most individual returns can be completed within a few days after all necessary documents are received. However, the exact timing can vary depending on the complexity of your tax situation and how quickly you provide the required information.

Possible delays can occur if:

• Additional documents or clarifications are needed

• There are complex issues such as multiple income sources, investment sales, or itemized deductions

• You file close to the tax deadline, which can increase workload and turnaround times

To help avoid delays, it’s best to gather and submit all your documents as early as possible and respond promptly if additional information is requested. Expect clear and timely updates on your filing and refund status.

Protecting your personal and financial information is a top priority. We use TaxDome, a secure and encrypted client portal trusted by accounting professionals, to handle all your sensitive documents and communications.

TaxDome employs advanced encryption and multi-factor authentication to ensure your data remains private and protected from unauthorized access. When tax documents or information are uploaded, it is done safely within TaxDome’s secure environment—providing peace of mind throughout the tax preparation process.

Client information is protected in accordance with the ethical standards and code of conduct established by the CPA profession and the American Institute of CPAs (AICPA). Strict confidentiality requirements and adherence to these professional guidelines ensure your data is handled with the highest level of care and professionalism. Additionally, compliance with industry best practices and IRS privacy regulations further safeguards your information throughout the process.

Retirement contributions and health insurance premiums can be confusing because their deductibility depends on several factors—including your employment status, the type of account or insurance, and how payments are made. Here’s a breakdown to clarify:

Retirement Contributions:

• Traditional IRA: Contributions may be deductible depending on your income, filing status, and whether you or your spouse participate in an employer-sponsored retirement plan. If deductible, these contributions reduce your taxable income. If not deductible, contributions can still grow tax-deferred

• Roth IRA: Contributions are made with after-tax dollars and are not deductible. However, qualified withdrawals in retirement are tax-free

• 401(k) Plans: Contributions are usually made pre-tax through payroll deductions, reducing your taxable wages for the year. These contributions are deductible in the sense that they lower your reported income but are not reported separately as a deduction on your tax return

• SEP and SIMPLE IRAs: Designed primarily for self-employed individuals and small business owners, contributions to these accounts are generally deductible as a business expense, reducing taxable income. However, these contributions do not reduce your net earnings from self-employment when calculating self-employment tax

Health Insurance Premiums:

• Employed Individuals Covered by Employer Plans: If your health insurance premiums are paid through your employer with pre-tax dollars (via payroll deductions), you cannot deduct these premiums on your tax return because they were never included in your taxable income

• Self-Employed Individuals: If you’re self-employed, you may be eligible to deduct health insurance premiums for yourself, your spouse, and dependents “above the line” on your tax return. This means these premiums reduce your adjusted gross income (AGI), regardless of whether you itemize deductions

• Paying Premiums with After-Tax Dollars: If you pay your own premiums (not self-employed and not through an employer plan), you may include those premiums as part of your itemized medical expenses. However, only the amount of total unreimbursed medical expenses (including premiums) that exceed 7.5% of your AGI can be deducted

• Health Savings Accounts (HSAs): Contributions to HSAs are deductible if you have a high-deductible health plan, either “above the line” (reducing AGI) or through your employer if made via payroll deductions

Why Is This Confusing?

The confusion arises because:

• Different rules apply based on whether you’re self-employed or employed

• Some deductions reduce your AGI directly (above the line), while others only apply if you itemize

• Employer-paid premiums are excluded from taxable income, so you don’t deduct them again

• Retirement accounts come in many forms with different tax treatments

• Deduction thresholds and phaseouts vary based on income and other factors

Because these rules are nuanced and frequently updated, each client’s situation is carefully reviewed to provide clear, personalized guidance.

If you earn income not subject to withholding (such as self-employment income, rental income, or investment income), you may need to make estimated tax payments throughout the year to avoid penalties and interest.

Estimated Taxes:

• Estimated taxes are quarterly payments made to the IRS to cover income tax, self-employment tax, and other applicable taxes

• Typically due on April 15th, June 15th, September 15th, and January 15th of the following year

• If you expect to owe $1,000 or more in tax after subtracting withholding and refundable credits, you generally need to make estimated payments

• Payments can be made online, by phone, or by mail using Form 1040-ES vouchers

Self-Employment Tax:

• Self-employment tax covers Social Security and Medicare taxes for individuals who work for themselves

• The current rate is 15.3% on 92.35% of your net self-employment income, consisting of 12.4% for Social Security and 2.9% for Medicare; the Social Security portion applies only up to the annual wage base limit, which changes annually, while Medicare tax has no income cap

• You can deduct half of your self-employment tax as an “above-the-line” deduction when calculating adjusted gross income

• Calculated on Schedule SE, which accompanies your Form 1040

Paying estimated taxes helps you avoid costly underpayment penalties and spreads your tax payments evenly throughout the year. Understanding self-employment tax ensures you properly plan for Social Security and Medicare contributions, which affect future benefits.